use the Accounting Standards Codification (ASC) database to determine the precis
ID: 2504959 • Letter: U
Question
use the Accounting Standards Codification (ASC) database to determine the precise reference that represents the authoritative guidance in US GAAP. To illustrate, the support for principles to determine if a transfer of receivables should be accounted for as a sales or as a secured borrowing would be found in ASC section 860-10-40-3.
You were just hired by a XYZ Company. When XYZ sells its products, the right of return exists. You recall that this can possibly change when you need to recognize revenue. After the first sale occurs while you are working, you decide you want to make sure you are supposed to recognize the revenue at the time of sale. Identify the authoritative guidance that lists all of the conditions for recognition at time of sale.
What is the ASC Code?
Explanation / Answer
Case 1, an Income Statement issue, you can work you way through the online codification tool by going to 225-Income Statement, 20-Extraordinary and Unusual Items, and 45-Other Presentation Matters. This lists out the criteria that need to be met to present the loss as extraordinary in the income statement. The short answer is 225-20-45
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