USGAAP and IFRS Require Firms to Disclose the Fair Value

question 137

Essay

U.S.GAAP and IFRS require firms to disclose the fair value of financial instruments in a note to the financial statements.What should such a note include?

---

Definitions:

Selling and Administrative Expense

Costs unrelated to direct production of goods or services, including costs associated with sales, marketing, and general administration.

Assembly Line

A production method where components are sequentially attached to an item, resulting in an efficiently completed product.

Wages

Payments made to employees based on the hours worked or tasks performed, typically on a regular basis.

Direct Labor

The wages and benefits paid to workers who are directly involved in the production of goods or services.