a. He mentioned that MI/NCI was previously reported in the ‘mezzanine section.’ It is possible, however, that he simply made the whole thing up. Was he correct, or not? State your answer, and provide a cite (copied and pasted from authoritative FASB.org literature) supporting your position.

b. He claimed that MI/NCI must now be reported at the bottom of the O.E. section of the Consolidated Balance Sheet. Once again, you rationally suspect that he may be in error. Is this correct, or not? State your answer, and provide a cite (copied and pasted from authoritative FASB.org literature) supporting your position. [Hint: if you cannot find specific guidance on where to report this account, see if there is an illustrative example within the authoritative guidance.] You must answer both questions above by writing a 2-paragraph memo addressed to me (assume I am your client, and I have made these 2 potentially dangerous claims to you). On a separate page, attach cites, and copy & paste actual paragraphs from financial accounting pronouncements you find on the FASB.org website of the specific guidance (assuming you can find any) that supports your positions on the 2 questions. Your answers to this part must be a hardcopy printout. [Go to FASB.org/home and click on ‘advanced search’ near the little window in the upper right-hand portion of the home page. Check the following search targets only: standards and include documents.

Answer rating: 100% (QA)

A Dear Client Your claim that MINCI was previously reported in the mezzanine section of the Consolid... View the full answer