Some of the key provisions of the ongoing FASB project include a requirement for entities to prepare their financial statements using liquidation basis of accounting when a liquidation plan has been approved with relevant authorities as well as when a liquidation plan has been imposed by other forces and there is less likelihood that the entity will successfully return from liquidation (North and Wagenen, 2013). On the other hand, the ongoing project seeks to change the financial statement form for entities using the liquidation basis of accounting into a statement of changes in the liquidation net assets. Lastly, the project also require full disclosure of an entity’s liquidation plan, assumptions used in measuring the assets and liabilities, the intended methods, amount of income and costs accrued as well as the expected duration of the liquidation process. This paper describes the FASB’s liquidation basis of accounting project, its history as well as the current status of the project. History and background of the Project The history of the current liquidation basis of accounting project began in 1984 when the Financial Accounting Standards Board released Financial Report Survey by AICPA and illustration of Accounting for Enterprises in Unusual Circumstances and Reporting. In fact, this involved a survey conducted on enterprises, which were reorganized or liquidating. The survey focused on offering a brief review of literatures concerning liquidating and reorganized enterprises. Later in 2007, a there was establishment of a project to this agenda by FASB, aimed at dealing with issues regarding liquidation basis of accounting (AIRA, 2012). Additionally, the project was becoming immediate due to the ongoing concern and the effort by FASB to incorporate AICPA’s Codification of Statements on Auditing Standards AU Section 341. In 2008, FASB offers a draft to establish considerations going concern, and later in 2009, adoption of Accounting Standards Codification contributed through authoritative guidance on ways to deal with constitutes liquidation basis accounting (AIRA, 2012). In July 2012, FASB issued a draft of their proposed accounting standards update titled the Liquidation Basis of Accounting to the Accounting Standards Codification (ASC). Prior to the adoption of the project, ASC, the GAAP used to provide very little guidance regarding what is constituting liquidation basis of accounting as well as how the basis of accounting should be applied to any given entity. The added project to FASB agenda was primarily designed to address both the liquidation basis accounting and going concern issues. Current Status Currently, FASB is making preparations in the project to establish ways of communicating effectively to stakeholders on issues regarding standards-setting activities. They are also making necessary project plans by listing the agendas of the project, thereby making estimates of publication dates by the end of 2013 (North and Wagenen, 2013). FASB is making deterring comments to be made of anticipated period of closure in the next four quarters. They are also holding roundtable meeting and making plans to hold other public forums. Moreover, they are setting standards based on establishment of due process on the procedures, which entail extensive consultation. The project plan is focused on facilitating change due to consultation or other reasons.
The Liquidation Basis of Accounting Course The Liquidation Basis of Accounting Introduction The primary objective of the liquidation basis of accounting project is to provide an effective guidance for companies on when and how any given entity should apply the liquidation basis of accounting…
This project of the financial transaction that takes place in the FertiNitro Company which mainly deals in construction and fertiliser plant operations situated in Venezuela. The financing of the company is based on the sponsors’ contributions which will be further discussed in details in terms of risk and viability of the company.
ULH&P’s basic bond is entirely owned by The Cincinnati Gas & Electric Company (CG&E), an Ohio Corporation that was launched in 1837 and is entirely owned by Cinergy Corp., a Delaware Corporation initiated in 1993. This paper is going to take into account the hypothetical renewable project needed for energy company chosen in week one of the subject.
One of the major changes that were introduced by European Union in the year 2002 was the requirement to adopt International Accounting Standards (IAS) from January 2005 onwards. This initiative was taken by European commission. The initiative was taken to strengthen the capital market, by creating a common accounting standard for reporting.
Even in such situations, circumstances may force opening of some documents but that should not justify opening all the information because of the parties involved. If so, then the signatories of such agreement must consent before opening information to the adopted child no matter the age, for the good of all.
The concept of globalization rested on the unprecedented advances registered in the fields of communication and information technologies which immensely helped shrink the world into a compact global market place. With these advances the information is available on momentous scale on the World Wide Web.
The significance of this study is twofold. First, the advantages of the merger and acquisition activity in China will be identified, as there has been a growing trend in the prevalence of mergers and acquisitions all over the world, especially in developing economies like China (Finkelstein 1999).
engage in international trade, it is imperative that effective accounting policies are adopted to avoid losses as the result of changes in the exchange rates and inflation. The international accounting standards are progressively replacing the national accounting policies that
Assets are items with an economic value attached to them which are owned by an individual or a company and which could easily be converted into cash. Assets, which mainly deliver their financial benefit for a period longer than one year, are referred to as the noncurrent assets.
As a result, the EMR and CHIN are effective in the maintenance of confidentiality since only authorized practitioners are allowed to use the data. Another effectiveness of adopting the electronic records is that it will improve service delivery. This is
1 pages (250 words)Coursework
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