Reference no: EM13124334

The mini-case writing format is the database research strategies listed on page 64 (step 1- define the information needed, step 2- determine the sources to search, step 3- use appropriate search methods, step 4- view the results and manage the information, step 5- communicate the search results) of the textbook. For each mini-case, document Steps One - Five and upload to the Case 2 Assignment Dropbox by November 4th. Step Two is done for you because the only allowed source is the FASB Codification.

Your write-up should be concise enough to allow me to see the answer without having to search but complete enough that I know you did the steps. Step One is important; if you skip ahead to Step Three it will show in your write-up.

Bo Broker Company charges a fee for bringing together the Acme Construction Company and the First Bank Company. The parties agree that Bo earns her fee when Acme and First "agree" to the terms of the construction mortgage. However, Bo can receive four types of documents to "settle" this matter: (a) a non-interest bearing, unsecured "negotiable" note in payment of the fees earned, which is payable over the time period of the related construction mortgage; (b) a non-negotiable note payable over the same time period as in case (a); (c) a commitment letter, not contingent upon the "future event" of the borrower receiving certain construction draws; or (d) a commitment letter, where the fees would be paid only if the borrower actually receives the draws for the construction from the lender. Bo asks the accountant when to recognize revenues under each of these four scenarios.