TrueBlood Case – Rough Waters Ahead 1. How should Smooth Sailings’ management perform the recoverability test for the cruise ship as of December 31, 2010? In addressing this question, consider: The following are the required steps to identify, recognize and measure the impairment of a long-lived asset (group) to be held and used: Step 1: Indicators of impairment — FASB ASC 360-10-35-21 “A long-lived asset (asset group) shall be tested for recoverability whenever events or changes in
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1. How should Smooth Sailings’ management perform the recoverability test for the cruise ship as of December 31,2010? In addressing this question, consider: * What assets and liabilities should be included in the “asset group” as defined by ASC 360-10 for purposes of performing the recoverability test? 360-10-35-21 According to ASC 360-10-35-23 a long-lived asset or assets shall be grouped with other assets and liabilities at the lowest level for which identifiable cash flows are largely independent
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February 18, 2016 Research File Memorandum Prepared by: Certified Public Accountants Client: Smooth Sailing Subject: Fair Value Accounting – Asset Impairment Background: Smooth Sailing is a privately-held cruise operator. The company operates a sole cruise ship that was purchased using non-recourse debt from a bank. Nonrecourse debt is secured by the collateral. In the event of default, the lender can only seize the collateral and no further action can be taken against smooth sailing
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Case 12-9 Rough Waters Ahead - IFRS 1. Cruise Ship belongs to the assets that apply to IAS 36 Impairment rule IAS 36-2 states the Impairment of Assets rule shall be applied in accounting for the impairment of all assets, other than: a) Inventories b) Assets arising from construction contracts c) Deferred tax assets d) Assets arising from employee benefits e) Financial assets that are within the
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In the "Rough Road Ahead: Do Not Exceed Posted Speed Limit" by Joe Kurmaskie, a cyclist decides to test his luck with trying a “‘shortcut’ that was to slice away hours of [his] ride to Yosemite National Park”, advice given to him by a group of old strangers. Eventually he begins to realize that his trust was misplaced as his water supply diminishes to nothingness and the landscape changes from hopeful straight roads to ghost-town scattered hills. The various tragic events in the setting, such as
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MY 1st Rollercoaster Click!,Click! As we walked into michigan's adventure we gave the workers our tickets and walked into the wet, colorful water park. I stared in awe at all the different rides and games around me. My mom, sister and I kept walking looking for a ride to go on. We continued walking while I was feeling a little queasy looking at all the different rides they had. I walked straight up to what looked like an old antique roller coaster made out of wood. I tipped my head up looking
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MY 1st Rollercoaster Click!,Click! As we walked into Michigan's Adventure we gave the workers our tickets and walked into the wet, colorful water park. I stared in awe at all the different rides and games around me. My mom, sister and I kept walking looking for a ride to go on. We continued walking while I was feeling a little queasy looking at all the different rides they had. I walked straight up to what looked like an old antique roller coaster made out of wood. I tipped my head up looking
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MY 1st Rollercoaster Click!,Click! As we walked into Michigan's Adventure we gave the workers our tickets and walked into the wet, colorful water park. I stared in awe at all the different rides and games around me. My mom, sister and I kept walking looking for a ride to go on. We continued walking while I was feeling a little queasy looking at all the different rides they had. I walked straight up to what looked like an old antique roller coaster made out of wood. I tipped my head up looking
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impressive creation. Ironically it is fitted in the most dry place on earth, in Nevada’s desert nearby Las vegas. Building the Hoover dam was the largest government project ever attempted. Hoover dam had to provide: fluid control, irrigation, drinking water and electricity. Without controlling the river Colorado into Hoover dam there would not be any possibility to build up cities like Las vegas. Hoover dam is one of the primary attractions for the visitors Las vegas from the whole world. More than one
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Case 12-9: Rough Waters Ahead 1. How should Smooth Sailings’ management perform the recoverability test for the cruise ship as of December 31, 2010? a. What assets and liabilities should be included in the “asset group” as defined by ASC 360-10 for purpose of performing the recoverability test? i. FASB ASC paragraph 360-10-35-23 states that for measuring an impairment loss, long-lived assets should be group with other assets and liabilities at the lowest level for which identifiable cash flows
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