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Dicussion pg 879 - year or in the operating cycle whichever...

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What does FASB (SFAS 150) say about how mandatorily redeemable preferred stock should be  reported on the balance sheet. The SEC ruled that redeemable preferred stock is not equity, but did not state that is debt. So, companies put the securities between liabilities and equity on the balance sheet – mezzanine. Classification provisions of SFAS No. 150, Accounting for Certain Liabilities with Characteristics of both Liabilities and Equity as of the beginning of the year ended March 31, 2004. Those provisions require the Companies to include the mandatorily redeemable preferred stock as a liability in its balance sheet and to include the dividends on the preferred stock as a component of interest expense in its income statement, and prohibit reclassification of prior year amounts. 20) Are trading, available-for-sale, and held-to-maturity securities disclosed on the balance sheet as current of long-term assets? Current assets: Cash and other assets expected to be converted into cash, sold, or consumed either in one
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Unformatted text preview: year or in the operating cycle, whichever is longer. Current assets are presented in order of liquidity. Items in the current asset section, include: Unrestricted Cash— any cash restricted for purposes other than current obligations is excluded from current assets. Short-term investments - classified as either: **trading - reported at FMV **available-for-sale - reported at FMV ** held-to-maturity - reported at amortized cost. Receivables Must also disclose: ** the amounts of expected uncollectibles ** nontrade receivables **accounts pledged or discounted Inventories Must also disclose: ** The basis of valuation (e.g., lower of cost or market) **pricing method (e.g., FIFO, LIFO, etc.) ** stage of completion Prepaid expenses Any non-current prepaid (s) are reported as deferred charges in the "other asset" section. The answer to the question is current assets, but wanted to give the list of current assets....
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Dicussion pg 879 - year or in the operating cycle whichever...

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