1. Is Eye Vision’s arrangement with Holland Hospital within the scope of ASC 985-605‚ Software: Revenue Recognition? In this case‚ the main content of the Eye Vision’s arrangement with Holland Hospital include embedded software medical equipment and an initial option to purchase a two-year separately priced maintenance agreement. In this case‚ because“Eye Vision has never sold‚ nor does it offer to sell‚ the Clear View Laser without the embedded software because the software is necessary to perform
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(3367) -- Fall 2012 Research Assignment Questions Directions: Type your answer starting on the line after each question. 1. FASB Accounting Standards Codification FASC a. When did the FASC Codification become effective? The FASC became effective for interim and annual periods ending after September 15‚ 2009 even though the authoritative version of the Codification was released on July 1‚ 2009. b. Did the FASC change prior GAAP? The FASC did not change prior GAAP but it instead reorganized
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flows to be derived from the asset on an undiscounted basis” (FASB‚ ASC 360-10). In the Property Solutions Inc. case‚ the carrying value of the building on 10/1/2017 was $1‚650‚000 and the expected future cash flows are $1‚214‚940. Per the definition of impairment loss stated above‚ the asset is impaired. In calculating the loss‚ we must compare the carrying value to the fair value of the asset. Under both ASC 820-10 of the FASB codification and SFAS No. 157‚ fair value is defined as “The price that
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Board (FASB). Clients will ask questions when they do not understand the reasoning behind the information needed. Adjusting costs‚ determining capitalization‚ asset disposal‚ and goodwill are often harder to understand concepts in accounting and the accountant needs to be able to explain the requirements of the accounting standards codifications (ASC) in relation to the issues the clients ask about. Adjusting lower cost of market inventory on valuation FASB ASC 330-10-35-1 through FASB ASC 330-10-35-11
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school has a subscription to the FASB Codification‚ go to log in and prepare responses to the following. Provide Codification references for your responses. (a) Identify the accounting literature that addresses the 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
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while the plan proposed is a switch to the completed contract method. During our investigation into this matter‚ we analyzed the codification and validation for the percentage-of-completion method‚ and determined that the proposed change would be an inappropriate course of action. Justification of Existing Methods The Financial Accounting Standards Board’s codification helps reinforce our decision to not switch accounting methods. The current policy for revenue recognition‚ percentage-of-completion
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Intermediate Accounting 1 -- Spring 2012 Financial Accounting Standards Codification Research Assignment Questions In order to complete this assignment‚ you will need to access the Financial Accounting Standards Board (FASB) Financial Accounting Standards Codification database. The related information for this is posted on Blackboard for this course. The UH copy of the FASB Financial Accounting Standards Codification (FASC) can be accessed at: http://aaahq.org/ascLogin.cfm. The FASC is the one
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to be recognized for the separate units of accounting rather than as a whole unit. To find the amount of revenue for each unit‚ the total selling price must be allocated proportionately using the relative selling price method. The FASB Accounting Standards Codification provides guidance to make these two decisions. Finally‚ I recommend using the percentage-of-completion method to determine when revenue is recognized. This method is generally used for long-term contracts dealing with construction
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Attestation Ringo Company Receivable: After reviewing the account receivable for Ringo Pistachio Company‚ I have determined that the account is now a loss contingency. After close consideration‚ I have concluded that FASB ASC 450-20 is applicable to this situation. The codification requires the accrual of a loss when it is probable that an asset has been impaired at the date of the financial statements and when the amount of the loss can be reasonably estimated. Since Ringo Company received a “going
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Per your request‚ our group conducted research to determine whether costs or potential costs of the provisions of Big Bear Power’s lease of Goliath Co’s combustion turbine should be included in its minimum lease payments. We have provided a summary of the facts‚ our conclusion‚ the basis for our conclusion‚ and an analysis of possible alternatives to our conclusion as requested. Summary of the Facts Big Bear Power (the Company)‚ a public utility company‚ is leasing a combustion turbine from
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