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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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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subject to recall product costs‚ until the warranty period has expired (3 years) for all campaigns. 4. Neutral Discussion of the Major Alternatives‚ Citing Relevant Authoritative Literature and Theoretical Concepts Alternatives A-C Support: ASC 450-20-25-2: Contingent Liability Requirements “An estimated loss from a loss contingency shall be accrued by a charge to income if both […] conditions are met: a. Information available before the financial statements are issued […] indicates
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nes Revenue Recognition Case Amanda Eng Alipasha Ziaee 1. Revenue Recognition for MultipleElement Arrangements The Case of Velocity Cellular a) According the ASC 60525255 there are two criteria that must be met in order to be considered a separate deliverable and a separate unit of accounting: i. The delivered item or items have value to the customer on a standalone basis. The item or items have value on a standalone
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ASC 740-20 defines “income taxes” as “domestic and foreign federal (national)‚ state‚ and local (including franchise) taxes based on income”. Further in the Glossary‚ “taxable income” is defined as “the excess of taxable revenues over tax deductible expenses and exemptions for the year as defined by the governmental taxing authority”. Therefore‚ the principles and the scope of ASC 740 are only applicable to “taxes based on income.” However‚ ASC 740 provides no further guidance on this matter and
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needs to be assessed whether Meyer or Saban is the VIE’s primary beneficiary according to ASC 810-10-25-38A. As defined in ASC 810-10-15‚ the primary beneficiary is an entity that consolidates the variable interest entity. In the past‚ the determination of the controlling financial interest was done by simply establishing which entity owned the majority of the subsidiary in question. Now according to ASC
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