Management and Organizational Studies 1023A/B Study Guide - Midterm Guide: Deferred Tax, Deferred Income, Issued Shares

• School: Western University
• Department: Management and Organizational Studies
• Course: Management and Organizational Studies 1023A/B
• Professor: Maria Ferraro

Document Summary

For non-financial assets, the value includes any laid-down costs (cost that is incurred to get the asset ready for sale, income generation, etc. Inventory might include cost of material, labour and a reasonable allocation of overhead: transactions that have these characteristics present challenges when determining value, nonmonetary or barter exchanges where no cash or monetary consideration is exchanged. Later measurements have limitations: can be based on different values, often involve measurement uncertainty, and because there is no external exchange, the values may be subjective: trend toward mixed valuation model instead of primarily historical-cost based. Fair value principle- use of standardized fair value measurements in the financial statements. Info may be more useful than historical cost for some elements in some industries (eg. brokerage houses, mutual funds) Ifrs: fair value is the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date.