Question

1. An entity invests in a security that is not, in form, common stock. Identify a characteristic of that security that would support a determination (even if not conclusively) that the security is in-substance common stock 2. Identify one condition that must be met for an asset group to be classified as held for sale. 3. What is the main condition for reporting a disposed component as a discontinued operation? 4. Company X leases property for 10 years under which it agrees to remove improvements at the end of the lease. I. At what amount does X recognize obligation to remove the improvements when it enters into the lease? il. Suppose it is highly unlikely that the landlord will require removal of the improvements. What is the effect on X's obligation? 5. Y, a segment of company X, carries goodwill on its balance sheet. Give an example of an event would cause X to assess whether the goodwill is impaired. 6. Y has Sim of goodwill on its balance sheet. Y's carrying value is $100m. Its fair value is $97m. How much of a write down of goodwill, if any, should it record? 7. A law has been passed that will require Stinko to remove hazardous waste after Stinko's year-end. Explain briefly Stinko's financial reporting obligation at year-end under U.S. GAAP. 8. What is the condition for deciding that an asset group is impaired under US GAAP?