The SEC requires various statutory reports from companies with publicly traded securities
Required
Identify which SEC report is the best place to find the following information .
EXERCISE 2 – 9
Historical Cost versus Fair Value
Financial statements are inexorably moving to a model where all assets and liabilities will be measured on the basis of fair value rather than historical cost .
Required :
a . Discuss the conceptual differences between historical cost and fair value .
b . Discuss the merits and demerits of the two alternative measurement models .
c . What types of assets ( or liabilities ) more readily lend themselves to fair value measurements ? Can we visualize a scenario where all assets are measured using fair value ?
d . What are the likely effects of adopting the fair value model on reported income ?
PROBLEM 2 – 12
Relations between Income , Cash Flow , and Stock Price