ASC choices and project topics
Complete both midpoint analyses. Choose one Accounting Standards Codification (ASC) research item to include in the income section, then five additional topics for the final.
The complete company-project assignment includes every requirement shown here, company-selection rules, dates, submission instructions, and the midpoint rubric.
Midpoint ASC research
Choose one ASC research item
Required at midpoint
Choose 1 item below that appears in your primary company's filing. The Accounting Standards Codification (ASC) supplies the accounting guidance; the filing supplies the company facts. Include this research in a separate section of your midpoint Word or PDF report. Both the income analysis and the operating-cash-flow analysis are required.
Your research response
Answer the fixed question for your choice. Identify the ASC topic, subtopic, section, and paragraph that directly answer it. Explain the guidance in your own words. Identify the company item, its note location, and the income-statement subtotal it affects. Explain how the item changes your interpretation of profitability.
The questions concern different kinds of guidance. You do not need to use section 25 for every choice. A paragraph is acceptable when it directly answers your selected question.
Final: preliminary information
Choose 5 additional topics shared by the primary company and both peers. Choose at least 2 from Regular reporting and at least 1 from Specific event or exposure. Choose the remaining 2 from either group. The required midpoint topics do not count toward the 5.
Each topic becomes a section of the final written report. All 3 companies must have information for the same analysis. For intangible assets, use a category shared by all 3 companies. Loss contingencies and product warranties are separate topics. You may choose both and count each toward the 5 when all 3 companies have the required information. Complete a separate analysis and ASC research for each topic.
For goodwill and long-lived assets, a qualifying event at any 1 of the 3 companies is sufficient. It does not have to occur at the primary company. Complete the common comparison work for all 3; the other 2 do not need a matching event.
- Final selection
- 5 additional topicsThe midpoint analyses do not count.
- Planned submission
- Final workbook and written reportComplete instructions are still to come.
- Due
- December 13, 202611:59 p.m. Eastern time
Regular reporting
Choose at least 2 topics.
- Revenue and contract balances (Unit 2)
- Current and noncurrent debt (Unit 3)
- Inventory cost methods and measurement (Unit 5)
- Property, plant, and equipment: depreciation (Unit 6)
- Intangible assets: a shared category (Unit 7)
- Allowance for credit losses (Unit 4)
Specific event or exposure
Choose at least 1 topic.
- Inventory write-downs and reserves (Unit 5)
- Goodwill: acquisitions and impairment (Unit 7)
- Loss contingencies (Unit 3)
- Product warranties (Unit 3)
- Long-lived assets: impairment and sale (Unit 6)
ASC research for every final topic
Required for all 5
For each selected topic, research the Accounting Standards Codification (ASC).
- Research and cite the ASC guidance for the accounting question you select. Explain the rule and apply it to the company's disclosures. A quotation or general policy summary alone is not sufficient.
- Use the guidance applicable to the fiscal year you analyze. Check accounting-update disclosures when a rule has changed. Do not assume that newly issued guidance already applies.
- Identify filing locations, calculation inputs, assumptions, and limits so a reader can check your work. Do not treat a missing amount as zero or invent a split of a combined amount.
- Write a company-specific conclusion about what the accounting and calculations mean. Different business activities or matters do not, by themselves, excuse the required comparison.
Revenue and contract balances
Unit 2
Each company needs a specific customer arrangement with immediate and later promises, recognition timing, and related contract-liability amounts. Arrangement types need not be identical.
Customer arrangements
Select a disclosed customer arrangement for each company. Explain which promised goods or services the company provides immediately and which it provides later. Use ASC research to explain why those promises result in revenue at different times. Compare how the arrangements affect reported revenue and contract liabilities, and explain why the companies' liability balances may not support a direct comparison.
ASC research
Research performance obligations, revenue timing, and classification of the related contract liability. Explain and apply the guidance to each selected arrangement.
Work for all 3 companies
- Select a disclosed customer arrangement at the primary company and both peers. Explain which promised goods or services the company provides immediately and which it provides later.
- Explain why billing or receiving the full price does not necessarily mean recognizing the full amount as revenue.
- Use disclosed balances to assess the importance of the deferred portion. Identify the activities each amount covers and explain comparison limits.
Current and noncurrent debt
Unit 3
All 3 companies need debt classification, borrowing terms, a 5-year maturity schedule, and current assets and liabilities. Refinancing or a covenant event is conditional.
Debt classification
How does debt classification affect your comparison of the primary company's short-term financial position with both peers? Explain the relationship between reported current debt and scheduled repayments. Use current ratio and working capital in your comparison, and explain any disclosed refinancing or covenant conditions that affect classification. Research and cite the relevant ASC guidance. Explain how the classification rule applies to each company's disclosed borrowing terms and repayment dates.
ASC research
Research the current and noncurrent classification rule applicable to each company's debt. Apply refinancing, covenant, and waiver guidance when the disclosed facts require it.
Calculations and analysis
- Analyze disclosed refinancing, covenant violations, and lender waivers. If refinancing or a waiver affects classification, recalculate current ratio and working capital with that debt treated as current. Label the calculation as a comparison scenario.
Work for all 3 companies
- Compare current debt and the next 5 years of scheduled repayments for all 3 companies. Identify the obligations each amount includes.
- Use borrowing terms and repayment dates to explain current and noncurrent classification. Do not merely repeat balance-sheet labels.
- Calculate current ratio and working capital. Explain how debt classification affects the comparison.
Inventory cost methods and measurement
Unit 5
All 3 need inventory policies and turnover inputs. If any company uses last-in, first-out (LIFO), use the LIFO version. Each LIFO company needs beginning and ending differences from first-in, first-out (FIFO) inventory. Otherwise use the version without LIFO.
Choose 1 version. Completing multiple versions of this topic does not count as multiple topics.
At least 1 company uses LIFO
How do inventory cost methods, subsequent-measurement rules, and business differences affect your comparison of the primary company's inventory with both peers? Apply ASC guidance to the companies' disclosed policies. Use your calculations to explain your conclusions and comparison limits.
ASC research
Research the subsequent-measurement rule applicable to each method. Address different methods within a company separately. ASC 330-10-35-1B applies to methods other than LIFO and retail; ASC 330-10-35-1C applies to LIFO and retail.
Calculations and analysis
- Use beginning and ending FIFO-based reserves to restate each LIFO company's inventory and cost of goods sold. Recalculate gross profit rate, turnover, and days. Compare reported and adjusted conclusions across all 3 companies.
None of the companies uses LIFO
How do inventory cost methods, subsequent-measurement rules, and business differences affect your comparison of the primary company's inventory with both peers? Apply ASC guidance to the companies' disclosed policies. Use your calculations to explain your conclusions and comparison limits.
ASC research
Research the applicable subsequent-measurement rule. Connect the rule to each company's disclosed methods and policies.
Calculations and analysis
- Calculate disclosed inventory-category shares. Research a meaningful difference in production or sales activities and explain its effect on the comparison.
Work for all 3 companies
- Identify cost methods and subsequent-measurement policies for all 3 companies.
- Calculate inventory turnover and days using average inventory. Explain the business and accounting differences that affect comparison.
Property, plant, and equipment: depreciation
Unit 6
All 3 need depreciation policies, useful-life disclosures, matching accumulated balances and annual expense, and asset-return inputs.
Depreciation comparison
How do depreciation methods, useful-life estimates, and differences in asset use affect your comparison of the primary company with both peers? Research and cite the ASC guidance on allocating depreciable cost over an asset's useful life. Apply that guidance to the disclosed policies. Use your calculations to explain the differences and limits of your comparison.
ASC research
Research and apply the cost-allocation rule in ASC 360-10-35-4. Merely listing disclosure requirements does not complete the task.
Calculations and analysis
- Explain which differences the filings support and which you cannot attribute to depreciation.
Work for all 3 companies
- Compare depreciation methods and disclosed useful lives for similar asset categories across all 3 companies.
- Calculate asset turnover and return on assets using average total assets.
- Estimate average asset age using ending accumulated depreciation divided by annual depreciation expense. Explain method, asset-mix, acquisition, and disposal limits.
Intangible assets: a shared category
Unit 7
Choose a shared asset category, internal-use software, external-market software, or R&D across all 3 companies. Goodwill is excluded. A shared asset category may have different useful-life classifications.
Choose 1 version. Completing multiple versions of this topic does not count as multiple topics.
Finite- or indefinite-lived asset category
How do useful-life classifications and amortization policies affect your comparison of a shared intangible-asset category across the primary company and both peers? Research and cite the ASC guidance for determining useful life and amortization. Apply it to the disclosed policies. Use your calculations to explain the effects on reported assets and income. Identify what the disclosures do not let you conclude.
ASC research
Research useful-life classification and amortization under ASC 350-30. Apply the guidance to the selected category, not an unrelated intangible.
Calculations and analysis
- Select the same type of asset at all 3 companies, such as customer relationships, trademarks, or developed technology. Labels may differ, but the assets must represent comparable rights or benefits.
- Compare business use, useful-life classification, disclosed useful lives, and amortization methods. Explain differences between finite and indefinite classifications.
- For finite-lived categories, calculate accumulated amortization as a percentage of gross cost and the change in net carrying amount. For indefinite-lived categories, calculate the change in carrying amount and explain disclosed causes.
Internal-use software
When do the companies begin recording software costs as assets rather than expenses? Research and cite the applicable ASC guidance, apply it to their disclosed policies, and explain how capitalization and amortization affect your comparison of assets and income.
ASC research
Research the applicable internal-use software capitalization guidance. Check whether each company adopted ASU 2025-06; do not assume a newly issued rule applies.
Calculations and analysis
- Compare beginning and ending net software balances, capitalized additions, and annual amortization. Calculate the change in net carrying amount.
Software developed for sale
How does the point at which software costs qualify for capitalization affect your comparison of the companies? Research and cite the applicable ASC guidance, apply it to their disclosed policies, and explain the effects on assets and income.
ASC research
Research the software scope and capitalization boundary under ASC 985-20. Do not assume every software product or hosted arrangement falls within the same scope.
Calculations and analysis
- Compare beginning and ending net software balances, capitalized additions, and annual amortization. Calculate the change in net carrying amount.
Research and development
How do the companies' research and development (R&D) activities and accounting policies affect your comparison of reported income? For each company, select 1 disclosed type of R&D spending. Research and cite the applicable ASC guidance. Explain whether those costs are expensed or capitalized and why, and apply the rule to the disclosed activity. Use your 2-year R&D-to-revenue calculations to compare the companies, and explain what those percentages do not tell you.
ASC research
Research the recognition rule for the selected spending and check its scope. Acquired R&D in a business combination cannot be assessed solely under the ordinary R&D expense default.
Calculations and analysis
- Select 1 disclosed spending activity at each company. The activities need not be the same type across all 3.
- Calculate R&D as a percentage of revenue for both years. Explain accounting and activity differences and what the percentages do not establish.
Work for all 3 companies
- Use ASC guidance applicable to the analyzed fiscal year. Check adoption when guidance has changed.
- Identify category-specific amounts and policies. Do not attribute combined balances, useful lives, or expenses to one category without a disclosed basis.
Allowance for credit losses
Unit 4
All 3 need a comparable receivable category, matching allowances, estimation policies, 2-year percentage inputs, and one latest-year reconciliation. Trade receivables also require DSO inputs.
Comparable receivable category
How do the companies' credit-loss estimates affect your comparison of reported receivables and income? Research and cite the ASC guidance on using historical losses, current conditions, and reasonable forecasts. Apply it to each company's disclosed estimation policy. Use your calculations to explain differences across the primary company and both peers. Identify what you would need to know before concluding that one company faces greater collection risk.
ASC research
Research the expected-credit-loss estimation guidance applicable to the selected receivables and the treatment of write-offs. Check the guidance's scope before applying it.
Calculations and analysis
- For trade receivables, calculate days sales outstanding (DSO) for both years and compare its change with the allowance percentage. State a consistent sales and day basis across all 3.
- Financing and lease versions do not require DSO. Do not assign a combined financing allowance to leases alone.
Work for all 3 companies
- Select a comparable receivable category and match its allowance to those receivables.
- Calculate the allowance as a percentage of gross receivables before the credit-loss allowance for both years.
- Reconcile the latest year's allowance using disclosed expense, write-offs, recoveries, and other changes. Retain combined labels rather than invent a split.
- Explain the different effects of recording expense and writing off a receivable. A higher allowance percentage alone does not establish greater risk or a better estimate.
Inventory write-downs and reserves
Unit 5
All 3 use the same version: 2-year reserve balances with matching gross inventory, or 2-year annual losses with related cost of goods sold.
Choose 1 version. Completing multiple versions of this topic does not count as multiple topics.
Inventory valuation reserves
How do disclosed inventory valuation reserves affect your comparison of the primary company's inventory and income with both peers? Research and apply the relevant ASC measurement guidance. Use your 2-year calculations to explain the differences and limits of the comparison.
ASC research
Research the measurement rule applicable to the inventory method and the subsequent cost basis under ASC 330-10-35-14.
Calculations and analysis
- Calculate reserve balances as a percentage of inventory before the matching valuation reserve for both years. Explain what a balance does and does not establish about the year's expense.
Annual inventory losses
How do disclosed inventory write-downs affect your comparison of the primary company's inventory and income with both peers? Research and apply the relevant ASC measurement guidance. Use your 2-year calculations to explain the differences and limits of the comparison.
ASC research
Research the measurement rule applicable to the inventory method and the subsequent cost basis under ASC 330-10-35-14.
Calculations and analysis
- Calculate annual inventory-loss amounts as a percentage of related cost of goods sold for both years. Identify combined write-offs and reserve provisions and explain the limit.
Work for all 3 companies
- Identify whether each amount is an ending reserve or an expense for the year. Keep the companies' descriptions of combined amounts.
- Apply the inventory measurement rule and explain the subsequent cost basis after a write-down.
- Explain how the amounts affect inventory and income and what prevents a direct numerical comparison.
Goodwill: acquisitions and impairment
Unit 7
Common goodwill balances, total assets, equity, and testing policies at all 3; a complete acquisition or impairment event at any 1 company. The event need not occur at the primary company.
Choose 1 version. Completing multiple versions of this topic does not count as multiple topics.
Acquisition
How does the goodwill recognized in a disclosed acquisition affect your comparison of the primary company with both peers? Research and cite the ASC guidance for measuring acquisition goodwill. Recalculate goodwill from the disclosed acquisition amounts. Explain what management says the goodwill represents, and identify the limits of your comparison.
ASC research
Research acquisition-goodwill measurement under ASC 805-30-30-1 and apply it to the selected acquisition.
Calculations and analysis
- Select a qualifying acquisition at any 1 company. Record consideration, identifiable acquired assets, and assumed liabilities. Include noncontrolling and previously held interests when applicable.
- Explain the acquisition's contribution to the goodwill change without attributing the whole change to it. Identify a provisional allocation when applicable.
Goodwill impairment
How does a disclosed goodwill impairment affect your comparison of the primary company with both peers? Research and cite the applicable ASC impairment guidance. Apply it to the affected reporting unit, management's disclosed reasons, and the testing approach. Use your calculations to explain the reported effects and what you cannot conclude about remaining goodwill.
ASC research
Research goodwill testing and loss measurement. Apply the guidance to the reporting unit and disclosed testing approach.
Calculations and analysis
- Select an impairment at any 1 company. Identify the loss, affected reporting unit, income-statement location, disclosed reasons, and testing approach.
- Explain reported effects on goodwill, income, and equity, distinguishing disclosed tax effects. Do not reconstruct undisclosed reporting-unit fair values.
Work for all 3 companies
- Compare goodwill balances and impairment-testing policies across all 3 companies.
- Calculate goodwill as a percentage of total assets and equity using aligned dates. Identify zero or negative equity before interpreting the percentage.
- Explain the differences and limits. No reported impairment does not establish that goodwill is risk-free or that an acquisition succeeded.
Loss contingencies
Unit 3
Each company needs 1 specific disclosed matter and enough treatment and uncertainty information for ASC application. The disputes need not be identical; a general policy alone is insufficient.
Specific loss contingencies
How does each company's accounting for a disclosed loss contingency affect your comparison of reported liabilities, income, and possible additional losses? Research and cite the ASC recognition and disclosure guidance. Apply it to 1 specific matter at each company, and explain what you can and cannot conclude from the disclosures.
ASC research
Research the recognition and disclosure guidance applicable to each selected matter. Apply it to the company's stated treatment and uncertainty.
Work for all 3 companies
- Use the primary company and both peers. Identify 1 specific matter at each, such as litigation or an environmental claim.
- Explain each company's stated accounting treatment using ASC guidance. Record disclosed accruals, possible additional losses or ranges, and amounts the company cannot estimate.
- Different matters do not prevent comparison for this assignment. Compare how each company applies the ASC recognition and disclosure guidance, what it records in liabilities and income, and what possible additional losses remain uncertain. Explain how those differences affect your interpretation of the reported amounts. Simply stating that the matters are different is not sufficient.
Product warranties
Unit 3
All 3 need assurance-warranty policy, a latest-year liability reconciliation, total expense inputs, and an identified revenue denominator. Separately sold service warranties do not qualify.
Assurance-type product warranties
How do the companies' warranty estimates and claims affect your comparison of reported liabilities and income? Research and cite the ASC guidance for recording product-warranty obligations. Apply it to each company's disclosed policy. Use your calculations to explain differences across the primary company and both peers, including warranty terms, product mix, and changes in estimates.
ASC research
Research recording assurance-type warranty obligations and distinguish them from separately sold service warranties. Apply the guidance to the disclosed policy.
Calculations and analysis
- Do not count settlements, acquired liabilities, or currency changes as expense. Identify any broader revenue denominator and explain its limitation.
Work for all 3 companies
- Apply ASC guidance to each company's product-warranty policy. Reconcile the latest year's liability and calculate warranty expense as a percentage of related revenue.
- Distinguish claims settled, provisions, and estimate changes. Explain warranty terms, product mix, and revenue limits.
- Use total warranty expense, not just provisions for new warranties. Retain combined accruals and estimate changes and label their contents.
Long-lived assets: impairment and sale
Unit 6
All 3 need asset-return inputs and common comparison information. A complete held-and-used impairment or held-for-sale event at any 1 company is sufficient.
Choose 1 version. Completing multiple versions of this topic does not count as multiple topics.
Either version counts as 1 final topic.
Assets held and used
How does the company's impairment affect your interpretation of its reported income, asset balances, and asset returns? Research the ASC recoverability and loss-measurement guidance, apply it to the disclosed event, and compare the company with both other companies.
ASC research
Research the held-and-used recoverability and loss-measurement model. Explain why it differs from held-for-sale accounting and apply it to the disclosed event.
Calculations and analysis
- Identify the affected assets, circumstances, disclosed loss, and statement location. Distinguish current loss from possible later depreciation effects.
Assets held for sale
How does classifying assets as held for sale affect your interpretation of the company's asset balances, income, and asset returns? Research the ASC classification and measurement guidance, apply it to the disclosed sale plan, and compare the company with both other companies.
ASC research
Research held-for-sale classification and measurement. Explain why the model differs from held-and-used accounting and apply it to the sale plan.
Calculations and analysis
- Identify the affected assets, sale circumstances, any disclosed loss, and statement location. A held-for-sale event need not include a loss. An undisclosed loss is not zero.
Work for all 3 companies
- Use asset turnover and return on assets for all 3 companies, with aligned periods and average asset balances.
- Explain how the event affects interpretation. A ratio change alone does not establish improved or declining operations.
- The other 2 companies do not need matching events. The event may occur at the primary company or either peer.