Chapter 12 - Solution Manual

Fasb asc 12 2 interpretations of sfas no 109 found by

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FASB ASC 12-2 Interpretations of SFAS No. 109 Found by accessing topic 740 and using the Print with Sources function. Examples of the EITF pronouncements addressing the overall topic of income taxes are: 740-10-05-5 [There are two basic principles related to accounting for income taxes, each of which considers uncertainty through the application of recognition and measurement criteria: [EITF 91-08, paragraph STATUS, sequence 15.1.1] ] a. [To recognize the estimated taxes payable or refundable on tax returns for the current year as a tax liability or asset [EITF 91-08, paragraph STATUS, sequence] ] b. [To recognize a deferred tax liability or asset for the estimated future tax effects attributable to temporary differences and carryforwards. [EITF 91-08, paragraph STATUS, sequence] ] Freestanding Contract [A freestanding contract is entered into either: [EITF 00-19, paragraph ISSUE, sequence 28.2.1] ] a. [Separate and apart from any of the entity's other financial instruments or equity transactions [EITF 00-19, paragraph ISSUE, sequence] ] b. [In conjunction with some other transaction and is legally detachable and separately exercisable. [EITF 00-19, paragraph ISSUE, sequence] ] Government National Mortgage Association Rolls [The term Government National Mortgage Association (GNMA) rolls has been used broadly to refer to a variety of transactions involving mortgage-backed securities, frequently those issued by the GNMA. [EITF 84-20, paragraph ISSUE, sequence 14.1] ][ There are four basic types of transactions: [EITF 84-20, paragraph ISSUE, sequence 14.2] ] a. [Type 1. Reverse repurchase agreements for which the exact same security is received at the end of the repurchase period (vanilla repo) [EITF 84-20, paragraph ISSUE, sequence 15] ] b. [Type 2. Fixed coupon dollar reverse repurchase agreements (dollar repo) [EITF 84-20, paragraph ISSUE, sequence 16] ] c. [Type 3. Fixed coupon dollar reverse repurchase agreements that are rolled at their maturities, that is, renewed in lieu of taking delivery of an underlying security (GNMA roll) [EITF 84-20, paragraph ISSUE, sequence 17] ] d. [Type 4. Forward commitment dollar rolls (also referred to as to-be-announced GNMA forward contracts or to-be-announced GNMA rolls), for which the underlying security does not yet exist. [EITF 84-20, paragraph ISSUE, sequence 18] ] 740-10-15-4 The guidance in this Topic does not apply to the following transactions and activities: a. [A franchise tax to the extent it is based on capital and there is no additional tax based on income. If there is an additional tax based on income, that excess is considered an income tax and is subject to the guidance in this Topic. [EITF 91-08, paragraph DISCUSSION, sequence 13.2] ]See Example 17 (paragraph 740-10-55-139) for an example of the determination of whether a franchise tax is an income tax. b. [ A withholding tax for the benefit of the recipients of a dividend. A tax that is assessed on an entity based on dividends distributed is, in effect, a withholding tax for the benefit of recipients of the dividend and is not an income tax if both of the following conditions are met: [EITF 95-
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