frequent flyer miles could displace a fare-paying passenger. The Incremental Cost Method does not account for the opportunity cost (i.e. the cash revenue foregone) associated with such a displacement. The U.S. Financial Accounting Standards Board (FASB) considered‚ but never reached authoritative guidance on‚ how to account for airline frequent flyer programs. In contrast‚ airlines reporting under IFRS have been
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arrangement was made under a separate contract and Buffet paid $4‚500 for the additional services. 1.) Is Coconut’s February 1‚ 2012‚ arrangement with Buffett within the scope of ASC 985-605? The agreement with Buffett on February 1‚ 2012 is not within the scope of ASC 985. The agreement falls under the exception on ASC 985-605-15-4 paragraph e which states that the guidance on 15-3 does not apply to “software components of tangible products that are sold‚ licensed‚ or leased with tangible products
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testing in the management of atypical squamous cells. This revision is based on new information being available‚ including the ASC-US/LSIL Triage Study (ALTS) and the use of HPV testing as an adjunct in cervical cytology. In this guideline‚ HPV testing refers to testing for high-risk HPV types (1‚2‚3). In this revision‚ the recommendations for atypical squamous cells (ASC) and low-grade squamous intraepithelial lesion (LSIL) are essentially unchanged‚ except in special populations such as adolescents
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Investment 2: Beary Beary. Investment 3: Buy-A-Lot Company For each investment clearly answer YES or NO‚ explain your reasoning‚ and if YES the amount. ASC 320-10-35-21 states that impairment occurs when the fair values fall below the original costs. In all three investments‚ we need to determine if the impairment is other-than-temporary. ASC 320-10-35-33 states that security shall be deemed temporarily impaired when an entity has decided to sell an impaired available-for-sale security and the
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CableCo and CoAx qualifies as a bill-and-hold sale. Application of the Rules Several uncertainties and issues of this case come to light when referencing the aforementioned ASC rules. As outlined in ASC 606-10-25-1‚ the requirements for a contract to exist are clearly met between CoAx and CableCo. ASC 606-10-25-14 and ASC 606-10-25-30 clarify that CoAx owes CableCo
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Case 08-01: Go With the Flow‚ Inc. 1. Insurance Settlement Proceeds: involuntary conversion Investing cash inflow ASC 230-10-45-16 As stated in ASC 230-10-45-12‚ “All of the following are cash inflows from investing activities: a. Receipts from collections or sales of loans made by the entity and of other entities’ debt instruments (other than cash equivalents and certain debt instruments that are acquired specifically for resale as discussed in paragraph 230-10-45-21) that were purchased
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Trueblood Case 9-2: Pharmagen 1. State the issue at hand. (Typically this is merely the question you are asked at the end of the case.) How to account for the funding of the R&D and royalty payments 2. State the fact pattern. BRIEFLY present the relevant facts. (Bullet points can be very useful here.) (This can be a challenge‚ given that some Trueblood cases are only a few paragraphs long‚ it can be hard to further summarize them.) • Pharmagen entered into a funding agreement with Company XYZ
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is a research and development agreement ‚ and second agreement is a license and distribution agreement during the first quarter of fiscal year 2010. • What are the deliverables for the arrangement described in the case study above? According to ASC 605-25-15-2‚ all deliverables (that is‚ products‚ services‚ or rights to use assets) within contractually binding arrangements (whether written‚ oral‚ or implied‚ and hereinafter referred to as arrangements) in all industries under which a vendor will
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financials by adhering to accounting standards. First let’s discuss whether it is appropriate for WWA to include the subsidiaries’ October 31st financial information on their December 31st statements‚ regardless of the hypothetical event. According to ASC-810-10-45-12‚ subsidiary information can be consolidated with parent information if the difference in reporting period is less than three months. WWA’s auditors still wonder if more timely information can be obtained although the October 31st information
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Question 1 a. Stage 1:Established TV return processes and ASCs report to TV division: Failures of these controls were due mainly to no existence of a punishment policy. In addition‚ there was too much trust placed on the employees. The 1985 employees loyalty is long gone . Behavioral constraint is seen here for fraud is no part of the employees culture. There is a lack of direction for there is no report or form of supervision for ASCs. Communication process are not followed maybe they do not like
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