A new client for your firm is Sam Jones who is preparing personal financial statements for a bank loan. Mr. Jones is attempting to list his social security benefits to be received based on his future life expectancy as an asset on his financial statements. Mr. Jones states that such benefits meet the definition of an asset. Would you agree to allow the social security benefits to be listed as an asset?
a) Provide responses for each independent case on the appropriate accounting treatment.
b) Support your responses with code sections from the FASB Accounting Standards Codification (ASC).