ACG4111 Intermediate Financial Accounting II
Version 5
Financial Accounting Standards Codification Research Assignment
I- FASB Accounting Standards Codification (FASC)
a) When did the FASC codification become effective?
It was released on July, 2009 but the Codification is effective for interim and annual periods ending after September 15, 2009. b) Did the FASC change prior GAAP?
No, it didn’t. It organized all the accounting topic giving an easier access and user-friendly online research system. It brought all the accounting topics in one place.
c) What does the FASB expect from the new FASC structure and system? The new system would help to reduce time and prevent error. It would also provide accurate information to the users.
d) What…show more content… According to FASB, the Primary authoritative guidance in the Compensation-stock Compensation is all share based payments transaction must be either of the following conditions: 1) The value of the shares are based on the price of the entity’s shares or other equity instruments and 2) The awards require settlement by issuing the shares.
(b) Briefly discuss the objectives for the accounting for stock compensation. What is the role of fair value measurement? The objectives for the accounting for stock compensation is determined the value of the compensation and keep track the compensation expense over the periods. The fair value measurement, the compensation cost is measured at the grant date based.
c) The Richardson Company board is also considering an employee share-purchase plan, but the Board does not want to record expense related to the plan. What criteria must be met to avoid recording expense on an employee stock-purchase plan?
The criteria must be met to avoid recording expense on an employee stock purchase plan are the following:
• Nonpublic
