in 2010 that there might be a change in liability in the near term. However‚ recording the reduction should be done in 2011. AUTHORITATIVE AND INTERPRETIVE GUIDANCE CONSIDERED Refer to FASB no. 5 Refer to ASC 275-10-50 (Use of estimates in the preparation of financial statements) Refer to ASC 450-20-05 (Overview and background of loss
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Obligation Liability of ARO The major purpose of this memo is to help identify potential asset retirement obligation liabilities when ARO sells its 12 warehouses‚ which contain asbestos‚ in different situations. After studying related materials in ASC 410 rules‚ we have major conclusions summarized in this memo. In the situation that ARO plans to sell its 10 warehouses containing asbestos with special asbestos handling and removal laws‚ since the warehouses are neither demolished nor significantly
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segments need to be reported separately? Do any of the segments fall into the “all other” aggregate category? Conclusions and Authoritative Reasoning 1. Sell-it Products should report seven operating segments in their Annual Report. a) ASC 280-10-50-1 states‚ “An operating segment is a component of a public entity that has
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damaged goods? 2- For other returns‚ if there is no legal right to return the merchandise nor the ability to make a reasonable estimate‚ should the company recognize the revenue or defer it? Analysis for Issue 1 - Return of Damaged Goods Regulation ASC‚ Rule 605-15-25-1 states: If an entity sells its product but gives the buyer the right to return that product‚ revenue from the sales transaction shall be recognized at time of sale only if all of the following conditions are met: a. The seller ’s
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NeedsSpace Case 9-4 NeedsSpace is leasing space to rent corporate offices from WeHaveIt. According to ASC 840‚ NeedsSpace has entered into an operating lease with a lease term of 10 years as defined by the Glossary in ASC 840 (paragraph 5(f) of Statement 13). The lease will be terminated at the end of the 10 year term and NeedsSpace will not be given the option to renew. The lease agreement specifies that the lessee may have to perform certain tasks at the cost of the lessee when the lease term
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ABC Inc. Date: January 11th‚ 2015 Prepared by: Reviewed by: Professor ISSUE: Accounting for ABC’s tenant improvements and lease incentive obligations under the lease agreement with Landlord LLC (the “Landlord”). BRIEF BACKGROUND OF COMPANY ABC Inc. was founded in 2007 and is headquartered in San Francisco. Revenues and net income for 2010 are $500 million and $80 million‚ respectively. In September 2010‚ ABC Inc. (“ABC” or the “Company”) entered into an agreement with Landlord LLC (the
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turbine from Goliath Co for a 10-year non-cancelable term. The lease agreement is signed on December 15‚ 2004 and Big Bear’s right to use the turbine begins on January 1‚ 2005. They have the following three transactions that need to be analyzed under ASC 840‚ Accounting for Leases‚ to determine whether costs or potential costs associated with the provision should be included in minimum lease payments: 1. Fees paid in connection with negotiating lease agreement and legal fees. Big Bear pays Stipe
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asbestos. For 10 of the 25 warehouses that reside in states with special asbestos handling and removal laws‚ LOI plans to sell the buildings without ever meeting the criteria to have to remove the asbestos and thus no obligation exists. ASC 240-20-55-58 and ASC 240-20-55-60 state that although timing of the performance of the asset retirement activity is conditional on the factory undergoing major renovations or being demolished‚ existing regulations create a duty or responsibility for the entity
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Senior Assignment Research Paper Executive Summary KBR‚ Inc. is one of the world’s premiere engineering‚ procurement and construction companies with a presence in five continents‚ offering services through ten business units. They provide defense services for the United States and other international government agencies‚ along with‚ being known as the leader of the oil and gas industry. This company has completed ground-breaking projects like producing the world’s largest Floating Production
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To: General Manager From: Consultant Date: January 30‚ 2012 Subject: PCL Control Sustainability Introduction PCL is a European consumer electronics and healthcare company that has recently entered China. They have a wide variety of televisions‚ DVD players‚ PC monitors‚ audio products and PC peripherals. PCL is able to compete within the consumer electronics market as they have low prices and a large network of distributors. PCL uses innovation to stay ahead of competitors and keep up with the
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