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Thursday, March 7, 2019

Accouting 303 Project

2. As a for-profit entity, my company must record the enumerate of the donation as an expense at the pleasure ground cheer of the donated addition. In this case, my company must recognise a outlet of eight mebibyte dollars, simply because the middling apprize of my donated plus is two thousand dollars. Furtherto a greater extent, I must update my books by debiting Contribution Expense and Loss on disposal of x asset for $2,000 and $8,000 crediting the asset for $10,000.In this case, the fair rate of my asset was lower than its book value forcing me to recognize a loss on my contribution. FASB ASC 845-10-30-1In general, the accounting for nonmonetary exercises should be based on the fair determine of the assets (or services) involved, which is the same basis as that used in monetary transactions. Thus, the cost of a nonmonetary asset acquired in exchange for otherwise nonmonetary asset is the fair value of the asset surrendered to obtain it, and a induce or loss shall b e recognized on the exchange.The fair value of the asset received shall be used to measure the cost if it is more clearly evident than the fair value of the asset surrendered. Similarly, a nonmonetary asset received in a nonreciprocal transfer shall be preserve at the fair value of the asset received. A transfer of a nonmonetary asset to a stockholder or to another entity in a nonreciprocal transfer shall be recorded at the fair value of the asset transferred and a gain or loss shall be recognized on the disposition of the asset.FASB ASC 845-10-30-2The fair value of an entitys own stock reacquired whitethorn be a more clearly evident measure of the fair value of the asset distributed in a nonreciprocal transfer if the transaction involves distribution of a nonmonetary asset to eliminate a disproportionate adjourn of owners interests (that is, to acquire stock for the treasury or for retirement).If one of the parties in a nonmonetary transaction could have elected to receive cash i nstead of the nonmonetary asset, the come in of cash that could have been received may be evidence of the fair value of the nonmonetary assets exchanged. 1. In this case, the initiation is a Qualifying asset an asset that takes a substantial period of time to get ready for its think use. Therefore, borrowing cost that ar directly related to the acquisition of this facility can be capitalized as part of the cost of the asset. On the other and, an alternative is the Benchmark treatment, which expenses borrowing be when incurred. I chose to capitalize the facility, because expenses should follow revenues, in accordance to the matching principle. My facility will not be productive until my long-term search and knowledge regorges produce revenues. FASB ASC 730-10-25-2Elements of cost shall be identified with look and maturation activities as follows (see Subtopic 350-50 for guidance related to website phylogenesis) * a. Materials, equipment, and facilities.The cost of materia ls (whether from the entitys normal inventory or acquired specially for research and teaching activities) and equipment or facilities that argon acquired or constructed for research and tuition activities and that have alternative early uses (in research and development projects or otherwise) shall be capitalized as tangible assets when acquired or constructed. The cost of such materials consumed in research and development activities and the depreciation of such equipment or facilities used in those activities are research and development costs.However, the costs of materials, equipment, or facilities that are acquired or constructed for a particular research and development project and that have no alternative future uses (in other research and development projects or otherwise) and therefore no separate economic values are research and development costs at the time the costs are incurred. See Topic 360 for guidance related to property, plant, and equipment the Impairment or Disposal of Long-Lived Assets Subsections of Subtopic 360-10 for guidance related to impairment and disposal and paragraphs 360-10-35-2 with 35-6 for guidance related to depreciation. * b. Personnel. Salaries, wages, and other related costs of personnel employed in research and development activities shall be include in research and development costs. ? * c. Intangible assets purchased from others. The costs of impalpable assets that are purchased from others for use in research and development activities and that have alternative future uses (in research and development projects or otherwise) shall be accounted for in accordance with Topic 350.The amortization of those intangible assets used in research and development activities is a research and development cost. However, the costs of intangibles that are purchased from others for a particular research and development project and that have no alternative future uses (in other research and development projects or otherwise) and therefore no separate economic values are research and development costs at the time the costs are incurred. ? * d. Contract services.The costs of services performed by others in connection with the research and development activities of an entity, including research and development conducted by others in behalf of the entity, shall be included in research and development costs. ? * e. Indirect costs. Research and development costs shall include a reasonable allocation of indirect costs. However, general and administrative costs that are not clearly related to research and development activities shall not be included as research and development costs. ?

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