Accounting Question 6 mark Question: [6 Marks]A company is considering whether to adopt a new accounting standard thatwould require it to disclose more information about its segmentoperations. What are the benefits of increased segment disclosure? Howcan the company ensure the accuracy and completeness of its segmentdisclosures?

Detailed explanation:Benefits of Increased Segment Disclosure1. Enhanced Transparency:Increased…

Answered: Question: [6 Marks] A company is…

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

Chapter5: The Income Statement And The Statement Of Cash Flows

Section: Chapter Questions

Problem 32GI

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Assume that the FASB is considering revising an important accounting standard.Required:1. What constraint applies to the FASB’s consideration of whether to require companies to provide new information?2. In what Concepts Statement is that constraint discussed?3. What are some of the possible costs that could result from a revision of an accounting standard?4. What does the FASB do in order to assess possible benefits and costs of a proposed revision of an accounting standard?
Topic: Operating Segments Requirements: (Show Solutions) a. Identify the reportable segments under the quantitative thresholds of PFRS 8. b. Determine whether the reportable segments meet the limit on external revenues under PFRS 8. c. Determine the minimum amount of revenue that warrants disclosure of a major customer.
The Question is: True or False & Why?: Comparability across companies will be enhanced since ASC 606 provides clear rules, by industry, for when and how to recognize revenue. Why the answer is "false"?
What are the implications of a change in accounting standards? For example, what kinds of changes to data calculation and information reportingare likely to occur with a transition to a new standard?
Review the new revenue recognition guidance issued by the Financial Accounting Standards Board http://www.fasb.org/jsp/FASB/Page/ImageBridgePagecid=1176169257359 and answer the following questions. What is the new standard as of ASC 606? What does that mean to you? What are the recommended steps companies should follow to achieve the core principle? How does this change current GAAP standards? Who is required to adhere to this new standard?
Q32 Which of the principle as per GAAP states, “one must report enough information for outsiders to make informed decisions about the company”? a. Matching b. Disclosure c. Revenue d. Consistency
In conducting a B/C analysis, (a) why is it usually necessary to take a specific viewpoint in categorizing cost, benefit, disbenefit estimates; and (b) what are two specific viewpoints that you can identify if the situation is a financial transaction between you and another person? Between your company and an international customer?
What is meant by solvency? What information in thebalance sheet can be used to assess a company’s solvency?
Match the correct term with its definition.A. Cost principlei. if uncertainty in a potential financial estimate, a company should err on the side ofcaution and report the most conservative amount B. Full disclosureprinciple ii. also known as the historical cost principle, states that everything the company ownsor controls (assets) must be recorded at their value at the date of acquisition C. Separateentity concept iii. (also referred to as the matching principle) matches expenses with associatedrevenues in the period in which the revenues were generated D. Monetarymeasurementconcept iv. business must report any business activities that could affect what is reported onthe financial statements E. Conservatismv. system of using a monetary unit by which to value the transaction, such as the USdollar F. Revenuerecognitionprinciple vi. period of time in which you performed the service or gave the customer theproduct is the period in which revenue is recognized G. Expenserecognitionprinciple…
What is the desired benefit from revising an accounting standard?
Which of the following disclosures regarding new accounting standards provides the most meaningful information to an analyst? C . Management is still evaluating the impact.
What are the steps that would be needed for a company to transition from GAAP to IFRS?

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