Unformatted text preview: c continues on to paragraph 720-35-15-2 where he reads, ―The guidance in this
Subtopic applies to all advertising transactions and activities, with specific exceptions noted
below.‖ Eric is careful to review the exceptions noted in the third paragraph of the Section.
One of the listed exceptions reads ―Fundraising by NFPs (however, this Subtopic does apply
to advertising activities of NFPs).‖ This signals to Eric that advertising costs incurred by the
entity he is auditing do fall within the scope of the guidance in this Subtopic, again subject to
scope exceptions that might be stated elsewhere in the Subtopic. Eric finishes reading the
Section, finding no other scope information that is pertinent to his research. Eric also
recognizes that the scope declarations he has just read indicate that the Subtopic is scoped
independently. Because this is not a conforming or conforming-with-exceptions scope
declaration, there is no need to review Section 15 of any other Subtopic. Look Now
Go to Section 15
of the Advertising
Costs Subtopic of
Section’s content. Eric recalls that the entity he is auditing opened a homeless shelter having never done
so before. He thinks that doing so may be considered a ―start-up‖ activity for accounting
purposes, and he knows that there is guidance on start-up costs in Subtopic 15, Start-Up
Costs, of Topic 720. As always, there are many ways that Eric could navigate to that
Subtopic, but again he chooses the fastest way, which is by using the pop-up menus. After
arriving at the Subtopic’s landing page, he navigates to the page for Section 15 of the
Subtopic by clicking the link to that Section within the ―Table of Contents‖ outline near the
top of the Subtopic’s page.
In the first paragraph of the Section, Eric reads, ―The guidance in this Subtopic
applies to all nongovernmental entities, including …. Not-for-profit entities (NFPs) …‖ He
therefore knows that the entity he is auditing falls within the scope of the guidance in
Subtopic 720-15, subject to scop...
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This note was uploaded on 03/27/2014 for the course ECON 12586 taught by Professor Yorambarzel during the Fall '09 term at University of Washington.
- Fall '09