00:01
Hello students, here is a question.
00:01
Assuming that ideal measure of a short -term receivable in the balance sheet, it is discounted value of a cash is to be received in the future.
00:09
So the failure to the follow this practice usually do not make the balance sheet misleading because we have four options here.
00:18
The first is the amount of a discount is not material.
00:22
The amount of discount is not material and the b is most receivable can be sold, most receivable amount, sorry, the most receivable can sold to a bank or factory.
01:19
So this is nothing but factory and the third is most short -term receivables are most short -term receivables are non -interested bearing, non -interest bearing and the fourth is the allowance for uncontrollable, the alliance for collectible, account include, account includes a discount element.
02:18
So the amount of discounted is not the material.
02:23
This statement is implies that the difference between the discounted value of an actual value of short -term receivables is not significant enough to impact the overall financial position of a country.
02:35
This would be a valid reason for not discounting a short -term receivables and when it comes to option b, most receivable can be sold to a bank factory.
02:45
So this statement is not directly related to the question or whether the balance sheet would be misleading without discounting a short -term receivables...