Chapter 17 - Solution Manual

Fasb asc 17 6 disclosure of foreign activities search

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FASB ASC 17-6 Disclosure of Foreign Activities Search foreign activities and SEC 942-235-299 SEC Rules, Regulations, and Interpretations > > Regulation S-X > > > Regulation S-X Rule 9-05 S99-1 The following is the text of Regulation S-X Rule 9-05. (a) General requirement. Separate disclosure concerning foreign activities shall be made for each period in which either (1) assets, or (2) revenue, or (3) income (loss) before income tax expense, or (4) net income (loss), each as associated with foreign activities, exceeded ten percent of the corresponding amount in the related financial statements. (b) Disclosures. (1) Disclose total identifiable assets (net of valuation allowances) associated with foreign activities. (2) For each period for which an income statement is filed, state the amount of revenue, income (loss) before taxes, and net income (loss) associated with foreign activities. Disclose significant estimates and assumptions (including those related to the cost of capital) used in allocating revenue and expenses to foreign activities; describe the nature and effects of any changes in such estimates and assumptions which have a significant impact on interperiod comparability.
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378 (3) The information in paragraph (b) (1) and (2) of this section shall be presented separately for each significant geographic area and in the aggregate for all other geographic areas not deemed significant. (c) Definitions. (1) Foreign activities include loans and other revenues producing assets and transactions in which the debtor or customer, whether an affiliated or unaffiliated person, is domiciled outside the United States. (2) The term revenue includes the total of the amount reported at §§ 210.9–04.5 and 210.9–04.13. (3) A significant geographic area is one in which assets or revenue or income before income tax or net income exceed 10 percent of the comparable amount as reported in the financial statements. > > > Regulation S-X Rule 9-06 S99-2 The following is the text of Regulation S-X Rule 9-06. The information prescribed by § 210.12–04 shall be presented in a note to the financial statements when the restricted net assets (§ 210.4–08(e)(3)) of consolidated subsidiaries exceed 25 percent of consolidated net assets as of the end of the most recently completed fiscal year. The investment in and indebtedness of and to bank subsidiaries shall be stated separately in the condensed balance sheet from amounts for other subsidiaries; the amount of cash dividends paid to the registrant for each of the last three years by bank subsidiaries shall be stated separately in the condensed income statement from amounts for other subsidiaries. For purposes of the above test, restricted net assets of consolidated subsidiaries shall mean that amount of the registrant's proportionate share of net assets of consolidated subsidiaries (after intercompany eliminations) which as of the end of the most recent fiscal year may not be transferred to the parent company by subsidiaries in the form of loans, advances or cash dividends without the consent of a third party (i. e., lender, regulatory agency, foreign government, etc.).
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