Assignment
Work through the FASB Codification Learning Guide – at minimum Lessons 1-4 and Lessons 11 & 12 http://aaahq.org/ascLogin.cfm (using the following sign in information: Username Password ).
Codification Research
Using the FASB Codification: Conduct research and communicate your findings on Authoritative GAAP and Codification in the following questions
What is the codification of GAAP?
Is it authoritative?
Is the codification used in addition to or replacing FASB, APB, SEC releases, interpretations, etc?
How is the codification structured?
How will users know where to find information in the codification?
How will FASB update the codification?
What are considered primary authoritative sources?
What are considered non-authoritative sources?
Access the glossary (“Master Glossary”) to answer the following:
What does it mean to capitalize an item?
What is the definition of a nonmonetary asset?
What is a nonreciprocal transfer?
What is the definition of “contribution”?
Herb Scholl, the owner of Scholl’s Company, wonders whether interest costs associated with developing land can ever be capitalized. What does the Codification say on this matter?
What guidance does the Codification provide on the accrual of costs associated with planned major maintenance activities?
Briefly describe how the purchases and sales of inventory are similar to the accounting for other nonmonetary exchanges.
Briefly describe how the organization of the FASB Codification corresponds to the elements of financial statements
The controller for Nesheim Construction Company believes that it is appropriate to offset a note payable to Oregon Bank against an account receivable from Oregon Bank related to remodeling services provided to the bank. What is the authoritative guidance concerning the criteria to be met o allow such offsetting?