Chapter 10 Section 12: Liquidation Basis of Accounting Flashcards
1
Q
How is the liquidation basis applied?
A
Prospectively
2
Q
What adjustments do you make for the liquidation basis?
A
Assets are measured at the amount of cash proceeds expected from liquidation
Liabilities are measured according to GAAP
3
Q
What financial statements are required?
A
Statement of Net Assets in Liquidation
Statement of Changes in Net Assets in Liquidation
4
Q
What does IFRS say about liquidation accounting
A
They don’t have specific rules about it
