What was the last official pronouncement of the Financial Accounting Standards Board in the year 2011? Briefly describe the pronouncement in your own word.

a. Provide the official definitions of:

Asset retirement obligation

Current liability

Reasonably possible



b. What must an entity disclose about its asset retirement obligations?

c. What are three examples of estimates that are used in accounting that are not contingencies? Can you explain why they are not contingencies?

d. Under what conditions must an employer accrue a liability for employees’ compensation for future absences?

e. Once goodwill has been recognized by a company, how will it be accounted for in subsequent accounting periods?

What is the authoritative literature addressing revenue recognition when right of return exists?