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.

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.

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 17GI: If the standalone selling price of a good or service is not readily observable, what approaches...

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Similar questions

What alternative approaches can be used to estimate the stand-alone selling price of performance obligations that are not sold separately?
When applying lower of cost or net realizable value under the FIFO, average cost, or specific identification method, market value a.is defined as the selling price. b.should not exceed the net realizable value plus an allowance for a normal profit margin. c.should not exceed the net realizable value less an allowance for a normal profit margin. d.is defined as the net realizable value.
If the sum of standalone selling prices is greater than the transaction price, then any discount should be allocated to the performance obligations based on the relative ________. Group of answer choices historical cost book values standalone selling prices net present values
Please provide some explanation for the below question: 1. When applying lower of cost or market, market value A. is defined as the selling price B. should not exceed the net realizable value C. should not exceed the net realizable value less an allowance for a normal profit margin D. should not exceed the net realizable value plus an allowance for a normal profit margin
Explain how the lower of cost and net realizable value rule is applied to purchase commitments.
Which of the following does NOT accurately describe the requirements to apply relative valuation? a. The market value of the comps should be available. b. The valuation object should be compared with similar firms, preferably in industry, size, market and other measures. c. The market value of the valuation object should be available. d. The prices of the comps should be standardized, meaning a price ratio instead of the absolute price value should be compared.
Explain the following assertion: “Price setting generally requires a balance between market forces and cost considerations.”
Does GAAP distinguish between fair values that are readily determinable from current market prices versus those needing to be calculated based on the company’s own assumptions? Explain how a user will know about the reliability of the inputs used to determine fair value.
What effect do minor deviations from the EOQ have on totalinventory cost?
Under what circumstances is relative sales value anappropriate basis for determining the price assigned toinventory?
In general it argued that the lower of cost of market rule is supported most closely by which of the following theoretical assumptions? a. Revenue Recognition.b. Conservatism.c. Historical Cost.d. Going Concern Assumption.
What is an anomaly to an asset pricing model? For example explain what is pricing anomaly to CAPM associated with Book-to-market values.