Chapter 1 – Overview of Accounting Research (#6,7,10,12 in your text)
Brainstorm an example of:
1) a financial accounting issue that would be researched before a transaction is finalized,
2) an accounting issue that would be researched after a transaction has been executed, and
3) an accounting issue that would be researched following financial statement issuance.
The chapter states that a communications failure between a company’s accounting team and operations teams could result in company accountants evaluating the accounting for a transaction after it has occurred. Brainstorm a process that companies could put in place to encourage the timely communication of proposed transactions.
Using www.sec.gov (Links to an external site.)Links to an external site., go to Divisions, then Division of Corporate Finance. Under Statutes, Rules, and Forms, go to Rules then to “Regulation S-K.” Under Item 303 (Management’s Discussion and Analysis) of Regulation S-K, list the five items (items 303(a)(1-5)) that must be included in a public company’s MD&A disclosures.
Go to sec.gov (Links to an external site.)Links to an external site., then Divisions, then Division of Enforcement. Under Federal Court Actions, locate the June 18, 2015, enforcement action brought against Norstra Energy. Summarize the charges brought by the SEC against Norstra. Describe how this enforcement action fits with the SEC’s mission.
Chapter 2 – The FASB Codification (#3,4,5,6,7,9,10,14 in your text)
Use the FASB Codification to answer the following questions. There is a specific, correct answer to each of the following questions. Keep looking in the Codification until you find the reference that directly responds to these questions.
In the following reference, label the Topic, Subtopic, Section, and Paragraph. Also, provide the description from the Codification for each of these (e.g., the description for Topic 840 is Leases). Here’s the reference: ASC 715-30-25-1.
Name four of the topics listed within the Broad Transactions area.
a. Go to the tab entitled “cross reference” on the Codification homepage. What is the FASB Statement No. that corresponds to Topic 480-10 (Distinguishing Liabilities from Equity)?
b. Using the “Other Sources” list on the left side of the Codification, go to pre-Codification standards. What is the full name of this FASB Statement that you identified in (a) above?
c. Next, go to the Basis for Conclusions of the standard (as amended) that you identified in step (b). (To find this, you might start in the standard’s Contents list on page 4.) Considering the introduction to the Basis for Conclusions, describe two reasons for which this standard was issued.
d. Finally, did any FASB Board members dissent to the issuance of this FASB statement? Explain.
Use the “advanced search” feature (search by exact phrase) to answer part (a).
a. Find the ASC reference (ASC xxx-xx-xx-x) for the following guidance excerpt: “The acquirer shall recognize separately from goodwill the identifiable intangible assets acquired in a business combination.”
b. Does this guidance (that is, in the ASC subtopic just identified) apply to private companies? Explain why or why not. Cite your sources.
For the next set of questions, identify the ASC reference—down to the paragraph level of detail—that you would look to for guidance on each issue.
Criteria for determining whether information about an operating segment should be reported separately (i.e., as a reportable segment) in the notes to a company’s financial statements.
Criteria for determining whether a lease should be classified as capital versus operating.
Guidance indicating which assets are generally classified on the balance sheet as “current assets.”
For the next question, answer using the FASB Codification and cite your source down to the paragraph[s]. Respond using complete sentences.
Provide two examples from the Codification of “nonauthoritative” sources of GAAP.
Submit your completed document to this assignment by the assigned due date/time.
