Fair value代写 fair value is widely proposed and accepted for building the balance sheet, it is still easily controlled by subjective mind.
Fair value代写
AASB代写
The fair value, as defined by AASB, is the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date (AASB, 2015).
Generally, the fair value is taken as the amount at which two parties in an arm’s length transaction would exchange the asset, and this measurement would reflect the market’s consensus and expectations.Fair value代写
Though nowadays, fair value is widely proposed and accepted for building the balance sheet, it is still easily controlled by subjective mind. Therefore, we may prefer different values for different aims, such as historical cost for the property plant & equipment, or the amortized cost for the held-to-maturity investments. For public listed companies, they are open and frequently asked by investors, therefore could be valued well via fair values.Fair value代写
For private ones, the fairness may not be easily decided, and the more conservative historical costs would be superior. As to the inventory, both LIFO and FIFO could be a solution. We should keep our integrity in financial reporting and try to be consistent with previous practice.Fair value代写
AASB代写
The goodwill is an intangible asset that arises when a buyer acquires an existing (Davis and Abram, 2006).
Goodwill represents assets that are not separately identifiable and may subject to the impairment test. Since, in this case, neither merging nor acquisition would occur, the goodwill account is not necessarily involved. According to the completed designing process of this item, the engineer incurred research and development expense, and we shall recognize the design of this machinery as an intangible asset that worth $250,000.Fair value代写
Moreover, since potential clients are asking for manufacturing, we may consider revaluation of this intangible asset at fair value. However, currently, only two customers are offering orders and may not be considered as fair value to justify the proposal from Jonny. If the transaction could be reliably carried on, since it’s not continuing, we shall modify Cash or Accounts Receivables via the unusual or infrequent items (nonrecurring items), and record its cost via intangible asset.Fair value代写
