Christopher Prado ACCT 2301 FASB Case 11/17/15 Chickenella, Inc. Research and Analysis Should inventory be evaluated for impairment under the lower of cost or market method on a total inventory basis? The CEO of Chickenella Inc. has argued that the prices of processed ostrich products exceed the cost to raise and produce, therefore there is no lower of cost or market issue. The company now wants to determine whether or not inventory should be evaluated for impairment under the lower of cost
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search the authoritative literature. * Removal expenses * Renovation expenses * Capital enhancements * Capitalization of costs * Building restoration Exercise 2. Case 2.2, Derecognition of a liability. Chapter 2, Page 43. 1. FASB ASC 405-20-40-1 (Liabilities->Extinguishments of Liabilities->Derecognition->General) One is able to derecognize a liability only when the debtor has been relieved of its obligation or paid the creditor. The creditor may be paid by cash
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Standards Board (FASB) started the Convergence program back in 2002 and stated that a three-part strategy for seeking greater comparability in accounting standards internationally should be implemented.. FASB sought out to develop a higher quality for Generally Accepted Accounting Principles (GAAP) standards and improve the relations and communication with additional nationwide standards setters. The convergence program is to help increase the quality of recording standards. FASB and IASB recognized
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TrueBlood Case 04-4 - Inventory The FASB Codification provides guidance on how developing animals and animals available and held for sale are to be valued. Section 905-330-35-2 states that developing animals are to be valued at the lower of cost or market. Section 05-330-32-3 states that animals available and held for sale are to be valued: a. The lower of cost or market b. At sales price less estimated costs of disposal, if all the following conditions exist: 1. The product
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Costs associated with the issuance of debt Ryan Milliron ACC 311 Every established company will require additional capital at some point. They may choose to sell equity, obtain loans, or sell corporate bonds. When they sell bonds they incur an obligation to repay a certain amount, whether with interest or without, as well as administrative costs with the actual sale. The costs associated with either method of issuing bonds are recorded separately and amortized over the contractual life of the
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regulate accounting standards: the Financial Accounting Standard Board (FASB) and International Accounting Standard Board (IASB). These two boards will help us to ensure if the information is done properly and are reported in a consistent way so that investors can determine what company is better to invest in. First, there will be an explanation of the relationship between the two boards and the IASB equivalents of the FASB original pronouncements. Finally, there will be an explanation of how the
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Access the PCAOB Website ( www.pcaob.org) and list two new or proposed auditing standards issued by the PCAOB. Auditing Standard no .18: Related Parties The Securities and Exchange Commission (SEC) approved a new Public Company Accounting Oversight Board (PCAOB) standard on auditing transactions with related parties and amendments to PCAOB standards on significant unusual transactions and a company’s transactions and financial relationships with its executive officers. The standard includes new
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companies follow to present their income and expenses, assets and liabilities of their financial statements. The FASB (Financial Accounting Standards Board) is the major operating organization that establishes and improves the rules of GAAP reporting. GAAP demands companies to disclose their accounting policies in their financial reports. The authoritative literature provided by the FASB, determines the classifications of comprehensive income and net income. Accounting policies are a group of specific
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Maria Juarez Professor Muslu Accounting 3367 T-Thurs A. Identify relevant Codification section that addresses transfers of receivables. The relevant codification section for the transfers of receivables is the following: FASB ASC 860-10-05-15. C. Provide definitions for the following: 1) Transfer: The conveyance of a noncash financial asset to someone other than the issuer of that financial asset. The following include transfers: selling a receivable, putting a receivable into securitization
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used previously, but it was not currently using. The case permits a technical examination of depreciation and impairment accounting issues with consideration of the FASB’s asset/liability measurement approach, fair value accounting, use of the FASB Codification, and comparisons to International Financial Reporting Standards. The case requirements are divided into basic requirements, which would be appropriate for intermediate level students; and advanced requirements, which would be more appropriate
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