Question
Company A exchanges printing equipment (fair value: $500,00) for a forklift (fair value: $400,000) and $100,000 cash. Company A must determine whether this transaction is
Company A exchanges printing equipment (fair value: $500,00) for a forklift (fair value: $400,000) and $100,000 cash. Company A must determine whether this transaction is within the scope of ASC 845.
Does this transaction meet the General scope guidance within Topic 845?
Does the transaction meet the scope criteria in the subsection "Exchanges Involving Monetary Consideration"? Explain.
Based on your responses to the above equestions, does it appear that use of Topic 845 is appropriate to account for this transaction?
If you concluded that this transaction is not within the scope of ASC 845-10, where might you go next for guidance? Explain.
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Secretarial Audits Under Corporate Laws And Annual Return Certification
Authors: CS Shilpa Dixit And CS Amogh Diwan CS Milind Kasodekar
1st Edition
9389449324, 978-9389449327
