payments” per ASC 840. Provision 1 Facts At the beginning of the lease‚ Big Bear pays $500‚000 to its legal counsel as well as $1 million in legal fees incurred by Goliath Co. The Company is required to pay the latter expense‚ but not the former. Alternatives 1. Include both of the legal costs in the minimum lease payments 2. Include neither of the legal costs 3. Include one but not the other legal cost Accounting Literature/Recommendation There are two sections of the Codification to consider
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Barnes & Co. Date: 11/17/2015 Note: KCN is currently developing networking software products to sell and started capitalizing costs in FY 20X5. The accounting procedures are described under FASB ASC 985-20-25 Costs of software to be sold‚ leased‚ or marketed. https://law.resource.org/pub/us/code/bean/fasb.html/fasb.985.2011.html All costs incurred when establishing computer software are charged to the expense account until the technological feasibility has been established for the product. See (25-1)
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924-605-25-2 924- Entertainment –Casinos 605- Revenue recognition 25- Recognition General 25-2 Base Jackpots 1) Using the FASB Accounting Standards Codification (http://aaahq.org/ascLogin.cfm User ID: AAA51167 Password: HcP5b3G) Answer the following question: How should Casino comps be recognized (I do not want the definition of a comp)? State 1) The codification number in the format XXX-XXX-XX-X or Topic-Subtopic-Section-Paragraph An entity shall accrue a liability and charge a jackpot
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in length. Applicable Professional Pronouncements: ASC 270‚ Interim Reporting (Accounting Principles Board Opinion 28‚ Interim Financial Reporting) ASC 330‚ Inventory (Accounting Research Bulletin 43‚ Restatement and Revision of Accounting Research Bulletins (ARB 43) as amended by FASB Statement No. 151‚ Inventory Cost. and Emerging Issues Task Force 86-13‚ Recognition of Inventory Declines at Interim Reporting Dates (EITF 86-13)) ASC 905‚ Agriculture (Statement of Position 85-3‚ Accounting
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CA1-1: It is TRUE that GAAP is the term used to indicate the whole body of FASB literature. It is FALSE Any company claiming compliance with GAAP must comply with most standards and interpretations but does not have to follow the disclosure requirements. It is TRUE that the primary governmental body that has influence over the FASB is the SEC. It is FALSE the FASB has a government mandate and therefore does not have to follow due process in issuing a standard. CA1-2 It is True the objective
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information that present an overly positive image of the company’s financial performance 2. What is SAB 99 and 108 about? SAB 99 – is about materiality SAB 108—is about quantifying financial statement misstatements What is the FASB codification reference for SAB 99? 250-10-S99-1 3 What were some of the things Sunbeam did wrong? • Improper restructuring reserves and other “cookie-jar” reserves • Improper “bill and hold” sales • Deleted corporate records to conceal
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indicate the whole body of FASB authoritative literature. Ans: True 2. Any company claiming compliance with GAAP must comply with most standards and interpretations but does not have to follow the disclosure requirements. Ans: False – All company that is claiming compliance with GAAP must follow all standards and interpretations especially disclosure requirements. 3. The primary governmental body that has influence over the FASB is the SEC. Ans:
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with the Laser to maintainance purchasor. The software has never been sold without Laser for its functional necessity. In this memo‚ as explained below‚ we conclude that: 1. Eye Vision’s arrangement with Holland Hospital is not within the scope of ASC 985-605‚ Software: Revenue Recognition. 2. The deliverables in this arrangement are the Clear View Laser‚ embedded software‚ and maintenance plan‚ respectively. 3. The Clear View Laser together with embedded software and maintenance plan will be accounted
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Goodwill Impairment and Fair Value Measurement: Hewlett-Packard’s Acquisition of Autonomy Abstract In today’s business environment‚ mergers and acquisitions are becoming increasingly common. Mergers and acquisitions create many accounting challenges including issues of fair value measurement and the associated topic of goodwill impairment. The fair value measurement of an acquired company usually entails using a Level 2 fair value estimate‚ or using a market or income approach‚ both level three
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After reviewing the FASB Codification references‚ the following information can be used to make a decision regarding the accounting for the investments of Teton Co.’s 5-year revenue bonds. The following information refers to when the fair value of the security is “readily determinable”‚ impairments‚ and different issues regarding being classified as held-to-maturity. The securities are “readily determinable” because it is in the over-the-counter market. An impairment should be accounted for with
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