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FAR - Financial Accounting & Reporting
Latest Activity: 20 hours ago
FAR Exam Experience - Previous Exam Windows
Introductions - Hi My Name Is & I'm Taking FAR
FAR - Apr/May 2013 Exam Window
Can anyone tell what is the carrying value for the indefinite intangibles?
hello Rob, can you please explain me this:
Lawson Corp. uses the revaluation model for intangible assets. On March 1, 2010, Lawson acquired intangible assets with an indefinite life for $100,000. On December 31, 2010, it was determined that the recoverable amount for these intangible assets was $90,000. On December 31, 2011, it was determined that the intangible assets had a recoverable amount of $94,000. What is the impairment gain or loss recognized in 2010 and 2011 on the income statement?
Wiley book says answer is D,some say ans is A and some as C!!! What is the correct answer? and how?
Is revaluation model used for indefinite intangible assets?
Can any one tell me what are Disclosures?
Are they ask for disclosures in Financial Statements or Disclosures as Foot Notes in Financial Statements?or Both?
How to identify the question in relation to Disclosures?
Is there any difference between Disclosures and Additional Disclosures?
Disclosures related to significant Accounting Policies- Are there as foot notes in Financial Statements?
@Sweety - On your bankruptcy question, any unrecorded assets or liabilities get recorded by the trustee to the estate equity account. Think of it like the trustee takes over an incorrect set of books and needs to make corrections. Those corrections go through equity.
In the case of the $1,000 unrecorded invoice, the trustee needs to debit estate equity and credit A/P.
For the truck, the trustee needs to write it off. The truck is on the books for $20,000, but is no longer owned since it was sold prior to the bankruptcy. In addition, the trustee needs to record the cash from the sale of the truck.
The entry is to debit cash for the $12,000 sale price, debit estate equity for the $8,000 loss on the truck, and credit the truck fixed asset account for $20,000.
The combination of these two entries is a debit to estate equity of $9,000.
Thank you very much Rob. I just wanted to know why the question has asked for Revenue and the answer has given for only profit element from sale. Because we know that Revenue comes from sales and profit is revenue-expenses . But you clarified my doubt by saying that in installment sale method the revenue recognized is only the profit element from sale. Thank you once again.
@Sweety - Here is the answer to your question. It is the second question/answer on the page:
@Madhavi - I recorded a video for you on this:
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