Requirements for Good faith effort

Directions: Below are step-by-step directions for completing this credit-no credit (0 points) assignment. Please read the following carefully.

1. Download this document. You will be typing your answers directly into this document, saving the document, and then submitting this document showing your responses via Canvas (see Assignments Link) by the beginning of class on Wednesday, March. 27. The document submitted will be as long as it takes for you to answer all the questions.
2. Please read and follow the directions for each question carefully. Responses to all the questions, including any “sub parts” of a question, need to be submitted together and by the deadline to receive credit.
3. Good faith effort requires that you approach the assignment with the intention to practice your writing and apply what you are learning from class, the readings, or the online lecture slides. There are no maximum or minimum length requirements to achieve this goal.
4. The score you receive for “credit” on this assignment is O (zero) points under the Canvas grading system.
5. The Student Conduct Code and class expectations of academic honesty apply to all work submitted, including these APP assignments.
   Thank you.
   The iVineyard “Demo Memo” Prompt
   Justin Time, a partner at your firm, has given you a research assignment. He wants to know how to treat the following accounting issue for a client that is a publicly-traded company. Assume a December 31 year-end.
   In 2018, iVineyard expanded its operations into the San Luis Obispo County of California to grow grapes for local wineries. After the vineyard was prepared, 200,000 baby grape vines were planted. The vines are not expected to produce grapes with the quality suitable for wine-making until 2023. At that time, iVineyard will sell the entire crop to local wineries. Before then (2023), the company will sell all the grapes harvested each year at local farmers’ markets. iVineyard’s CEO, Merle Oh, would like to know how to properly account for these farmers’ market sales.
   I. “Actively Reading” FASB ASC Standards (FASB, 2019, ASC para. 905-360-25-2)
   The questions below are based on the following FASB ASC standard:
   Trees and vines may be planted and brought to production by the producer or on a contract basis. The young trees and vines are usually purchased as nursery stock and transplanted into the orchard or vineyard in the desired pattern. Cultural costs during the development period, including stakes and wires, grafting, and labor for pruning and forming shall be capitalized. Net proceeds from sales of products before commercial production begins shall be applied to the capitalized cost of the plants, trees, or vines.
6. Based on the “FASB Research Review” Slides (#7 through #14), create a “vertical reading” of the above FASB ASC standard. Please “cut and paste” the standard below, and then click “enter” (to create a new line) when you find the following:
   • Conjunctions (and, or, but…)
   • Prepositions (with, from, of, before, by…)
   • Verbs (“action words”) or verb predicates verb + helping verb – e.g. “may” or “shall”)
7. Given the question posed and facts offered in the case assignment, put a line through or “cross out” words or phrases of the FASB ASC standard that are irrelevant or inapplicable to the iVineyard “Demo Memo” facts (see p. 1 of this assignment – same facts as given in APP Assignment #6).
   II. Matching Facts to a FASB ASC Standard
8. The right column offers a breakdown of the FASB ASC standard. In the left column, write the corresponding (relevant) iVineyard “Demo Memo” case fact(s).
   Facts Standards
   (FASB, 2019, ASC para. 905-360-25-2) Trees and vines may be planted and brought to production by the producer or on a contract basis. The young trees and vines are usually purchased as nursery stock and transplanted into the orchard or vineyard in the desired pattern. Cultural costs during the development period, including stakes and wires, grafting, and labor for pruning and forming, shall be capitalized. Net proceeds from sales of products before commercial production begins shall be applied to the capitalized cost of the plants, trees, or vines.
9. What do you think the word “applied” means as used in the FASB ASC standard given above? Why? (1-3 sentences).
   5: Based on the case facts and the FASB ASC standard given above, write a one- sentence initial answer to iVineyard’s CFO Merle Oh’s question to Justin Time.
   After completing this assignment, you are strongly encouraged to take the first steps in preparing the Spring 2019 Case Memo Assignment, “Insight” using APP Assignments #6 and #7 and accompanying course materials as a guide. Actively reading the Case Assignment, identifying the purpose and audience, writing the research question, and developing a keyword search would be good first steps. Starting the research would be an even better additional step to take in the next week. Thank you and good luck!