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ACCT 340 Exam #2-Fall 2013 Take Home Discussion Question (10 points) Due on Tuesday, November 12, 2013 at the beginning of class

Instructions:

Read the “Refer-a-Friend Program” Case.
You have just been hired by Runway Discount as the assistant controller and one of your first tasks assigned to you by the controller is to evaluate the company’s accounting treatment of the “Refer-a-Friend Program” described in the case. The controller expects you to research the case and have your written recommendations on her desk by November 12.
Write a 1- to 2-page double spaced research paper which addresses the three required questions of the case. Explain the journal entries you recommend in the case requirements.
Support your conclusions with citations from the Accounting Standards Codification and International Accounting Standards.
A summary of IFRS is included in your Spiceland text. You may also access IFRS at: http://www.ifrs.org/IFRSs/IFRS.htm. You may register for free access to the unaccompanied International Accounting Standards (excludes implementation guidance) at this site to access additional information about the measurement of revenue under IFRS.

Your response should be prepared working independently from others and in accordance with the American University Academic Integrity Code. You may use the Spiceland text, the Accounting Standards Codification., IFRS, and other assigned class materials. If you quote a phrase directly from these resources, include the related ASC reference in parenthesis such as (ASC XXX-XX-XX), (IAS XX) or (Spiceland, p. XXX). Complete reference citations are not needed.

Late assignments and electronic submissions will not be accepted. If you will be absent on November 12, turn in a copy of your solution by sliding under my office door in KSB

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