Identify the advantages and disadvantages of rules-based versus principles-based accounting standards.
> In some cases, preferred stock has some characteristics of a debt instrument. a. How should the accountant class if y such debt in the financial statement? b. Reference relevant authorities from the Codification to support your answer.
> The Codification combines all relevant literature on a topic in one location. Identify the number of different issues/subsections related to postretirement benefits other than pensions. Provide citations for each.
> Identify and explain some basic questions the researcher must address in performing accounting, auditing, or tax research.
> Use the Codification to answer the following: a. What is a contingency? b. Precisely where in the Codification did you find that definition? c. Under what circumstances are contingent losses recorded? d. Precisely where in the Codification did you fi
> Use the Codification to find which expenditures qualify as a research and development cost (be sure to cite where you found the answer within the Codification): a. The salaries of the research staff designing new products b. The commissions paid to sale
> Use the Codification to locate archived FASB Interpretation 36. a. What does it discuss? b. How did you find that authority? c. What industry does that authority affect? d. What are the major organizational parts of that authority (placed in bold)?
> Use the Codification to identify accounting authority (location within the Codification) governing each of the following: (Hint: This exercise tends to result in very general Codification references, for example, xxx —first 3 digits.)
> Prepare a search strategy for understanding a due diligence review of a company. Implement the strategy to find five important items in a due diligence review.
> Go to the Deloitte Foundation website (www.deloitte.com). Download a True blood Case involving a joint venture or partnership. Write a sentence summarizing the issue in the case. Use the Codification data base to find the authorities providing the answer
> Go to the Electronic Code of Federal Regulations (www.ecfr .gov). a. What Part of Title 17 (Code of Federal Regulations— CFR) applies to the form and content and requirements for financial statements? b. If a firm is filing consolidated balance sheets w
> Access the FEI website (www.fei.org). Locate and list the three most recently issued comment letters to the FASB.
> Access the SEC website (www.sec.gov) and answer the following: a. List the two most recently issued proposed rules. b. Locate and briefly describe the SEC’s Internet Enforcement Program located under the Enforcement Division.
> According to the FASB website (www.fasb.org) what is the primary function of the FASAC?
> What are the qualities that lie behind rethinking?
> Access the FASB website (www.fasb.org) and answer the following: a. List the titles of the two most recently issued ASUs. b. Examine2014, 2015, and 2016 ASUs. Identify and list the PCC ASUs.
> Access the GASB website (www.gasb.org). Identify the two most recent exposure drafts issued by the GASB.
> Access the FASB website (www.fasb.org) and identify the three most recent exposure drafts issued by the FASB.
> Utilizing Figure 2-3 (Eight Elements of Reasoning), develop the eight elements for the following issue: Daimler Auto Parts, Inc., head quarter edin Munich, Germany, is attempting to register with the SEC in order to list its stock on the New York Stock E
> DevelopachartsimilartoFigure2.3forthefollowingassignment: Your client, Baxter Controls, has requested your advice as to when a contingent liability should be booked (recorded) as a liability.
> Develop a chart similar to Figure2.3 for the following assignment: Johnson Electronics has requested your advice as to when assets need to be classified as current assets.
> Insert the correct punctuation: a. The professor received his PhD from the University of Illinois and he continued teaching there after he was finished with the program b. The general ledger does not balance it must balance before we leave c. Did Rober
> What are the benefits of utilizing a contra accumulated depreciation account rather than crediting the asset account directly?
> When should a Liability first be reported? When should reporting of a liability cease?
> Critically evaluate the pros and cons of the following statements: Financial statements are useless because they are incomplete. Not all assets or liabilities are included. Financial statements are useless because they present assets at their historical
> What role does professional research play in an accounting firm or department? Who primarily conducts the research?
> Allison, Mary, and Jennifer are in a gymnastics competition. Here are the results at the end of competition: a. The youngest person received the least points. b. Mary got half of the points of the eldest. c. Jennifer received as many points as both oth
> There are five houses in arrow, each of a different color, that are inhabited by five people of different nationalities, with different pets, favorite drinks, and favorite sports. Use the following clues to determine who owns the monkey and who drinks wa
> Rewrite the following sentences using the active voice: a. The fraud was reported by the employee. b. The book was enjoyed by me because the seven fraud investigation techniques were described so well by the author
> Rewrite the following sentence to eliminate the double negative: No termination will be approved unless the administrator reviews the application and finds that it is not lacking any requisite materials.
> Rewrite the following sentences, making them shorter and more concise while maintaining their main points: a. For good reasons, the secretary may grant extensions of time in 30-day increments for filing of the lease and all required bonds, provided that
> Insert the correct punctuation in the following sentences. a. A general ledger contains all the assets liabilities and owners’ equity accounts b. The purpose of a trial balance is to prove that debits equal credits but does not prove that all transacti
> Access the AICPA website (aicpa.org) and click on the publications link and name two major publications of the AICPA.
> In auditing an international company, or a subsidiary of an international company, you would more than likely need to follow the auditing standards of the International Auditing & Assurance Standards Board. Access the IAASB’s website (www.iaab.org) and c
> Your firm has received a request from an international company client as to a certain accounting issue. Access the IASB website (www.iasplus.com), and briefly explain the role of the IASB and the standards issued by the Board.
> In auditing a public company, you decided to access the PCAOB website (www.pcaobus.org), click on standards followed by clicking on quality controls standards and identify by title two quality control standards.
> What is the FASB conceptual frame work project? Explain the benefit of this project to the practitioner.
> Use the topical categories in the left navigation panel to identify the capitalization of interest code section (topic, subtopic).
> Summarize one industry accounting issue related to the motion picture industry.
> Has the SEC come to a decision regarding the Work Plan? Explain.
> What is the IASB’s Conceptual Framework? How is it used by the IASB? By a researcher? By a practitioner?
> Describe the due process procedures of the IASB in the establishment of a standard.
> Explain the three conditions that the U.S.-SEC offered for accepting international accounting standards.
> What is the IFRS hierarchy? Explain.
> What is the typical search process in a database?
> List and describe three SEC regulations.
> List and describe three common SEC forms.
> Describe the rule-making or due process procedures of the FASB in the establishment of a standard.
> What are the SEC accounting authorities? Where are they located?
> Where does the researcher find a. Authoritative sources? b. Nonauthoritative sources?
> How can the promulgation of an accounting standard impact economic behavior? Discuss a specific example.
> As an accountant for Microsoft, you are conducting accounting research related to pension accounting, would you utilize the standards of the AICPA, GAO, FASB, or the PCAOB? Why?
> What constitutes U.S. GAAP?
> If authoritative literature does not exist, what steps might the researcher take?
> What is the purpose of the GASB? Why should the public have an interest in governmental financial reporting?
> Explain the necessity of critical thinking in the research process.
> Your conclusion to the research is often presented to your boss or client in the form of a research memorandum. Identify the basic points to include in this memo. Also, identify at least two common errors to avoid in the drafting of the memo.
> What is an under lying reason for the establishment of accounting standards?
> Explain the overload of accounting standards. How is the FASB attempting to overcome this issue?
> How is a tax memo usually organized?
> Use EDGAR to find the most recent 10-K of a company of your choosing. Go to that company’s website and view the same document. How do the two documents differ?
> Discuss how research can support or refute a biased alternative
> Use the advanced search to locate code sections relating to not-for-profit revenue accounting. List the first three relevant code sections.
> If one is researching accounting standards related to a federal government agency, which standard setter would you focus your research on?
> Explain what is meant by problem distillation and its importance in the research process.
> Kyle: I heard you recently left public accounting for a new job. Matt: After 60- to 70-hour weeks, I decided to accept a fantastic offer from one of our clients. Kyle: What company did you decide to go with? Matt: American Insurance Company. I will be
> Jason: I did not realize that our company enters into barter transactions. Jill: I did not either. But I assume we remove the cost of the asset given up and replace it with the same value for the bartered item received. Jason: I wonder though, since so
> What are the functions or responsibilities of the policy committee and executive subcommittee in a multi office firm?
> As CFO of New Era Financing, you have requested staff to evaluate the appropriate method of recognizing revenue from finance charges. In applying data analytics utilizing character recognition software to read hundreds of loans, you determined that a sig
> Scientific Laboratories, Inc., is contemplating a sale of the business to an unrelated third party. During the current year, Scientific has incurred substantial amounts of research and development (R&D) costs related to some drugs with a very high probab
> Are ASUs authoritative?
> What are the typical contents of ASUs?
> Explain the difference in the revised Bloom’s Taxonomy between Understanding and Evaluating.
> Johnson Industries, which is having a very successful year, suggests to the Board of Directors that it issue a dividend to the stockholders. In the discussion with management, the members of the Board of Directors conclude that, in order to conserve cash
> Credit Financial often transfers its loans to other financial institutions with recourse in order to maintain a certain level of cash on hand. In the past, these transfers have been recorded as sales. However, Thrifty Cash is unable to collect on one of
> Use the master glossary in the Codification to research the disclosure requirements for postretirement benefits other than pensions. Explain these requirements.
> Indicate the needed capitalization in the following sentences: a. The auditor said, “we must have these work papers completed by tomorrow.” b. When do we have to file our taxes? c. Is the conference in dallas or austin, texas?
> Use the Codification to identify the accounting authority (location within the Codification) governing each of the following: (Hint: For most, must find very specific Codification references, e.g. xxx-xx-xx-x.) a. The accounting for prepaid advertising
> Utilizing any of the search methods, determine if capitalization of interest is required or optional when getting an asset ready for use.
> Utilizing your critical thinking skills, solve the following problem: Three auditors checked into a hotel under one reservation. After paying $100 each to the hotel manager, they went to their individual rooms. The manager, noting that thetotalrateforthe
> Use the master glossary to find the definition of cash. Then, use the printer-friendly version with sources to locate its associated archived standard.
> CompanyX-Cohasa$10,000,000 gain from exercising stock options. What topic and subtopics would the researcher highlight in the left navigation panel to discover the relevant authority to resolve the issue?
> Use the topical categories in the left navigation panel of the Codification to identify the first three subtopics within the general topic of Presentation.
> Explain the importance of identifying keywords when identifying relevant facts and issues.
> Below, find a modified partial property, plant and equipment footnote text for ABC Company. Property, plant and equipment are stated at cost. Depreciation is recorded principally by the straight-line method over the estimated useful lives of the assets
> If you were a new country setting up an agreement with the IASB to converge to IFRS, which organization would examine whether you were in compliance with your agreement or not?
> What is the Work Plan?
> What is the Norwalk Agreement?
> Can the IASB enforce the use of its standards? If not, what entities can?
> What level of authority does the Framework have?
> How are the IFRS Foundation and IASB funded?
> What are the main goals/objectives of the IFRS Foundation?
> Do all IFRS (IFRSs, IASs, SICs, IFRICs) have equal authority
> If a researcher could not find the answer to the research question in a specific IFRS, where should the researcher look next?
> What type of pronouncements do ASUs include and how are they issued/designated?
> What is the predecessor Board/committee to the IASB? How many standards did the predecessor issue? What are the standards called?
> How are secondary sources on U.S. GAAP used to help the researcher?
> Does the Codification contain all U.S. GAAP authorities? Explain
> Where can one find Original Pronouncements?
> What are the topical categories that the FASB Accounting Standards Codification Research System (the Codification) divides related guidance into?
> What are the topical categories that the FASB Accounting Standards Codification Research System (the Codification) divides related guidance into?
