Case 12-7 Facts: Rossi Inc.: Asbestos Litigation Liability: The cost of settlement and defensed costs relating to currently pending claims and future claims for losses incurred to date. Liabilities recorded per/as at Dec 31. 2009 2008 2007 Rossi Inc. $962m $1‚055m $469m Thompson (External Specialist) $1124m $1‚055m Internal Actuarial Specialist $907m‚ $1‚184m‚ and $1‚514m The 2007 claim estimate is projected through 2011. The 2008 and 2009 estimate are projected through 2017
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Danle Corporation According to ASC 450-20-25‚ when a loss contingency exists‚ the likelihood includes three areas: probable‚ reasonably possible and remote. In ASC 275-10-50-8‚ the definition of the term reasonably possible means that the chance of a future transaction or event occurring is more than remote but less than likely. In the case‚ it is believed that Danle could potentially‚ but not probably be liable for a percentage of recovery in the claim‚ so we believe Danle’s loss contingency should
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damaged goods? 2- For other returns‚ if there is no legal right to return the merchandise nor the ability to make a reasonable estimate‚ should the company recognize the revenue or defer it? Analysis for Issue 1 - Return of Damaged Goods Regulation ASC‚ Rule 605-15-25-1 states: If an entity sells its product but gives the buyer the right to return that product‚ revenue from the sales transaction shall be recognized at time of sale only if all of the following conditions are met: a. The seller ’s
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million judgment. On January 6th 2011 W filed a petition for re-hearing. On February 10‚ 2011‚ the appellate judges declined W’s petition. On February 28 2011‚ the company’s management determined that the lawsuit was closed. According to ASC 450-20-20 (Glossary) defines: Contingency An existing condition‚ situation‚ or set of circumstances involving uncertainty as to possible gain (gain contingency) or loss (loss contingency) to an entity that will ultimately be resolved when one or more
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ASC 740-20 defines “income taxes” as “domestic and foreign federal (national)‚ state‚ and local (including franchise) taxes based on income”. Further in the Glossary‚ “taxable income” is defined as “the excess of taxable revenues over tax deductible expenses and exemptions for the year as defined by the governmental taxing authority”. Therefore‚ the principles and the scope of ASC 740 are only applicable to “taxes based on income.” However‚ ASC 740 provides no further guidance on this matter and
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RESEARCH: Accounting Standard Codification (ASC) 1. FASB had four primary goals in developing the codification. List these four goals: 1. Simplify user access to all authoritative U.S. GAAP by putting them all in one place with codification 2. Assist FASB with the research and international convergence efforts required during the standard-setting process 3. Become the authoritative source of literature for the completed extensible business reporting language (XBRL) taxonomy 4. Clarify that
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responsible for performing general repair and maintenance on the leased premises. Assuming that the lessee is required to make deposits to financially protect the lessor concerning the maintenance obligation by setting up a reserve‚ the guidance in ASC 840-10-05-9A through 840-10-05-9C states that the maintenance reserve shall be recognized as a deposit asset and reimbursed later when the required repair and maintenance is completed by the lessee. However‚ the provision in the lease agreement does
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historical documents such as footage shot the day after the flood‚ ASC Fact Book of enrollment‚ a chronology of the flood and the “70 day miracle” synopsis‚ and Dr. Black State of the College. My topic relates to public education
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the client’s accounting for the asbestos litigation liability and determine the appropriate accounting literature for Rossi’s recognition and measurement of the asbestos litigation liability. Relevant Literature Accounting Standards Codification 450-20-25-1 & 2 Loss
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information impact the amount recognized or disclosed? According to ASC 720-20-25-14‚ it requires that insured entities including those that use a claims-made approach for insuring certain risks‚ recognize a liability for the probable losses from incurred but not reported claims and incidents if the loss is both probable and reasonably estimable. So‚ the estimation of medical benefit payables should be recognized. According to ASC 944-40-35-1 Changes in estimates of claim costs resulting from the
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