losses resulting from the inability of its customers to make require payments, and such losses have been within management’s expectations. 2. Inventories a. Valuation. IFRS requires that inventory is carried at the lower of cost or net realizable value. Cost of the certain finished goods that are purchased for resale in relation to semiconductor repair services cannot be determined using the LIFO because the IFRS does not permit the use of LIFO. b. Impairment. IFRS requires reversal of inventory
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Does the Restructuring of Resort Co.’s Original Debt represent a troubled debt restructuring? The restructuring of the debt should be accounted for as a troubled debt restructuring based on the following: To determine if troubled debt restructuring applies, both of the following conditions must be present: 1. The company must be experiencing financial difficulty 2. Creditor must grant concessions ASC 470-60-55-8 provides relevant implementation guidance in determining whether or not debtor
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ch11 Student: ___________________________________________________________________________ 1. The three factors in cost allocation of a depreciable asset are service life, allocation base, and allocation method. True False 2. The physical life of a depreciable asset sets the lower limit of its service life. True False 3. Any method of depreciation should be both systematic and rational. True False 4. Total depreciation is the same over the life of an asset regardless of
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testing. 3. Revisit the accounting treatment of inventory. ACCT1511 4. Be technically competent in journal entries and T-accounts relevant to asset revaluation, intangible assets, and inventory measurement. Topic 5. Be able to identify the accounting principles relevant to the accounting treatment of assets. Assets (2) General Principles Methods for Measuring Value Australian School of Business Measurement at Recognition: PPE The value put on the asset when first
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expense the estimated fair value. This new standard has had a significant effect on profits for many companies. The valuation methods required by the FASB are based on pricing models that are complicated and require companies to use a number of assumptions which could cause a material difference in the company’s operating results. Due to the number of estimates and assumptions, users of financial statements should pay close attention to the disclosures and the accounting estimates, particularly
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When we say German GAAP, we refer to principles that are based on German Commercial Code (Nandelsgesetbuch, or HGB), and German Accounting Standards (GAS) that are set by German Accounting Standards Committee (GASC). GASC has similar function as Financial Accounting Standard Board (FASB) in United States – to develop and set accounting reporting standards, the process which includes publication of draft of standards, comments period, revision of draft period, public discussion, and finally, adoption
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Galaxy Sports Inc. is a manufacturer of sports equipment. It is a public company with three reporting units: Fitness Equipment, Golf Equipment, and Hockey Equipment. During our audit, certain accounting treatments by Galaxy regarding goodwill impairment were found to possibly contradict with the Accounting Standard Codification. Based on my research of the ASC, my recommendations are that management should perform an interim goodwill impairment test at the end of third quarter of fiscal year 2009;
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International Accounting Standards Board (IASB). Consisting of 16 members from various countries, the IASB structure is similar to that of the FASB in that they have a parent organization entitled the IFRS Foundation (Accounting Textbook, 1-17). The phrase “International Convergence of Accounting Standards” refers to both a goal and the path that is necessary to achieve it. Ultimately, the FASB would to like to be able to provide a unified set of superior quality, international accounting standards
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* Fair value of contingent consideration - $20 M as of acquisition date * Value of replacement stock option awards attributable to precombination services is $5M and postcombination services is $7M * Allfoods incurred $4M of acquisition related costs Fair Value of Assets Acquired and Liabilities Assumed: * Baked Beans owns manufacturing facility in CA comprised of: * Land and two buildings – could be rezoned into residential subdivision; management determined the fair value
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CHAPTER 1 ENVIRONMENT AND THEORETICAL STRUCTURE OF FINANCIAL ACCOUNTING Overview The primary function of financial accounting is to provide useful financial information to users external to the business enterprise. The focus of financial accounting is on the information needs of investors and creditors. These users make critical resource allocation decisions that affect the nation’s economy. The primary means of conveying financial information to investors, creditors, and other external users
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