ACC410 – ADVANCED ACCOUNTING – GAAP Scavenger Hunt

Name: Michael Leiba

Instructions: For each of the 15 scenarios, provide ONE PRIMARY citation from the ASC (“Accounting
Standards Codification”) which provides guidance on the issue stated. For example, guidance on what to
present for the Non-Controlling Interest on the Balance Sheet is found in 810-10-45

Accounting Issue Guidance from Codification

How to calculate the current period’s expense relating to stock options
1. (or other “equity compensation”) granted to executives/employees of 718-10-35
your company
Making a determination of whether a hedge instrument qualifies as a
2. 815-20-25
Cash Flow or a Fair Value hedge
The items that a financial statement reader may expect to find “flowing
3. through” the Other Comprehensive Income section of Equity on the 815-10-50
Balance Sheet (vis-à-vis the Income Statement)
How does transfer pricing (for transactions between a parent and its
4. 850-10-50-1
subsidiary) impact consolidated financial reporting
Should you capitalize or expense software development costs? Assume
5. 350-40
the software is only going to be used within the firm (internally)
Which items should be considered when quantifying a Loss from
6. 205-20
Discontinued Operations
If a lease agreement should be accounted for as an Operating or as a
7. 840-30-05-01
Capital Lease
How to report the effect of exchange rates on cash and cash equivalents
8. IAS 7.37
on the Statement of Cash Flows
The criteria for determining “control” so that you can make a
9. determination on whether a separate entity should be included in the IAS 27.9
Consolidated Financial Statements of your company
10. What must be considered when calculating Diluted Earnings per Share IAS 33.31
How to report the impact of changing inventory valuation methods from
11. 330-10-35-20
FIFO to the LIFO valuation method
What foreign currency exchange rate is appropriate for translating line
12. 830-30-45
items on the Statement of Cash Flows
13. Is it permissible to amortize Bond Discount on a straight-line basis 840-30
Guidance for Revenue Recognition for a $5 billion (total assets) company
14. whose primary revenue stream is the construction of multi-year nuclear 605-10
power plants

Whether an annual escalation clause in a multi-year facility lease

15. agreement has any impact on the reporting of rent expense in any given 840-10-50-2
year