1. Read the notes to the financial statements and determine your company's revenue recognition policies. Revenue recognition has changed recently. Based on your chosen company does their policy meet the new FASB(opens in a new tab) recognition standard? Apply yourprofessionalism in analyzing and reporting financial information by justifying your response as to why your chosen company meets the new standard. Explain how they meet it.
2. Give one example of where historical cost information is reported in the financial statements and related notes.
3. Give one example of the use of fair value information reported in either the financial statements or related notes.
4. Does your chosen company intend to adopt any new accounting pronouncements such as revenue recognition or leasing? Explain your answer.Apply analytical critical thinking and problem-solving skills by determining the effect to the financial statements if they have any lease or revenue recognition changes.
5. Describe the current trends with lease recognition and revenue recognition under GAAP.
6. If there are changes in revenue recognition, discuss the expected effect on income,changes in its revenue recognition policy, and in the years following the change.
7. (In relation to any accounting changes) Before the change, are there any concerns with respect to the qualitative characteristics of comparability? Explain your answer.
8. Let's say your chosen company made a change in accounting principle such as a movement from LIFO to FIFO, note to the financial statement reflecting this change.