future event or events are likely to occur; reasonably possible – The chance of the future event or events occurring is more than remote but less than likely; and remote – The chance of the future event or events occurring is slight”. (FASB Accounting Standards Codification, 2013)
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FASC Research Project Fall (2014) QUESTIONS (http://aaahq.org/ascLogin.cfm ) In order to complete this assignment you will need to access the FASB Financial Accounting Standards Codification database. The related information for this is posted on Blackboard for this course. The UH copy of the FASB Financial Accounting Standards Codification (“FASC”) can be accessed at: http://aaahq.org/ascLogin.cfm. The FASC is the ONE AND ONLY source of the technical GAAP standards. Other sources are no
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Governmental and Nonprofit Accounting: Theory and Practice, 10e (Freeman) Chapter 1 Governmental and Nonprofit Accounting—Environment and Characteristics 1. Which of the following would not be considered a government or nonprofit organization? A. A software company that sells software exclusively to state and local governments. B. A public elementary school. C. A church. D. A private trust organized for charitable purposes. (Answer: A; Easy; LO1) 2. Which of the following
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Statement No. 168; The FASB Accounting Standards Codification® and the Hierarchy of Generally Accepted Accounting Principles—a replacement of FASB Statement No. 162 This standard was issued in June 2009, and would be effective for financial statements recorded for fiscal periods ending after 15th Sept. 2009. The aim of the statement is the replacement of FASB Statement No. 162 as the authoritative source of U.S generally accepted accounting principles for nongovernmental entities. Securities and
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Contingencies 1. For the year-end December 31, 2007, financial statements, what amount should M record as a liability? For year-end December 31, 2007 M Company should accrue the liability in the amount of 17 million and disclose the liability in the notes of financial statements. M company should accrue the liability for the contingency and disclose the nature of the liability within the notes to the financial statements. This is in accordance with guidance under ASC 450-25-2, which stated, in part:
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Executive Summary The report analyzes three options to record the transfer of the in process research and development project Drug X from Bust-a-Knee to Pharmers. Based on the analysis, we recommend Options #3 as the approach to record the journal entries at the date of transfer. The first option records the acquisition of Drug X and OuchX into an intangible account -- “ownership”. In the case of transfer ownership of the IPR&D of Drug X from Brust-a-Knee to Pharmers, Brust-a-Knee receives
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notification in the footnotes (Schroeder, Clark, & Cathey, 2005). This disclosure provides users with relevant information, but may be used against the company by the plaintiff to assist in proving their case. The Financial Accounting Standards Board (FASB) reviews the nature of contingencies in the Statement of Financial Accounting Standards (SFAS) No. 5 “Accounting for Contingencies,” and defines two types of contingencies. There are gain contingencies, which
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Memorandum To: The Files Date: January 19, 2016 RE: Asset Retirement Obligations / for Lack of Information the “Client” Purpose: To determine the appropriate accounting treatment for potential asset retirement obligations associated with existing “asbestos” in a warehouse owned by the client (LOI). Background/Facts: * Client owns and operates fifty warehouses located in several states. * Twenty-five of these warehouses contain asbestos, a cancer causing substance. * Twenty-three
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adding an additional 20 trailers to the ones they currently own. While there is an uncertainty to the length of the potential relationship, there is considerable potential for growth. As requested, I have spent the past few days examining the current FASB standards on leases to determine what the best course of action for Schmoe Trucking would be. There are a number of options when it comes to leasing, and it is vital that each option is examines in order to determine the proper course of action
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CHAPTER 1 Governmental and Nonprofit Accounting: ENVIRONMENT AND CHARACTERISTICS ANSWERS TO QUESTIONS QUESTION 1-1 a. The similarities of accounting for profit-seeking and G&NP organizations include: 1. Double-entry system of accounts. 2. Most accounting mechanics, e.g., basic transaction documents, journals, ledgers, charts of accounts. 3. Where a G&NP organization has a business-type activity, e.g., a municipal electric utility, the accounting largely parallels that
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