TAILIEUCHUNG - Issues in Financial Accounting (9)

PART II: Corporate Accounting Concepts and . Issues Lecture 09. Practical Issues in Cash and. Receivable: Disposition and. Learning. Learning Objectives. Objectives. 1. Explain accounting issues related to recognition and valuation of notes. receivable 2. Explain the fair value option 3. Explain accounting issues related to disposition of accounts and notes. receivable 4. Describe how to report and analyze receivables2 Cash. Cash and. and Receivables. Receivables. Accounts Notes Special. Cash. Receivable Receivable Issues What is cash? Recognition of Recognition of Fair value. accounts notes option. Reporting cash. receivable receivable Disposition of. Summary of. Valuation of Valuation of accounts and. cash-related. items accounts notes notes. receivable receivable receivable. Presentation. and Recognition. Recognition of. of Notes. Notes Receivable. Receivable Notes Receivable. Supported by a formal promissory note A negotiable instrument Maker signs in favor of a Payee Interest-bearing (has a stated rate of interest) OR. Zero-interest-bearing (interest included in face amount)4 LO 1 Explain accounting issues related to recognition of notes receivable. Recognition. Recognition of. of Notes. Notes Receivable. Receivable Generally originate from:. Customers who need to extend payment period of. an outstanding receivable High-risk or new customers Loans to employees and subsidiaries Sales of property, plant, and equipment Lending transactions (the majority of notes).5 LO 1 Explain accounting issues related to recognition of notes receivable. Recognition. Recognition of. of Notes. Notes Receivable. Receivable. Short-Term Long-Term. Record at Record at. Face Value, Present Value. less allowance of cash expected to. be collected Interest Rates Note Issued at. Stated rate = Market rate Face Value. Stated rate > Market rate Premium. Stated rate < Market rate Discount6 LO 1 Explain accounting issues related to recognition of notes receivable. Note. Note Issued. Issued at. at Face. Face Value. Value Illustration: Bigelow Corp. lends Scandinavian Imports. $10,000 in exchange for a $10,000, three-year note bearing. interest at 10 percent annually. The market rate of interest for a. note of similar risk is also 10 percent. How does Bigelow record. the receipt of the note? i = 10%.

• Sáng kiến kinh nghiệm
• Issues in economics today
• Lecture Issues in economics today
• Macroeconomic issues
• International issues
• Price control issues
• Opportunity cost
• Demand model
• Elasticity of demand
• Firm production
• Perfect competition
• Gross domestic product
• Federal spending
• Fiscal policy
• Monetary policy
• Flaws in the CPI
• International trade
• International monetary fund
• Trade agreements
• Economic model
• Environmental problems
• Economic models of health care
• Medicaid costs
• Public insurance
• Prescription drugs
• Economics of crime
• Human capital
• Measuring poverty
• Social security
• Head start
• Affirmative action