Ch 2 Exercises Flashcards
Suppose you wanted to understand how interest payments on a loan should be presented (classified) in the statement of cash flows.
Show how you would navigate to the appropriate guidance using the “browse topics” feature on the left side of the screen.
Navigation to the appropriate guidance is as follows: Presentation - Statement of Cash Flows - Overall - Other Presentation Matters.
Suppose you wanted to understand how interest payments on a loan should be presented (classified) in the statement of cash flows.
Now provide the numerical ASC reference for the relevant guide, down to the paragraph.
ASC 230-10-45-17(d)
Suppose you wanted to understand how interest payments on a loan should be presented (classified) in the statement of cash flows.
What search term(s) might be entered if performing a key word search to locate this guidance?
“Interest Expense”
“Loan”
Suppose you wanted to understand how interest payments on a loan should be presented (classified) in the statement of cash flows.
What is the Codification reference (ASC xxx-xxx) relating to specialized statement of cash flows guidance for entities in Real Estate - Timeshare Entities’ Industry?
ASC 978-230
In the following reference, label the Topic, Subtopic, Section, and Paragraph. Also, provide the description from the Codification for each of these. Here is the reference: ASC 210-20-45-1.
ASC 210 (Balance Sheet) - 20 (Offsetting) - 45 (Other Presentation Matters) - 1 (Right of Setoff Conditions)
Topic 210 is Balance Sheet, with this specific reference covering the Right of Setoff Conditions.
Name three of the topics listed within the Broad Transactions area.
1) Topic 805 Business Combinations
2) Topic 808 Collaborative Arrangements
3) Topic 810 Consolidation
Identify the ASC reference - down to the paragraph level of detail - that you would look to for guidance on each issue.
Guidance on whether equity spinoff transaction guidance in the Codification applies to nonpublic entities.
ASC 505-60-15-1
Broken down into ASC 505 (Equity) - 60 (Spinoffs and Reverse Spinoffs) - 15 (Scope and Scope Exceptions) - 1 (Entities)
Identify the ASC reference - down to the paragraph level of detail - that you would look to for guidance on each issue.
Criteria for determining whether a lease should be classified as a finance lease or as an operating lease.
Finance lease classification: ASC 842-10-25-2.
Operating lease classification: ASC 842-10-25-3.
Identify the ASC reference - down to the paragraph level of detail - that you would look to for guidance on each issue.
Criteria for determining whether information about an operating segment should be reported separately (i.e., as a reportable segment) in the notes to a company’s financial statements.
ASC 280-10-50-10
Identify the ASC reference - down to the paragraph level of detail - that you would look to for guidance on each issue.
SEC guidance describing required disclosures in the event of a LIFO liquidation, an inventory concept.
ASC 310-10-S99 SEC Materials, SAB Topic 11.F, LIFO Liquidations
Identify the ASC reference - down to the paragraph level of detail - that you would look to for guidance on each issue.
Guidance stating that the issuance of stock after the balance sheet date should be treated as an non-recognized subsequent event.
ASC 855-10-55-2.
Broken down into ASC 855 (Subsequent Event) - 10 (Overall) - 55 (Implementation Guidance and Illustrations) - 2 (No recognized Subsequent Events).
Identify the ASC reference - down to the paragraph level of detail - that you would look to for guidance on each issue.
Criteria for determining whether information about an operating segment should be reported separately (i.e., as a reportable segment) in the notes to a company’s financial statements.
For the information above, describe the browse path used (or would use) to locate this guidance.
FASB Codification - Codification - Presentation - Segment Reporting - Disclosure - Reportable Segments
