Impairment or Financial reporting disposal of longdevelopments lived assets Revised October 2011 To our clients and other friends ASC 360-10‚ Impairment and Disposal of Long-Lived Assets (ASC 360)‚ provides accounting guidance for impairments of assets that are held for use‚ held for sale and to be disposed of by other means. In one of its more challenging aspects‚ ASC 360-10 requires the use of fair value measurements for impairment of assets that are unique and not widely traded. The following publication
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FASB Codification Research Project #1 (a) Briefly describe how pension gains and losses are accounted for. According to FASB ASC 715-30-35: 35-21 Gains and Losses Gains and losses that are not recognized immediately as a component of net periodic pension cost shall be recognized as increases or decreases in other comprehensive income as they arise. Accounting for plan terminations and curtailments and other circumstances in which recognition of gains and losses as a component of
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lender. (70% probability with $1.0 million ECF) These events show that the carrying amount of the asset group may not be recoverable; thus‚ Smooth Sailing will need to test the asset group for recoverability and potential impairment in accordance with ASC 360-10 at the end of the current fiscal year. As of 31 December 2010‚ the cruise ship’s estimated fair value is $3.0 million‚ the net book value is $4.6 million‚ and the estimated remaining useful life is five years. We also assume that no matter
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with Farmer should be classified as a lease and hence account for the transactions per guidance included in FASB Accounting Standards Codification‚ specifically ASC 840 – Leases. According to the Scope and Scope Exceptions section‚ accounting treatment for Digger’s particular arrangement with Farmer would not fall under the leases topic and thus would not be accounting for using its guidance. ASC 840-10-15-15 states: “This Topic [Leases] does not apply to lease agreements concerning the rights to explore
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payments received to date by SolvGen be recognized as revenue? A: FASB codification (605-28) milestone method SolvGen Inc. is gonging to use the milestone method to recognize the revenue. The milestone method is a recently issued method of recognizing revenue for research and development arrangements under which consideration to be received by the vendor is contingent upon the achievement of certain milestones(FASB codification (605-28) milestone method). Under the commonly applied milestone
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‘‘Revenue Recognition—Multiple-Element Arrangements‚’’ in the Codification. Requirement 2: What are the separate units of accounting in the sales agreement between AOI and CMI? Use the authoritative literature to explain your answer. As the explanation below illustrates‚ the multiple deliverables sold by AOI to CMI should be treated as two separate units of accounting (the assembly line system and its installation). FASB ASC 605-2525-5 presents specific criteria that must be met for the multiple
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Chemical Corp for $2 million. Answer Required: 1. What is the appropriate classification in the statement of cash flows in the company’s December 31‚ 2010‚ financial statements for its purchase of 2012 EAs from Clean Air Corp ? According to the FASB codification section 805-50-3-1-2‚ these allowance will be recognized as intangible assets at their cost. When a company buys any assets‚ the cash outflow due to purchase will be classified in the investing section of the statement of cash flows. Standard
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Patent costs treatment and impairment testing on patents Ying Wampler Keller Graduate School of Management of DeVry University ACCT540 Dr. Racic Patent costs treatment and impairment testing on patents Patent costs treatment and impairment testing on patents Introduction XYZ Research Company was incorporated in 2010 and their business mainly focuses on developing new technology for interplanetary exploration. Due to the nature of their business‚ the majority of their business costs are
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essentially completed. LabCo will have to adopt the cost recovery method of revenue recognition for the Halibut contract as well as other instances where total costs cannot be reliably estimated if they wish to follow IFRS in the future. Currently FASB and IFRS are working on a new comprehensive approach to revenue recognition. The new standard will likely be controversial as some practices would change considerably such as the percentage-of-completion method not being allowed unless the customer
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------------------------------------------------- ------------------------------------------------- Accounting 243: Accounting Research INSTRUCTOR: Eralda Kanacevic‚ MBA Instructions: Exam is due by 10/23/12 @ 11:59pm Please submit in the drop box under week 4. Student: Gergana Ruseva-Ormanova 1-What are the skills that are tested on the CPA and what are they called? The skills tested on the CPA Exam are: researching relevant financial accounting‚ tax‚ auditing and attestation literature;
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