Access the FASB Accounting Standards Codification at the FASB website (www.fasb.org).Required:Determine the specific citation for accounting for each of the following items:1. What alternative approaches can be used to estimate variable consideration?2. What alternative approaches can be used to estimate the stand-alone selling price of performance obligationsthat are not sold separately?

Access the FASB Accounting Standards Codification at the FASB website (www.fasb.org).Required:Determine the specific citation for accounting for each of the following items:1. What alternative approaches can be used to estimate variable consideration?2. What alternative approaches can be used to estimate the stand-alone selling price of performance obligationsthat are not sold separately?

Intermediate Accounting: Reporting And Analysis

3rd Edition

ISBN:9781337788281

Author:James M. Wahlen, Jefferson P. Jones, Donald Pagach

Publisher:James M. Wahlen, Jefferson P. Jones, Donald Pagach

Chapter17: Advanced Issues In Revenue Recognition

Section: Chapter Questions

Problem 4C: One of the more difficult issues that companies face in recognizing revenue is determining the...

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When allocating the transaction price to performance obligations when a stand-alone selling price is not readily observable, GAAP suggests all of the following approaches except the expected market margin approach. residual approach. expected cost plus a margin approach. adjusted market assessment approach.
I. PFRS 15 provides that where a contract with a customer has multiple performance obligations, an entity will allocate the transaction price to the performance obligations in the contract by reference to their relative standalone selling prices However, if a standalone selling price is not directly observable, the entity will need to estimate it. PFRS 15 suggests the following various methods to estimate the standalone selling price of each performance obligation, exceptA. NetRealizableValueApproachB. AdjustedMarketAssessmentApproach C. ExpectedCostPlusAMarginApproach D. ResidualApproach II. PFRS 15 provides that an entity recognizes revenue from contract with customer over time if anyof the following criteria is met, exceptA. The customer simultaneously receives and consumes all of the benefits provided by theentity as the entity performs.B. The entity's performance creates or enhances an asset that the customer controls as theasset is created.C. The entity has transferred physical…
What alternative approaches can be used to estimate the stand-alone selling price of performance obligations that are not sold separately?
Statement I: IFRS 15 prescribes specific estimation techniques for variable consideration and only permits variable amounts to be included to the extent that it is probable that the revenue will not reverse.Statement Il: Transaction price (at inception) should be allocated to all the performance obligations in the contract in proportion to the cost of each performance obligation. • True, True • True, False • False, False • False, True
Under PFRS 15, what is the measurement basis of revenue from contracts with customers? Select the correct letter: A. Revocable amount of the consideration received or receivable B. Book value of the consideration received or receivable C. Fair value of the consideration received or receivable D. Historical cost of the consideration received or receivable
Revenue Recognization Question. What is the significant difference between the Contract-Based Approach (IFRS) and Earnings Approach (ASPE)? Please provide an example for each for a better understanding.
Following IFRS, which statement is false? Group of answer choices The revaluation surplus account is a specific account reported as an unrealized gain in the statement of comprehensive income. If the revaluation initially increases the long-term operating asset's carrying value, the firm records the difference between the carrying value and the fair value (the unrealized gain) in the revaluation surplus account. The revaluation surplus account is a specific account reported in other comprehensive income (OCI) in the statement of comprehensive income. If a long-term operating asset's fair value decreases in subsequent accounting periods, after an earlier write-up, the firm reduces the revaluation surplus if it exists.
AASB 13 defines exit price as: Select one: A. The price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date. B. The amount for which an asset could be exchanged, or a liability settled, between knowledgeable, willing parties in an arm’s length transaction. C. The price that would be received to sell an asset or paid to transfer a liability. D. A transaction that assumes exposure to the market for a period before the measurement date to allow for marketing activities that are usual and customary for transactions involving such assets or liabilities; it is not a forced transaction (e.g., a forced liquidation or distress sale).
The accrual of restructuring costs creates obligations (liabilities) referred to as exit or disposal cost obligations. Required: 1. Obtain the relevant authoritative literature on exit or disposal cost obligations using the FASB Accounting Standards Codification. You might gain access at the FASB website (asc.fasb.org). What is the Codification topic number that addresses this issue? 2. What is the specific citation that addresses the initial measurement of these obligations? 3. How are these obligations and related costs to be measured? 4. What is the specific citation that describes the disclosure requirements in the notes to the financial statements for exit or disposal obligations? 5. List the required disclosures.
If the outcome of a long-term contract can be measured reliably, the preferred accounting method under both IFRS and US GAAP is: A . the cost recovery method.
context of reporting requirements regarding the fair value accounting option, the following statement is/are correct, except:
Choose the correct.For which of the following does IFRS for SMEs not provide a simplification of full IFRS?a. Goodwill.b. Borrowing costs. c. Development costs.d. Inventory.