In: Accounting
Respond to each of the following topics using guidance in the Codification. Cite your sources for all responses. Your answer should be organized and clearly written. Treat each as if it is a portion of an accounting issues memo.
1. What basic measurement principle exists for the measurement of nonmonetary transactions? What are two examples in which modifications to the basic principle apply?
2. Is measurement guidance (in Sections 30 or 35 of the applicable topic) available regarding employer obligations for compensated employee absences (such as vacation accruals)? If not, where else might a researcher look for such measurement guidance within this topic?
3. Several assumptions are involved in an employer’s measurement of its liability for defined benefit pension benefits. Name three of these assumptions. (Hint: this is located under the topic related to an employer’s accounting for pensions: this differs from a pension plan’s accounting.)
4. In periods subsequent to initial measurement, is goodwill amortized? Explain and cite the Codification reference for your response.
5. Generally, how are guarantees initially measured? What are the requirements for day 2 (subsequent) measurements of guarantees?
1. Basic measurement principle exists for the measurement of nonmonetary transactions:
2. Asumptions Involved in an Employer's Measurement of its liability
3. Measurement regarding employer obligations for compensated employee absences
4. Goodwill
5. Guarantees