ACC545 ACC/545 DQs Week 3

What are some of the cost flow assumptions used to account for inventories? Why would companies choose one method of accounting for inventories over another? For a company you have worked for or are familiar with, what was the main product and which cost flow assumption would you suspect they use? (Ch. 8 ofIntermediate Accounting)

How would you report trading, available-for-sale, and held-to-maturity securities on the balance sheet? Provide examples of each. How do you determine management’s intent? Think of a manager you know, would the manager’s values lead to a challenge with your own opinion of the classification? (Ch. 17 ofIntermediate Accounting)

 What are some of the views on capitalization of leased assets? In what situations do you think leased assets should be reported as capital? Why? Select an asset that does not meet the GAAP requirements for capitalization on a technical basis (either the 75% or 90% test), would it be capitalized under IFRS? Which is more in keeping with the needs of investors? (Ch. 21 of Intermediate Accounting)