Asked by Alaina Warburton on Jun 03, 2024
Verified
The FASB has suggested guidelines for developing homogenous classes of assets and liabilities.For assets, this can be accomplished by following guidelines that include
A) reporting assets according to their use outside the activities of the corporation
B) reporting all assets the same regardless of the implications on a company's financial flexibility
C) reporting the valuation of assets at their net realizable value
D) reporting assets at their fair value
Fair Value
An estimate of the market value of an asset or liability, based on current conditions and knowledgeable, willing parties' transactions.
Assets And Liabilities
Assets are resources owned by a company that have economic value, while liabilities are obligations the company owes to others, reflecting the company's debts or financial responsibilities.
- Understand the significance of fair value assessments and disclosures according to Generally Accepted Accounting Principles (GAAP).
Verified Answer
FM
Farah MazaherJun 05, 2024
Final Answer :
D
Explanation :
The FASB guidelines suggest reporting assets at their fair value to develop homogenous classes of assets. Fair value reporting allows for consistency in the valuation of assets and promotes comparability among companies.
Learning Objectives
- Understand the significance of fair value assessments and disclosures according to Generally Accepted Accounting Principles (GAAP).
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