FASB Codification Assignments, Due at the beginning of the class on May 23rd
You are a new staff person in the treasury division of your company. Since you are the newest member of the division, you are asked to familiarize yourself with the FASB Codification by conducting necessary research. You have been asked to conduct research related to a proposed transfer of receivables. Your supervisor, Mr. Borrow, Assistant Treasurer, wants answers to the following questions that arise from his reading of the securitization agreement. He has asked you to access the FASB Codification to conduct research and provide responses to his questions.Using sections 860-30-25, 860-10-40, the glossary, related sections, textbook, PPT slides and other appropriate resources, if necessary, answer the following questions:
Mr. Borrow wants to knowthe definitions of Collateral, Continuing involvement, financial asset, and Derecognize. He also wants to know, in plain English, how a secured borrowing (assigning) of accounts receivable differs from transferring receivables. He also wants to know the differences between transferring with recourse and without recourse. Write a memo to Mr. Borrow with the results of your research.
IMPORTANT RULES FOR WRITING YOUR RESPONSES
1) Address your memo to the person/department that is asking for the information. These are research and WRITING assignments – NOT cut and paste assignments. This requires you to try to state as much as you can with your own words and requires you to use direct quotations judiciously. Note that May & May say that no more than 10% should be directly quoted.
2) If you do quote from the concepts statement or standard, be sure to use quotation marks or, if it is more than three lines, single space and indent. Don’t forget to provide the appropriate reference. For our purposes for the Codification assignments, let’s all cite the FASB Codification as ASC XXX-XX-XX. Be as precise as possible in your citations.
3) Your citations should be primarily from the Codification. If you reference sources other than the FASB Codification, please provide precise citations (i.e., provide page numbers, etc.).
4) Please recognize that even when you are paraphrasing or putting the concepts into your own words, you MUST still give attribution to your source. This should be at the end of the sentence in parentheses before the period. For example, blah, blah, blah (ASC XXX-XX-XX).
5) Your responses must be typed and double-spaced (this is for ease of grading; we all know memos should be single-spaced). Left-justify the page. Use Arial font (no smaller than 11 point). Margins must be 1 inch left & right and 1 inch top & bottom. Staple in the upper left-hand corner.
6) The quality of the product you submit will significantly impact your grade. Quality considerations include (but are not limited to) writing skills (grammar, spelling, sentence & paragraph structure), writing style (clarity), and overall readability (coherency). The more polished your response, the better you will do on these assignments.
7) You are to work individually on these assignments. Attach and sign the following statement: “This work is due solely to my own efforts. I did not get any inappropriate help in completing this assignment.”
……………….Answer Preview……………..
To: Mr. Borrow
From: Collins Clay
Date: June 1, 2016
Subject: Research on FASB Codification
Definitions of Collateral, Continuing involvement, financial asset, and Derecognize
Collateral is something that is usually promised or pledged as security mainly for repayment of a loan. Collateral is usually fortified in the event an individual or a business entity defaults to repay a loa…
MLA
603 words
