Scene1.
The reasons which makes the provision different from the other types of current liabilities reported on a company’s
Scene2.
The way in which a provision under IFRS and a contingency under U.S GAAP differ.
The reason that makes provisions to be separately identified rather than being included with other accrued liability.
Scene3.
The probabilities assigned to each category under U.S GAAP and IFRS.
The reason why the probabilities are not used in the standards rather than the expressions that are subject to interpretation.
Whether the guidance provided for loss contingencies under U.S GAAP to be rules based or not and is IFRS more principle based than the U.S GAAP guidance.
Scene 4.
The comparison between the view regarding loss contingency and if one view is more liberal than the other.
Scene 5.
The standard under which there is more disclosure in the financial statements.
Scene 6.
Whether the concept of ‘conservatism’ be considered while determining a contingency.
Whether the standards at odds with the concept of conservatism because they do not require contingent liabilities to be recognized unless they are probable and can be estimated or not.
Whether the concept of conservatism is a guiding principle for developing accounting standards or not.
Want to see the full answer?
Check out a sample textbook solutionChapter 13 Solutions
Intermediate Accounting
- 3arrow_forwardAn accountant's judgments for each of the 5 steps in ASC 606 may be impacted by Covid-19. Question 15 options: True Falsearrow_forwardAccess 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: Circumstances indicating when theinstallment method or cost recovery method is appropriate for revenue recognition.arrow_forward
- As stipulated in the Conceptual Framework 2018, materiality is therefore an entity-specific aspect to ensure relevant information based on the _______ or _______ of items to which the information relates. Fill in the correct words to complete the sentence? 1) disclosure or amount 2) value or balance 3) nature or magnitude 4) faithful presentation or completenessarrow_forwardIdentify and cite the relevant topics, subtopics from the FASB Accounting Standards Codification regarding Goodwill impairment. Beyond the assessment of qualitative factors, what other evidence should be considered for the purpose of goodwill analysis? (Speak to any other evidence that points to goodwill/impairment & its analysis – Other than qualitative/quantitative factors) Please cite the appropriate FASB ASC topicsarrow_forwardExercise 13-10 (Static) FASB codification research [LO13-3, 13-4, 13-5] Access the FASB Accounting Standards Codification at the FASB website (www.fasb.org) and select Basic View for free access. Required: Determine the specific eight- or nine-digit Codification citation (XXX-XX-XX-XX) that describes the following items: 1. If it is only reasonably possible that a contingent loss will occur, the contingent loss should be disclosed. 2 Criteria allowing short-term liabilities expected to be refinanced to be classified as long-term liabilities. 3. Accounting for the revenue from separately priced extended warranty contracts. 4. The criteria to determine if an employer must accrue a liability for vacation pay. Requirement 1. 2 3. 4. Topic Subtopic Section Paragrapharrow_forward
- 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 AccountingStandards Codification. You might gain access at the FASB website (www.fasb.org). What is the Codification topic number that addresses this issue?arrow_forwardfor each of following citations, identify the type of authority (Statutory, administrative, or judicial) and explain the citation. 1.111-1 IRC 469 (c)(7)(B)(i) Rul 82-204, 1982-2 C.B. 192 Amdahl Corp., 108 TC 507 (1997) PLR 9727004 Hills v. Comm’r, 50 AFTR2d 82-6070 (11th, 1982)arrow_forwardThe FASB Accounting Standards Codification represents the single source of authoritative U.S. generally accepted accounting principles. Required: 1. Obtain the relevant authoritative literature on the impairment or disposal of long-lived assets using the FASB Accounting Standards Codification at the FASB website (asc.fasb.org). Indicate the Codification topic number that provides guidance on accounting for the impairment of long-lived assets. 2. What is the specific citation that discusses the disclosures required in the notes to the financial statements for the impairment of long-lived assets classified as held and used? 3. Describe the disclosure requirements.arrow_forward
- Make a summaryarrow_forwardClassify the following citation as to the location. A citation may have more than one answer. Location IRC = Internal Revenue Code IRB = Internal Revenue Bulletin CB = Cumulative Bulletin FR = Federal Register NA = Not applicable Citation § 61(a)(13). Prop.Reg. § 1.368–2(b)(1). Rev.Proc. 77–37, 1977–2 C.B. 568. Temp.Reg. § 1.163–9T(b)(2)(I)(A). Rev.Rul. 64–56, 1964–1 C.B. 133. Jack E. Golsen, 54 T.C. 742 (1970). Ltr.Rul. 9802018arrow_forwardQuestion 21 When auditors wish to issue an unqualified opinion but hight light that the entity changes its method of accounting for software development costs, they would appropriately identify the change in accounting method in which of the following? Introductory paragraph The opinion paragraph An emphasis of matter paragraph An other matter paragraph.arrow_forward
- Intermediate Accounting: Reporting And AnalysisAccountingISBN:9781337788281Author:James M. Wahlen, Jefferson P. Jones, Donald PagachPublisher:Cengage LearningAuditing: A Risk Based-Approach (MindTap Course L...AccountingISBN:9781337619455Author:Karla M Johnstone, Audrey A. Gramling, Larry E. RittenbergPublisher:Cengage Learning
- Accounting Information SystemsFinanceISBN:9781337552127Author:Ulric J. Gelinas, Richard B. Dull, Patrick Wheeler, Mary Callahan HillPublisher:Cengage LearningSurvey of Accounting (Accounting I)AccountingISBN:9781305961883Author:Carl WarrenPublisher:Cengage Learning