How should the bank report this accounting change

Assignment Help Accounting Basics
Reference no: EM131118235

1. Lenexa State Bank has followed the practice of capitalizing certain marketing costs and amortizing these costs over their expected life. In the current year, the bank determined that the future benefits from these costs were doubtful. Consequently, the bank adopted the policy of expensing these costs as incurred. How should the bank report this accounting change in the comparative financial statements? 

Reference no: EM131118235

Questions Cloud

Discuss how a change to the lifo method of inventory : Discuss how a change to the LIFO method of inventory valuation is handled when it is impracticable to determine previous LIFO inventory amounts.
What difficulties develop in assessing prefer ability : The auditor indicates that a change would be permitted only if it is to a preferable method. What difficulties develop in assessing prefer ability?
How does this information affect the financial statements : How does this information affect the financial statements to be prepared at the end of 2010?
Indicate how the following items are recorded : Indicate how the following items are recorded in the accounting records in the current year of Coronet Co.
How should the bank report this accounting change : How should the bank report this accounting change in the comparative financial statements?
Define a change in estimate and provide an illustration : Define a change in estimate and provide an illustration. When is a change in accounting estimate effected by a change in accounting principle?
What is the indirect effect of a change in accounting : What is the indirect effect of a change in accounting principle? Briefly describe the reporting of the indirect effects of a change in accounting principle.
Compute the amounts of these ratios for fiscal year 5 : Assess the changes in the long-term solvency risk of Abercrombie & Fitch between fiscal Year 3 and fiscal Year 5 and the level of that risk at the end of fiscal Year 5. Compute the amounts of these ratios for fiscal Year 5.
Identify and describe the approach the fasb requires : Identify and describe the approach the FASB requires for reporting changes in accounting principles.

Reviews

Write a Review

Accounting Basics Questions & Answers

  Western flyers received its bank statement for the month of

western flyers received its bank statement for the month of july with an ending balance of 11065.00. western flyers

  How can a company experience a net loss but have positive

how can a company experience a net loss but have positive cash flows? please provide an example of a scenario that can

  Compute cost of goods sold

Willis Corporation has beginning inventory $81,000; Purchases $540,000; Freight-in $16,200; Purchase Returns $5,800; Purchase Discounts $5,000; and ending inventory $70,200. Compute cost of goods sold.

  Express foster''s margin of safety as a percentage of target

Foster's Repair Shop has a monthly target operating income of $10,500. Variable expenses are 50% of sales, and monthly fixed expenses are $7,000.

  The marketing department of jessi corporation

The company expects to start the first quarter with 2,480 units in finished goods inventory.

  Company reported the following financial numbers for one of

company reported the following financial numbers for one of its divisions for the year average total assets of 5800000

  Accepting business at a special price forever ready company

accepting business at a special price forever ready company expects to operate at 85 of productive capacity during

  In a particular factory a shift supervisor is a salaried

in a particular factory a shift supervisor is a salaried employee who supervises a shift. in addition to a salary the

  What are the four symbols used in a data flow diagram and

what are the four symbols used in a data flow diagram and what does each of the symbols mean? and what is the

  Harrison and sons is a law firm on september 1 2012

harrison and sons is a law firm. on september 1 2012 harrison contracted to provide 12 months of legal services to a

  The jurisdictional rules governing use

(i) "should the jurisdictional rules governing use tax collection obligationsbe different from the jurisdictional rules regarding liability for income taxation" and (ii) "if so, in which context should the jurisdictional threshold be higher?"

  Hour for part-time employees

The Judge's Best uses a specialty brand of Yirgacheffe1coffee beans costing $6.60 per pound.  Each pound of coffee beans produces 256 ounces of coffee.  Coffee is sold in three sizes: a small cup holding 8 ounces, a medium cup holding 10 ounces, a..

Free Assignment Quote

Assured A++ Grade

Get guaranteed satisfaction & time on delivery in every assignment order you paid with us! We ensure premium quality solution document along with free turntin report!

All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd