1. You use a perpetual inventory system and value the inventory using FIFO. Prior to making adjusting year-end entries you valued the inventory at the lower-of-cost or-market. Justify why you valued the inventory at lower-of-cost or-market. FASB ASC CITATION: Adjustments to Lower of Cost or Market 330-10-35-1 A departure from the cost basis of pricing the inventory is required when the utility of the goods is no longer as great as their cost. Where there is evidence that the utility of goods‚
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Topic7 Inventory 1 Identify the primary authoritative guidance for the accounting for inventories. What is the predecessor literature? FASB ASC 330 Inventory provides primary authoritative guidance for the accounting for inventory. The predecessor literature about it is Accounting Research Bulletins (ARB) No.43 Chapter 4‚ paragraph 4 (Issued June‚ 1953) and Statement of Financial Accounting Standard (FAS) NO.151 Inventory cost- an amendment of ARB No.43‚ Chapter 4 (Issued November‚ 2004).
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Memorandum To: John J. Morris‚ Department of Accounting From: Group #1 (Anthony Smith‚ Jessica Kolb‚ Jeffrey Brownlee‚ Caleb Dykes) Date: 4/11/13 Subject: ACCTG 642: Case 10-1‚ SolvGen Inc. Statement of Relevant Facts Direct Drugs Inc. (Direct) has created a plan for the acquisition of SolvGen Inc. (SolvGen)‚ which is a publicly owned company. Direct has engaged an audit team to review agreement and procedures dealing with two separate material agreements. The first agreement is a
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trading (FASB ASC 320-10-25-1) (IFRS provides for classification as trading‚ available-for-sale‚ or held-to-maturity for all types of financial assets‚ whereas US GAAP applies these classification only to securities.). To focus on the first two classifications‚ their treatment in the accounting process differs slightly. First‚ bonds categorized as available-for-sale are located in the final section of the balance sheet known as stockholders’ equity and reported at fair market value (FASB ASC 820: Fair
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million of goodwill. Each division has been a reporting unit for a number of years. Due to the complexities involved with the calculation of goodwill and resource restraints in 2011‚ Galaxy decided to hire Big Time LLC (Big Time) to perform three annual ASC 350‚ Intangibles-Goodwill and Other‚ impairment analyses. In 2011‚ no goodwill impairment was found by Big Time. In 2012‚ Galaxy did not use Big Time or any external evaluation firm for the goodwill impairment analyses. The management determined that
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Advertising Standards Canada Guidelines for the Use of Comparative Advertising Guidelines for the Use of Research and Survey Data to Support Comparative Advertising Claims Advertising Standards Canada first published the Guidelines for the Use of Comparative Advertising and Guidelines for the Use of Research and Survey Data to Support Comparative Advertising Claims in 1982. They were designed to assist advertisers to develop comparative advertising that was consistent with the provisions of the
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the end of year 3 $ 20‚000 1-4 1. Topic # for business combination: ASC 805 2. Topic # for related party disclosures: ASC 850 3. Topic‚ subtopic‚ and section # for the initial measurement of internal-use software: ASC 350 – 40 – 30 4. Topic‚ subtopic‚ and section # for the subseq. measure of asset retirement oblig.: ASC 980 – 410 – 35 5. Topic‚ subtopic‚ and section # for the recognition of stock compensation: ASC 505 –
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Case 11-3 Master of the Universe TABLE OF CONTENTS Statement of facts……………………………………………... 3 Question 1…………………………………………………….. 5 Solution……………………………………………….. 5 Question 2…………………………………….......................... 6 Solution……………………………………………….. 6 Question 3…………………………………………………….. 7 Alternatives…………………………………………… 7 Solution……………………………………………….. 8 STATEMENT OF FACTS Saturn
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I. Accounting Defined ASC (Accounting Standards Council) Accounting is a service activity. Its function is to provide quantitative information‚ primarily financial in nature‚ about economic entities‚ that is intended to be useful in making economic decision. Three important activities in the accounting process: A. Identifying – the recognition or non-recognition of “accountable” events. - an event is accountable or quantifiable when it has an effect on assets‚ liabilities‚ and equity. -
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decision for valuation allowance. 1. Clarify Issues & Objectives ASC 740-10-05-5 defines a deferred tax asset as: A deferred tax asset is measured using the applicable enacted tax rate and provisions of the enacted tax law. A deferred tax asset is reduced by a valuation allowance if‚ based on the weight of evidence available‚ it is more likely than not that some portion or all of a deferred tax asset will not be realized. ASC 740-10-05-5 also states the following: There are two basic principles
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