ABC Company, a manufacturing entity, is facing complex financial challenges in the ever-evolving global market. The company has multiple subsidiaries across different countries, each operating in diverse regulatory environments. In the wake of recent economic fluctuations, ABC Company is striving to optimize its financial strategies to enhance profitability and mitigate risks effectively. The company's balance sheet reveals intricate details about its assets, liabilities, and shareholders' equity, with significant investments in tangible assets such as machinery and equipment, as well as intangible assets like patents and trademarks. Simultaneously, the liabilities section includes various forms of debt, including short- term obligations and long-term loans from financial institutions. ABC Company is also grappling with issues related to revenue recognition, especially concerning long-term contracts and sales agreements with complex terms and conditions. Additionally, the company is evaluating the impact of adopting new accounting standards such as the Current Expected Credit Loss (CECL) model for estimating credit losses on financial instruments, and the new lease accounting standards (ASC 842) that require lessees to recognize most leases on their balance sheets. Moreover, ABC Company is contemplating the implementation of Activity-Based Costing (ABC) to gain insights into the true costs of its products and services. This method involves allocating indirect costs to products based on their actual consumption of resources, providing a more accurate picture of profitability. In the context of these challenges, the CFO of ABC Company seeks comprehensive advice on various accounting issues, including: 1 Revenue Recognition: What are the best practices for recognizing revenue from long- term contracts and sales agreements with complex terms and conditions, ensuring compliance with accounting standards and reflecting the economic substance of transactions accurately? Financial Instrument Valuation: How should ABC Company approach the valuation of financial instruments, considering the adoption of the Current Expected Credit Loss (CECL) model? What methods and assumptions should be employed to estimate credit losses effectively? Lease Accounting: What steps should the company take to implement the new lease accounting standards (ASC 842) successfully? How can ABC Company ensure accurate lease classification, measurement, and disclosure in its financial statements? Provide detailed explanations, examples, and practical recommendations to assist the CFO in addressing these accounting issues, enabling ABC Company to navigate the complex financial landscape successfully and sustain long-term profitability.