Questions from General Accounting

Q: Is the executory nature of lease contracts important in assessing lease accounting

Is the executory nature of lease contracts important in assessing lease accounting? How have leases been interpreted? Why might noncancellability override the executory nature?

Q: 1. Refer to Appendix 15-A. Assume that the

1. Refer to Appendix 15-A. Assume that the firm is using projected accrued benefit cost funding. Suppose that a plan amendment was introduced during 2002 granting one year of prior service (for the ye...

Q: 1. Human Genome Sciences, Inc., a biopharmaceutical company,

1. Human Genome Sciences, Inc., a biopharmaceutical company, discovers, develops, and markets new gene and protein-based drugs. Its 1998 annual report showed property, plant, and equipment net of accu...

Q: If you had to choose among the current method of consolidation for

If you had to choose among the current method of consolidation for combinees where the combinor owns at least 50 percent, the new entity approach, or proportionate consolidation, which would you choos...

Q: Biggs (2010) presents a bleak picture for future generations attempting

Biggs (2010) presents a bleak picture for future generations attempting to meet the obligations related to public pension plans (e.g., State of New York; Jefferson County, Alabama)). How does his logi...

Q: Zechman (2010) studies firms using synthetic leases. How might

Zechman (2010) studies firms using synthetic leases. How might her findings influence the setting of lease accounting standards?

Q: Novy-Marx and Rauh (2011) estimate state employee pension

Novy-Marx and Rauh (2011) estimate state employee pension liabilities in the United States. What thoughts do you have on their findings?

Q: To qualify as a liability, a past transaction must exist.

To qualify as a liability, a past transaction must exist. Is this the case with pensions and OPEBs? How does the use of financial statements for predicting future cash flows as opposed to evaluating m...

Q: How might standards setters address the concerns that Gordon and Gallery (

How might standards setters address the concerns that Gordon and Gallery (2012) highlight related to pension accounting comparability?

Q: ”All leases beyond a year be capitalized!” Evaluate this position

”All leases beyond a year be capitalized!” Evaluate this position.