Jackson Griffin
HW Assignment #4
Exercises:
6) How will we account for a recurring entertainment licensing fee expense?
7) How will the online booking site recognize the remittance paid to Randalls?
9) How do we disclose \ the extinguishment of this environmental regulatory liability?
10) How are we going to measure the value of our to be sold plants?
Will we derecognize the asset group or recognize the proceeds from the sale first?
11) What will be the subsequent measurement for the reacquired securities if a call occurs?
12) How will we derecognize the debt if it was classified as held to maturity?
Will the sale of the notes be recognized in a combination or as individual exchanges?
NYT:
4.1)
Robin,
You asked me to research whether Auto Corp has appropriately classified the proceeds
from the sale of the manufacturing facility as cash flows from investing activities. Based on the
following guidance, I have concluded that Auto Corp has appropriately classified the proceeds as
cash flows from investing activities as demonstrated by their fulfillment of the qualifications of
the facility to be considered a productive asset.
Guidance ASC 970-230-45-1
4.3) ASC 825-10-65-2 states that cash flows from investing activities include the following cash
inflows:
65-2 Receipts from sales of property, plant, and equipment and other productive assets.
4.4) You should still continue to evaluate all of the remaining conditions while looking keeping
the details of the lease on hand because you will be able to understand more of the aspects of the
lease if you take it through each of the qualifying conditions.
Sub headers could, and should be used her to organize the analysis by providing a heading of the
“Criteria for classifying a lease” with the sub headers being each of the criteria with analysis on
the lease arrangement and how it meets or does not meet said criteria.
4.5) 1.The first sentence is the introduction in the authors own words. The guidance excerpt is
presented in the indented paragraph headed “porotions of assets” The commentary in the authros
own words follows the excerpt.
2. The author repeated physically distinct, identified asset, and substantially all
3. It allows the reader of the memo to be able to revert directly back to the authoritative
guidance when reading the commentary.
4. The author discusses the case facts as he/she ties in the guidance in the commentary
following the guidance.
5. Because you are trying to come up with a conclusion that is best scenario for the case
facts.
4.6) He pointed to the factor that the portable concession stands are not physically distinct and
that Stadium Co. does in fact have a substantive right to substitution.
4.7) Your documentation must be edited.
4.8) According to…
Quotes…
Per….
ASC 360-10-35-17 states…. & Per ASC 360-10-35-17