Use features like bookmarks, note taking and highlighting while reading Intermediate Accounting, Student Practice and Solutions Manual, 17th Edition.Where To Download. Download it once and read it on your Kindle device, PC, phones or tablets. Economic Forces at Work samt Intermediate Financial Theory Copeland Weston.Intermediate Accounting, Student Practice and Solutions Manual, 17th Edition - Kindle edition by Donald E. And Come Back When You Foul Up: 12 Winning Secrets from the War RoomPaul Begala, Custom Make your Own Shoes and Handbags: A Simplified Method Instant Download with all chapters and AnswersGet Free Student Solution Manual For Financial Accounting For Mbas 5th. The third edition, enlarged.See Notes Multiple Contributors, Buck Up, Suck Up. Intermediate Accounting: Student Solutions ManualPhilip M, The choice of Apollo: being a collection of modern and much approved songs.152-2 Relevance and faithful repesentation…………. 10Assignment 2-1 Relevance versus faithful representation……. 102-10 Fair value measurement……………………………. 152-9 Fair value measurement…………………………….
Intermediate Accounting Solutions Download It Once102-6 Realization versus recognition…………………. 152-5 Application of principles (*W)…………………. 152-4 Questions on principles……………………………. 152-13 Application of principles…………………………. 102-12 Recognition and elements…………………………. 102-10 Identification of accounting principles (*W). 102-9 Questions on principles (*W)……………………. Fluid dynamics lecture252-19 Implementation of principles (*W)……………. 302-18 Recognition criteria…………………………………. 302-17 Implementation of principles……………………. 302-16 Implementation of principles……………………. 152-15 Implementation of principles……………………. We recognize all deferred income tax liabilities but we do not recognize deferred income tax assets unless they are probable. For example, we recognize contingent liabilities as provisions if they are probable but do not recognize a contingent asset as an asset unless it is virtually certain. This solution is marked WEB.There are many examples where we are conservative in our accounting standards. It is more difficult to measure after initial recognition since it requires a number of estimates e.g. It is easy to measure on initial recognition. Financial reporting should not have a bias.Historical cost has many advantages. Neutrality supports the new definition of prudence. Both of these would be a bias in reporting. (Students could discuss a number of other examples of accounting standards where there is conservatism).Yes I agree with the new definition since there could be both understatement and overtstatement of assets especially where estimates are being made for financial statements. However, there are many alternatives in determining current values and measurement uncertainty therefore subjectivity.Current values will provide a more up to date Balance Sheet for the users of the financial statements. Current values after initial recognition are more relevant to decisions of users since they can be customized to the needs of those users. Impairment testing involves subjectivity. For example, with a cash flow hedge e.g. OCI is useful since it allows for unrealized gains and losses related to certain remeasurements to not impact the income statement which would create volatility and it avoids accounting mismatches. Historical cost will create an outdated Balance Sheet and the estimates related to depreciation and impairment testing involve subjectivity.For certain assets current values are more relevant e,g, derivatives where hedge accouting is not elected and investments which are traded on a frequent basis.One concern with OCI and comprehensive income is that there is not clear definition about what belongs in OCI and comprehensive income. (Students could provide other relevant examples).As you requested, I have studied the operations of AeroTravel Inc. To solve this issue the forward contract would impact OCI only until the hedge is terminated. So one side of the hedge would impact net income and the other side would have no impact. Without OCI the forward contract would be classified as a derivative and impact net income but the forward contract would have no impact until the machinery is purchased in six months. Without OCI you would have an accounting mismatch. ![]() A significant portion of units are never redeemed and therefore represent “free” revenue for ATI—revenue that is never “earned” through the delivery of goods or services. Until redemption, the amount received from clients must be shown as a liability on ATI’s statement of financial position (i.e., as unearned revenue).Revenue measurement is complicated by the fact that not all units are redeemed. Only then can the revenue be reported on the income statement. Expense recognition of merchandise occurs when it is shipped.However, ATI does not always (and perhaps does not usually) acquire reward travel at the point of unit redemption. If contract revenue is received in advance of incurring the expenses, the unearned amount should be shown as a current liability.When ATI buys airline seats, merchandise, or other rewards in response to redemption, the company can recognize the revenue and related cost once the rewards have been delivered. If billings lag expenses, ATI’s net expenses should be shown as unbilled revenue on the SFP. These revenues should be recognized as the services are rendered, however specified in the contracts. Thus, the amount of revenue recognized from unredeemed units will fluctuate from year to year on the basis of both (1) the number of units sold during the year and (2) the accumulated quantity of unredeemed units from past years.For “earned” revenue, recognition will occur when the units are redeemed and the rewards have been delivered, as mentioned above.An additional source of revenue is obtained as fees from client corporations for marketing and for assisting client companies with their own loyalty programs. Each year, the company reviews its estimate of the proportion of outstanding units that will never be redeemed. Also, the timing of revenue receipt and cost incurrence do not coincide.Estimation is a signficant issue. Until “delivery”, the travel rewards and merchandise that ATI has purchased must remain as inventory on ATI’s statement of financial position.The revenue and expense recognition issues for ATI are rather complex because there are multiple parties involved. Thus delivery occurs only when the travel rewards are actually used by the unit-holder—that is, after the cancellation period has expired or when the unit-holder actually makes the trip. It is important that our firm, Hetu & Fauré, endeavour to verify ATI’s annual estimate of non-redemption via independent consultants and analysis. While the revenue recognized by adjustments in the non-redemption estimate may be relatively small as a part of total revenue, it can have a quite significant impact on net income because it flows directly into earnings without incurring related expense.Therefore, estimation involves an important ethical dimension. Therefore, a small change in estimated redemption rate (or, conversely, non-redemption) most likely can have a material impact on reported revenue. However, one can surmise that the inventory of outstanding loyalty units is very large, given the tendency of clients’ customers to accumulate units with little regard to actually using them. The company’s must reconsider its financial reporting objectives and therefore the company’s accounting policies.The “required” asks for a report from an accounting advisor to the company’s board of directors. A private company has tapped new sources of financing in order to meet competition, and those sources are imposing a GAAP constraint on the company for the first time. I hope that I have fulfilled your expectations.Essentially, this case requires students to perceive how the reporting environment of a company has changed.
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