Question

The concept of matching is discussed in several places in the FASB ASC. Find three references to matching, cite the paragraph numbers, and copy your findings.

Answer 1

The concept of matching is discussed in several places in the FASB ASC. Here are the references :-

1. 330 Inventory > 10 Overall >10 Objectives

A major objective of accounting for inventories is the proper determination of income through the process of matching appropriate costs against revenue.

2. 605 Revenue recognition>35 Construction type & production type contracts>25 Recognition

When a completed contract method is used, it may be appropriate to allocate the general and administrative expenses to contract costs rather than to periodic income. This may result in a better matching of cost and revenue.

3. 330 Inventory > 10 Overall >35 Subsequent Measurement

The cost basis of recording inventory ordinarily achieves the objective of a proper matching of costs and revenues.

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