replacement cost without the additional adjustments. This change will allow for similar inventory valuation when compared to other competitors. Additional factors that should be considered are Westerns Aluminum’s position in the current market. ASC 250-10-S99-4(b)(1) suggests that it is important to consider general economic trends in the industry‚ customer growth‚ and increased demand on the products offered. Future price trends for their materials are another area that should be looked at. Western
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Trueblood Case 9-2: Pharmagen 1. State the issue at hand. (Typically this is merely the question you are asked at the end of the case.) How to account for the funding of the R&D and royalty payments 2. State the fact pattern. BRIEFLY present the relevant facts. (Bullet points can be very useful here.) (This can be a challenge‚ given that some Trueblood cases are only a few paragraphs long‚ it can be hard to further summarize them.) • Pharmagen entered into a funding agreement with Company XYZ
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as the Company has cleaned up contaminations in other countries in which it operates. As a result‚ Energy should recognize a provision. (ii) Under U.S. GAAP‚ Energy should recognize a loss for the cleanup costs in its 20x1 financial statements. ASC 450-20-25-2 provides that “an estimated loss from a loss contingency shall be accrued by a charge to income if (a) information available before the financial statements are issued indicates it is probable that a liability had
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classified as a lease and hence account for the transactions per guidance included in FASB Accounting Standards Codification‚ specifically ASC 840 – Leases. According to the Scope and Scope Exceptions section‚ accounting treatment for Digger’s particular arrangement with Farmer would not fall under the leases topic and thus would not be accounting for using its guidance. ASC 840-10-15-15 states: “This Topic [Leases] does not apply to lease agreements concerning the rights to explore for or to exploit natural
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RE: Sony’s Goodwill and Segment Reporting Facts: Sony have been known worldwide as a Japanese multinational company‚ its efforts trying to expanding business in United States‚ have made that Sony acquires CBS Records and Columbia Pictures. Thus‚ creating Sony Music and Sony Pictures‚ which represent Sony entertainment. This involved to the company in $1.2 billion of debt‚ and assigned goodwill assets for $3.8 billion. The last filing with SEC reported just two main segments: electronics and
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the guidance about accounting for income taxes is in International Accounting Standard (IAS) 12. The guidance about accounting for income taxes in U.S GAAP is in the Financial Accounting Standards Board (FASB) Accounting Standards Codification (ASC) Topic 740. Now‚ I will talk about some differences in specific parts about income tax between IFRS and GAAP. First of all‚ it’s the tax basis. Background: The tax basis of an asset or liability is one of the key elements in determining deferred
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The Use of Mandatory Overtime in Staffing Shortfalls: An Analysis of Policy Goals and Options Timothy J. Clark St. Joseph’s College of Maine July 25‚ 2012 Context In spite of legislative measures to attempt to correct it‚ the issue of nurses working mandatory overtime continues. The primary problem with mandatory overtime is that‚ as reported by Garret (2008)‚ it leads to increased potential for nursing errors or near misses due to fatigue‚ and to diminished quality of patient care even
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is a research and development agreement ‚ and second agreement is a license and distribution agreement during the first quarter of fiscal year 2010. • What are the deliverables for the arrangement described in the case study above? According to ASC 605-25-15-2‚ all deliverables (that is‚ products‚ services‚ or rights to use assets) within contractually binding arrangements (whether written‚ oral‚ or implied‚ and hereinafter referred to as arrangements) in all industries under which a vendor will
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financials by adhering to accounting standards. First let’s discuss whether it is appropriate for WWA to include the subsidiaries’ October 31st financial information on their December 31st statements‚ regardless of the hypothetical event. According to ASC-810-10-45-12‚ subsidiary information can be consolidated with parent information if the difference in reporting period is less than three months. WWA’s auditors still wonder if more timely information can be obtained although the October 31st information
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37‚ a provision is recognized for a legal or constructive obligation arising from a past event‚ if there is a probable (more likely than not) outflow of resources and the amount can be estimated reliably (IAS 37.14). In contrast‚ according to FASB ASC 450-20-25-2‚ a contingency (provision) is recognized if it is probable (likely) that a liability has been incurred and the amount is reasonably estimated. Scenario 1 (1) Under IFRSs: According to IAS 37.22‚ the contamination of the land gives rise
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