Client Paper
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Client Paper
Lynn Lee
ACC/541
October 15, 2012
Shauki Smith
Client Paper
Introduction
I am glad to have the opportunity to work on a project with such a dynamic and professional organization. After having inspected the working papers, it has become apparent to me that more information will be necessary to complete the task. I am confident that once I have taken the anticipated responses in consideration, I can bring a higher level of clarity and better understanding to accomplish capitalizing interest on building construction, the adjusting lower cost of market inventory valuation, the adjusting goodwill for impairment, and the recording of gain or loss on asset disposal. ARB No. 43 specifies that inventory should be stated at cost or market, whichever is lower (Financial Accounting Standards Board). Statement of Financial Accounting Standards (SFAS) No. 34 requires that interest be capitalized as part of the cost of the asset. SFAS No. 144 addresses the reporting and accounting for the impairment of the disposal of long-lived assets and the Financial Accounting Standards Board (FASB) has adopted SFAS no. 142, which has established new rules in accounting for goodwill. After receiving all of the needed information I will be able to clarify the standards to you so that you may better run your organization.
Lower Cost of Market Inventory
As the cost of ending inventory is valuated, Generally Accepted Accounting Principles (GAAP) requires that comparison be made with the current market value. Inventory pricing of ARB No. 43 specifies that inventory should be stated at cost or market, whichever is lower (Financial Accounting Standards Board). The term market refers to the replacement cost but limited to upper (ceiling) and lower (floor) limits in order to apply replacement cost to market value. The market or replacement cost cannot be more than the ceiling neither can it be lower than the floor amount. The lower the cost of market rule consists of four...
Lynn Lee
ACC/541
October 15, 2012
Shauki Smith
Client Paper
Introduction
I am glad to have the opportunity to work on a project with such a dynamic and professional organization. After having inspected the working papers, it has become apparent to me that more information will be necessary to complete the task. I am confident that once I have taken the anticipated responses in consideration, I can bring a higher level of clarity and better understanding to accomplish capitalizing interest on building construction, the adjusting lower cost of market inventory valuation, the adjusting goodwill for impairment, and the recording of gain or loss on asset disposal. ARB No. 43 specifies that inventory should be stated at cost or market, whichever is lower (Financial Accounting Standards Board). Statement of Financial Accounting Standards (SFAS) No. 34 requires that interest be capitalized as part of the cost of the asset. SFAS No. 144 addresses the reporting and accounting for the impairment of the disposal of long-lived assets and the Financial Accounting Standards Board (FASB) has adopted SFAS no. 142, which has established new rules in accounting for goodwill. After receiving all of the needed information I will be able to clarify the standards to you so that you may better run your organization.
Lower Cost of Market Inventory
As the cost of ending inventory is valuated, Generally Accepted Accounting Principles (GAAP) requires that comparison be made with the current market value. Inventory pricing of ARB No. 43 specifies that inventory should be stated at cost or market, whichever is lower (Financial Accounting Standards Board). The term market refers to the replacement cost but limited to upper (ceiling) and lower (floor) limits in order to apply replacement cost to market value. The market or replacement cost cannot be more than the ceiling neither can it be lower than the floor amount. The lower the cost of market rule consists of four...