Questions from Intermediate Accounting

Q: The fair value hierarchy establishes three levels of input, with level

The fair value hierarchy establishes three levels of input, with level one being the best type, because it uses the most objective inputs, and level three using the most subjective inputs. Instruction...

Q: The proposed definition of a liability is a "present economic obligation

The proposed definition of a liability is a "present economic obligation for which the entity is the obligor." These terms can be further expanded as follows (as taken from l>\SB Board meeting minutes...

Q: Hoda Inc. owns 25% of the common shares of Willard

Hoda Inc. owns 25% of the common shares of Willard Corp. The other 75% are owned by the Willard family. Hoda acquired the shares eight years ago through a financing transaction. Each year, Hoda has re...

Q: The elements that are most directly related to measuring an enterprise performance

The elements that are most directly related to measuring an enterprise performance and financial status follow: Instructions (a) Indicate which element is being described below. For any item that is a...

Q: Roger Chang has some questions about the theoretical framework in which standards

Roger Chang has some questions about the theoretical framework in which standards are set. He knows that standard setters are continually striving to develop a conceptual framework for the formulation...

Q: In the IASB standard-setting conceptual framework, the word "

In the IASB standard-setting conceptual framework, the word "reliability" has been replaced with "faithful representation." This has caused much discussion among preparers of financial information. Th...

Q: An accountant must be familiar with the concepts involved in determining the

An accountant must be familiar with the concepts involved in determining the earnings of a business entity. The amount of earnings that is reported for a business entity depends on the proper recognit...

Q: Obtain the 2011 financial statements of Teck Resources Limited from SEDAR (

Obtain the 2011 financial statements of Teck Resources Limited from SEDAR (www.sedar.com). Instructions (a) Using the notes to the consolidated financial statements, determine the company's revenue r...

Q: In its 2011 financial statements (Note 4), Air Canada has

In its 2011 financial statements (Note 4), Air Canada has disclosed its critical estimates and judgments used in preparation of the financial statements. Instructions Access the 2011 annual report for...

Q: Using fair values came under attack in light of the credit crunch

Using fair values came under attack in light of the credit crunch of the last decade and the related financial crisis. Some have even accused fair value accounting of exacerbating the crisis. Access t...