The Major Disadvantages of Market-Value Accounting Include

question 55

Multiple Choice

The major disadvantages of market-value accounting include:

• A) the difficulty in estimating the current value for some assets.
• B) the difficulty in applying some of the valuation models used to estimate market values.
• C) the resulting numbers are potentially open to abuse.
• D) All of the above are disadvantages of market-value accounting.

Recognize the relevancy of cost and revenue information in making outsourcing decisions.

Understand the strategies for emphasizing positive information and de-emphasizing negative information in professional communications.

Identify and avoid the use of negative words or expressions in professional writing.

Recognize the ethical considerations in using positive emphasis and de-emphasization techniques.

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Definitions:

AASB 8

An Australian Accounting Standards Board regulation setting out the requirements for the disclosure of operating segments, products and services, geographical areas, and major customers in financial reports.

IFRS 8

An International Financial Reporting Standard that requires particular types of entities (chiefly those with publicly traded securities) to disclose information about their operating segments.

European Parliament

The legislative body of the European Union that is directly elected and works alongside the Council of the European Union to enact legislation.

Management Approach

A strategic method in accounting and reporting where the organization’s internal management framework influences the structure and content of its financial and sustainability reports.