Is Overfunding an Asset?

Essay specific features

 

Issue:

Miscellaneous

 

Written by:

Cynthia T

 

Date added:

October 23, 2015

 

Level:

College

 

Grade:

A

 

No of pages / words:

1 / 208

 

Was viewed:

581 times

 

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Essay content:

Because abstract probable future economic benefits cannot be sold, pledged, or given away, and the fact that this definition would not accommodate a cost as being an asset, shows that Schuetze’s opinion on this prepaid pension cost case would be to not treat them as an asset. Yes, I believe that the two statements be comparable because if a corporation files two distinctly different financial statements in two different countries, potential investors may look at them and have an adverse feeling about them; not to mention the whole situation could be potentially very confusing to them...
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Given that different countries have different accounting standards, it would not be a rare occurrence to see this take place, but one must exercise skepticism when analyzing both sets as the grey area opens up a window for any financial misrepresentation.
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