PM Session #20. 1st this has to be an error as it asks what which item require adjustment as opposed to NOT requiring adjustment. Then it says Longterm debt should be reported at fair value which differs from carrying value. As they give you both the carrying and fair value in the problem, I don’t see where it indicates what the debt was reported at.
Yup, I asked the same Q a week ago…it is an errata (according to those that are taking BSAS class), but everytime I check the website it hasn’t published any yet (they claim before 5/30).
Its obviously a mistake. I’m more confused with the long-term debt. How do you know what its reported at? It lists both the carrying and fair value and then says, the debt should be reported at fair value. I’m just about to write this question off as garbage.