Question:
Access the FASB’s Codification Research System at the FASB website ( www.fasb.org ).
Required:
Determine the specific citation for accounting for each of the following items:
1. Accounts receivables from related parties should be shown separately from trade receivables.
2. The definition of cash equivalents.
3. The requirement to value notes exchanged for cash at the cash proceeds.
4. The two conditions that must be met to accrue a loss on an accounts receivable.
Answer:
The FASB Accounting Standards Codification represents the single source of authoritative U.S. generally
accepted accounting principles. The specific citation for each of the following items is:
1. Accounts receivables from related parties should be shown separately from trade receivables:
FASB ACS 210–10–S99–1: “Balance Sheet—Overall—SEC Materials—General.” Also appears
under ACS 310–10–45–13: “Receivables—Overall—Other Presentation Matters—Receivables
from Officers, Employees or Affiliates, ” and under ASC 850–10–50–2: "Related Party
Disclosures—Overall—Disclosure"
2. Definition of Cash Equivalents: FASB ACS 305–10–20: “Cash and Cash Equivalents—Overall—
Glossary.”
3. Notes exchanged for cash are valued at the cash proceeds: FASB ACS 310–10–30–2:
“Receivables—Overall—Initial Measurement—Notes Exchanged for Cash.”
Access the FASB’s Codification Research System at the FASB website ( www.fasb.org ).
Required:
Determine the specific citation for accounting for each of the following items:
1. Accounts receivables from related parties should be shown separately from trade receivables.
2. The definition of cash equivalents.
3. The requirement to value notes exchanged for cash at the cash proceeds.
4. The two conditions that must be met to accrue a loss on an accounts receivable.
Answer:
The FASB Accounting Standards Codification represents the single source of authoritative U.S. generally
accepted accounting principles. The specific citation for each of the following items is:
1. Accounts receivables from related parties should be shown separately from trade receivables:
FASB ACS 210–10–S99–1: “Balance Sheet—Overall—SEC Materials—General.” Also appears
under ACS 310–10–45–13: “Receivables—Overall—Other Presentation Matters—Receivables
from Officers, Employees or Affiliates, ” and under ASC 850–10–50–2: "Related Party
Disclosures—Overall—Disclosure"
2. Definition of Cash Equivalents: FASB ACS 305–10–20: “Cash and Cash Equivalents—Overall—
Glossary.”
3. Notes exchanged for cash are valued at the cash proceeds: FASB ACS 310–10–30–2:
“Receivables—Overall—Initial Measurement—Notes Exchanged for Cash.”
