Problemunder traditional accounting methodology historical, Ask an Expert

Finance

Problem:

Under traditional accounting methodology, historical cost is the accounting evaluation tool. However, when consolidations are implemented, the fair market value is used. Please consider the following questions:

Required:

Question 1: Why is it important that consolidations prescribe to fair value?

Question 2: When is the adjustment made?

Question 3: How often is the adjustment recalculated?

Question 4: How are the adjustments kept?

Note: Please show how to work it out.

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Basic Finance, Finance

Category:- Basic Finance
Reference No.:- M91163672

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