INTERMEDIATE ACCOUNTING (LCPO)
10th Edition
ISBN: 9781264473441
Author: SPICELAND
Publisher: MCG
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Question
Chapter 15, Problem 2CCTC
(1)
To determine
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 determine
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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case: IFRS Reporting
Visit the International Financial Reporting Standards (IFRS) Foundation and the International Accounting Standards Board (IASB) website at www.ifrs.org. Under the IFRS tab, click on “Use around the world,” or “Who uses IFRS” and complete the instructions below.
Instruction:
1. Select a country of your choice and prepare a report summarizing the extent to which full IFRS and IFRS for Small and Medium-Size Enterprises (SMEs) are used in that jurisdiction.
Kindly verify the basic accounting equation balances. the assets, liabilities and Stockholder's Equity.
Table of Contents
VISA INC.
CONSOLIDATED BALANCE SHEETS
September 30, 2019
September 30, 2018
(in millions, except par value data)
Assets
Cash and cash equivalents
$
7,838
$
8,162
Restricted cash equivalents—U.S. litigation escrow (Note 4 and Note 5)
1,205
1,491
Investment securities (Note 6)
4,236
3,547
Settlement receivable
3,048
1,582
Accounts receivable
1,542
1,208
Customer collateral (Note 4 and Note 11)
1,648
1,324
Current portion of client incentives
741
340
Prepaid expenses and other current assets
712
562
Total current assets
20,970
18,216
Investment securities (Note 6)
2,157
4,082
Client incentives…
Question 1
CP Development Limited is preparing its statement of financial position as of December 31, 2023. There are some issues regarding the correct classification of the following:
Investment of $ 150,000 in the US treasury bills. The maturity date will be February 18,2024.
Prepaid rent of $ 72,000, covering January 1, 2024 to December 31, 2025.
Notes payable $ 600,000 issued on December 31, 2023. The notes will be paid in cash installments of $ 66,000 each on De 31 The first installment (principal repayment 60,000, interest expense 6,000) will be paid on December 31, 2024.
Deferred revenues $36,000 for services to be performed in 2024.
Investment in shares of Barlockers is $ 240,000. The company plans to sell half of Barlocker’s' shares by 2024.
Prepare a statement of financial position as of December 31, 2023 with proper classifications & sub-classifications based on the information given above and together with the following accounts:
Land $300,000;…
Chapter 15 Solutions
INTERMEDIATE ACCOUNTING (LCPO)
Ch. 15 - Prob. 15.2QCh. 15 - Prob. 15.3QCh. 15 - Prob. 15.4QCh. 15 - A lessee should classify a lease transaction as a...Ch. 15 - Lukawitz Industries leased non-specialized...Ch. 15 - In accounting for a finance lease/sales-type...Ch. 15 - What is selling profit on a sales-type lease? How...Ch. 15 - At the beginning of an operating lease, the lessee...Ch. 15 - At the beginning of an operating lease, the lessor...Ch. 15 - In accounting for an operating lease, how are the...
Ch. 15 - Briefly describe the conceptual basis for asset...Ch. 15 - In a financing lease, front loading of lease...Ch. 15 - The discount rate influences virtually every...Ch. 15 - A lease that has a lease term (including any...Ch. 15 - A lease might specify that lease payments may be...Ch. 15 - What is a purchase option? How does it affect...Ch. 15 - A six-year lease can be renewed for two additional...Ch. 15 - Culinary Creations leased kitchen equipment under...Ch. 15 - What situations cause us to remeasure a lease...Ch. 15 - Prob. 15.21QCh. 15 - Compare the way a purchase option that is...Ch. 15 - What nonlease costs might be included as part of...Ch. 15 - The lessors initial direct costs often are...Ch. 15 - When are initial direct costs recognized in an...Ch. 15 - Prob. 15.26QCh. 15 - Prob. 15.27QCh. 15 - Prob. 15.28QCh. 15 - When a company sells an asset and simultaneously...Ch. 15 - Prob. 15.30QCh. 15 - Lease classification LO151 (Note: Brief Exercises...Ch. 15 - Lease classification LO151, LO152 Corinth Co....Ch. 15 - Lessee and lessor; calculate interest;...Ch. 15 - Finance lease; lessee; balance sheet effects ...Ch. 15 - Finance lease; lessee; income statement effects ...Ch. 15 - Sales-type lease; lessor; income statement effects...Ch. 15 - Prob. 15.7BECh. 15 - Operating lease LO154 (Note: Brief Exercises 8...Ch. 15 - Operating lease LO154 At the beginning of its...Ch. 15 - Short-term lease LO155 King Cones leased ice...Ch. 15 - Uncertain lease term LO156 Java Hut leased a...Ch. 15 - Uncertain lease payments LO156 On January 1,...Ch. 15 - Purchase option; lessor; sales-type lease LO152,...Ch. 15 - Residual value; sales-type lease LO152, LO153,...Ch. 15 - Guarantee d residual value LO156 On January 1,...Ch. 15 - Lessors initial direct costs; sales-type lease ...Ch. 15 - Lease classification LO151 Each of the four...Ch. 15 - Prob. 15.9ECh. 15 - Lessor calculation of annual lease payments;...Ch. 15 - Sales-type lease; lessor; income statement effects...Ch. 15 - Calculation of annual lease payments; residual...Ch. 15 - Lease concepts; finance/sales-type leases;...Ch. 15 - Calculation of annual lease payments; purchase...Ch. 15 - Prob. 15.37ECh. 15 - Prob. 15.38ECh. 15 - Prob. 15.39ECh. 15 - Lessors initial direct costs; operating and...Ch. 15 - Research Case 151 FASB codification; locate and...Ch. 15 - Ethics Case 153 Leasehold improvements LO153...Ch. 15 - Communication Case 155 Wheres the gain? Appendix...Ch. 15 - Prob. 15.6DMPCh. 15 - Prob. 1CCTCCh. 15 - Prob. 2CCTC
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