Acct 403-B01 chapter 9 accouting standards case

Acct 403-B01 chapter 9 accouting standards case -...

Info iconThis preview shows pages 1–2. Sign up to view the full content.

View Full Document Right Arrow Icon
RE: Chapter 9 Accounting Standards Case: Forecasted Transactions Forecasting transactions has to be based on the facts and the situation of the transaction. This needs to be considered before management can assess to forecast foreign currency. Management would need to research the FASB Accounting Standards Codification under the paragraph 815-20-55-24. Once management has referred to this codification he or she can then assess the conditions. The transactions will need to be reviewed for how often the transaction has occurred in the past. The individual or company will also need to be reviewed to see if it has the ability to perform the transaction (FASB 815-20-55-24). Would it have the assets and operating ability to continue? Does the company have the resources to perform or keep its commitments? Then
Background image of page 1

Info iconThis preview has intentionally blurred sections. Sign up to view the full version.

View Full DocumentRight Arrow Icon
Background image of page 2
This is the end of the preview. Sign up to access the rest of the document.

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) accessed 02/29/2012....
View Full Document

Page1 / 2

Acct 403-B01 chapter 9 accouting standards case -...

This preview shows document pages 1 - 2. Sign up to view the full document.

View Full Document Right Arrow Icon
Ask a homework question - tutors are online