Answer to Question #301053 in Management for Mik

Question

1: Mr Pierre acquired his business for P10,000,000. The fair market value of the business

is P11,000,000. Will it be more useful if accounting records were adjusted corresponding to the

fair market value amount of the business? Justify your answer.

Answer 1

It will be very fair for the accounting details to be adjusted so as to correspond that one which is fair for the market value so as to enable Mr. Pierre track the financial growth of his business.