The FASB Accounting Standards Codification Group members: 1) Asset Classification Your manager, Jane Murphy, is reviewing the preliminary balance sheet you compiled for your company. She asks, "We prepaid six months of next year's rent. Why is prepaid rent classified as a current asset? We're not converting rent payments into cash. Shouldn't it be concurrent?" Research the appropriate accounting standards and explain why
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1. Convergence Project is undertaken by the IASB and the FASB jointly aiming at removing the differences between the two sets of accounting Standards, the GAAP and the IFRS. In other words, the main purpose of the project is to make the accounting standards of both the IASB and the FASB comparable so that there will be a global used accounting standard. (Deegan 2010, p49) This project will make international financial reports more comparable and more helpful for information users. The development
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February 25, 2016 In Focus Accounting Standards Update No. 2016-02, Leases (Topic 842) On February 25, 2016, the Financial Accounting Standards Board (FASB) issued an Accounting Standards Update (ASU) intended to improve financial reporting about leasing transactions. The ASU affects all companies and other organizations that lease assets such as real estate, airplanes, and manufacturing equipment. The ASU will require organizations that lease assets—referred to as “lessees”—to recognize
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discovered several areas of concern: revenue recognition, allowance for doubtful accounts/bad debt, inventory valuation/cost of goods sold, capitalization/depreciation of assets, and accounting for dividends. We based our audit on the U.S. GAAP, IRS and FASB standards, which includes the sources listed at the end of this letter. Revenue Recognition Wag Company reports revenue when a price is agreed upon with a buyer. According to GAAP, revenue is recognized only when realized or realizable and when
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discussion should be no more than 4 pages in length. Applicable Professional Pronouncements ASC 230, Statement of Cash Flows (formerly FASB Statement No. 95, Statement of Cash Flows) ASC 320, Investments — Debt and Equity Securities (formerly FASB Statement No. 115, Accounting for Certain Investments in Debt and Equity Securities) You may access the FASB Codification database through the American Accounting Association by logging in at http://aaahq.org/ascLogin.cfm using the following: User ID:
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ACCOUNTING 404 INTERNATIONAL ACCOUNTING FALL 2012 Instructor: Dr. Meihua Koo Office: Building 164, Room 2086 Email: mkoo@csupomona.edu Vmail: (909) 869-4531 Office Hours: Tuesday & Thursday: 5:00 – 5:45 p.m. Wednesday: 9:30 a.m. – 1:00 p.m. COURSE DESCRIPTION: Examination and discussion of accounting theories, techniques, procedures, accounting standards and regulations used in other nations. Examination of contemporary practices prevailing in different parts of the world. Emphasis on multi-national
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typically limited to learning and applying the criteria for revenue recognition outlined in the Financial Accounting Standards Board’s (FASB) Statement of Financial Accounting Concepts No. 5, Recognition and Measurement in Financial Statements of Business Enterprises, to routine transactions and topics, such as long-term construction contracts and installment sales (FASB 1984). While these topics are important, there are literally hundreds of revenue-generating transactions that are not covered in the
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Week 1 DQ #1 What are the major objectives of financial reporting? Who are the users of financial reporting? What type of information will each user group need? Response 1 Financial reporting establishes a foundation for financial accounting and reporting. The objectives of financial reporting provide information that is useful to creditors, investors, and any other external users in making rational decisions that involve investments, and credits. Financial reporting helps present and potential
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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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Case Set Instructions Which cases do I complete, and when is each case set due? See the syllabus. How do I prepare the cases? Start with a cover page that provides class information (ACCT 4400, etc.) and the names of all team members. The cover page should also include the specific cases or parts of cases completed by each team member along with any reviewing responsibilities. The answers to the three cases in each case set must follow the order listed in the syllabus. All materials
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