Standards Board’s (FASB) Accounting Standards Codifications (ASC) 360 – Property‚ Plant and Equipment to conduct our tests for recoverability on the cruise ship. Our analysis has helped us conclude that the value of the cruise ship has been impaired and Smooth Sailing will have to record an impairment loss of $1.6 million. The first step is to determine whether there were any indicators of impairment of the asset. According to FASB’s Accounting Standards Codification (ASC) 360-10-35-21: “A
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include the cruise ship and working capital in the “asset group”. The analysis leading us to this recommendation follows. We based our analysis on the requirements of the Financial Accounting Standards Board (FASB) Accounting Standards Codification (ASC) 360 – Property‚ Plant‚ and Equipment. ASC 360-10-20 defines an asset group to be the unit of accounting for a long-lived asset or assets to be held and used‚ which represents the lowest level for which identifiable cash flows are largely independent
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Financial Statements 1.4 Business Combinations: Historical Perspective 1.10 FASB’s Conceptual Framework 1.5 Terminology and Types of Combinations 1.11 FASB Codification Project 1.6 Takeover Premiums 1.12 Appendix A: Evaluating Firm Performance 1.7 Avoiding Pitfalls before the Deal 1.13 Appendix B: Researching the FASB Codification INTRODUCTION This chapter introduces you to a fascinating topic which will occupy a considerable part of your course – Business Combinations.
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demolished Plan to operate indeterminately Issue Should LOI recognize an asset retirement obligation for each of the categories of warehouses with asbestos? Analysis FASB Accounting Standards Codification (ASC) Subtopic 410-20 Asset Retirement Obligations presents the relevant guidance on asset retirement obligations. Per ASC 410-20-15-2‚ asset retirement obligations include: “a. Legal obligations associated with the retirement of a tangible long-lived asset that result from the acquisition…
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to the terms of the plan. Under defined benefit plans‚ there are requirements that must be met. According to the FASB ASC 715-70-50‚ the employer must disclose amounts of cost recognized for a defined contribution pension plans and for defined contribution postretirement benefit plans for periods that are presented separately from amounts of cost recognized for defined benefit plans (FASB‚ 2011). Two New Segments Regarding the two segments the new acquisition as‚ leads our company to investigate
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accounting principles and terminology that are basic but quite essential to the accounting practice. Now let’s discuss some accounting terms beginning with Generally Accepted Accounting Principles. Generally Accepted Accounting Principles (GAAP) is a codification of how CPA firms and corporations prepare and present their business income and expense‚ assets and liabilities on their financial statements. GAAP is not a single accounting rule‚ but rather the aggregate of many rules on how to account for various
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Describe what you believe is implied by the term “engagement risk.” What are the key factors likely considered by Deloitte and other audit firms when assessing engagement risk? How‚ if at all‚ are auditors’ professional responsibilities affected when a client proposes a higher than normal degree of engagement risk? I believe that the term “engagement risk” implies that inherent client-specific risks face an auditor throughout the course of an audit‚ thus creating a risk that the auditor will be
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consistent with the FASB accounting principles. Galaxy’s business is comprised of three distinct segments‚ its Fitness Equipment‚ Golf Equipment‚ and Hockey Equipment; each of which requires their own separate reporting. Although many companies with multiple sources of revenue report as one unit‚ Galaxy does not because of the discrete nature of financial information for each separate segment. For this reason‚ each component is managed separately. As is stated in the FASB Codification‚ “A component of
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responsible for performing general repair and maintenance on the leased premises. Assuming that the lessee is required to make deposits to financially protect the lessor concerning the maintenance obligation by setting up a reserve‚ the guidance in ASC 840-10-05-9A through 840-10-05-9C states that the maintenance reserve shall be recognized as a deposit asset and reimbursed later when the required repair and maintenance is completed by the lessee. However‚ the provision in the lease agreement does
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and domestic. In IFRS‚ 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
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