Tax season is just around the corner, and no other name incites more fear in people’s hearts than that of the Internal Revenue Service. America has long been funded by its citizen’s hard earned tax dollars. It has been the main source of funding for several wars and government-funded programs. Taxes affect every person, business, and property. This environment of constant change is a challenge for most accountants or anyone for that matter. This paper seeks to explore the history of the Federal Income
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the controller, the market value has remained constant for months, which means the company should recognize the loss. The financial vice president’s counter argument is that the loss in value is temporary and should be ignored. According to the FASB, “the primary basis of accounting for inventories is cost, which has been defined generally as the price paid or consideration given to acquire an asset” (330-10-30-1). In this case, Prophet Company would initially record the inventory at cost, which
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TO: xxxxx FROM: xxxxxx DATE: xxxxxx SUBJECT: TrueBlood Case 1, Refer-a-Friend Background Runway Discount (Runway), a privately held online retailer, has implemented a new customer referral marketing campaign. The campaign involves incentivizing current customers to refer their friends to Runway’s website. When a current customer refers someone who makes a purchase on Runway’s website, the referring customer receives a $25 credit to be applied to a future purchase. Two important provisions
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Accounting Irregularity Analysis and Presentation Bolanle /Gbadebo Intermediate Accounting 1 (ACCT 310 – V1FF) Ann Remely 10/10/2014 Company Profile Enirogroup is a well-known internet search company in the media industry, the company branches are located in Sweden, Norway, Denmark, Finland and Poland. The digital media (excluding directory assistance services) carry’s 80 percent of the company’s revenue in 2013. The company is into local search and Eniro’s notable brands, products and services
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cash flow transactions are insurance settlement proceeds, sale of accounts receivable, and acquisition of property, plant, and equipment on account. This memo will analyze each transaction under Financial Account Standards Board’s (FASB) Accounting Standards Codification (ASC) 230, Statement of Cash Flows. This memo will also appropriately classify each transaction and discuss any timing issues related to the Statement of Cash Flows. Insurance Settlement Proceeds Issue What is the proper classification
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Prepare a memo addressing the following questions. Base your analysis of the following questions on the relevant authoritative literature and discuss the support in that literature for your conclusions. Be sure to cite the relevant components of the Codification in your discussion. Citations are not required for journal entries. 1.What are the accounting issue(s) and the relevant components of the authoritative literature? 2.When should CCPC recognize the effects of the Fresh & Bright coupon
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1. FASB Accounting standards Codification ASC • 330-10-35-1 Basic rule for using lower of cost or market • 330-10-35-2 Regarding matching—times when utility drops below cost. Loss recognized when changes in price levels • 35-4 –real loss sustained? –Severe erosion of demand in the industry. Significant loss of profit because the value of the memory went down. • 35-5 –did prices go back to what it was originally? No it did not. Therefore we can write this as a loss. If it had recovered
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This example, first, violates the matching principle, since the payments from Intel should have been recorded as a rebate contra to the variable cost of the microprocessors. More information regarding the accounting treatment can also be found in FASB issue 02-16 entitled “Accounting by a customer for certain consideration received by a vendor.” This situation is similar to
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SUBJECT: Project #2 – PPP Fashions, Inc. The purpose of this memo is to address the accounting issues related to how PPP Fashions should record the $25 Referral Credit on the books. The Financial Accounting Standards Board’s Accounting Standards Codification (ASC) Topic No. 605-50 (Revenue Recognition/Customer Payments and Incentives) provides guidance pertaining to sales incentives including discounts on future purchases. The general rule of accounting for coupons and discounts indicates sales incentives
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million. Answer Required: 1. What is the appropriate classification in the statement of cash flows in the company’s December 31, 2010, financial statements for its purchase of 2012 EAs from Clean Air Corp ? According to the FASB codification section 805-50-3-1-2, these allowance will be recognized as intangible assets at their cost. When a company buys any assets, the cash outflow due to purchase will be classified in the investing section of the statement of
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