Chapter $6-$ Scope and Recognition Guidance: A Brief Introduction $($#$1,4,5,6,10,12,17$ and $19$ in your text$)$

Scope Exercises

$1.$ Does the Business Combinations topic apply to the formation of a joint venture? Explain.

$4.$ Does the Income Taxes topic apply to foreign entities that apply GAAP? Explain.

$5.$ Does the Research and Development $-$ Overall topic within the Codification apply to activities that are unique to entities in the extractive industries, such as drilling and mining? Explain or cite from the relevant paragraph.

$6.$ Is environmental contamination incurred in the normal operation of a long$-$lived asset within the scope of he Codification's Environmental Obligations guidance?

Revenue Recognition Exercises

$10.$

a$.$ When was ASC $606-10$ first effective for a private company with a calendar year$-$end?

b$.$ How must the standard be initially applied $($prospectively$,$ retrospectively$)?$ Explain.

c$.$ Were private companies permitted to early adopt this standard?

$12.$ If a business sells a washing machine plus installation service to a customer, do these represent separate performance obligations?

General Recognition Exercises

$17.$ Are "unconditional promises to give" required to be recognized as liabilities?

$19.$ In an internal use software project, what are the two criteria that must be met before an entity can begin capitalizing costs?