Question: ABC Corporation, a manufacturing company, is preparing its financial statements for the fiscal year ending on December 31, 2022. The company uses the accrual basis of accounting and has encountered several complex accounting issues during the year.

Part A:

During the year, ABC Corporation entered into a long-term contract to provide specialized machinery to a client. The contract spans multiple years, and as of December 31, 2022, the company has incurred significant costs related to the contract. However, it is uncertain whether the company will recover all of its costs and earn a profit from this contract. How should ABC Corporation recognize revenue and account for the costs incurred under this contract in its financial statements for 2022? Please provide a detailed explanation and reference relevant accounting standards.

ABC Corporation has a substantial amount of accounts receivable as of December 31, 2022. Some of these accounts have been outstanding for an extended period, and there is concern about their collectability. How should ABC Corporation assess the collectability of its accounts receivable, and what accounting adjustments or disclosures should be made if there are doubts about the collectability of certain receivables? Discuss the potential impact on the company's financial statements and any relevant accounting standards.

Part B: 3. ABC Corporation has several subsidiaries, both domestic and international, and it needs to consolidate its financial statements. One of its foreign subsidiaries operates in a country with significant exchange rate fluctuations. Explain how ABC Corporation should account for the translation of the financial statements of its foreign subsidiary into the reporting currency of the parent company. What are the potential effects of exchange rate changes on the consolidated financial statements, and which accounting standards govern these procedures?

ABC Corporation is considering the adoption of a new accounting standard that will significantly change the way it recognizes and measures certain financial instruments. Describe the process ABC Corporation should follow to implement this new accounting standard, including any transition methods available, and how this change could impact the company's financial statements and disclosures. Additionally, discuss the importance of effective communication with stakeholders regarding these accounting changes. Please provide comprehensive answers to each subpart of this question, referencing applicable accounting principles, standards, and guidelines where appropriate.