Case 12-9: Rough Waters Ahead 1. How should Smooth Sailings’ management perform the recoverability test for the cruise ship as of December 31, 2010? a. What assets and liabilities should be included in the “asset group” as defined by ASC 360-10 for purpose of performing the recoverability test? i. FASB ASC paragraph 360-10-35-23 states that for measuring an impairment loss, long-lived assets should be group with other assets and liabilities at the lowest level for which identifiable cash flows
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Rough Waters a Relief for Depression Sufferers Yessenia Diaz Rough Waters is unlike any film I've seen that tackles depression. While you may be trapped in your own mind at the beginning of this film, by the end you are set free and able to consider life again through the account of Katie Kim. Gray and blue take control over the film and rain drips down onto windows to set the mood for the story of Katie Kim who had failed at committing suicide. Her attempt at suicide was unsuccessful and today
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TrueBlood Case – Rough Waters Ahead 1. How should Smooth Sailings’ management perform the recoverability test for the cruise ship as of December 31, 2010? In addressing this question, consider: The following are the required steps to identify, recognize and measure the impairment of a long-lived asset (group) to be held and used: Step 1: Indicators of impairment — FASB ASC 360-10-35-21 “A long-lived asset (asset group) shall be tested for recoverability whenever events or changes in
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This case gives students an opportunity to determine the accounting for impairment of long-lived assets in accordance with ASC 360-10. Applicable Professional Pronouncements ASC 360-10, Property, Plant, and Equipment: Overall (ASC 360-10) ASC 360-10 provides guidance on accounting for property, plant, and equipment, and the related accumulated depreciation on those assets. This Subtopic also includes guidance on the impairment or disposal of long-lived assets. ASC 360-10 notes that long-lived
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1. How should Smooth Sailings’ management perform the recoverability test for the cruise ship as of December 31,2010? In addressing this question, consider: * What assets and liabilities should be included in the “asset group” as defined by ASC 360-10 for purposes of performing the recoverability test? 360-10-35-21 According to ASC 360-10-35-23 a long-lived asset or assets shall be grouped with other assets and liabilities at the lowest level for which identifiable cash flows are largely independent
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February 18, 2016 Research File Memorandum Prepared by: Certified Public Accountants Client: Smooth Sailing Subject: Fair Value Accounting – Asset Impairment Background: Smooth Sailing is a privately-held cruise operator. The company operates a sole cruise ship that was purchased using non-recourse debt from a bank. Nonrecourse debt is secured by the collateral. In the event of default, the lender can only seize the collateral and no further action can be taken against smooth sailing
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Case 12-9 Rough Waters Ahead - IFRS 1. Cruise Ship belongs to the assets that apply to IAS 36 Impairment rule IAS 36-2 states the Impairment of Assets rule shall be applied in accounting for the impairment of all assets, other than: a) Inventories b) Assets arising from construction contracts c) Deferred tax assets d) Assets arising from employee benefits e) Financial assets that are within the
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1. Why did VC Brakes’ change effort fail; what were its three major mistakes? VC Brake’s effort to change failed for three reasons. VC Brake’s effort to change lacked a good sponsor, the removal of obstacles needed for change to be successful, and a sense of urgency. VC Brake’s sponsor was the VP of Operations, James Baynard. James Baynard, according to Ryan, is one of those managers who takes credit, but does not really do anything. Unfortunately for the company, Ryan might be correct. For
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After reading both “Fall” and “Canvas of Encouragement” I found many differences in their tone. They also are different in many other ways but, the tone is the most important aspect of their differences. The poem “Fall” centers around a child playing in the fall, which leaves the reader with feelings of youthfulness and warmth. It goes to great lengths to give the reader an image of that time of year. “Canvas of Encouragement” centers around an artist without inspiration and out of time. The author
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1. Why did VC Brakes’ change effort fail; what were its three major mistakes? VC Brake’s effort to change failed for three reasons. VC Brake’s effort to change lacked a good sponsor, the removal of obstacles needed for change to be successful, and a sense of urgency. VC Brake’s sponsor was the VP of Operations, James Baynard. James Baynard, according to Ryan, is one of those managers who takes credit, but does not really do anything. Unfortunately for the company, Ryan might be correct. For
Words: 480 - Pages: 2
