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3 Cards in this Set
- Front
- Back
- 3rd side (hint)
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Liquidation basis accounting |
Assets should be measured and presented at the amount of expected cash proceeds from liquidation |
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F/S following the Liquidation basis accounting will show: |
Anticipated income during the liquidation, along with costs associated with asset sales
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Required that a company accrue and present (non-discounted) costs it expects to incur (both during and at the end of the liquidation process) and income it expects to earn during the liquidation process |
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Disclosures shown in presentation of F/S under liquidation basis of accounting |
Types of costs and income accrued
A description of the plan for how the company will be liquidated Estimate of how long they anticipate the liquidation process to last Assumptions used to value the assets and liabilities for the "Statement of Net Assets in Liquidation" |
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