A440 Session 6

Chapter 5: Nonauthoritative Sources

EXERCISES:

1. Conceptual Framework

Go to ASC 105 in the Codification. Summarize the paragraphs in Section 05.

Locate FASB Concept Statement 5. Summarize the four fundamental recognition criteria in CON 5. What
are the paragraph numbers that elaborate upon these four criteria?

How would you cite this source?

2. Accounting Standards Updates

Locate ASU 2018-07. What is the title of this standard? What is a key change affected by this standard
and what broader FASB initiative is this guidance reflective of?

Now look to the contents page of ASU 2018-07. What are the four sections included within this ASU.

How would you cite this source?

3. Firm Guidance

Locatie at EY’s latest guidebook (referred to as the Financial Reporting Development series) on share
based payments. Using the table of contents, identify one topic that is addressed within the Scope section.
State the year of publication for the guide you used.

How would you cite this source?

4. AICPA Resources

Provide the title of two AICPA audit and accounting guides describe how you located these guides.
(Note: Many of these guides cost $$ or require AICPA subscription).

How would you cite this source?

5. Company Research

Using the SEC website, locate MGM Resort International's most recent Form 10-K. Describe how you
located the 10-K. When was this form filed? In what footnote can investors read about the company's
loyalty program obligations?

How would you cite this source?

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A440 Session 6
Chapter 5: Nonauthoritative Sources

Group assignment. To turn in on Canvas.

6. Reviewing SEC Correspondence

Among other activities, Madison Square Garden (Ticker: MSGS) is home to the New York Knicks and
New York Rangers. Locate the June 11th 2015 correspondence between the SEC and MSG.
(Filing type = “CORRESP”)
Then look for MSG's response to comment 3.
What is the concern or comment being raised by the SEC? What is the company's response?
Carefully read, then summarize the company's position and rationale. What information can you gather
from this correspondence that go above and beyond the company's annual filing disclosure?

There was an increase in revenue from TV rights for the Knick’s and the Rangers so MSG issued in their
disclosure that an increased portion of their revenue was going to be from TV rights. As a reference for
the SEC and other investors, The SEC asked MSG what the current portion of revenue coming from TV
rights was. The SEC also inquired about MSG reporting their revenues in aggregate and the company
responded that they believed reporting revenues in aggregate was appropriate.