FASB Accounting Standards Codification : Business Combinations

The goal of this Statement is to enhance the significance, similarity, and sincerity of the financial information that is provided by the reporting entity in a consolidated financial statement and by reporting standards as well as establishing accounting that are require. In cases of the ownership interest when subsidiaries are held by other parties other than the parent they must be clearly identified, meaning properly labeled. Also Changes in a parent's ownership interest while the parent holds its controlling financial interest in its subsidiary must be represented reliably. A parent's ownership interest in a subsidiary changes if the parent buys extra ownership interests in its subsidiary or if the parent offers some of its ownership interests in its subsidiary. It likewise changes if the subsidiary reacquires some of its ownership interests or the subsidiary issues extra ownership interests. Those exchanges are financially comparable, and this Statement requires that they be represented comparatively, as equity

The estimates of ABC Company and all subsidiaries are thoroughly analyzed before their respective inclusion on the financial statement. If conditions warrant a change in accounting principle, the events surrounding the change are disclosed, and the effects of the changes in accounting principles are also disclosed. Although these instances are infrequent, full disclosure is practiced when they do occur. Our main areas of accounting estimates include estimates for intangible assets and trade receivables.

Which of the following should be included in the acquisition cost of a piece of

The requirements of the applicable financial reporting framework relevant to accounting estimates, including related disclosures

financial statements to comply with ASC 740-10 by completing the table that was provided and justify

Entity-wide disclosures are required under Accounting Standards Codification (ASC) 280-10-50-40 through 280-10-50-42. The disclosures are required because every corporation does not report information in a similar fashion, and the disclosures would provide comparability of the financial statements among entities. For example, if a corporation uses a geographic approach in its financial statements, disclosing certain information about the products or services sold will make comparability to other companies much easier. The disclosures will also help with comparability within an entity if they decide to choose another method of reporting operating segments in the future. There are three types of entity-wide disclosures; products and services, geographic areas, and/or major customers. Every public company has to comply with the disclosures, even if the company has one reportable segment. The only exception to the entity-wide disclosures is if it is impractical to provide the information, such as it would be extremely costly to the corporation, or if the “internal reporting systems are not capable of gathering financial information by product or service by geographic area.” A disclosure should be made when entity-wide disclosures are impractical.

Inventories, is similar to the US GAAP definition under Accounting Standards Codification, ASC 330. According to Ernst & Young (2013) article, they are both based on the principle that the primary basis of accounting for inventory is cost. Both define inventory as assets held for sale in the ordinary course of business, in the process of production for such sale or to be consumed in the production of goods or services (pg.71). This which lead to the entries above. Under U.S. GAAP, the company reports inventory on the balance sheet at the lower of expense or market, where business sector is characterized as replacement cost of$180,000, with net realizable value of $190,000 and net realizable value less a normal profit of $152,000. In this case, stock was composed down to replacement cost and provided details regarding the December 31, 2014 asset report at $180,000. A $70,000 loss was incorporated into 2014 income. The company would report inventory on the balance sheet at the lower of cost $250,000 as historical cost and net realizable value as $190,000. Inventory would have been accounted for on the December 31, 2014 asset report a net realizable estimation of $190,000 and a loss on write-down of inventory of $60,000 (the historical cost subtracted from net realizable expense) would have been reflected in net income. IFRS income would be $10,000 bigger than U.S. GAAP net pay. IFRS held earnings would bigger by the same amount.

The purpose of this research paper is to summarize research on codification topic 410 based on the information found in different academic databases. The first part of the paper will focus on the FASB Codification database. The second part of the paper will compare and contrast three other databases on the same codification 410 within the RIA Checkpoint databases: AICPA: Auditing and Accounting Guides, SOX Reporter, and GAAP Practice Manual. A summary of benefits and issues with the searches of each database will also be discussed.

An assumption inherent in an enterprise 's statement of financial position prepared in accordance with generally accepted accounting principles is that the reported amounts of assets and liabilities will be recovered and settled, respectively. Based on that assumption, a difference between the tax basis of an asset or a liability and its reported amount in the statement of

However, this Statement maintains the scope of Interpretation 46(R) with the previous additional entities treated as special qualifying entities for purposes. The concept of these entities was eliminated in Statement No. 166. Therefore, the statement No. 167 also superseded the risks of quantitative-based and calculation of rewards to determine which enterprise, if any, provided a financial interest that controls an entity variable interest because the expectation of an access of the basic qualitative will be more efficient to identify which company has a financial interest of controlling in an entity variable interest. However, this is the way the FASB admitted to upgrade the financial reporting standards. Other additional necessity is an additional review event when deciding whether a company is a variable entity interest when there are any occurring circumstances and changes in facts. For instinct, the owner of the equity investment at risk, as a group, lose the power from voting rights to direct the activities of the entity that some characteristic impacts the economic entity’s performance. There will also be ongoing assessments of whether an enterprise is the key beneficiary of a variable interest entity.

The FASB process includes five steps to develop generally accepted accounting principles. The first step involves meeting and issuing a discussion memorandum. “A discussion memorandum is a document intended to encourage discussion and debate amongst accounting and financial professionals in regards to a current issue relating to the accounting industry” (“Discussion Memorandum”, n.d.). These are the ideas that will harm or benefit accountants. Next, they will obtain responses to this memorandum. After this is done FASB will create an exposure draft. Exposure drafts are basically an open blog about the new changes FASB is trying to implement. “The FASB issues a variety of different types of exposure documents to solicit input on its standards-setting

In this research, we will outline various concepts and definitions to business combinations and address some important issues such as reporting entity concept, determination of fair value of assets, nature and treatment of goodwill, fair value approach in determining the cost of business combinations. While doing this, we will keep in mind the major accounting practices

* Comments relating to the adequacy of disclosures, the actual descriptions of rate reconciliation items, deferred tax assets and liabilities, uncertain tax positions, timing of reversals, or expiration of net operating losses in various jurisdictions.

As a matter of fact, within the limitation of a short paper, this study aims to provide a critical review on the Accounting issues in Business combination under the requirement of Australian standards – or to be specific, under the conceptual framework provided by the Australian Accounting Standard Board (AASB.) Firstly, evaluation on the exclusions from the scope of AASB 3 is brought about, followed by the implications of the requirement to use the acquisition method of accounting for business combinations, the determination of fair value of assets, the reasons why fair value method is chosen in a business combination and lastly, a review on the nature and treatment of goodwill or bargain purchase from these particular transactions will be mentioned.

•IFRS 10 'Consolidated Financial Statements ' - identifies the concept of control as the determining factor in whether an entity should be included within consolidated financial statements;