The typical assertions related to investments and related accounts would not include the PCAOB assertion that:
A)capitalized intangible costs relate to intangibles acquired in exchange transactions.
B)amortization is properly calculated.
C)research and development costs are properly classified.
D)goodwill is valued at market value.

Question

Quizplus · Accepted Answer

The PCAOB assertion related to goodwill valuation is not typically included in assertions related to investments and related accounts. Goodwill is typically valued at its carrying value or book value, which is the excess of the purchase price over the fair value of identifiable net assets acquired. It is not valued at market value. Therefore, option D is the correct answer.

The Typical Assertions Related to Investments and Related Accounts Would