Question

What are some examples of a fictitious fact pattern in accounting research (Please provide more than 3)

Answer 1

There exists some fictitious assets in the Balance Sheet which are fake, not assets but the losses and expenses which are not written off due to certain unavoidable circumstances. These assets are a) Loss on the issue of Bonds or debentures, b) Preliminary expenses, c) Discount allowed on issue of Shares, d) Unrealised losses on fair value adjustments.

The Fictitious liabilities are fake and do not exists but are the unutilized fake gains which are not real profits. These liabilities are i) Unrealised gains for fair value, ii) Premium on issue of the Bonds.