Revenue recognition is covered under ASPE – section 3400 (Revenue): Private entities opting to use the ASPE for revenue recognition should use the ASPE guidance. The standard covers the sale of goods and the rendering of services by an entity in the ordinary course of business. Definition: * Revenue is the cash, receivables and other consideration coming into the business from its ordinary business activity. * The completed contract method recognizes revenue when the good or service has
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Inventory Lower of Cost or Market Scene 1: Read the objectives for IFRS (IAS 2, paragraph 1) and US GAAP (ASC 330-10-10-1). * Based upon what is stated in these objectives, which set of standards is more concerned with the balance sheet presentation of inventories? Scene 2: * Do you think that the reversal of a write-down of inventory does a better job of accurately reflecting the information related to inventory on the balance sheet or on the income statement? * Is the fact
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market inventory on valuation, capitalizing interest on building construction, recording gain or loss on asset disposal, and adjusting goodwill for impairment. The Financial Accounting Standard Boards (FASB) established the guidelines and the General Accepted Accounting Principles (GAAP) that should be followed when preparing and evaluating any financial and accounting statements. Adjusting lower cost of market inventory on valuation There are different methods used to evaluate inventory. When evaluating
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lower cost of market inventory on valuation, Capitalizing interest on building construction, Recording gain or loss on asset disposal, and Adjusting goodwill for impairment. Inventory Valuation Methods are First-in-Last-out (FIFO), Last-in-First out (LIFO) and Average Cost Method. These method are designed to calculate the cost of goods sold and cost of ending inventory. An explanation of the inventories valuation method are as follow: FIFO is assumed that items from the inventory are sold in the order
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in 2011’s revenue. The corresponding A/R, Inventory, Cost of Goods sold should all be adjusted. WAG’s net income in 2011 is overstated by recording this lucrative transaction. The revenue recognition method for artist fees is complied with U.S. GAAP. It is recognized as it is earned each month. So this part is fairly presented. Costing and valuation method for inventory * Incorrect period to apply the lower of cost or market WAG record its inventory of artwork at the lower of cost or market
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11.8% 11.1% 6.8% 7.3% Lucy’s Lockets uses their assets more efficiently to generate more profits. 12-19 Cobb is apparently riskier because they had an 18 million asset impairment charge and also sold 32 million of additional assets. Also, Cobb was not able to cover its interest payments out of operating income in either year which shows that they can’t even meet their obligations and are therefore very risky.
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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 circumstances indicate that its carrying amount may not be recoverable.” * In this case, there is a possibility of impairment because of an increased presence of pirates in the area in which Smooth Sailing
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Integrated Company Analysis Group A12 John Faustgen Murali Maddipatla Spencer Morse Topher Stephensen Hanjin Yu Table of Contents Company Introduction......................................................................................................................................... 1 Executive Summary .............................................................................................................................................. 1 Current Issues ..........................
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a total of ______ IFRS from 2001 to present. 4. In many cases, IFRS are more flexible than U.S. GAAP. True or False? 5. Inventory is an example of IAS that provides less extensive guidance than U.S. GAAP. True/False 6. What should include in the cost of inventories? 7. How does IAS 2 require inventory to be reported on the balance sheet? How does U.S. GAAP require inventory reported on the balance sheet? 8. Which items should be included in the cost of property, plant, and equipment under IAS
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form, going concern, true and fair view and many more. Data Methodology/approach The topic is approach by using an integration of fixed assets into four main portfolio categories, which are for own use, investment, held for sale assets and inventories. The data is gathered by reviewing and examines the accounting treatment under IFRS, US GAAP and Greek GAAP. Literature Review The author comes out with the article after reviewing all the research done in similar context
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