FASB Accounting Standards Codification Essay

This section deals with certain general background considerations and information related to the FASC and the answers can be found by clicking the About the codification and Notice to Constituents sections on the FASC Welcome Page. This section is a sincere general source of information about the FASC and should be reviewed previous to starting to answer the specific questions clique forth in all sections. The related look questions that you must answer ar (a) When did the FASC Codification sprain effective?It was released on July 1, 2009 and became effective for Interim and Annual periods ending after September 15, 2009.(b) Did the FASC change prior GAAP?No it didnt change, it only got restructured.(c) What does the FASB expect from the new FASC structure and system?The System is evaluate to reduce the amount of time and effort that is utilize to solve an accounting system research issue.(d) What are the topics used in the ASC?The General PrinciplesThe PresentationThe Asset sLiabilitiesEquityRevenueExpenseBroad TransactionsIndustry(e) be Securities and Exchange Commission (SEC) references included in theASC?Yes It is.2. Transfer of Receivables FASC 860-10As the new staff person in your companys treasury department, you have been asked to conduct research related to a proposed transfer of receivables. Your supervisor wants the authoritative sources for the following items that are discussed in the securitization agreement.Access the FASB Codification at http//asc.fasb.org/home to conduct research using the Codification Research System to prepare responses to the following items. Provide Codification references for your responses.(a) Identify relevant Codification section that addresses transfers of receivables. 860-10-05(b) Provide definitions for the following(i) Transfertransference of a noncash financial asset by and to roughlyone other than the issuer of that financial asset (ii) Recourse uncollectableWhen the transferor of receivables retains t he risk of uncollectability. (iii) CollateralAssets that a borrower pledges as hostage for a loan, which the financier seizes if the borrower seizes to pay(c) Provide other examples (besides recourse and collateral) that qualify as continuing involvement.3. Inventories FASC 330-10Jones Co. is in a technology-intensive industry. Recently, one of its competitors introduced a new product with technology that might render obsolete some of Joness inventory. The accounting staff wants to follow the appropriate authoritative literature in determining the accounting for this significant market event.Access the FASB Codification at http//asc.fasb.org/home to conduct research using the Codification Research System to prepare responses to the following items. Provide Codification references for your responses.(a) Identify the primary authoritative commission for the accounting for inventories. Accounting Research Bulletins (ARB) No.43 Chapter 4.(b) List three types of goods that are classifi ed as inventory.Goods awaiting sale (finished goods)Goods in the course of production (work in process),Goods to used directly or indirectly in production (raw materials and supplies)What quality will automatically exclude an item from being classified as inventory?Long-term assets that are subject to depreciation accounting Goods which, when put into use, will be so classified as depreciable Assets(c) confine market as used in the phrase lower-of- woo-or-market. market means current replacement cost (by purchase or by reproduction) provided that it meet the two conditions 1.Market shall not exceed the net realizable judge2.Market shall not be less than net realizable value reduced by an allowance for an somewhat normal profit margin