Assets Liabilities and Equity Facility accounting policy memos According to ASC 480-10 also called Distinguishing Liabilities from Equity, it needs for the issuer to categorize three classes of financial instruments such as liabilities and assets. The first step involves financial instruments which are mandatorily redeemable. The second step involves the repurchase obligation of the shares […]

Municipal liquidity facility Step1: The Federal Reserve enacted the special purpose vehicles (SPV) as an LLC and cannot be categorized into any of the following consolidated guidance based on the ASC 10 of scope exception. Therefore, it cannot be classified as government organization, employee benefit plans, money market funds and specific investment firms. Since the […]

Covid-19 challenges and mitigation factors Covid-19 is especially problematic for new businesses that have yet to establish a track record or credit history. These companies typically rely on personal relationships with investors to secure funding, but many of these relationships have been shattered as a result of.   The global Covid-19 pandemic is posing unprecedented […]