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‚ in their disposal in the ordinary course of business‚ will be less than cost The inventory has a financial importance as it is purchased and recorded at its historical cost or original cost. With respect to a perpetual inventory system
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dismantling plants when abandoned. Issue How should Pharma Co. account for the restructuring program for the year ended Dec 31‚ 2010 under U.S. GAAP? Analysis FASB Accounting Standards Codification (ASC) Subtopic 420-10 Exit or Disposal Cost Obligations presents the relevant guidance on cost obligations. Per ASC
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• Galaxy has elected an annual goodwill impairment testing date of December 31 for all three reporting units. In December 2010‚ Galaxy management engaged Big Time LLC (Big Time)‚ a reputable external valuation firm‚ to perform three annual ASC 350‚ Intangibles — Goodwill and Other‚ impairment analyses (one for each reporting unit) on the $360 million of goodwill recorded by Galaxy as of December 31‚ 2010. Previously‚ management had performed the annual goodwill impairment analysis internally
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composting much of the coffee grounds produced on north campus‚ as well as to raise campus awareness on the benefits and ease of composting. This project is well underway‚ and one can see the worms working their digestive wonders in the parking ramp under ASC. Quinn Wrenholt‚ the primary applicant of the fall vermicomposting CSF proposal‚ and other members of the Composting Club have been collecting the coffee grounds from the library Coffee Bene‚ as well as from T’s‚ the Loft‚ and Summit Marketplace in
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Impairment Testing We are writing to you regarding the inquiry we received over the possible impairment of your cruise ship. Our response was formulated using our extensive knowledge of the U.S. Generally Accepted Accounting Principles and referring to ASC 360-10 over the testing of impairment. After preforming recoverability tests‚ we have concluded that your cruise ship is impaired‚ and an impairment loss of $1.6 million should be recorded on December 31‚ 2010. In the second scenario‚ the asset is recoverable
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of legal fees incurred by Goliath. 840-10-25-5 For a lessee‚ minimum lease payments comprise the payments that the lessee is obligated to make or can be required to make in connection with the leased property‚ excluding the following: Any guarantee by the lessee of the lessor ’s debt and the lessee ’s obligation to pay (apart from the rental payments) executory costs such as insurance‚ maintenance‚ and taxes in connection with the leased property. 840-10-25-7 For a lessor‚ minimum lease payments
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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 circumstances indicate that its carrying amount may not be recoverable.” In this case‚ there is a possibility of impairment because
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Financial Accounting Theory and Analysis 10e Chapter 1 - The Development of Accounting Theory What is Theory? Webster defines theory as “Systematically organized knowledge‚ applicable in a relatively wide variety of circumstances; a system of assumptions‚ accepted principles and rules of procedure to analyze‚ predict or otherwise explain the nature of behavior of a specified set of phenomena.” Why is the development of a general theory of accounting important? The development of a general
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Kamm‚ J. (2014). Revenue Recognition‚ How we got here and where it will take us. Financial Executive (3). 48. Retrieved from: http://www.financialexecutives.org FASB‚ (Financial Accounting Standards Board). (n.d.) Accounting Standards Codification (ASC). Retrieved February 2015‚ from FASB Accounting Standards Codification database. Kieso‚ D.E.‚ Warfield‚ T.D.‚ & Wegandt‚ J.J. (2010). Intermediate Accounting. Hoboken‚ New Jersey: John Wiley & Sons‚ Inc. Work Accomplished Marc Friedman – Presented initial
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accounting for the type of separately priced warranty that Pleasant is considering. (b) When are warranty contracts considered separately priced? (c) What are incremental direct acquisition costs and how should they be treated? SOLUTION (a) FASB ASC 605-20-25 addresses how revenue and costs from a separately priced extended warranty or product maintenance contract should be recognized. (b) An Extended Warranty is an agreement to provide warranty protection in addition to the scope of coverage
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