Accounting

ASCAssignment.docx

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The following questions deal with using the FASB Accounting Standard Codification (ASC) to answer accounting questions. Given the following scenarios below, where would you look within the ASC to find guidance? Use the appropriate ASC citation format (i.e. ASC Topic Number – Subtopic Number – Section Number – Subsection number). Explanations of the guidance are not required.

1. You have been assigned to audit a cable television company. You are unsure of whether the company has correctly recognized some of its deferred revenues (i.e. hookup revenues).

2. You are reading the footnotes of a company’s financial statements, and they note that within the revenue number recognized, they include sales of a product where the buyer has the right to return the product. You are unsure whether the company has met the appropriate conditions to recognize the revenue from those sales.

3. You have been hired to help keep accounting records for a film entertainment company. You are unsure whether and how to measure the value of a liability already recognized on the firm’s financial statements.

4. You have been tasked with accounting for the income taxes related to a business combination. A colleague of yours hands you some papers with guidance on how to complete the task. Unfortunately, you see some terminology that you are unfamiliar with.

5. A friend from a software company calls you and asks how to treat the following situation: His company is exchanging a license of its software to a customer in exchange for a license to the customer’s technology (i.e. a non-monetary transaction). He wants to know how to record this accounting transaction.