Already have an account? Get multiple benefits of using own account!
Login in your account..!
Remember me
Don't have an account? Create your account in less than a minutes,
Forgot password? how can I recover my password now!
Enter right registered email to receive password!
Basis for Conclusions Basis for Conclusions Case 1: Provisions and Contingencies Note: In the following exercise, you are required to review the Basis for Conclusions (BCs) for the standard(s) that provide the accounting guidance for this topic. Because the BCs is generally not included in the codification and thus is not authoritative, it will most likely be necessary for you to research it through review of the pre-codified standards. Appropriate references have been provided to allow you to do so. Pre-codified standards are accessible on the FASB website or through the American Accounting Association's Academic Accounting Access program. Part 1 (1 points): Read IAS 37, paragraphs 10 and 11.
Part 2 (2 points): Read ASC 450-20-05-01 and ASC 450-20-05-03. • How do the definitions of a provision under IFRS and a contingency under U.S. GAAP differ? How do the definitions of provisions and contingencies differ from other liabilities? • Why is it important that provisions be separately identified in an entity's financial statements rather than being included with other accrued liabilities? Part 3 (2 points): To determine the proper accounting treatment for contingent liabilities (loss contingencies), both U.S. GAAP and IFRS require management to assess the likelihood that a contingency will be ultimately paid. Both standards provide guidance to assist management when making these decisions. The interpretation of the guidance and the judgment management uses are very important because they determine how a contingent liability will be presented in the financial statements. ASC 450-20-20 provides the following definitions: Probable: The future event or events are likely to occur. Reasonably possible: The chance of the future event or events occurring is more than remote but less than likely. Remote: The chance of the future event or events occurring is slight. IAS 37, paragraph 23, provides two distinctions: Probable: The event is more likely than not to occur. Remote (no definition provided.)
• Do you consider the guidance provided for loss contingencies under U.S. GAAP to be rules based or principles based? Why? Is the guidance under IFRS more principles based than the U.S. GAAP guidance? Part 4 (2 points): Read IAS 37, paragraph 25, and paragraph 59 in the BCs of SFAS No. 5. • Both of these paragraphs reflect the views of the different boards with respect to estimating loss contingencies. Do you consider one view to be more liberal than another? Why or why not? If you directly copy from a source, put the part copied in quotes. 2. Cite your source properly.
The kind of standard that is most useful for planning and control is:
write an email response in which you address the following pointsdetermine which project might be implemented and why
West County Bank agrees to lend Drake Builders Company $100,000 on January 1. Drake Builders Company signs a $100,000, 6%, 6-month note. What is the adjusting entry required if Drake Builders Company prepares financial statements on March 30?
Assume Cara Mia Hospital uses the direct method of cost allocation for its service departments. What is the total amount of service cost that would be allocated to the Emergency Room? Show and clearly label your calculations and final answer ..
waterways is considering the replacement of an antiquated machine that has been slowing down production because of
jammison company produces one type of machine withthe following costs and revenues for the yeartotal
the western division of bestboot company has a rate of return on investment of 15 and an investment turnover of 1.2.
moran company had 155400 of net income in 2012 when the selling price per unit was 160 the variable costs per unit
the outstanding capital stock of pennington corporation consists of 2200 shares of 107 par value 6 preferred and 5800
hmanufacturing corporation accumulates the following data relative to jobs started and finished during the month of
stein apparel is a retail store specializing in womens fashions. steins management accountant has gathered the
on april 30 2012 one year before maturity red products inc. retired 150000 of 8 bonds payable at 103. the book value of
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!
whatsapp: +1-415-670-9521
Phone: +1-415-670-9521
Email: [email protected]
All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd