Complete the Following Chart for Items a Through D, Describing

question 139

Essay

Complete the following chart for items a through d, describing the accounting treatment
using the number by one of the following four approaches listed as follows.
(Assume that the firm does not elect the fair value option):

APPROACHES
(1) Measured at fair value with changes recognized in net income.
(2) Measured at amortized cost.
(3) Measured at fair value with changes recognized initially in other comprehensive income.
(4) Measurement depends on whether firm uses hedge accounting.

In the third column of the chart, present your explanation regarding this approach.

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Definitions:

Rationalization

The process of offering a logical or rational explanation for behaviors or attitudes that may otherwise appear irrational.

Socially Acceptable

Behaviors or practices widely accepted and approved by society or a specific societal group.

Real Reasons

The actual, underlying motives or causes for an action, which may differ from those that are stated or apparent.

Standard Communication Model

A framework describing how messages are sent and received, including components like sender, message, medium, receiver, and feedback.