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Unformatted text preview: management will need to evaluate what would happen if the transaction did not occur. If the transaction does not happen, would it disrupt the flow of operations? Would the management be able to obtain the resources that the transaction would give them somewhere else? What business purpose could be used to replace the lost transaction? (FASB 815-20-55-24) These would be the some of the facts and situation management would have to evaluate in order to determine the decision. The decision has to be based on verifiable information. It cannot be because management wanted to forecast the transaction (FASB 815-20-55-24). Reference Financial Accounting Standards Board (FASB) fasb.org accessed 02/29/2012....
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- Spring '11