Asked by Jessie Schneider on Jul 05, 2024
Verified
Under U.S.GAAP, a company can designate a receivable, upon initial recognition, to be recognized at fair value without meeting any criteria.IFRS has established qualifying criteria for fair value designation.
Required:
Describe the IFRS qualifying criteria that must be met to designate a receivable as fair value.
Fair Value Designation
The process of assessing the estimated market value of an asset or liability, based on current market conditions and not the historical cost.
IFRS Qualifying Criteria
Specific conditions and standards companies must meet to comply with International Financial Reporting Standards.
- Classify and report cash and cash equivalents in financial statements according to U.S. GAAP and IFRS.
Verified Answer
DS
Dolcey ShunkJul 10, 2024
Final Answer :
The IFRS criteria include: the elimination of an accounting mismatch that arises from recognizing assets, liabilities, gains, or losses on different bases or the grouping of the receivable with other financial assets that are managed as part of a risk management or investment strategy that is evaluated on a fair-value basis.This makes the IFRS more restrictive.
Learning Objectives
- Classify and report cash and cash equivalents in financial statements according to U.S. GAAP and IFRS.
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