FARS Assignment ACC231

Instructions Use the login information for the FASB Codification provided to you in ReggieNet (in Announcements) to access the resources you need to complete this assignment. You may find the how-to guide posted in ReggieNet (in Week 1 folder in Resources) helpful. Answer the following questions (succinctly and in your own words -unless quoting directly):

Q1. Regarding the topic of disclosure of accounting policies, how are they defined and where is this covered in the Codification? Provide some examples of common disclosures that are required.

Q2. How (and where) is comprehensive income defined in the Codification? What are some examples of the classifications within other comprehensive income? Q3. What are the three essential characteristics of each of assets and liabilities?

Q4. Which is the relevant Codification section that addresses transfers of receivables? Using this, provide definitions of the following terms: Transfer, Recourse, Collateral.

Q5. What is the authoritative guidance for revenue recognition when right of return exists?

Q6. When is this guidance importance for a company? That is, for which of the steps in the five-step revenue recognition model does right of return come into play?

Q7. Does the FASB literature provide an example of the accounting for right of return? If so, summarize the example.

Q8. What are the general guidelines for constraining estimates of the transactions price (variable consideration)?

Q9. What is the primary authoritative guidance for the accounting for inventories? What characteristic will automatically exclude an item from being classified as inventory?

Q10. What is the definition of market as used in the phrase lower-of-cost-or-market?