Essay about Week 3 Codification Exercise

803 WordsNov 28, 20144 Pages
ACCT564 Week 3 Assignment 1. Watch the FASB Codification Tutorial – Available through the course shell http://asc.fasb.org/media/1615_Codification_MainMenu_Web/launcher.html 2. Access the codification database through your course shell and give a summary (1 paragraph) of each of the below references: a. ASC 210-10-01 b. ASC 505-20-25 c. ASC 908-360-25 Please put it in your own words! A/ ASC 210-10-01. I could not find the 210-10-01 so I will over the 210-10 (General) In this section the FASB explains how the accounting standars was updated. It also talks about the securities and exchange section (SEC). We can say that the section identifies the changes to this subtopics resulting from accounting standard updates. The SEC…show more content…
Retrived From: https://asc.fasb.org/section&trid=2208803 A/ASC 908-360-25 Airframe Modifications As for this code FASB explains that plant and equipment as airframe modifications in aircrafts that enhance the use of the aircraft should be capitalized. It also explains overhaul cost and how air carriers shall adopt accounting methods that will help them recognize overhaul expenses in the appropriate period. Accounting methods permitted: 1-Direct expensing method 2-The built in averhaul method 3-The deferral method This code is for 908 Airlines, 360 Property, Plant and Equipment, 25 Recognition Exercise 11 11. The financial reporting issues facing Mexico are different in some respects from those of other countries covered in this chapter. Required: Provide two main reasons to support the above statement. A/ Mexico has some different accounting issues because I think that when US bail out Mexico from their debt they adopted a more reliable accounting method. They had to open their financials and become more transparent with their financials. We can also see how there is a difference in the definition of an associate from both a IFRS and Mexican GAAP point of view. This can make American investor take careful measures when thinking in investment in that country. Preoperating and setup cost also make a big difference because irfs indicates you have to charge the

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