Identify which concept (qualitative characteristic, accounting principle, assumption) best

applies to or is violated in the following scenarios: & tell me if it is an application or

violation.

8. Investments (classified as trading securities) are reported at fair value (also known as

mark-to-market) on the balance sheet each year.

9. A company discloses the impact of all recently enacted, but not yet in force, standards on

the companys consolidated financial position, results of operations, and cash flows, regardless

of whether these have a positive, negative or immaterial impact.

10. A companys note regarding its income tax accrual is complex, requiring a reasonable

understanding of income tax accounting.

11. The company has continued to use the same inventory cost flow alternative since its

founding.

12. The observation if a physical inventory count is a way that auditors can obtain assurance

about the inventory value reported in the financial statements.