ACC 499 Week 4 Discussion 1 "Fair Value Accounting Under IFRS"

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7/30/2020 Thread: Week 4 Discussion 1 – ACC499005VA016-1206-001

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Week 4 Discussion 1 C O L L A P S E

posted 9 years ago (last edited 1 year ago)Anonymous

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Use the Internet to research recent articles (within the last two years) on fair value measurement of assets for financial reporting. Evaluate the potential interaction of IFRS13 fair value measurement with other IFRS fair value measurement standards. Create an argument for the increased disclosure requirements under IFRS 13 as compared to other IFRS standards addressing fair value measurement. Provide support for your argument. Note: For citing internet sources in your discussion, please see the Web Sources section of the Strayer Writing Standards guide available in the left-hand menu.

"Fair Value Accounting Under IFRS"

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RE: Week 4 Discussion 1

2 days agoAndrea Caldwell

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Professor,

Please help me understand this week's discussion question. Research articles? Research IFRS13? Other IFRS standards? How do you want us to tie in the articles? Argument for increased disclosure?

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RE: Week 4 Discussion 1

1 day agoAHMAD ABUDIAB

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Hello all. I will be posting many different topics so you will be more ready for the Exam in this class. Please know this exam is comperhensive one that include all the topics that you learned in your degree. So you will know why I am posting different topics

The primary users of managerial accounting reports issued as frequently as needed, are internal users, who are officers, department heads, managers, and supervisors in the company. The purpose of these reports is to provide special-purpose information for a particular user for a specific decision. The content of managerial accounting reports pertains to subunits of the business. It may be very detailed, and may extend beyond the double-entry accounting system. The reporting standard is relevance to the decision being made. No independent audits are required in managerial accounting. The functions of management are planning, directing, and controlling. Planning requires management to look ahead and to establish objectives. Directing involves coordinating the diverse activities and human resources of a company to produce a smooth-running operation. Controlling is the process of keeping the activities on track. What do all you thank?

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RefreshRefreshSearchSearchDenise Bryant 111DISCUSSION BOARDH

7/30/2020 Thread: Week 4 Discussion 1 – ACC499005VA016-1206-001

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RE: Week 4 Discussion 1

1 day agoSharon Gammon

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Hello Professor,

In my company, we use many managerial reports for many different reasons. We depend on our managers to analyze these reports so that they may achieve any goals set forth for their particular branch. These goals include sales as well as expenses. We depend on our owners to set the goals as well as using the reports for forecasting. It is my job to make sure the reports are accurate and to assist the owners and managers in understanding the reports.

Sharon G.

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RE: Week 4 Discussion 1

1 day agoSharon Gammon

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Hello Professor and class,

From the only article, I could find that had a full explanation of IFRS13 (there was no publication date), I read that IFRS13 is a valuation approach that uses a broad range of techniques based on the market, income, and costs in order to determine fair value. It uses a hierarchy that prioritizes the inputs into the fair value measurement process. There are 3 levels to the hierarchy as listed below:

Level 1: inputs are unadjusted quoted prices in active markets for items identical to the asset or liability being measured.

Level 2: inputs other than quoted prices in Level 1 that are directly or indirectly observable for that asset or liability.

Level 3: inputs are unobservable inputs and should be used only if it is not possible to use level 1 or level 2 inputs.

The enhanced disclosure requirements include information about the hierarchy level, transfers between levels, changes in valuation techniques, and a reconciliation of open and closing balances for level 3.

Sharon G.

https://www.accaglobal.com/lk/en/student/exam-support-resources/professional-exams-study- resources/strategic-business-reporting/technical-articles/ifrs-13.html

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RE: Week 4 Discussion 1

1 day agoAmber Martin Overall Rating:

Hello Class and Professor,

Over the years, the financial scandals that have been highlighted for different countries have had a significant impact on the respective countries' economies (Cannon and Bedard, 2017). To attract investors not to shy from the numerous scandals has been attained with the fair value that is accorded by respective companies. Thus the preference to use IFRS standards has allowed the companies to expertise fair value measurement that has indicated on the best ways a company should conduct better

Denise Bryant 111DISCUSSION BOARDH

7/30/2020 Thread: Week 4 Discussion 1 – ACC499005VA016-1206-001

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value measurements. The preference to use IFRS 13 has been attributed to its ability to define new standards that represent value, and there is disclosed regarding fair value measurements. IFRS 13 does not disclose when a liability, the assets of an entity's equity instrument, is measured according to the fair value (Glover, Taylor, Wu, and Trotman, 2019). However, this is enabled when there is a requirement that has been forth with another IFRS, which requires the measurement at fair value. Some stipulated entities must be considered under the measurement of the appropriate measures of fair value. First, the asset to be evaluated needs to be consistent with the unit of account. Second, the principle of the most profitable market where an orderly transaction would take place. Third, the proposed appropriate valuation techniques for the entity to make use when undertaking measurements for fair value. As earlier identified, investors are very keen to check on the companies which are involved in economic crimes, and they shy from making investments in these industries (Glover, Taylor, Wu, and Trotman, 2019). Therefore, when companies are allowed to use IFRS standards, then they can meet the set standards with ease. In summary, IFRS 13 has been recognized by financial experts to be the best mode to reinstate the confidence of the investors with ease in respective industries. The ability to conduct better value measurements allows the company to disclose its fair value.

References Cannon, N. H., & Bedard, J. C. (2017). Auditing challenging fair value measurements: Evidence from the field. The Accounting Review, 92(4), 81-114. Glover, S. M., Taylor, M. H., Wu, Y. J., & Trotman, K. T. (2019). Mind the gap: Why do experts have differences of opinion regarding the sufficiency of audit evidence supporting complex fair value measurements?. Contemporary Accounting Research, 36(3), 1417-1460.

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RE: Week 4 Discussion 1

1 minute agoMatthew Payne

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The objective of Fair Value measurement is to estimate the price at which an orderly transaction to sell the asset or transfer the liability would take place between market participants at the measurement date under the current market conditions. For example:-the condition and the location of the asset, and restriction, if any, on the sale or use of the asset.

IFRS 13 has the same requirements as Topic 820 in determining the unit of accounts, the underlying examples may differ from U S GAAP because of differences in the underlying literature. The following are examples relevant to IFRS standards. 1. For goodwill impairment testing, the unit of account or unit of valuation is the group of cash generating units. 2 For financial instruments, the unit of account or unit of valuation generally is the individual instrument unless the portfolio measurement exception applies for investments in subsidiaries, associate, and joint ventures, see C90. 3. Unlike U S GAAP, IFRS standards do not have specific guidance on the unit of account for measuring the fair value of mortgage loans, held for sale. Therefore, unless the portfolio measurement exception applies, the unit of account is individual loan.

I think in circumstances when measuring fair value based on unit of account, an entity should or may use the valuation technique that determines the fair value of the component parts of the unit of accounts. This process may be appropriate if market participants would consider these separate fair values when pricing the items in its entirety.

https://assets.kpmg/content/dam/kpmg/xx/pdf/2019/12/fair-value-qa-2019.pdf

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Denise Bryant 111DISCUSSION BOARDH