ACC-550 / Week 1 Homework CHAPTER 1 CA1-1 (FASB and Standard-Setting) Presented below are four statements which you are to identify as true or false. If false‚ explain why the statement is false. 1. GAAP is the term used to indicate the whole body of FASB authoritative literature. True 2. Any company claiming compliance with GAAP must comply with most standards and interpretations but does not have to follow the disclosure requirements. False (all companies must comply to all standards and
Premium 1979 1970
years is greater than 10 million dollars and if the employees are still employed with the company. Sooner or Later’s management believes that the company will have revenues in excess of 10 million dollars over the next three year period. According to FASB‚ Statement no. 123(R) A Corporation must use the fair value method to account for compensatory share option plans. Sooner or Later has two options: they can either use the grant date fair value of $9.00 or they can use the grant
Premium Call option Security Stock market
Case 12-7 Facts: Rossi Inc.: Asbestos Litigation Liability: The cost of settlement and defensed costs relating to currently pending claims and future claims for losses incurred to date. Liabilities recorded per/as at Dec 31. 2009 2008 2007 Rossi Inc. $962m $1‚055m $469m Thompson (External Specialist) $1124m $1‚055m Internal Actuarial Specialist $907m‚ $1‚184m‚ and $1‚514m The 2007 claim estimate is projected through 2011. The 2008 and 2009 estimate are projected through 2017
Premium Balance sheet Asset Mathematics
Between Private Companies and Public Companies Generally speaking Financial Accounting Standard Board (FASB)’s primary purpose is to develop General Accepted Accounting Principles (GAAP). GAAP might not concern the whole areas of accounting criteria‚ FASB look up and adjust accounting standard to make sure standards have been updated to follow current situation. On July 31‚ 2012‚ FASB issued an Invitation to Comment‚ which reviewed key areas of the Private Company Decision-Making Framework -
Premium International Financial Reporting Standards Public company Financial statements
• Galaxy has elected an annual goodwill impairment testing date of December 31 for all three reporting units. In December 2010‚ Galaxy management engaged Big Time LLC (Big Time)‚ a reputable external valuation firm‚ to perform three annual ASC 350‚ Intangibles — Goodwill and Other‚ impairment analyses (one for each reporting unit) on the $360 million of goodwill recorded by Galaxy as of December 31‚ 2010. Previously‚ management had performed the annual goodwill impairment analysis internally
Premium Copyright Stock market Generally Accepted Accounting Principles
purchase from Clean Air Corp as an Investing Cash Flow as in the balance sheet the company considers the EAs as elusive assets. Elusive assets are distinct in ASC 350-10-20 as assets and not included in financial assets. The EAs is granted to the Polluter Corporation from government that certainly considers as elusive assets by the Corporation. ASC 230-10-20 indicates that Investing activities include making and collecting loans and
Premium Asset Balance sheet Cash flow statement
discussion paper‚ standard. (d) Research‚ discussion paper‚ exposure draft‚ standard. 3. GAAP is comprised of: (a) FASB standards‚ interpretations‚ and concepts statements. (b) FASB financial standards. (c) FASB standards‚ interpretations‚ EITF consensuses‚ and accounting rules issued by FASB predecessor organizations. (d) any accounting guidance included in the FASB Codification. 4. The authoritative status of the conceptual framework is as follows. (a) It is used when there is no standard
Premium Generally Accepted Accounting Principles Balance sheet 1980
Abstract GAAP requires company to disclose accounting policy in their financial reports. These policies provide relevant information to decision makers on choices taken by executives. Financial statements are the final product of accounting process. Income statement provides data for investment and other decisions. The net income is essentially the common income statement form‚ consisting of classifications such as income from continuing operations‚ discontinued operations‚ extraordinary items
Premium Income statement Generally Accepted Accounting Principles Balance sheet
Cited: Financial Accounting Standards‚ Codification (605-45-45-1): Topic: 605 Revenue Recognition‚ Subtopic: 45 Principal Agent Consideration‚ Section: 45 Other Presentation Matters‚ Subsection: 1 General Emerging Issues Task Force. Financial Accounting Standards Board. Reporting Revenues Gross
Premium Revenue Net income Income
Grading Summary These are the automatically computed results of your exam. Grades for essay questions‚ and comments from your instructor‚ are in the "Details" section below. Date Taken: 8/3/2014 Points Received: 188 / 200 (94%) Question 1. Question : (TCO A) The Financial Accounting Standards Board employs a "due process" system‚ which: has all CPAs in the United States vote on a new statement. enables interested parties to express their views on issues under consideration.
Premium Balance sheet Income statement Revenue