Arrangements to provide financial support • Pledges of collateral Jones Co. is in a technology-intensive industry. Recently, one of its competitors introduced a new product with technology that might render obsolete some of Jones's inventory. The accounting staff wants to follow the appropriate authoritative literature in determining the accounting for this significant market event. Access the FASB Codification at http://asc.fasb.org/home to conduct research using the Codification
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ADVANCED FINANCIAL ACCOUNTING 260 IMPAIRMENT QUIZ QUESTIONS 1. When should an entity conduct an impairment test? (2 Marks) The following assets require an impairment test every year: • Intangible assets with indefinite useful lives • Intangible assets not yet available for use • Goodwill acquired in a business combination The impairment test is undertaken when there is indication that an asset may be impaired. This means that, at the end of each reporting
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one will discuss and guide the examiner in the treatment of inventory using Lower – Of – Cost – Or Market; The Acquisition and Disposal of Property, Plant And Equipment; Impairment And Depletion For Long - Term Or Fixed Assets; The Treatment Of Intangible Assets And Research And Development Cost. Chapter 9 Lower – of – Cost or Market for Inventory and Gross Profit Method Given the following methods to treat with the valuation of inventory, that may have had defects, or due to length of time on the
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provider of pork products that produces approximately 4.1 million hogs per year. The company mainly deals with wholesale and retail food service and institutional markets in the United States, as well as outside third parties. PIGS classify their hog inventory into three major categories: live hogs ready for sale, developing animals, and processed pork products. Management believes that there is no lower cost of market issue related to the hogs that are processed within their own company. Unfortunately
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determine if they should impair their inventory due to a decline in futures prices. Although prices are declining, it is believed that the futures prices will begin to recover within the year. PIGS inventories consists of the following: live hogs to be internally processed, developing animals to be internally processed, internally processed pork products, live hogs to be sold to a third party, and developing animals to be sold to a third party. The question of impairment applies only to the live hogs and
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market inventory on valuation • Capitalizing interest on building construction • Recording gain or loss on asset disposal • Adjusting goodwill for impairment The details will incorporate the reason behind why the element was established, the impact on financial reporting, current and future implications on the element, we will review each of these elements individually. Adjust lower cost of market inventory on valuation Adjusting lower cost of market inventory on valuation
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Question 1 According to ASC 330-10-35-2, it states, “…Thus, in accounting for inventories, a loss shall be recognized whenever the utility of goods is impaired by damage, deterioration, obsolescence, changes in price levels, or other causes. The measurement of such losses shall be accomplished by applying the rule of pricing inventories at the lower of cost or market. This provides a practical means of measuring utility and thereby determining the amount of the loss to be recognized and accounted
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adjusting lower cost of market inventory on valuation, capitalizing interest on building construction, recording gain or loss on asset disposal, and adjusting goodwill for impairment. This memo will explain why we need this additional information. Overall the additional information will give your company the best analysis of your work on your project. First we will need additional information on adjusting lower cost of market inventory on valuation. As we both know inventory within any company or organization
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detailed written explanation on the topics you requested. The items addresses are as follows: 1. Adjusting lower cost or market inventory on valuation. 2. Capitalizing interest on building construction. 3. Recording gain or loss on asset disposal. 4. Adjusting goodwill for impairment. Adjusting lower cost or market inventory on valuation The term “inventory” applied to all the goods/materials that are acquired with the intention to resale to make profits, which includes: * “Are held
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measurement of inventory? While there are areas of difference between the principles of the Codification and IAS 2, there are a substantial amount of similarities that promote a convergence of the two standards. Both are based on the principle that cost is the primary basis of accounting including costs of purchase, costs of conversion and other costs incurred in bringing the inventories to their present location and condition. Also, they contain similar definitions of inventory: Assets which (1)
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