The ASC 825-10 has two subsections: general, which provides guidance on the fair value option and some disclosures about financial instrument, and fair value option, which provides guidance on the circumstances under which entities may choose the fair value option and the related presentation and ...
ASC Topic 825 for the fair value option election applies to all of the following items except for A. Leases. B. Warranties that can be settled by paying a third party. C. Firm commitments that involve financial instruments. D. Held-to-maturity investments. 相关知识点: ...
Present Value: The present value of the sum of the lease payments and any residual value guaranteed by the lessee equals or exceeds substantially all (generally 90% or more) of the fair value of the underlying asset. Specialized Asset: The underlying asset is of such a specialized nature it ...
In some cases, lease agreements include a residual value guarantee that requires the underlying asset to be returned at a fair value at or above the guarantee. Under ASC 842, a lessee should include in the initial measurement of lease payments at lease commencement the amount that is probable ...
Present value test:Is the present value of lease payments plus RVG (residual value guaranteed by the lessee) greater than or equal to substantially all of the fair market value of the asset? Alternative use test:Is the asset so specialized that it is only useful to the lessee?
491–492ASC825.10,70–71ASC825(DisclosuresaboutFairValueofFinancialInstruments)(SFAS107),97–98change,absence,416–417EBRinitiative,16,36–37,315–339Accrualaccounting,114,148Accrualnetincome,approximation,120Accrualscash,contrast,119–120changes,calculation,120concept,417Acidratio,86,88Acquisitions,shares(...
ASC 825-10 notes that it provides “provide guidance on credit losses on financial instruments with off-balance-sheet credit risk and certain disclosures about financial instruments.” Guidance is also included on the fair value option, including: Circumstances in which entities may choose, at specif...
ASC 825 has two subsections: general, which provides guidance on the fair value option and some disclosures about financial instruments; and fair value option, which provides guidance on the circumstances under which entities may choose the fair value option and the related presentation and ...
fair value option (FVO)financial instrumentsfinancial statementsSummary Accounting Standards Codification (ASC) 825, Financial Instruments , contains two Subtopics: 1) ASC 825-10, Overall ; 2) ASC 825-20, Registration Payment Arrangements. ASC 825-10-25, The Fair Value Option, encourages reporting ...
This chapter provides guidance on the fair value option and some disclosures about financial instruments. ASC 825, The Fair Value Option, encourages reporting entities to elect to use fair value to measure eligible assets and liabilities in their financial statements. The objective is to improve ...