Memorandum TO: CEO From: Controller Date: June 29, 2010 Sub: Acquisition & Pension Plans Acquisition Analysis & Benefits from Acquisition The 100% acquisition of other business by the manufacturing company will be beneficial. It is because; full acquisition of the other business will bring two new segments for the manufacturing company that will pose a higher growth rate. It will also facilitate two new pension plans that will be beneficial to motivate the employees. But at the same time
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ABC Trucking Co. assignment results Message: These are the results of the assignment given to me by you last week regarding ABC Trucking company potential new client. I have done the required research on the Financial Accounting Standards Board (FASB) website regarding lease structures and current practices as it would relate to the specific issue at hand with ABC Trucking. All my research has shown that leasing would be an optimum option for the company to consider when leasing the extra trucks
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Course Materials Click here to view the required and recommended materials to be purchased and to access ordering information. Course Description (Students should be cautious about enrolling in ACCT 310 or ACCT 311. These are professional courses requiring intensive study and analysis and are not to be undertaken casually. Students who have not taken ACCT 221 within the last two years may have difficulty.) Prerequisites: BMGT 110 (or at least two years of business or management experience)
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1. According to paragraph #820-10-30-2 and #820-10-50-2F of the FASB Accounting Standards Codification (ASC), Taylor Company does not need to report the transaction at fair value since a nonpublic entity company does not have to sell assets at the prices they paid to acquire them: Building and land $100,000 Company Shares @ $6.00 a share $100,000 2. According to paragraphs #820-10-30-2 and #820-10-50-2F of the FASB ASC the fair value cost does not need to be reported; however,
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represents the fair value of the cost Runway would pay to earn a new customer from an unrelated third party or marketing firm. Runway Discount should record the $25 Referral Credit as a marketing expense. According to 605-50-45-2 of the FASB Accounting Standards Codification, the referral credit should be considered as a cost incurred because it meets both of the following conditions: a. Runway Discount receives an identifiable benefit in exchange for the $25 credit. In addition, the $25 credit is separate
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The BIGGER Picture (Ch. 1) Why do we need financial reporting? What is its purpose? Who are some of the key players in financial reporting? PROVIDER EXTERNAL USERS REGULATORS Your textbook (as most out there) evaluates accounting issues from a FASB perspective. We will discuss issues from the FASB’s conceptual framework, but also will try to think about others’ perspectives as well. Before we talk about the conceptual framework, we will discuss the structure of the ultimate product of the financial
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American Trucking Company has recently been experiencing an increase in stolen loads—a loaded tractor/trailer is stolen and the load sold. The merchandise is often worth thousands of dollars, sometimes exceeding the value of the tractor/trailer. American Trucking, while wishing to recover both the load and equipment, seeks a way to locate the tractor/trailer at all times so they can dispatch their security team to retrieve the load before it is sold on the black market (as well as to retrieve the
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represents the fair value of the cost Runway would pay to earn a new customer from an unrelated third party or marketing firm. Runway Discount should record the $25 Referral Credit as a marketing expense. According to 605-50-45-2 of the FASB Accounting Standards Codification, the referral credit should be considered as a cost incurred because it meets both of the following conditions: a. Runway Discount receives an identifiable benefit in exchange for the $25 credit. In addition, the $25 credit is
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Revenue Recognition: Where it Will Take Us By Robert Bloom and Jacob Kamm Financial Executive • SUMMER 2014 FINANCIAL REPORTING Since 2008, the Financial Accounting Standards Board (FASB) and the International Accounting Standards Board (IASB) have collaborated on a converged revenue recognition standard. Current U.S. Generally Accepted Accounting Principles (GAAP) standards related to revenue recognition are essentially rules-based, containing over 200 specific requirements related
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plant and equipment may be impaired and wonders whether those assets should be written down. Given the company’s prior success, this issue has never arisen in the past, and Matt has been asked to conduct some research on this issue. Use the FASB Codification to respond to the following issues. (1) What is the authoritative guidance for asset impairments? Briefly discuss the scope of the standard (i.e., explain the types of transactions to which the standard applies.) (2) Give several examples
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