held bonds of Buy-A-Lot Company with an amortized cost of $100 and a fair value of $88 as of December 31‚ 20X1. The company’s credit rating upgraded from BBB to BBB+ that management has asserted it does not intend to sell this investment. Investment 4 – March Madness Incorporated On March 25‚ 20X1‚ OTT bought 50 shares of March Madness Incorporated stock at $100 a share‚ classifying its investment as available for sale. As of December 31‚ 20X1‚ the price of the stock was $72. On January 31‚ 20X2
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Case 09-2 Issue: Decide how to account for the funding of the R&D and royalty payments. Identify the authoritative literature applicable to this funding arrangement and discuss the appropriate accounting for the agreement in accordance with that guidance. Facts: Pharmagen is a pharmaceutical company Company XYZ is an unrelated third-party private equity investor with no prior relationship or business operations related to Pharmagen Pharmagen and Company XYZ have entered into a funding agreement
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Case 09-8 Classified Information Lads and Lassies (L&L)‚ an SEC registrant‚ has its year end on the Saturday closest to January 31. Fiscal 2012‚ 2011‚ and 2010‚ which include 52 weeks each‚ ended on January 28‚ 2012‚ January 29‚ 2011‚ and January 30‚ 2010‚ respectively. L&L manufactures and sells exclusive children’s clothing to the most discerning clientele. Its products offer high quality and modern style‚ including everything from a colorful collection of cashmere sweaters to perfect vintage
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Case 9-4 Trueblood Case 09-4 Solution Case 9-4 How should NeedsSpace account for the two obligations noted as provisions in the lease agreement? ● Provision 1: “Lessor may require the lessee to perform general repairs and maintenance on the leased premises.” By entering the lease agreement‚ NeedsSpace (the lessee) becomes legally and contractually responsible for performing general repair and maintenance on the leased premises. Assuming that the lessee is required to make deposits to financially
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MEMORANDUM To: Dr. John J. Morris‚ Department of Accounting From: Group # 5 (Amanda Picht‚ Qinxi Fan‚ Mengnan Zhang) Date: April 10‚ 2012 Subject: Acctg 642: Case 09-1‚ Velocity Cellular Statement of Facts Velocity Cellular Services is a company that sells wireless services and products based on the Global System for Mobile Communications (GSM) standard. Under the GSM standard‚ an activation card is necessary for every subscriber. The company is promoting Power Starterpack‚ a prepaid
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PSAK No.9 PENYAJIAN AKTIVA LANCAR DAN KEWAJIBAN JANGKA PENDEK Pernyataan Standar Akuntansi Keuangan (PSAK) No. 9 PENYAJIAN AKTIVA LANCAR DAN KEWAJIBAN JANGKA PENDEK Pernyataan Standar Akuntansi Keuangan (PSAK) No. 9 tentang Penyajian Aktiva Lancar dan Kewajiban Jangka Pendek disetujui dalam Rapat Komite Prinsip Akuntansi Indonesia pada tanggal 24 Agustus 1994 dan telah disahkan oleh Pengurus Pusat Ikatan Akuntan Indonesia pada tanggal 7 September 1994. Pernyataan ini tidak wajib diterapkan untuk
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The Acquisition of Consolidated Rail Corporation (A) CASE 4 Group 3: Antonio Carlos Teles Caleia #1028 Federica Carcani #2258 Edoardo Covicchio #2259 Leandro José Pereira Domingues #1023 Francesca Romana Gambini #2260 Mergers‚ Acquisition and Restructuring (TB) Prof. Josè Neves de Almeida Q1. The rationale behind the intention of CSX to buy Conrail is mainly to anticipate a proposal from the other big player in the market Norfolk Southern. Both CSX and Norfolk Southern have basically the same
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position to carter to this increase in order in the future‚ they are in for a heavy loss and as a result they might even consider an employee redundancy plan also. After this meeting trade unions requested some conditions also. Problem Statement In this case we can identify several Management issues which influenced for the smooth functioning of the company. Those issues as follows; Issue 1 Organization decided to increase their production and implement an incentive program for employees who had produce
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is far greater than that of SKY’s. In 1990‚ BSB lost more money than SKY due to heavier cost structure and this loss continues for the next 6 years. 2-3. Would there still be a price war? What are the variables that we should check first. In this case we believe there would be a price war. BSB was known to have much deeper pockets than Sky‚ and was therefore much more optimistic about their losses compared to Sky‚ who were having trouble rolling over its sizeable short-run debt. During the entire
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Case #4 Jiawei Qi Principle of audit and control (43010) Professor Ben Hoffman February 23‚ 2015 TO: Charles ward‚ CPA Partner FROM: Jiawei Qi DATE: February 23‚ 2016 SUBJECT: Assess control risk and plan tests of controls and substantive tests of transactions Introduction: The purpose of the memo is to communicate to you the outcome of the company’s control risk‚ the test of controls and substantive tests of transactions. General procedure: First‚ we assess the
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