PART I: Identifying Accounting Standards Codification (ASC) references

For each of the following settings, identify the ASC reference that you would look to for guidance. You do not need to provide a recommendation or conclusion in your answer. Be sure to provide the reference down to the paragraph level in which you would find the answer to the question and use full sentences in describing the reference.

o Example scenario: Guidance on the basis of accounting for inventory

o Example answer: ASC 330-10-30-1 provides guidance on the basis of accounting for inventory.

Scenarios:

1. Criteria for determining whether a lease should be classified as a finance lease or an operating lease.

2. Guidance on whether equity spin-off transaction guidance in the Codification applies to nonpublic entities.

3. SEC guidance on the accounting for legal costs related to a loss contingency, and considerations related to whether these costs should be expensed as incurred,

Part I continued:

4. Guidance stating that the settlement of ongoing litigation that arises after the balance sheet date, but before financial statements are issued should be treated as a recognized subsequent event.

5. Determining whether ASC 842 (Leases) applies to leases of intangible assets.

6. Criteria for determining whether information about an operating segment should be reported separately (i.e., a reportable segment) in the notes to a companys financial statements.