Answer
a.Fair value: The amount that would be fetched if an asset is sold in a systematic transaction or if a market participant were to hand over an asset/liability to another market participant. Fair values are applicable to liabilities as well. The term fair value is not applicable in liquidation sales, though (Master Glossary).
b.Revenue: Revenue encompasses inflows into an entity emanating from the creation of discernible goods or provision of services. Additionally, revenue comprises activities that occasion the settlement of an entity’s liabilities or augmentations of that entity’s assets (Master Glossary).
c.Comprehensive income: This arises from events associated with sources not affiliated with owners; the events cause substantial changes in the total net assets. The main constituents of comprehensive income include net income components in addition to comprehensive income constituents (Master Glossary).
Work Step by Step
a.Fair value: The amount that would be fetched if an asset is sold in a systematic transaction or if a market participant were to hand over an asset/liability to another market participant. Fair values are applicable to liabilities as well. The term fair value is not applicable in liquidation sales, though (Master Glossary).
b.Revenue: Revenue encompasses inflows into an entity emanating from the creation of discernible goods or provision of services. Additionally, revenue comprises activities that occasion the settlement of an entity’s liabilities or augmentations of that entity’s assets (Master Glossary).
c.Comprehensive income: This arises from events associated with sources not affiliated with owners; the events cause substantial changes in the total net assets. The main constituents of comprehensive income include net income components in addition to comprehensive income constituents (Master Glossary).
