结合会计专业也一篇大学英语作文不少于400字

Thedistinctionbetweenvaluationandmeasurement.AndtheadvantagesanddisadvantagesofusingFairValueAccounting.

Rescherdescribesvaluationas‘acomparativeassessmentormeasurementofsomethingwithrespecttoitsembodimentofacertainvalue.’Accountingvaluationisaprocessbywhichthevalueofacompanyismeasuredintermsoftheirassetsandliabilitiesforfinancialreportingpurpose.Valuationcanbeachievedthroughseveralmethods,withtheultimategoaltopresentthemostprecisepictureofthecompany’sfinancialperformance.Banksandlendersassessingtheviabilityofabusinessandloanwillprovidedbasedonhowtheyareperforminginthemarket.Thisprocessmustincludethemostrecentassessmentpossibleofthecompanybecauseitsvaluemaychangesignificantlyinjustashortperiod.

Campbelldefinedmeasurementas‘theassignmentofnumeralstorepresentpropertiesofmaterialsystemsotherthannumbers,invirtueofthelawsgoverningtheseproperties.’Inaccounting,measurementisthecomputationofeconomicorfinancialactivitiesintermsofmoneyorothermeasurableelementslikehourstoproduceaproduct.Accountingmeasurementisusedtocompareandevaluateaccountingdata.Furthermore,measurementinaccountingfallsintothecategoryofderivedmeasurementforbothcapitalandprofit,andaccountantshavetomeasurethevalueofopeningcapital,theincomereceived,capitalusageandchangesinthefairvalueofnetassets.

Theadvantagesoffairvalueare:

AccurateValuation

Fairvalueaccountingcanprovidemoreinformationonassetandliabilityvaluation,itisamarket-basedpresentstheresulttoallmarketparticipantsinsteadofonlythereportingcompany.Whenthereisaincreasingonassetsorliabilities,companywillmarkupthevalueofrelevantassetsorliabilitiestocurrentmarketpricetoreflecthowmuchthecompanywillreceiveiftheassetsbeingsoldorhowmuchitwillpayfortheliabilities.Comparewithbookvalue,fairvaluemeasurementallowthefinancialrecordstoreflecttheeconomicrealityofthebusiness,becausebookvaluestendtounderestimatethevalueofassets.

FairandTrueIncome

Byusingfairvalueaccounting,companywillberestrictedtomanipulatetheirreportednetincome.Thisisbecausegainorlossformpricechangesforassetsorliabilitiesunderfairvaluemeasurementarereportedintimewhentheyoccurred,andtheincreasingonassetsvalueordecreaseonliabilitieswilladdtonetincome,converselyitwillreducecompany’snetincome.Hence,managementwillnotabletopurposelyarrangesomeassetssalestomakethenetincomelookbetter.

DisadvantagesofFairValue:

MisleadingInformation

Fairvaledoesnotrequireatransactiontooccurtorecognizethechangeinvalueitcanrecognizeprofitsandlossesearlierthanhistoricalcostapproach.Changesinvaluearerecordedateachbalancesheetdate,howevermarketchangeseverysecond,itaffectcompanyvaluationofassetsandliabilities.Whenmarketstabilize,valuechangesmayreversetotheirpreviouslevel,fairvaluemeasurementmayoverstatingvaluesandprofitswhenmarketrisingandoverstatingthedeclinesinvaluewhenthemarketgoesdown,thismeansthatfairvaluemayprovidedmisleadinginformation.

Subjectivity

Fairvaluemaysubjectivelydeterminedwhentheassetsarenotactiveinthemarket,ifthesimilaritemsarenotfoundinthemarketthenthefairvaluearenotreliableandcanbesubjectiveandthereisariskthatmanagementofthecompanymaymanipulatethevalueofassets.

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