Creating Effective Documentation

Creating Effective

Documentation

Now you Try 4.8

Now you Try 4.7

Change the following sentence to active voice, and see if you can word it more concisely.

The documentation put together by you should be carefully subjected to an editing process.

Case Study 4.6

4.6 Baseball Suites-Lease Evaluation

The New York Yankees offer multiyear· luxury suite licenses to customers, including 3-, 5-, and 10-year Licenses. Customers who sign these license agreements have the right to use a specified suite in the stadium (say, suite no. 25) for the dates specified in the license agreement. Alternatively, customers with a more limited interest or budget can sign up for a partial season (a 20- or 41-game plan) where the customer can specify which games it wishes to view from the suite. While the customer is enjoying the suite, a third-patty concessionaire (similar to Presto's role) will provide premium food and beverage service to guests in the suite. Evaluate-is a suite license a lease? Assume a customer signs a 20-game license for specified games to occur within a single Major League Baseball season

Case Study 4.9

Writing an Analysis-Derivatives Facts:

You are a corporate accountant for Theta, Inc. Today's date is l 2/3 l/20X5.

You've been asked to review a contract in which Theta agrees to purchase 200 shares of IBM stock from Delta (seller)

in 1 year (on 12/3 l/20x6), for $140 per share. Said another way, Theta has entered into a forward contract for the

purchase of stock.

Required: Act as though you are writing just the Analysis section of an issues memo, and research the following question:

Does Theta's contract with Delta meet the definition of a derivative? In your response, include applicable excerpts

and guidance sandwiches that relate the guidance to this fact pattern.

In your research, you need only consider the following paragraphs from the guidance:

ASC 815-10-05-4

ASC 815-10-10-1

ASC 815-10-15-83, 15-88, 15-92, 15-96

ASC 815-10-15-119 and 120

In your analysis, include only those paragraphs that are most responsive to this issue. Assume that no scope exceptions

apply.

3.11 you have already done it. Just change it as per example memo

You Create the Case (Applying the Accounting Research Process)

On your own, create a fictitious fact pattern (accounting problem/business issue) to which you can apply the accounting research process. If you can, use a fact

pattern based on a real situation that you've encountered professionally. Alternatively, the following sources may help

you generate ideas: ( l) The Codification: browse for guidance, then "back into" a fact pattern; (2) recent business news

articles (e.g., from the Wall Street Journal); (3) discussions with small-business owners; or (4) corporate annual repo1ts.

Required:

1. Describe the fact pattern.

2. Identify at least l researchable question for this fact pattern.

3. Brainstorm the likely answer to the question.

4. Locate the applicable Codification reference. Describe the requirements, plus any alternatives available.

5. Briefly describe your conclusion.

3.11: Creating a Case

Fame Inc. is an American company that offers rental cars to international and local tourists who visit California. The maximum rental days are ten and the amount paid per day is 30 dollars. The money is paid in full before a car is rented. A tourist from France hires the car for seven days. However, during the third day, the car breaks down and the tourist claims a refund of 120 dollars from Fame Inc. However, Fame Inc. is unwilling to pay a refund to the tourist.

One Researchable Question

Did Fame Inc. lease out the car under proper working conditions with the approval of the tourist and Fame's car specialists?

Likely Answer

The likely answer is yes. Tourists are given rented cars that are in correct working conditions.

Applicable Codification Process

The reference codification process applicable will involve identified assets, rights of use of identified assets, and leases.

Conclusion

In conclusion, Fame Inc. should not refund the tourist for any loss incurred because, before a car is rented out, it is usually tested to determine its working conditions. If the car damage caused is huge, the tourist should refund Fame Inc. because, during the lease, the user of identified asset is granted ownership.