Intermediate 1 Research Paper

Intermediate accountancy 1 (3367) F all 2012 Research Assignment Questions Directions Type your answer starting time on the line after each question.1. FASB Accounting Standards codification FASCa. When did the FASC code become effective? The FASC became effective for interim and annual periods ending after September 15, 2009 even though the authoritative version of the codification was released on July 1, 2009.b. Did the FASC change prior generally accepted history principles? The FASC did not change prior generally accepted accounting principles but it instead reorganized previous GAAP into a reinvigo deemd structure. This new structure is organized into a new research database that is suppositious to be user friendly and make finding certain GAAP easier to use.c. What does the FASB expect from the new FASC structure and form? The FASB has high expectations from the new FASC system including reducing the amount of time and effort that is used to solve an accounting researc h issue. The FASC also expects the Codification to mitigate the risk of noncompliance finished easier usability of accounting literature. The Codification is also expected to earmark accurate randomness through real time updates whenever Accounting Standards Updates ar released and to assist the FASC with all of the research and convergence efforts.d. What are the root raillerys used in the ASC? There are six major topics that are used in the ASC. The first one(a) is The General Principles Area which includes broad conceptual matters. The next one is The institution Area which shows information is bring ined in the pecuniary statements.The Assets, Liabilities, and Equity Areas have management on all of the balance sheet accounts while the Revenue and expenditure Areas have counseling on all of the income statement accounts. The next topic that is used in the ASC is The Broad Transactions Area which deals with some pecuniary statement accounts and is generally transa ction based. The final topic used in the ASC is The Industry Area which contains counsel on how to account for specific industries or activities.e. Are due south references included in the ASC? There are SEC references included in the ASC which are used to increase the utility of the Codification for public companies. The referenced materials include Regulation S-X, Financial Reporting Releases, informative Releases, and some SEC staff focal point.2. Transfer of Receivables FASC 860-10(a) place relevant Codification section that addresses transfers of receivables. The main relevant Codification section that addresses the transfer of receivables is FASC 860-10-55. mend there is information in other sections, most of it is found at heart section 55.b) What are the objectives for reporting transfers of receivables? The main objective for the reporting transfers of receivables is to brook users with an understanding of a transferors continuing involvement with any transferred fi nancial assets. It is also to provide any restrictions on assets reported in the financial statements and also to show how a transfer of financial assets affects a moving ins financial position, financial accomplishance and cash flows.(c) Provide interpretations for the future(a) 1. Transfer.A transfer is the conveyance of a noncash financial asset by and to individual who is not the issuer of that financial asset. 2. Recourse. Recourse is the right of the transferee of receivables to receive retribution from the transferor of those receivables for Failure of debtors to pay when due, the effects form prepayments, or adjustments resulting from defects in the eligibility of the transferred receivables. 3. substantiating. Collateral is any personal or real property in which a security interest has been given.(d) Provide other examples (besides recourse and collateral) hat transmute as continuing involvement. Several examples of continuing involvement that are provided by the AS C include Servicing arrangements, agreements to purchase or redeem transferred financial assets, arrangements to provide financial support and the transferors beneficial interests in the transferred financial asset.3. Inventories FASC 330-10(a) Identify the primary authoritative guidance for the accounting for inventories. The primary authoritative guidance for the accounting of inventories is FASB Accounting Standards Codification topic 330.b) List three types of goods that are sort out as inventory. What characteristic will automatically exclude an spot from being classified as inventory? The three types of goods that are classified as inventory are goods awaiting sale (finished goods), goods in the course of proceeds (work-in-process), and goods to be consumed directly or indirectly in production (raw materials). The definition of inventory does not include any long term assets that are subject to depreciation accounting. Therefore if an asset is depreciable, it is not include d as inventory.c) Define market as used in the phrase lower-of- be-or-market. The word market in the phrase lower-of-cost-or-market means the replacement cost of your inventory. It is the cost that it would take to buy the same inventory new.4. Asset Impairments FASC 360-10 / 820-10(a) What is the authoritative guidance for asset impairments? Briefly discuss the scope of the standard (i. e. , explain the types of legal proceeding to which the standard applies).(b) Give several examples of events that would cause an asset to be tested for impairment.(c) What is the best evidence of fair value?d) Does it appear that ABC should perform an impairment test? Explain.5. Notes Payable FASC 835-30(a) Identify the authoritative literature that provides guidance on the zero-interest-bearing note. Use some of the examples to explain how the standard applies in this setting.(b) How is present value determined when an established exchange price is not determinable and a note has no ready market ? What is the resulting interest rate often called?(c) Where should a discount or premium appear in the financial statements? What about issue costs?