Chapter 17 - Solution Manual

A selection from existing acceptable alternatives b

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A selection from existing acceptable alternatives b. Principles and methods peculiar to the industry in which the entity operates, even if such principles and methods are predominantly followed in that industry c. Unusual or innovative applications of GAAP. > Examples of Disclosures 50-4Examples of disclosures by an entity commonly required with respect to accounting policies would include, among others, those relating to the following: a. Basis of consolidation b. Depreciation methods c. Amortization of intangibles d. Inventory pricing e. Accounting for recognition of profit on long-term construction-type contracts f. Recognition of revenue from franchising and leasing operations. > Avoid Duplicate Details of Disclosures 50-5Financial statement disclosure of accounting policies shall not duplicate details (for example, composition of inventories or of plant assets) presented elsewhere as part of the financial statements. In some cases, the disclosure of accounting policies shall refer to related details presented elsewhere as part of the financial statements; for example, changes in accounting policies during the period shall be described with cross-reference to the disclosure required by Topic 250 > Format 50-6This Subtopic recognizes the need for flexibility in matters of format (including the location) of disclosure of accounting policies provided that the entity identifies and describes its significant accounting policies as an integral part of its financial statements in accordance with the provisions of this Subtopic. Disclosure is preferred in a separate summary of significant accounting policies preceding the notes to financial statements, or as the initial note, under the same or a similar title. FASB ASC 17-3 Accounting for Changing Prices Search Changing Prices 255-10-50 General
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375 > Introduction 50-1 A business entity that prepares its financial statements in U.S. dollars and in accordance with U.S. generally accepted accounting principles (GAAP) is encouraged, but not required, to disclose supplementary information on the effects of changing prices. Entities are not discouraged from experimenting with other forms of disclosure. > Presentation 50-2 This Subtopic provides guidance on those encouraged disclosures. For that reason, the guidance that describes how to present the disclosures is included in this Section rather than Section 250–10–45. > > Five-Year Summary of Selected Financial Data 50-3 An entity shall disclose all of the following information for each of the five most recent years: a. Net sales and other operating revenues b. Income from continuing operations on a current cost basis c. on net monetary items d. Increase or decrease in the current cost or lower recoverable amount of inventory and property, plant, and equipment, net of inflation e. The aggregate foreign currency translation adjustment on a current cost basis, if applicable f. Net assets at year-end on a current cost basis g. Income per common share from continuing operations on a current cost basis h. Cash dividends declared per common share i. Market price per common share at year-end.
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