ACCTG414 Study Guide - Final Guide: Comprehensive Income, Book Value, Income Statement

• School: University of Alberta
• Department: Accounting
• Course: ACCTG414
• Professor: Jocelyn King

Document Summary

Note: these solutions are provided for information purposes only. There could be some solutions that have changed slightly since this final exam was used, so please ensure you review your current course material for changes to how items are accounted for. Financial reporting is getting complicated because there are many different methods applied to similar items. For example, some investments are reported at fair value while others are reported at amortized costs. Sometimes, the fair value adjustment is reported in net income and other times it is reported in oci. Sometimes the rules for private enterprises are the same as the rules for public companies but sometimes they are different. Although there are many differences, there are valid reasons for the differences. The accounting method is different because the situation in which it is being applied is different. The accounting method usually fits the situation and it better reflects the economic reality.