Fasb Essay

1429 Words Oct 6th, 2015 6 Pages
Maria Juarez
Professor Muslu
Accounting 3367 T-Thurs

A. Identify relevant Codification section that addresses transfers of receivables. The relevant codification section for the transfers of receivables is the following: FASB ASC 860-10-05-15. C. Provide definitions for the following:

1) Transfer:
The conveyance of a noncash financial asset to someone other than the issuer of that financial asset. The following include transfers: selling a receivable, putting a receivable into securitization trust, and receivable as collateral.

2) Recourse:
The right of a transferee of receivables to receive payment from the transferor of those receivables for any of the following: failure of debtors to pay when due, the effects of
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What is the predecessor literature? The FASB ASC 330 Inventory provides primary authoritative guidance for the accounting for inventory. The predecessor literature is Accounting Research Bulletins (ARB) No.43 Chapter 4, paragraph 4 (Issued June, 1953) and Statement of Financial Accounting Standard (FAS) NO.151 Inventory cost- an amendment of ARB No.43, Chapter 4 (Issued November, 2004).

2 List the three types of goods that are classified as inventory. What characteristic will automatically exclude an item from being classified as inventory? 3 types of goods that classify as inventory are goods awaiting sale (the merchandise of a trading concern and the finished goods of a manufacturer), goods in the course of production (work in process), and goods to be consumed directly or indirectly in production (raw materials and supplies).

The characteristics that excludes long-term assets subject to depreciation accounting, or goods which, when put into use. Even if a depreciable asset is retired from regular use and held for sale it does not mean that the item should be classified as inventory.

3 Define “market” as used in the phrase “lower-of-cost-or-market” -market means current replacement cost (by purchase or by reproduction, as the case may be) it should meet both of the following conditions a. Market shall not exceed the net realizable value b. Market shall not be less than net realizable value reduced by an allowance for…