revenue for the activation card and the cell phone service (airtime) separately. A. ASC 605-25-05-2 describes the circumstances under which multiple deliverables may arise‚ multiple products may be delivered‚ performance may occur at different times or over different periods of time‚ and the customer’s payments for these deliverables may be fixed‚ variable‚ or a combination of fixed and variable. B. ASC 605-25-25-5 states that in an arrangement with
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1. What guidance does the Codification provide on the classification of current liabilities? (reference & brief explanation) - Reference: FASB ASC 210-10-45-5 through 45-12 Explanation: Current liabilities are obligations due within a year. On the balance sheet the listing of current liabilities start with obligations that arise from the operating cycle such as payables incurred in the acquisition of materials and supplies‚ collections received in advance of the delivery of goods or performance
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acquired 100% of DeliveryAx for delivering its products to consumers. This means CoAx does not transfer responsibility at shipping point‚ but at destination. And until all obligations are satisfied‚ it is not suitable for CoAx to recognize revenue. ASC 606‚ Revenue From Contracts With Customers‚ provides five steps to recognizing revenue; step 5 requires an entity to “recognize revenue when (or as) the entity satisfies a performance obligation.” Describe in general the key principles of this step
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Tenzin Sonam Acct 5102 W Codification Research System Written Assignment Engagement Letter for Accounting Services: February 19th‚ 2015 This letter is meant to state the responsibility of services that will be provided to your organization‚ City of Lakes‚ a public non-profit: The services provided to your organization consist of a Summary of General Accepted Accounting Procedures (GAAP). This will outline the basic principles of GAAP that relates to public non-profits and how it may differ from
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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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Case 08-01: Go With the Flow‚ Inc. 1. Insurance Settlement Proceeds: involuntary conversion Investing cash inflow ASC 230-10-45-16 As stated in ASC 230-10-45-12‚ “All of the following are cash inflows from investing activities: a. Receipts from collections or sales of loans made by the entity and of other entities’ debt instruments (other than cash equivalents and certain debt instruments that are acquired specifically for resale as discussed in paragraph 230-10-45-21) that were purchased
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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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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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