Microsoft Corporation: Assignment Sample Essay

Introduction: The intent of this assignment is for you to larn more about the just value revelation demands included in the FASB Accounting Standards Codification ( the Codification ) . You will make so by analyzing just value disclosures included in the undermentioned filings:

* Form 10-Q for Microsoft Corporation ( MSFT ) for its one-fourth ended March 31. 2012. filed with the SEC on April 19. 2012 and * Form 10-Q for The Goldman Sachs Group. Inc. ( GS ) for its one-fourth ended June 30. 2012. filed with the SEC on August 9. 2012.

The bulk of the inquiries in this assignment can be answered by mentioning to the fiscal statements ( Item 1 ) and Notes to Financial Statements in these Form 10-Qs.

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Questions:
Microsoft Corporation

1. List three types of non-derivative investings held by Microsoft for which the matching just value measurings fall within Level 1 of the just value hierarchy. Why do the just value measurings for these investings fall within Level 1 of the just value hierarchy?

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2. List three types of non-derivative investings held by Microsoft for which the matching just value measurings fall within Level 2 of the just value hierarchy. Why do the just value measurings for these investings fall within Level 2 of the just value hierarchy?

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3. The just value measurings for what type of non-derivative assets held by Microsoft falls within Level 3 of the just value hierarchy? Why does this just value measuring autumn within Level 3 of the just value hierarchy? How are these assets valued and what types of inputs are used in their rating?

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4. Fill in the tabular array with the appropriate sums as of March 31. 2012. in 1000000s:

A| Total just value of Microsoft’s fiscal instruments classified as assets that are measured at just value on a revenant footing for which the corresponding measurings fall within Level 1 of the just value hierarchy| | |

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B| Total just value of Microsoft’s fiscal instruments classified as assets that are measured at just value on a revenant footing for which the corresponding measurings fall within Level 2 of the just value hierarchy| | C| Total just value of Microsoft’s fiscal instruments classified as assets that are measured at just value on a revenant footing for which the corresponding measurings fall within Level 3 of the just value hierarchy| | D| Total just value of Microsoft’s fiscal instruments classified as liabilities that are measured at just value on a revenant footing for which the corresponding measurings fall within Level 1 of the just value hierarchy| | E| Total just value of Microsoft’s fiscal instruments classified as liabilities that are measured at just value on a revenant footing for which the corresponding measurings fall within Level 2 of the just value hierarchy| | F| Total just value of Microsoft’s fiscal instruments classified as liabilities that are measured at just value on a revenant footing for which the corresponding measurings fall within Level 3 of the just value hierarchy| |

5. What two topographic points were the alterations in fiscal instruments measured at Level 3 just value on a repeating footing ( entire realized and unfulfilled additions ( losingss ) ) included for Microsoft?

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6. For Microsoft’s assets and liabilities measured at just value on a non-recurring footing. how much other-than-temporary damage was recorded during the three-months ended March 31. 2012?

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7. What was the estimated just value of Microsoft’s long-run debt at March 31. 2012? How was this just value determined? Which degree within the just value hierarchy did this just value measuring autumn?

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8. What types of controls does Microsoft hold in topographic point with regard to the procedures it uses to mensurate the just value of its investings? Hint: Refer to the Management’s Discussion and Analysis subdivision ( Item 2 ) of the Form 10-Q.

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9. Remark on the overall value of the information disclosed by Microsoft to follow with the just value revelation demands in the Codification. Focus on its overall comprehensibility and utility to the users of the fiscal statements.

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The Goldman Sachs Group. Inc.

10. Give three illustrations of the types of hard currency instruments held by Goldman Sachs that are included in Level 1 of the just value hierarchy. Why are these instruments included in Level 1?

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11. Give three illustrations of the types of hard currency instruments held by Goldman Sachs that are included in Level 2 of the just value hierarchy. For these instruments. remark on why they are included in Level 2.

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12. What are the two types of derivative contracts that Goldman Sachs holds? In what degree ( s ) of the just value hierarchy does each of these derivative contracts autumn?

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13. Under what fortunes does Goldman Sachs sort exchange-traded derivative contracts within Level 2 of the just value hierarchy?

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14. What are the five types of nonprescription derived functions that are valued utilizing theoretical accounts that utilize discernible Degree 1 and/or Level 2 inputs. every bit good as unobservable Level 3 inputs?

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15. How are the nonprescription derived functions mentioned in the old inquiry valued subsequent to their initial rating? Under what fortunes are the inputs changed?

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16. As of June 30. 2012. about what percentages of Goldman’s fiscal assets measured at just value autumn within Level 1. Degree 2. and Level 3 of the just value hierarchy. severally? Include the gauze & A ; indirect information and demo your computations.

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17. As of June 30. 2012. about what percentages of Goldman’s fiscal liabilities measured at just value autumn within Level 3 of the just value hierarchy? What is the entire sum of fiscal liabilities measured at just value that autumn within Level 3 of the just value hierarchy? What is the entire sum of fiscal liabilities measured at just value?

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18. What is the entire sum of unfulfilled addition or loss on Goldman Sachs’ hard currency instruments classified within Level 3 of the just value hierarchy that are still held at the June 30. 2012 coverage day of the month for the three months ended on that day of the month? For the six months ended on that day of the month?

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19. What is the sum of transportations between the degrees 1 & A ; 2 of the just value hierarchy for the three months stoping June 30. 2012? For the six months stoping on that day of the month?

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20. Remark on the overall value of the information disclosed by Goldman Sachs to follow with the just value revelation demands in the Codification. Focus on its overall comprehensibility and utility to the users of the fiscal statements. Besides. discourse the inclusion of ASU 2011-04 in the revelations.