Case 6-1 Income recognition in the Motion Picture Industry
- What markets are available to Warmen Brothers for this film?
- In what order would you suggest Warmen Brothers attempt to enter each market?Why?
- How should revenues be recognized from each market?
- How should costs be matched against these revenues?
- What effect will your decisions have on Warmen Brothers’ income statements for the year’s revenue?
Case 6-4 Accounting Changes
It is important in accounting theory to be able to distinguish the types of accounting changes.
a. If a public company desires to change from the sum-of-year’s-digits depreciation method to the straight-line method for its fixed assets, what type of accounting change will this be? How would it be treated? Discuss the permissibility of this change
b. If a public company obtained additional information about the service lives of some of its fixed assets that showed that the service lives previously used should be shortened, what type of accounting change would this be?Include in your discussion how the change should be reported in the income statement of the year of the change and what disclosures should be made in the financial statements or notes.
c. Changing specific subsidiaries comprising the group of companies for which consolidated financial statements are presented is an example of what type of accounting change?What effect does it have on the consolidated income statements?
FASB ASC 6-4 Discontinued Operations
the revised definition of discontinued operations is contained in the FASB ASC. Find this definition, cite the paragraph, and copy it.
I would like from you to paraphrase the first two questions; (case 6-1 & case 6-4) ( note; I upload the answers in one file )
and to answer question 3; ( FASB ASC 6-4 Discontinued Operations)