It establishes a selling price hierarchy for determining the selling price of each product or service, with vendor-specific objective evidence (VSOE) at the highest level, third-party evidence of VSOE at the intermediate level, and a best estimate at the lowest level. It replaces “fair value” with “selling price” in revenue allocation guidance, eliminates the residual method as an acceptable allocation method, and requires the use of the relative selling price method as the basis for allocation. It also significantly expands the disclosure requirements for such arrangements, including, potentially, certain qualitative disclosures. ASU 2009-13 will be effective prospectively for sales entered into or materially modified in fiscal years beginning on or after June 15, 2010 (i.e., the year beginning January 1, 2011, for us). The FASB permits early adoption of ASU 2009-13, applied retrospectively, to the beginning of the year of adoption.
Option (A) provides a clearer picture on how the stock options affect the company’s equity through the balance sheet. Expense: An expense represents the actual or expected cash outflow that results from an entity’s ongoing major or central operations. Option (A) values the compensation based on the value of the stock options. Therefore, this transaction
Material participation is a concept used by the law to determine what qualifies as a passive activity. A passive activity is defined as any business or trade activity that the taxpayer does not materially participate in running. Therefore, material participation as a concept helped with the difficulty in dealing with such a subjective issue. It is important to distinguish passive income from active income, since losses are treated differently under each classification on the taxpayer’s tax return. Problems:
B) the U.S. Court of Federal Claims has ruled differently on the issue in the taxpayer's jurisdiction. C) the Court of Appeals in the circuit to which the Tax Court decision would be appealed has ruled differently on the issue. D) the IRS has indicated that it will acquiesce. 63) Identify which of the following statements is false. A) When a court opinion discusses facts and issues on which the court does not rule, the comments are called dicta.
ACC 422 Week 5 Final Exam http://www.homeworkarena.com/acc-422-final-exam-perfect-solution 1) Which of the following is NOT considered cash for financial reporting purposes? A. Postdated checks and I.O.U.’s B. Money orders, certified checks, and personal checks C. Petty cash funds and change funds D. Coin, currency, and available funds 2) What is the preferable presentation of accounts receivable from officers, employees, or affiliated companies on a balance sheet? A. As assets but separately from other receivables.
Show on this diagram equilibrium relative price and gains from trade. Is it the total gain from trade between two countries? e. Use a diagram similar to Figure 4.8 in lecture notes to illustrate the e¤ect of trade on Foreign relative labor income, W=R. What does the StolperSamuelson theorem predicts about the e¤ect of trade on real income of capital and labor owners in Foreign? Verify that predictions of the StolperSamuelson theorem are satis…ed for Foreign country factors’market.
The unreasonable cost exception is implemented through the use of an evaluation factor applied to low foreign offers. The Contracting Officer may determine unreasonable cost in accordance with FAR 25.105/Subpart 25.5 and DFARS 225.105/Subpart 225.5. 4.Resale. The contracting officer may purchase foreign end products specifically for commissary
Include references to any tax code or publications that you use for your answer. week 4 Explain why the tax laws required the cost of certain assets to be capitalized and recovered over time rather than immediately expensed. How does this reasoning compare with the reasoning for financial accounting purposes? Include references to any tax code or publications that you use for your answer. Why are capital gains and dividends taxed at a different rate than ordinary income?
The value to the separate transitions would be higher than a combined one. Being the value of the disk drive business diluted in the Veritas stock value, a separation based deal would trigger a valuation of the Veritas business close to its stock price value, plus a higher price for the disk drive business. Finally Silver Lake Partners’ aims to acquire the disk drive operations and probably are not interested in the Veritas stock, that is a very close exchange of money for stock. Transaction Winners and Losers: Main winners would be Seagate shareholders. Will avoid taxes on the Veritas stock swap and acquire a more liquid asset.
FASB and IASB Convergence Introduction FASB (Financial Accounting Standards Board) is an independent board consisting of accounting professional who develop and communicate Standards of financial accounting and reporting in United States. IASB (Independent Accounting Standards Body) is an organization responsible for the development and publication of IFRS (International Financial Reporting Standards) as developed by the IFRS interpretation committee. Goodwill Goodwill is an accounting term, which refers to the value of an asset that is invisible but has a quantifiable “prudent value” in the business. Financial Accounting Standards Board uses a two-step process to determine if the goodwill is impaired. The first being Recoverability Test, this step indicate the goodwill is impairment.