Fasb Essay

any other indebtedness or liability of the debtor to the secured party direct or indirect, absolute or contingent, due or to become due, now existing or hereafter arising, including all future advances or loans which may be made at the option of the secured party.

4. What inventory method is used to value inventories? Does this method reflect current cost at year-end?

The authoritative guidance for asset impairment is to ensure that impairment is recorded and dealt with as depreciation. The scope of the standard is writing off of assets and depreciation. According to the guidance of 360-10-35, it address how long-lived assets that are intended to be held and used in an entity’s business shall be reviewed for impairment. The impairment loss can only be recognized if the carrying amount of a long-lived assets is not recoverable and

Bob and Carl transferred property to Stone Corporation in exchange for 90% and 10%, respectively, of Stone stock. Bob then sells half of his Stone stock to Carl, pursuant to a binding agreement between the two of them. We have been asked whether or not this transfer of property for Stone meets the Sec. 351 control requirement for non-recognition treatment.

By securitizing the receivables, a larger organization can convert its accounts receivable into cash at once. Hence, individual receivables are combined into a new security and are then sold as an investment instrument. Since securities are backed by a liquid form of collateral, a securitization can result in an extremely low interest rate for the issuing entity. Criterions in ASC 860 states that, transfers in securitization transactions must be evaluated for sale accounting treatment. In addition, they must be evaluated for consolidation by the GAAP criteria, set fourth at ASC 810. Moreover, Securitizations are popular because investors want to acquire collateralized securities and firms with large amounts of receivables have incentives to

A mandatorily redeemable financial instrument shall be classified as a liability unless the redemption is required to occur only upon the liquidation or termination of the reporting entity. A financial instrument issued in the form of shares is mandatorily redeemable if it embodies an unconditional obligation requiring the issuer to redeem the instrument by transferring its assets at a specified or determinable date (or dates) or upon an event certain to occur.

• a debtor that is insolvent transfers assets to a creditor valued in excess of $600 for a past debt

Any of these events are recorded as an expense or recorded in the form of cost of goods sold. The entity also reports, according to U. S. Securities and Exchange Commission (2012), “certain amounts of discontinued finished goods which fall into the establishment of inventory reserves. These amounts are highly subjective and results could differ based on estimates only when inventory for an allowance has been established, later sold or otherwise disposed” (Para.15).

There are uncertainties in whether a receivable is sold or being used as a collateral for a loan. Thus, FASB has provided guidelines to distinguish between the two. FASB ASC 860-10-40-3 states that a financial asset should be considered sold and therefore should be derecognized if it is transferred and control is surrendered. Moreover, when control over the receivables is not surrendered, the transaction should be treated as a collateralized borrowing. FASB ASC 860-10-40 on the subject of conditions for a sale of financial assets states that a financial asset should be considered sold if it is transferred and control is surrendered. Control is deemed to be

Subsection (c) regarding the definition of “unrealized receivables”; Section 751(c) defined the unrealized receivable as any rights to payment for goods delivered, or to be delivered, to the extent that their proceeds would be treated as amounts received from the sale or exchange of property other than a capital asset, or services rendered, or to be rendered.

Transferable (typically of financial assets, liabilities, or legal rights) able to be transferred or made over to the possession of another person

The Balmain SS16 AD campaign is shot in black and white photographed by Steven Klein, casting three of the world’s most renowned 90’s supermodels Naomi Campbell, Cindy Crawford, and Claudia Schiffer posing powerfully in the designer’s signature body-conscious creations.The brand presents a super luxe and minimal campaign packed with the star power. The campaign focused on the timeless beauty of each model juxtaposed alongside the modern, sensationalism of the Balmain SS16 collection. The beauty looks for each model is followed by clean suit, minimal makeup and just out of the shower look.

the asset or the market price, which may differ considerably from their original purchase price. ▫ Four broad categories: liquid assets, investments, real property, and personal property.

B) (i) Transfer includes selling a receivable, putting a receivable into a securitization trust and posting a receivable as collateral. Transfer excludes the origination of a receivable, settlement of a receivable and the restructuring of a receivable into a security in a troubled debt restructuring.

an agreement whereby the lessor conveys to the lessee in return for a payment or series of payments the right to use an asset for an agreed period of time.