1.) What is substance over form and off balance sheet finance? 2.) Why accounting for...
70.2K
Verified Solution
Link Copied!
Question
Finance
1.) What is substance over form and off balance sheet finance?
2.) Why accounting for equity or liability has become more and more complex?
3.) What is the effective interest method for accounting for debt?
4.) Cam plc has 2 investments: a.) investment in listed shares is available for sale as financial asset, current market value is $405,000. shares were bought for $675,000. b.) investment in 3 year bond with amortized cost of $450,000 with a stated and effective interest rate of 7%(current market rate is 10%). After 2 years cam plc is not expecting to receive the last year's interest and expects to receive only 2/3 of the principal. Question: What is impairment? What impairment should be recorded in the accounts of cam plc for the listed shares and the 3 year bond?
Answer & Explanation
Solved by verified expert
Get Answers to Unlimited Questions
Join us to gain access to millions of questions and expert answers. Enjoy exclusive benefits tailored just for you!
Membership Benefits:
Unlimited Question Access with detailed Answers
Zin AI - 3 Million Words
10 Dall-E 3 Images
20 Plot Generations
Conversation with Dialogue Memory
No Ads, Ever!
Access to Our Best AI Platform: Zin AI - Your personal assistant for all your inquiries!
