(1)
Financial Accounting Standards Board
It is common known as FASB. It is a private, non-profit organization which is a standard setting body. The main purpose of the FASB is to create and improve GAAP (Generally Accepted Accounting Principles) within the US. U.S GAAP is a collection of generally practiced and followed rules and standards of accounting in US. U.S GAAP provides global guidelines for preparation and disclosure of financial statements of public companies.
To Explain: the policies companies using U.S GAAP follows for classifying finance leases.
(2)
To state: the policy the company AF will follow when it begins to apply the new lease guidance in the 2015 update to IFRS 16.
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Chapter 15 Solutions
Gen Combo Looseleaf Intermediate Accounting; Connect Access Card
- Calculating Ratios and Estimating Credit Rating The following data are from Kellogg's 10-K report dated December 29, 2018 ($ millions). Revenue Interest expense Tax expense Amortization expense Depreciation expense $13,547 Earnings from continuing operations $1,344 Capital expenditures (CAPEX) 578 287 181 Total debt 8,893 23 Average assets 17,066 493 a. Use the data above to calculate the following ratios: EBITA/Average assets, EBITA Margin, EBITA/ Interest expense, Debt/EBITDA, CAPEX/Depreciation Expense. Definitions for these ratios are in Exhibit 7.4. b. Refer to Exhibit 7.4 and the ratios you calculated in part a. Estimate the credit rating that Moody's might assign to Kellogg. Round answers to one decimal place (percentage ex: 0.2345 = 23.5%) Ratio Moody's rating EBITA/Avg. assets EBITA margin EBITA/Int. expense Debt/EBITDA CAPEX/Dep. expense Please answer all parts of the question. 0% 0% 0 0 0 ◆ ◆arrow_forwardReview the Republic Financial Holdings Limited 2022 annual report. What recommendations can be made for the preparation of the financial statements ?arrow_forwardistructions alance sheet for Sandpiper Corporation as of December 31, 2020 using column 2 3 for nets, sub-totals, & totals on the 4-column accounting paper provided online. e the units, tens, hundreds, thousands, etc. in the proper mini column, and leave o commas are necessary when you use the accounting paper properly. Dollar signs f the column and after a total line. o present the following ratios to the nearest tenth: ratio, Debt to assets ratio, Ratio of fixed assets to long-term liabilities, Ratio of total ders' equityarrow_forward
- https://www.republictt.com/pdfs/annual-reports/RFHL-Annual-Report-2022.pdf Use the link above to c) Critically analyze any significant accounting policies and estimates disclosed in the notes to the financial statements. In your answer, indicate whether the company complied with the accounting standards and conventions.arrow_forwardReview the new revenue recognition guidance issued by the Financial Accounting Standards Board http://www.fasb.org/jsp/FASB/Page/ImageBridgePagecid=1176169257359 and answer the following questions. What is the new standard as of ASC 606? What does that mean to you? What are the recommended steps companies should follow to achieve the core principle? How does this change current GAAP standards? Who is required to adhere to this new standard?arrow_forwardBalance Sheet Baggett Companys balance sheet accounts and amounts as of December 31, 2019, are shown in random order as follows: Required: 1. Prepare a December 31, 2019, balance sheet for Baggett. 2. Compute the debt to-assets ratio.arrow_forward
- Cornerstones of Financial AccountingAccountingISBN:9781337690881Author:Jay Rich, Jeff JonesPublisher:Cengage LearningIntermediate Accounting: Reporting And AnalysisAccountingISBN:9781337788281Author:James M. Wahlen, Jefferson P. Jones, Donald PagachPublisher:Cengage Learning
- Principles of Accounting Volume 1AccountingISBN:9781947172685Author:OpenStaxPublisher:OpenStax CollegeFinancial Accounting: The Impact on Decision Make...AccountingISBN:9781305654174Author:Gary A. Porter, Curtis L. NortonPublisher:Cengage Learning
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