Students Name Instructor Institutions Name Date Question 1 Ahead of the 2014 holiday shopping season traditionally the time of the year retailers make most of their profits Aeropostale announced plans to close 75 stores in its fiscal fourth quarter — November through January — on top of the 23 it closed in its third quarter. The announcement came as Aeropostale reported its third quarter losses doubled to $52 million from the same quarter one year earlier. The fourth quarter closings brought to 120 the number of stores Aeropostale closed in its 2014 fiscal year far higher than the company's estimate of 40-50 closings. Aeropostale stated it would close another 126 mall outlets in fiscal 2015 Some of the reasons that made Aeropostale bankrupt include: 1. AEROPOSTALE COULDN'T WEAN SHOPPERS OFF PROMOTIONS- Aeropostale was forced to discount The Board decided to defer the planned effective dates by one year to the following: For public business entities that meet the definition of an SEC filer the forthcoming standard will be effective for fiscal years beginning after December 15 2019 including interim periods within those fiscal years. For other public business entities the forthcoming standard will be effective for fiscal years beginning after December 15 2020 including interim periods within those fiscal years. For all other entities including not-for-profit organizations and employee benefit plans the forthcoming standard will be effective for fiscal years beginning after December 15 2020 and interim periods within fiscal years beginning after December 15 2021. Early adoption will be permitted for all entities for fiscal years beginning after December 15 2018 including interim periods within those fiscal years. References www2.deloitte.com www.fasb.org http://finance.yahoo.com/news/4-reasons-why-aeropostale-lost-202323887.html [...]
Let's end the week on these two topics: 1) The title of this discussion forum - what do you think I meant by it? And 2) You are a creditor (someone owes you). How does US GAAP accounting for credit losses work right now? How will the accounting for credit losses change for SEC filers after December 15, 2019 (and for all public entities after December 15, 2020)...and why is this change significant?