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1.) What is substance over form and off balance sheet finance? 2.) Why accounting for...

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Finance

1.) What is substance over form and off balance sheet finance?

2.) Why accounting for equity or liability has become more and more complex?

3.) What is the effective interest method for accounting for debt?

4.) Cam plc has 2 investments: a.) investment in listed shares is available for sale as financial asset, current market value is $405,000. shares were bought for $675,000. b.) investment in 3 year bond with amortized cost of $450,000 with a stated and effective interest rate of 7%(current market rate is 10%). After 2 years cam plc is not expecting to receive the last year's interest and expects to receive only 2/3 of the principal. Question: What is impairment? What impairment should be recorded in the accounts of cam plc for the listed shares and the 3 year bond?

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