ASC 830-230-55-1: Foreign Currency Matters-Statement of Cash Flows- Implementation Guidelines and Illustrations
ASC 830-230-55-1 Provides us illustrative guidance on statement of cash flow of an entity which either have operations in foreign domicile or conduct transactions in foreign currency. Such Entity shall report the reporting currency equivalent of foreign currency cash flows using exchange rates at the time of initiation of concerned cash flow. The entity may use weighted average of exchange rates for translation if the outcome is same as if the rates at the dates of the cash flow were used. For the purpose of reconciliation of change in cash and cash equivalents, entity, in the statement of cash flows, might report effect of exchange rate changes on cash balances held in foreign currency.
ASC 710-10-05-6: Compensation – Overall- General-Deferred Compensation Arrangements
ASC 710-10-05-6 provides us guidance on Deferred Compensation Arrangements that belong to employment contracts on individual basis . Under this section, an entity should recognize cost related to compensation in a specific year only if the deferred compensation contract indicate that any portion of future benefit arise from service in a specific year. However, if associated benefits are attributable to service for more than a year, then cost should be accrued over the employment period in a rational way. The Liability related should be accrued in each period and should be equal to the present value of expected future benefits from the date of full eligibility.
ASC 926-330-35-1: Films- Inventory-Subsequent Measurement- Products held for Sale
ASC 926-330-35-1 provides us guidance on measurement of inventory value in film production. The standard guides that the entity shall at each financial year closing, value its inventory held for sale in the form of discs and cassettes for its realizable value after making necessary adjustments to it.
ASC 505-20-50-1:Equity- Stock Splits and Stock Dividends-General Disclosure
ASC 505-20-50-1 provides extended clarification over ASC 505-20-25-2 which identifies a situation in which stock dividend is in a form of stock splits. ASC 505-20-55-1 guides that in such cases, the word dividend should not be used in Corporate Notices and Legal Requirements. Howeevr, if legal constraints arises then transaction should be described as stock split effected in the form of stock dividend.
ASC 954-440-25-2: Healthcare Entities- Committments-Recognition-Continuing Care Retirement Commodity
ASC 954-440-25-2 provides extended clarification over obligation of continuing care retirement community of providing future health services to current residents. Such Obligation should be calculated on annual basis to ascertain whether a concerned liability amount is to be accounted in balance sheet.
Works Cited
Robinson. (2011). Accounting Standards. In C. Institute, Financial Reporting and Analysis (pp. 34-51). Boston: Custom.
