Flashcards in Asset Exchange Deck (12):
Sales of. Inventory, what is the gain or loss recording?
No gain or loss, record the transaction at book value, because it is nonmonetary exchange exception.
For depletion asset, do you include RV when calculating depletion expense?
No, exclude it.
When giving up boot, what is the new asset received?
Book value of asset give up + boot given up
When recoding gain on lack of commercial substance nonmonetary exchange, what should you be careful of?
If the gain is > 25%, recognize the whole, amount of gain
Risk and uncertainty disclosure requirement
Concentration: revenue, source of supply, and market for the firms products,
For estimates: involve assumptions for future events, material effects for estimate changes, estimate used for F/S preparation
Operation: principal market,products and services, and geographic location
Source of risk and uncertainty: nature of operation,use of estimates, vulnerability of significant concentrations
When disclose segment operation for consolidated unaffiliated customers and interco sales between geographic areas.
Disclose Separately report both
What it Report for enterprise wide disclosure regarding external customers
Transaction with a particular customer constitute more than 10% of the enterprise revenue
Cloud computing included a software license
1. Customer have contractual rights to take possess software at any time during the hosting period w/o significant penalty
2. It's feasible for customer to run software in its hardware or using a third party to host
How to report software package ( amount spent us for costs after the application development stage) depreciation expense when software is useable for 3 year, but package equipment is used able for 5 year.
Product only to be used for three years, depreciate for three years
Capitalized software costs 600k, Amortized over four years, sales for the year were 10% of total expected sales, at year end the NRV is 480k, on the balance sheet, what is the net capitalized amount?
Cost incurred after tech feasible stage, the cost is capitalized.
For reporting purpose, capitalized cost should be
Capitalized cost 600K, total product sales is expected to be four years,in 2009, sales =2M, future sales expected to be 4.5M, sales in 2010 is 1.2M, future sales change to estimated 3.8M. Amortization cost for 2009 and 2010?
2009: greater of 600K/4= 150k or 600k x(2M/(2M+4.5M))=184.615
2010: greater of (600k-184.615)/4=103.846 or
(600k-184.615) x (1.2m/ (1.2m+3.8m)) = 99.6924
Choose the larger for 2010