Vicki Dickinson facilitated each example in this document with the guidance of the Accountancy 420 course. Since both companies are just starting up and show first-year operations, Figures 5 and 6 report the net increase in cash, which is also the amount of cash on the balance sheet, as is shown in Figures 7 and 8. Eads is clearly looking to the future and operating under an operating company by signing an 8-year equipment contract, while Glenwood focuses more on the company's current functions rather than a long-term plan by signing a two-year equipment contract .
On the basis of the given document on Totz's net sales, gross profit, profit from the sale of the company's headquarters and the settlement of the class action, numbered one to four, it is established that all items belong to the income statement. Where each piece of information is classified with respect to income is evidenced by the codification number and the FASB rule. Therefore, net sales should be classified and presented as sales in the 2015 income statement and separated in 2016 because Doodlez's revenue represents 12.9 percent of the total, which is more than 10 percent.
If selling expenses or operating expenses do not include depreciation, depletion and amortization of property, plant and equipment, the line item description should read something like this: "Cost of goods sold (excluding items shown separately below)" or "Cost of goods sold (excluding depreciation shown separately below)". Therefore, the cost of sales should be presented as "Cost of sales (excluding depreciation, shown separately below"), including all costs listed in a given document, minus depreciation in the income statement, under the sales section. Gain or loss recognized on the sale of a fixed asset ( disposal group), which is not an integral part of the company, is included in income from continuing operations before taxation in the business entity's profit and loss statement.
Based on the FASB codification above, it is not an extraordinary item and should not be classified as such, but instead as a gain on sale. The material amounts included in other miscellaneous income shall be declared separately in the income statement or in a note thereof, clearly indicating the nature of the transactions from which the items arose. Based on FASB codification under #3, it is not an extraordinary item and falls under other miscellaneous income.
Employees could change the amount of cash taken from the registers so that the amount of money on the receipts and the amount removed from the register do not match. The amount of cash and credit sales must equal the amount of cash and store sales receipts. Her office is in the back of the store, away from other employees and customers.
She has her own office at the back of the store, which only she has access to. It's shown on the balance sheet, it's a contra asset, so it reduces the inventory account. 6 to explain how the company should have reported their accounts, as well as how the actual misstatements affected the company's financial reporting.
Targa must consider the situation described in the handout based on the following ASC codes for each situation.
Employee Benefits
The FASB states, “An employer that provides termination benefits shall recognize a liability and a loss when it is probable that the employees will be entitled to the benefits and the amount can be reasonably estimated. The cost of termination benefits recognized as a liability and loss will include the amount of any lump sum payment and the present value of any expected future payment." Accordingly, Targa must include the termination liability of $3.05 million in its current value and during the current year as it can be reasonably estimated, with the bonus of $50,000 included.
Retraining and Relocation Costs
The following case includes an in-depth analysis of the various types of leases along with the rationale and financial effects of those at Build-A-Bear Workshop, Inc. It explores how they apply to the company and the impact on the company's financial statements, reporting and disclosures. Stock options provide incentives to be more efficient in the company because they own a part of it, so they would want it to do well and get to reap the rewards.
Expiry date - is the last day of validity of the option or futures contract, usually the third Friday of the contract month. Options Granted/RSUs- Employee stock options that can be purchased by employees or RSUs that have been given to employees. In the income statement, this expense is included in the operating part of the cash flow statement.
The tax effect of the share-based compensation expense is spread over the year and properly allocated to the period incurred. The two trends the article discussed in the use of employee stock options and restricted stock awards are a decline in employee stock options. Companies prefer this plan because of recent changes that cause companies to account for stock options as an expense against revenue, while accounting for restricted stock is significantly easier, according to the article.
The table on page 62 matches well with the trend of the article, in that there is a consistent decline in the number of stock options granted. Reference: all the previously mentioned codification standards were used for the deduction of this part. Typically, the term of an operating lease is shorter than the useful life of the asset being leased.
The lessor recognizes the gross investment in the lease and the related amount of unearned income on their financial statements. Sales- Type Lease - a contract in which the fair value of the leased asset at the inception of a lease differs from the carrying amount at the beginning of the lease. Typically, a sales-type lease involves real property, and the lessor transfers ownership of the asset to the lessee at the end of the lease term.
Under US GAAP, this lease will be treated as an operating lease because there is no change in ownership, it does not contain a bargain purchase option, the lease term is not limited to 75% or more of the appraised economic value of the leased property, and the present value of the minimum payments does not equal or exceed 90 % of fair property leased. It is also not reported as company capital but is treated as an expense.
