21 May WHAT ARE THE CONDITIONS TO BE MET FOR THE COMPANY TO RECOGNIZE REVENUE?
Section 2. FASB Codification
REQUIRED
Listed below are 5 case scenarios involving accounting issues. For each one, you are to use the Accounting Standards Codification (ASC) database to determine the precise reference that represents the most specific authoritative guidance in US GAAP. Your answers for each part should indicate one specific ASC reference.
Example: Your Company has asked you to prepare the footnotes for its 2014 annual report. Identify the authoritative guidance that indicates what information the footnote on accounting policies should present.
? The appropriate ASC Reference is 235-10-50-3.
Case A: Your Company has been accounting for depreciation of equipment on a straight-line basis. You are considering switching to an accelerated depreciation method. Identify the authoritative guidance that indicates how such a change in depreciation method is accounted for under GAAP.
Case B: Your Company makes investments in other companies (investees) in which it has significant influence, but not majority ownership. It uses the equity method of accounting for these investments. Identify the authoritative guidance that indicates your company should account for its share of the earnings or losses of these investees in the periods they are reported by the investees in their financial statements.
Case C: Your Company has incurred a material loss during the current fiscal year, and you are trying to decide how it should be presented in this year’s income statement. Identify the authoritative guidance that indicates the criteria that need to be met to present the loss as extraordinary in the income statement.
Case D: Your Company speculates with small investments in equity securities of other companies and classifies them as trading securities. Identify the authoritative guidance that indicates unrealized holding gains for trading securities should be included in earnings.
Case E: Your Company disposed a component of its business at the end of 2010. During that year, the component had an impairment of goodwill on its balance sheet. Identify the authoritative guidance that indicates how your Company should report this impairment of goodwill in its 2010 income statement.
Section 3. Note to the Financial Statements
REQUIRED
Refer to the “Notes to Consolidated Financial Statements†(page 50 – 78) from the Apple Inc. annual report for the fiscal year of 2013 and respond to the following questions. “The Company†refers to Apple Inc. hereafter.
1. What are the conditions to be met for the Company to recognize revenue?
2. When are the development costs of computer software subject to capitalization? What is the reason that the software development costs were expensed as incurred during 2013, 2012 and 2011?
3. Which financial instruments are classified as cash equivalents, and as available-for-sale? What is the threshold of the maturities of marketable debt securities to be classified as long-term?
4. What are the factors the Company considers to estimate its allowance for doubtful accounts?
5. Find the amounts of adjusted costs, unrealized gains and losses, and Fair values of the following financial instruments in 2013:
1) U.S. Treasury securities
2) Commercial paper
3) Corporate securities
4) Municipal securities
Our website has a team of professional writers who can help you write any of your homework. They will write your papers from scratch. We also have a team of editors just to make sure all papers are of HIGH QUALITY & PLAGIARISM FREE. To make an Order you only need to click Ask A Question and we will direct you to our Order Page at WriteDemy. Then fill Our Order Form with all your assignment instructions. Select your deadline and pay for your paper. You will get it few hours before your set deadline.
Fill in all the assignment paper details that are required in the order form with the standard information being the page count, deadline, academic level and type of paper. It is advisable to have this information at hand so that you can quickly fill in the necessary information needed in the form for the essay writer to be immediately assigned to your writing project. Make payment for the custom essay order to enable us to assign a suitable writer to your order. Payments are made through Paypal on a secured billing page. Finally, sit back and relax.
About Writedemy
We are a professional paper writing website. If you have searched a question and bumped into our website just know you are in the right place to get help in your coursework. We offer HIGH QUALITY & PLAGIARISM FREE Papers.
How It Works
To make an Order you only need to click on “Order Now” and we will direct you to our Order Page. Fill Our Order Form with all your assignment instructions. Select your deadline and pay for your paper. You will get it few hours before your set deadline.
Are there Discounts?
All new clients are eligible for 20% off in their first Order. Our payment method is safe and secure.