STUDENT
334 Points
Joined May 2011
In Financial reporting some chapertes like valuation of goodwil & shares or Some of the accounting Standards , there are questions which are either incomplete or are drafted in such a way that can have different solutions. Thus, to solve them we are allowed to take RATIONAL assumptions.
NOTE : Assumptions should be based on concepts & should be relevant , always try not to assume any neumeric figures in exam like we canton assume tax rate to be 35 % if not given in question, rather it is better to avoid tax rate in the calcution, & most importantly as said by Mr Iyer in above post , always pen down your assumptions