Liquidation Basis of Accounting

Question 1

How is the liquidation basis applied?

Answer 1

Prospectively

Question 2

In order for liquidation to qualify as “imminent,” the following criteria must be met?

Answer 2

The likelihood of the entity returning from liquidation is remote and either a liquidation is approved by the individual who have the authority or a liquidation plan is imposed by other forces

Question 3

Assets must be measured and presented at the amount of?

Answer 3

Cash proceeds expected from liquidation

Question 4

An entity preparing financial statements under the liquidation basis of accounting must present both a?

Answer 4

Statemetn of Net Assets in Liquidation and a Statement of Changes in Net Assets in Liquidation

Question 5

The following items must be disclosed?

Answer 5

A statement that the financial statements are prepared using the liquidation basis, the plan of liquidation, significant assumptions and methods used to measure assets and liabilities, expected time frame, and the type and amount of costs and income accrued