Answer Posted / sameer
Net Asset Value, or NAV, is the sum total of the market
value of all the shares held in the portfolio including
cash, less the liabilities, divided by the total number of
units outstanding. Thus, NAV of a mutual fund unit is
nothing but the 'book value.'
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Explain howyou would account for the following items/situations,justifying answers by reference to the conceptual frameworks defintion and rcognition criteria. a)A trinket of sentimental value only b)You are the guarantor for your friends bank loan i) You have no reason to belive that your friend will default on the loan ii) As your friend is in serious financial dificulties,you think it is likely that he will default on the loan c)You receive 1000 shares in X Ltd,trading at $4 each,as a gift from a grateful client. d)The panoramic view of the coast from your cafes windows,which you are convinced attracts customers to your cafe
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