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In: Accounting

Assume your client is a public company with a calendar year-end. In what period must the...

Assume your client is a public company with a calendar year-end. In what period must the company begin applying the pending content for ASC 810-10? Explain

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Expert Solution

a. All entities other than private companies shall apply the pending content
that links to this paragraph for fiscal years beginning after December 15, 2019, including interim periods within those fiscal years.
b. A private company shall apply the pending content that links to this paragraph for fiscal years beginning after December 15, 2020, and interim
periods within fiscal years beginning after December 15, 2021.
c. The pending content that links to this paragraph shall be applied retrospectively with a cumulative-effect adjustment to retained earnings
at the beginning of the earliest period presented.
d. Earlier adoption is permitted, including adoption in an interim period.
e. If a reporting entity is required to consolidate a legal entity as a result of the initial application of the pending content that links to this paragraph,
the initial measurement of the assets, liabilities, and noncontrolling interests of the legal entity depends on whether determining their carrying
amounts is practicable. In this context, carrying amounts refer to the amounts at which the assets, liabilities, and noncontrolling interests would have been carried in the consolidated financial statements if the requirements of the pending content that links to this paragraph had been effective when the reporting entity first met the conditions to consolidate
the legal entity.
1. If determining the carrying amounts is practicable, the reporting entity shall initially measure the assets, liabilities, and noncontrolling interests of the legal entity at their carrying amounts at the date the pending content that links to this paragraph first applies.
2. If determining the carrying amounts is not practicable, the assets, liabilities, and noncontrolling interests of the legal entity shall be measured at fair value at the date the pending content that links to
this paragraph first applies.

ekkarill92 answered 2 years ago
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