Staff believes that MD&A should include discussion of the events and decisions which gave Whether or not currently recognizable in theįinancial statements, material exit or involuntary termination costs that affect a known trend,ĭemand, commitment, event, or uncertainty to management, should be disclosed in MD&A. Liabilities are recorded pursuant to GAAP. Pursuant to the Commission’s MD&A rules prior to the period in which the exit costs and Resulting trends and uncertainties evolve, they often will meet the requirement for disclosure Accordingly, the staff believes that as those events and the Registrant to consider and/or adopt an exit plan or that impair the carrying amount of assets, The staff has noted that the economic or other events that cause a Narrow project on the subject of LIFO inventory practices. Reporting issues the division believes need to be addressed or clarified by the FinancialĪccounting Standards Board.” On February 6, 1985, the FASB decided not to add to its agenda a As stated in the issues paper, “Issues papers of the AICPA’sĪccounting standards division are developed primarily to identify financial accounting and Except as otherwise noted in the paper, AcSEC generally supports the Practice should be continued for financial reporting purposes and that additional accounting For other issues, the task force’s advisory conclusions recommend that current For some issues, the task force’s advisoryĬonclusions recommend changes in current practice to narrow the diversity which the task forceīelieves exists. Presently provides no definitive guidance. Last-in, first-out (LIFO) inventory method for which authoritative accounting literature Identifies and discusses certain financial accounting and reporting issues related to the On LIFO Inventory Problems (task force) issued a paper, “Identification and Discussion ofĬertain Financial Accounting and Reporting Issues Concerning LIFO Inventories.” This paper Company XĪlso acted as guarantor under a line of credit established by Company Y.įacts: On November 30, 1984, AcSEC and its Task Force Liable for performance on existing contracts transferred and agreed to guarantee, at itsĭiscretion, performance on future contracts entered into by the newly formed entity. Insufficient assets to pay the notes and Company X expected the funds for payments to comeĮxclusively from future operations of the transferred business. Interest, beginning two years from the date of the transaction. Promissory notes for $10 million, payable in equal annual installments of $1 million each, plus The consideration received consisted of $1,000 in cash and interest bearing Million were transferred to a newly formed entity - Company Y - wholly owned by the formerĮmployees. Assets and liabilities with a net book value of approximately $8 (including several subsidiaries) to a group of former employees who had been responsible for Specified portion of the aforementioned expenses and commissions and that thereafter interestįacts: Company X transferred certain operations Initial period is to be retained by the broker until it has been reimbursed for all or a The arrangement further provides that interest earned on the investments for an In a margin account with the commodity broker and are invested in Treasury Bills or similar Funds raised from the sale of partnership interests are deposited Of the organization and offering expenses and selling commissions in connection with the sale of The commodity broker or a subsidiary typically assumes the liability for all or part

Partnership’s commodity broker or the principal underwriter selling the limited partnership

Interests to the public and frequently have a general partner who is an affiliate of the Facts: Partnerships formed for the purpose ofĮngaging in speculative trading in commodity futures contracts sell limited partnership

Misc expenses meaning