Background: Acer transfers equipment to Theta Corp in exchange for $1 million cash and 25% equity in
Theta. Acer book value of equipment was $6 million and appraised for $6.5 million. Fair value of
investment in Theta is $5.5 million and is
You are a corporate accountant for a distribution company that provides distribution services to a large
online retailer. Your company extensively uses conveyor belts to move shipping boxes and their contents
through its warehouse. The seams in t
Chapter 3 Assignments
Explain why researchers should include actual excerpts from the guidance in accounting memoranda,
rather than paraphrases if guidance (in the researchers own words).
The authoritative excerpts are more impactful b
Chapter 1 Assignments
Differentiate between requirements for public (verses nonpublic) companies to prepare financial
statements, and state why-in both cases- accounting research is frequently necessary.
a. Required to file financial s
Chapter 2 Assignments
Explain what it means for the Codifications guidance to be authoritative.
a. It means that the Codification establishes GAAP. In order to receive an unqualified audit opinion,
U.S. nongovernmental entities must pr
Utilize the AICPA website to respond.
Required: What guidance tells Jake that he must be independent of ABC Corp., and does his investment
impair his firms independence on this audit?
Respond to the questions in the form of an issue memo. Explain
Your audit senior, Quinn, is reviewing the second-quarter financial statements prepared by Holder, Inc., a
publically traded company, and thinks the client may have omitted an important item. Quinn has asked
you to research whether interim financ
1. Citing guidance from the codification, explain how rainbow should account for the sales incentive.
25-3 For a sales incentive offered voluntarily by a vendor and without charge to customers that can
be used or that becomes exercisab
Background: Big Company currently has $4 million ARO for future remediation of asbestos. During
routine maintenance, additional sampling identified the presence of asbestos in more places. Total cost
for remediation is now estimated at $8 mi
Relationship between the FASB and SEC: Summarize the issue raised in the article and the
interplay you observe between the two organizations.
"Investor Advocates Protest Proposals Limiting Disclosure." MarketWatch. Web. 9 Nov. 2015.
The SEC is re