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Week 2 3 per page.pdf - MGT 224 Fall 2019 Fair value,...

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1Fall 2019MGT 224Fair value, Measurement uncertainty andQuality of EarningsCoverage:Required:Kieso Ch 3 (as directed)Pages 11-1911-27Pages 13-34-13-40E 3-2 (a and b), E 11-19 (a,c,d and e), E 11-22 (a and b), E 13-29(please prepare these questions in advance and be ready to answer inclass)Case study (posted)Supplementary/OptionalASPE S. 1508, S. 3063, 3290IAS 36, 37 and IFRS 132MGT 224 Fall 2019 Copyright TPCI 2019Coverage°Introduction and overview°IFRSProvisions and contingencies°ASPEContingencies°IFRSPPE Impairment°ASPEPPE Impairment°IFRSFair Value determination°ASPEFair Value determination°Quality of Earnings°Case study3MGT 224 Fall 2019 Copyright TPCI 2019
2Coverage°Introduction and overview°IFRSProvisions and contingencies°ASPEContingencies°IFRSPPE Impairment°ASPEPPE Impairment°IFRSFair Value determination°ASPEFair Value determination°Quality of Earnings°Case study4MGT 224 Fall 2019 Copyright TPCI 2019OverviewDiscussion questions:°Can you identify three areas under ASPE wherethere is measurement uncertainty?°How about under IFRS?°Can you identify three areas where fair value isreferenced as either the first or secondmeasurement point in IFRS?°How about under ASPE?5MGT 224 Fall 2019 Copyright TPCI 2019Fair presentationFair presentation (ASPE 1400.04, IAS 1.17)°As noted in Class 1 it is a goal of financial reporting tobe fair°But how is fairness achieved?°By applying GAAP as appropriate (see references above)°By provide sufficient information, as necessary, beyond theGAAP minimum (requires judgment)°By ensuring all information is clear and understandable6MGT 224 Fall 2019 Copyright TPCI 2019
3Measurement uncertainty°Measurement uncertainty (ASPE 1508.04, .05, IAS1.122 and .125)°Requirements to identify and disclose sources ofmeasurement uncertainty°For ASPE the focus is on any particular issue that mayhave uncertaintysuch as an accrual for warrantythedisclosure is not stringent°For IFRS the focus is on the details of wheremeasurement uncertainty exists-the disclosure is moredetailed°See BCE December 2018 as an example7MGT 224 Fall 2019 Copyright TPCI 2019S) USING ESTIMATES AND KEY JUDGEMENTSWhen preparing financial statements, management makes estimates and judgements relating to:reported amounts of revenues and expensesreported amounts of assets and liabilitiesdisclosure of contingent assets and liabilities.We base our estimates on a number of factors, including historical experience, current events andactions that the company may undertake in the future, and other assumptions that we believeare reasonable under the circumstances. By their nature, these estimates and judgements aresubject to measurement uncertainty and actual results could differ. Our more significantestimates and judgements are described below.

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Term
Winter
Professor
N/A
Tags
Balance Sheet, Net Present Value, Generally Accepted Accounting Principles

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