Funding According to the Accounting Standards Codification‚ the funding arrangement between Pharmagen (Pharma) and the private equity investor (PEI) would be applicable under the Research and Development Arrangements standard (ASC 730-20). This standard provides guidance for entities that are entered into a research and development (R&D) arrangement who acquire the results of research and development through the entire or partial funding by others (ASC 730-20-15-2). In this case‚ Pharma is receiving
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CHAPTER 1 Governmental and Nonprofit Accounting: ENVIRONMENT AND CHARACTERISTICS ANSWERS TO QUESTIONS QUESTION 1-1 a. The similarities of accounting for profit-seeking and G&NP organizations include: 1. Double-entry system of accounts. 2. Most accounting mechanics‚ e.g.‚ basic transaction documents‚ journals‚ ledgers‚ charts of accounts. 3. Where a G&NP organization has a business-type activity‚ e.g.‚ a municipal electric utility‚ the accounting largely parallels that
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included in the “asset group” as defined by ASC 360-10 for purposes of performing the recoverability test? For purposes of recognition and measurement of an impairment loss‚ a long-lived asset or assets shall be grouped with other assets and liabilities at the lowest level for which identifiable cash flows are largely independent of the cash flows of other assets and liabilities. Asset groups may include assets and liabilities outside the scope of ASC 360-10 (for example‚ goodwill — if certain conditions
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Case 10-7: Impaired Abilities Scenario A: According to ASC 360-10-20‚ “an impairment is the condition that exists when the carrying amount of a long-lived asset (asset group) exceeds its fair value”. In order to determine if the impairment exist in the case‚ we will have to compare the carrying amount with the fair value of the assets. In regards to the municipal bounds‚ its amortized cost‚ $8‚500‚000 exceeds its fair value‚ $7‚500‚000. And corporate bonds’ amortized cost‚ $8‚300‚000 also exceeds
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Trademark Subsequent to the release of the Exposure Draft issued by the FASB and IASB in June 2010 the Boards received a number of comments and is currently reviewing and analyzing these comments. A revised draft of the Exposure Draft is expected in Q3 of 2011. We encourage users of this case study to follow this project and review the FASB’s and IASB’s Web site for updates. Case 04-9: Healthcare Depot On April 22‚ 2011‚ the FASB issued a Proposed Accounting Standards Update‚ IntangiblesGoodwill and
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of the agreement an appropriate policy? What advice would you give OSI regarding its policy election? Accounting policy proposed by OSI to defer costs is an appropriate policy. Cost should be deferred if they create or add value to an asset. In FASB Concept Statement No. 6‚ Par 25 states asset as “probable future economic benefits obtained or controlled by a particular entity as a result of past transactions or events." In the case of Outsourcing‚ management believes all up-front cost incurred
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Authorities on Costs to Exit a Lease Contract A summary of the relevant ASC literature regarding nonmonetary exchanges follows: ASC 845-10-25-1 states that a reciprocal transfer of a nonmonetary asset qualifies as an exchange only if the transferor has no substantial continuing involvement in the transferred asset. ASC 845-10-20 defines the term nonreciprocal transfer as a transfer of assets or services in one direction. ASC 845-10-30-1 states that for a nonreciprocal transfer‚ the recipient of
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Syllabus School of Business ACC/497 Version 7 Advanced Topics in Accounting Research Copyright © 2011‚ 2010‚ 2009‚ 2008‚ 2006 by University of Phoenix. All rights reserved. Course Description This course in accounting research provides students with an in-depth examination of the Generally Accepted Accounting Principles (GAAP) and acceptable alternative reporting practices. Through comprehensive case studies‚ students will develop the research application skills necessary to analyze and
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ASC 410 Summary ASC 410 is the accounting standard codification that represents asset retirement and environmental obligations. Under ASC 410‚ there are two main subtopics which are asset retirement obligations and environmental obligations. Asset retirement obligations are legal obligations that may exist in connection with an entity’s retirement of a tangible long-lived asset. These legal obligations may arise when the entity acquires‚ constructs‚ or develops a long-lived asset‚ or operates a
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Intermediate Accounting Project Issue 1(FASB ASC 230-10-50) Some transactions are part cash and noncash; only the cash portion shall be reported in the statement of cash flows. Non-cash activities are reported in the footnotes of the cash flow statement or reported parenthetically MEMO: After researching the proper treatment of this transaction in relation to cash flows‚ I found the following information: • The cash flow statement includes only inflows and outflows of cash and cash equivalents;
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