Essentially, IFRS 4 allows insurance contracts to continue to be accounted
for under local GAAP methods,"as long as they can be identified as insurance contracts," said Nagari, whose London-based group is developing a "global interpretation" of IFRS, along with PwC's position on the implications of IFRS 4 for insurance contracts.
Further, a reseller using a hybrid method under which it properly accounted
for purchases and sales of inventory under Sec.
This led the Fifth Circuit to allow depreciation and ITC on the nonrecoverable cushion gas, but to require the recoverable cushion gas to be accounted
for as inventory.
Gains and losses on derivative instruments are either offset against corresponding gains or losses of the hedged item through earnings in a fair value hedge, or accounted
for in other comprehensive income for a cash flow hedge.
Further, the taxpayer must attach a statement to the Form 3115, describing all items marked to market that will no longer be accounted
for under that method.
For an investment accounted
for using the equity method, inquire of management as to whether the entity has the ability to exercise significant influence over the operating and financial policies of the investee and evaluate the attendant circumstances that serve as a basis for management's conclusions.
Compound instruments--Should the fundamental components of some compound instruments be accounted
for and displayed separately in the balance sheet?
2 that the credit should be accounted
for in a way that would dilute the credit's intended effect.
In the FASB's view, changes in the law and in the plan should be accounted
for as a gain or loss, or as a plan amendment, when they occur.
Deals of this size frequently are accounted
for as poolings and often are contingent on the acquirer receiving pooling accounting treatment.
Utilities most frequently accounted
for nuclear decommissioning costs (the method approximately 57% of utilities used) by recording the costs as a part of depreciation expense with a corresponding entry to accumulated depreciation.