Review and Opinion of Assessment of Opinion (Scenario B) I my opinion, I agree with Company X classification of its impaired equity securities in Company B as temporary for the December 31, 2010, balance sheet date. According to the FASB Accounting Codification 320-10-35-33 equity securities are classified as other than temporary in the period in which an entity has decided to sell the securities and the loss on impairment of those securities are to be recorded in the period of the entity’s decision
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follow IFRS regulations and standards. 3. How would the answer differ under U.S. GAAP? As stated in the Master Glossary of the Codification, an operating lease can be defined two ways. “From the perspective of a lessee, any lease other than a capital lease and from the perspective of a lessor, a lease that meets the conditions in paragraph 840-10-25-43(d).” (FASB, n.d) Paragraph 840-10-25-43(d) states that a lease is an operating lease if it does not meet any of the four criteria below: “The
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million was paid in excess of fair value to acquire the plant. The president has requested that the $1 million be set up on the balance sheet in an account entitled water. Relevant Guidance: FASB ASC paragraph 350-20-35-39 through 44. FASB ASC paragraph 350-20-35-1. FASB ASC paragraph 350-20-35-16. FASB ASC paragraph 350-20-45-1. Application: Goodwill is considered an asset representing future economic profit stemming from the acquisition of other assets in a business combination. The amount
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should be performed Applicable Professional Pronouncements: ASC 350-20, Intangibles — Goodwill and Other: Goodwill (ASC 350-20) ASC 820, Fair Value Measurement (ASC 820) Research Databases: Use the FASB Accounting Standards Codification Database to research the authoritative literature (FASB pronouncements) relevant to the issues in question. The web link and login information of the database is available on D2L. Instructions: a) Your name, class section, and responses must be typed
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Deliverables for the Arrangement The deliverables for this arrangement are as follows: • Research and development • Licensing combined with research and development • The Five payments milestones as a whole An Example given in FASB 605-25-55-46 states, “The license deliverable does not meet the first criterion for separation. The license does not have standalone value to Pharma. Because Drug B has not yet been developed, the license is of no value to Pharma without the ensuing research and development
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Exchange Commission (SEC). Two laws, the Securities Act of 1933 and the Securities Exchange Act of 1934, give the SEC authority to establish reporting and disclosure requirements. However, the SEC usually operates in an oversight capacity, allowing the FASB and the Governmental Accounting Standards Board (GASB) to establish these requirements. The GASB develops accounting standards for state and local governments. The current set of principles that accountants use rests upon some underlying assumptions
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Standards Board (FASB), Accounting Principles Board (APB) American Institute of Certified Public Accountants (AICPA), and Securities and Exchange Commission (SEC). There is no single document that includes all the accounting standards. But the FASB has released its Accounting Standards Codification for verification by its constituents. Currently there are data bases, such as the FASB Financial Accounting Research System (FARS) that includes most accounting standards (Nikolai 2010). The FASB standards are
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consistent with GAAP, Reggie Lewis should have reviewed Section 605 of the Accounting Standards Codification concerning everything surrounding revenue recognition. More specifically ASC 605-25-1 states that, “The recognition of revenue of an entity during a period involves consideration of the following two factors, being realized or realizable and being earned.” In terms of revenue realization, FASB Concepts Statement No. 5 states that, “revenue is realized when products, merchandise or other assets
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Professional Pronouncements: ASC 320-10-35: Investments – Debt and Equity Securities SAB 111: http://www.sec.gov/interps/account/sab111.htm Instructions for accessing the FASB Codification database: 1. Go to http://aaahq.org/ascLogin.cfm 2. User ID: AAA52999 3. Password: Fgkb9em 4. Click on link to FASB Accounting Standards Codification (from American Accounting Association webpage) 5. Search on 320-10-35 (or access via topical drop down menu) 1 Jim Beatty is the CFO of Anne Surrey Inc., an investment
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Pronouncements: ASC 320-10-35: Investments – Debt and Equity Securities SAB 111: http://www.sec.gov/interps/account/sab111.htm Instructions for accessing the FASB Codification database: 1. Go to http://aaahq.org/ascLogin.cfm 2. User ID: AAA52999 3. Password: BbJ5LMm 4. Click on link to FASB Accounting Standards Codification (from American Accounting Association webpage) 5. Search on 320-10-35 (or access via topical drop down menu) 1 Jim Beatty is the CFO of Anne Surrey Inc., an
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