ASU Update
This ASC brings operating leases onto the balance sheet and also increases a number of contracts that qualify for as a lease
What is ASC 842?
How should a bill from a vendor for a 1-year subscription period beginning the following year be recorded?
DR. Prepaid Expenses
CR. Accounts Payable
True or False: 1099 gets issued when you incur an expense
This is the primary difference between a preparation and a compilation
What is a compilation report?
Which country is known as the "land of the rising sun"?
Japan
What is ASU 2016-03 related to?
CECL
What is the most widely used option pricing model to value equity awards?
Black-Scholes
True or False: QuickBooks will retroactively track all payments made to a vendor and include in 1099 reporting as long as the vendor setup is complete.
False - it will only start tracking payments AFTER setup is complete, it will not retroactively apply payments made to the vendors prior to setup completion.
This is the group that you just work with in order to finalize a preparation or compilation
Who is the audit admin group?
What is the capital city of Australia?
Canberra
ASU 2023-08 - Accounting for & Disclosure of Crypto Assets: When is this effective?
after December 15, 2024
What ASC does interest capitalization and expense fall under?
ASC 835
Name 3 types of vendors that should receive a 1099.
Independent contractors, LLP, LLC, S Corporations, any vendor that is not a Corporation
This regulating body oversees the guidance for compilations, preparations and reviews.
What is Statements on Standards of Accounting and Review Services or SSARS?
What is the name of the fictional city where Batman is based out of?
Gotham City
What did ASU 2024-01 aim to improve?
Improve guidance over profits interest and similar awards, including adding illustrative examples to demonstrate how an entity should apply the scope guidance in ASC 718
True or False: Leasehold Incentives by a landlord that we are reasonably sure to expend up to the limit should be recognized in minimum lease payment calculation at inception under ASC 842 even though we did not receive the cash yet.
True
As a reviewer, name 3 things you should be focused on when you review your team's work
Accuracy, Completeness, Consistency
This is the type of assurance provided by a compilation report
What is no assurance?
What is the name of the popular kpop boy band known for hits like "DNA" and "Boy with Luv"?
BTS
Name 2 areas ASU 2023-09 aim to improve to income tax disclosures
- Cash taxes paid: federal, state, and non-US
- Qualitative disclosures around material rate items
- Qualitative disclosures on material changes in rate reconciling items from one annual reporting period to the next
A Company issued redeemable preferred stock with a feature that allow shareholders to redeem upon a change of control. How is the stock classified on the balance sheet, assuming there are no other options or instruments issued in conjunction with it (for private companies), and why?
Equity - contingently redeemable preferred stock that is outside the issuer's control is accounted for as mezzanine equity (for public companies) or permanent equity (for private companies) until the contingency is met.
What are the two main things you are trying to balance when trying to manage an engagement?
Efficiency and Utilization
This is how you address departures from accounting principles in a preparation
What is to dislose the departure in the footer or title of the statement?
What actress portrayed "Elle Woods" in the move "Legally Blind"?
Reese Witherspoon