Unit 2 Codification Case Ac551 Accounting Research Essay
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Unit 2 Codification Case Assignment
AC551: Accounting Research
Professor: Jerry Kreuze
Student: Irina Madison
FASB Codification Case
1. a. Firm Fixed-Price Contract – A contract in which the price is not subject to any adjustment by reason of the cost experience of the contractor or his performance under the contract.
b. Amortized Cost – The sum of the initial investment less cash collected less write-downs plus yield accreted to date.
c. Impairment – Impairment is the condition that exists when the carrying amount of a long-lived asset (asset group) exceeds its fair value.
2. In this codification I could find SEC documents. For example the 740-10-S99 codification talks about SEC Materials. It is explained how to disclose income tax expenses. There are four parts: S99-1, S99-2, S99-3, S99-4. S99-3 includes a paragraph of a SEC Observer comment and S99-4 includes a SEC Staff Announcement: Accounting for the Health Care and Education Reconciliation Act of 2010 and the Patient Protection and Affordable Care Act.
Other example is 855-10-S99 SEC Materials codification. S99-2 is the text of SEC Staff Announcement: Issuance of Financial Statements. Here is a subtract from the response:
In considering when financial statements have been issued, the SEC staff observed that Rules 10b-5 and 12b-20 under the Securities Exchange Act of 1934 and General Instruction C(3) to Form 10-K specify that financial statements must not be misleading as of the date they are filed with the Commission. For example, assume that a registrant widely distributes its financial statements but, before filing them with the Commission, the registrant or its auditor becomes aware of an event or transaction that existed at the date of the financial statements that causes those financial statements to be materially misleading. If a registrant does not amend those financial statements