Corporation and Consolidated Cash Flow

ASC 830-230-55-1: This reference shows how to format and account for cash flows when a company has subsidiaries operating in foreign countries. It gives an example of a consolidated cash flow statement from a US based company and its two subsidiary companies. The reference explains how excess cash should be disclosed. A majority of the reference deals with the local currency and how it should be shown with the parent company, in this case a US company based on the dollar.

So for both foreign companies it needs to be formatted with both local and US.

b) ASC 926-330-35-1: This references how an entity can evaluate their inventory at the end of a period. Manly to do with products help for sale, meaning items that are in inventory and that your business is going to be selling to clients. The inventory can be evaluated at the net realizable value, meaning the sale of the product minus the cost associated with it.

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c) ASC 954-440-25-2: This references how a continuing care facility can attain some loss when calculating its cost to its clients. These care facilities are required to show annual their future facility and service cost. They do this to see if there will be any liability that needs to be recognized.

d) ASC 505-20-50-1: This references how a stock dividend can be described to the public and the corporation should try to by all means not to describe it as a stock split.

It gives an example of how a corporation because of a legal requirement may be able to describe it.

e) ASC 710-10-05-6: This section references deferred compensation with regards to a Rabbi Trust for their employee. It gives the three ways through which the trust can be settled, with cash, shares of stock, and with diversified assets.