A.What is the specific key accounting question(s) being asked? Treat the activation card and prepaid voucher as one deliverable item or as two separate items for accounting purposes. B.What are the appropriate FASB Codification reference(s) that you used to support your proposed accounting treatment? ASC 605-25-55-8 thru 55-12 ASC 605-10-S99-1 ASC 605-25-25-4 to 25-6 ASC 605-25-30-2 ASC 605-25-30-4 thru 30-5 ASC 605-25-30-6A ASC 605-10-25-1 C.What is your conclusion as to the appropriate
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been asked to conduct research related to a proposed transfer of receivables. Your supervisor wants the authoritative sources for the issues that are discussed in the securitization agreement. Use the FASB Codification to respond to the following issues. 1) Identify relevant Codification section that addresses transfers of receivables. 2) What are the objectives for reporting transfers of receivables? 3) Provide definitions for the following: a. Transfer b. Recourse
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must be taken into account when recording and classifying these notes. According to FASB accounting standards codification 850-10-50-2, notes or accounts receivable from officers, employees or affiliated entities must be shown separately and not included under a general heading such as notes receivable or accounts receivable. In addition to this it is important to note that, in accordance with codification 850-10-50-5, the transactions cannot be presumed to be carried out on an arm’s-length basis
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Introduction Pharma Co. is a U.S. subsidiary that has a U.K. parent company and a U.S. based lender. They are in the process of restructuring the company and the question has been presented as to whether or not they should record a provision for the restructuring according to GAAP and IFRS guidelines. It is found that they do meet the qualifications for being liable and should therefore record a provision for both their U.K. parent company and their U.S. lenders. Evidence for this conclusion
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1) a) The FASB codification defines comprehensive income to be “the change in equity (net assets) of a business entity during a period from transactions and other events and circumstances from nonowner sources” (220-10-20). The components that make up comprehensive income consist of net income and other comprehensive income. This differs from net income in that net income is a part of comprehensive income. In the codification, net income is defined as “a measure of financial performance resulting
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not record the estimated returns considering it would be immaterial, and (3) Revenue recognition should be deferred until the payment is made. We have searched FASB codification by using the key work “right of return”. In addition, we have researched Codification topics 605 Revenue Recognition. Four relevant hits have been found. FASB ASC 605-15-15-2 states that sales in which a product may be returned, whether as a matter of contract or as a matter of existing practice, either by the ultimate
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Accounting 3366 (a) When did the FASC Codification become effective? The FASC Codification actually became effective on July 1, 2009. (b) Did the FASC change prior GAAP? No, it actually did not. However, it did re-structure GAAP. (c) What does the FASB expect from the new FASC structure and system? 1. Reduce the amount of time and effort required to solve an accounting research
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Alfred Auletta 16 September 2012 Professor Shahid ACC 301 CA 7-1 (Bad-debt Accounting) A. What are the deficiencies of the direct write-off method? The deficiency of the direct write-off method is that it fails to match the costs with the revenues in a specific period. It also does not show the net realizable value of receivables in the balance sheet. The only time that the direct write-off method is appropriate is when the amount that is uncollectible is deemed immaterial.
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Response to Client Request I ACC/541 To: Regional Trucking Company From: The Consulting Group In Re: Leases and Lease Structures A company wants information about leases and lease structures in the FASB codification required by the supervisor in response to the request of the client. The client is a regional trucking company. The company owns one hundred trailers 20 less than the requirement to take a new job proposal. The opportunity offers new growth, the doubt about the
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their financial statements to address certain issues that have occurred within the company including changes in accounting principles, changes in accounting estimates, changes in the reporting entity, and errors in their financial statements. “The FASB classifies changes in these categories because each category involves different methods of recognizing changes in the financial statements” (Kieso, Weygandt, & Warfield, 2007, p. 1153). Zynga is the social gaming company responsible for games including
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