The authoritative body designated to promulgate standards concerning an accountant's association with unaudited financial statements of an entity that is not required to file financial statements with an agency regulating the issuance of the entity's securities is the: <u>accounting and review services committee</u>.
<u>Explanation</u>:
The Accounting and Review Services Committee is a committee that engages in reviewing or compiling the unaudited financial statement.
An unaudited financial statement is a document that is not submitted by an individual for verification and review process. The financial statement is said to be unaudited until they are reviewed and approved by a certified external auditor.
The accounting and review services committee are responsible for promulgating standards regarding accountant association. The auditor helps in reviewing the financial statement of the individual.
Answer: A. The option to buy shares of stock if its price goes up.
Explanation: Among the above options the less real option is " to buy shares of stock if its price goes up". It is advisable by brokers to buy shares of stock when the prices are down and sell when the prices are up in order to make profit.
The other options are more real, because expansion of a business in a new geographic region will yield more profits. Abandoning a failed business project is advisable and switching from one type of fuel to another is done based on preference and cost.
Answer:
$882,000
Explanation:
According to IAS 37, Provisions, contingent liability and contingent assets, A provision is a liability of uncertain timing or amount. The liability may be a legal obligation or a constructive obligation.
An entity recognises a provision if it is probable that an outflow of cash or other economic resources will be required to settle the provision. Furthermore, the standard requires that a provision is measured at the amount that the entity would rationally pay to settle the obligation at the end of the reporting period or to transfer it to a third party at that time.
The amount to be accrued for is the settlement offer of $882,000 which was accepted before the financial statement was issued. This settles the uncertainty in the amount to be provided for.
Answer:
D) The value of operations is calculated by discounting the horizon value, the tax shields, and the free cash flows before the horizon date at the unlevered cost of equity.
Explanation:
The adjusted present value method is very similar to the NPV method, but with some "adjustments". It determines the NPV of a project if it was financed solely with equity. Then it includes the tax benefits that could be obtained if the project was financed by debt. The benefits are basically lower taxes due to interest payments that reduce taxable income.
The APV uses the company's WACC as the discount rate.
