Pharma Co Date: June 18, 2016 Prepared by: John B. Owens Viewed by: Joseph Walsh Issue: Determine proper accounting treatment for restructuring program costs under GAAP for the year ended December 31, 201X. Background: Pharma is in the process of restructuring a business line. As part of a restructuring, the Pharma is considering the relocation of a manufacturing operation from its present location to a new facility in a different geographic area. The relocation plan would include
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ASC 410 Summary ASC 410 is the accounting standard codification that represents asset retirement and environmental obligations. Under ASC 410, there are two main subtopics which are asset retirement obligations and environmental obligations. Asset retirement obligations are legal obligations that may exist in connection with an entity’s retirement of a tangible long-lived asset. These legal obligations may arise when the entity acquires, constructs, or develops a long-lived asset, or operates a
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asbestos. For 10 of the 25 warehouses that reside in states with special asbestos handling and removal laws, LOI plans to sell the buildings without ever meeting the criteria to have to remove the asbestos and thus no obligation exists. ASC 240-20-55-58 and ASC 240-20-55-60 state that although timing of the performance of the asset retirement activity is conditional on the factory undergoing major renovations or being demolished, existing regulations create a duty or responsibility for the entity to
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Chapter 6 Property and Equipment and Other Assets Overview 6.01 Health care entities use various kinds of property and equipment. Those assets are generally significant to the financial position of institutional health care entities, such as hospitals and nursing homes. Typical accounts used to record property and equipment transactions are land, land improvements, buildings and improvements, leasehold improvements, equipment (fixed and movable), leased property and equipment, accumulated depreciation
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Password: 2ChgCxk * The citation format (e.g., ASC 230-10-20) is listed by “topic”, “subtopic”, and “section” respectively under the FASB Accounting Standards Codification system. * When providing quotes, you do not need to copy and paste the entire paragraph. Only the citations and brief summary are needed. You need to specify the topic, subtopic, section, and paragraph if applicable. * An example is provided below: According to ASC 230-10-20, the statement of cash flows classifies all
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its balance sheet for the first quarter ending March 31, 20x9, BG should account for it by first looking at ASC 410-20-35-3 which states, In periods subsequent to initial measurement, an entity shall recognize period... from the following: a) the passage of time and B) Revisions to either the timing or the amount of the original estimate of undiscounted cash flows. Then we can look at ASC 410-20-35-8 which states, changes resulting from revisions to the timing or the amount of the original estimate
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[ 3/20/2012 ] Subject: Case 1 NeedSpace Lease agreements have certain provisions depending on how the contract is written by the lessor to the lessee and what type of lease agreement. In this lease agreement we are focusing operating lease with provisions of NeedSpace and WeHaveIt, which has a 10 year lease term, no options to renew or negotiate renewal offered in the contract and the lessee incurs certain cost, repairs and maintenance. In regards to ASC 840 leases, according to 840-10-20 and
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* Client (LOI) believes that there is not sufficient information (based on ASC 410-20- 25-10) to determine the fair value of the asset retirement obligation as it is currently uncertain as to whether LOI will be required to remove the asbestos. * Client (LOI) does not have sufficient information to measure its asset retirement obligation due to an indeterminate settlement date based on the guidance in ASC 410-20-25-10 * The two warehouses located in states without laws are currently
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C10-13 May 30, 2014 President, Tenth National Bank From: Student Subject: Removal of Asbestos and purchase of office building This is in regards to the removal of asbestos from the buildings owned by Tenth National Bank and the cost for the eradication of the project. The buildings are property, and are considered important components of a company’s assets. I researched assets in accordance to FASB Statements of Financial Accounting Concept No. 6, par. 25 states that assets are probable
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To: Files From: Marcus Banks Subject: 410-20 Asset Retirement Obligation Date: 19 January 2016 Purpose: The purpose of the memorandum is to determine the appropriate accounting treatment for the potential insurance settlement. Facts: Euker Corporation was impaired by the Hurricane William, which makes Euker’s manufacturing plant inoperable and has additionally forced Euker to rent temporary space in Houston to accommodate its sales department. Euker will continue to make regular month-to-month
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