To: Patrick Oray Company: Plastic Composites Inc. From: Jane Doe Date: March 1‚ 2012 RE: Allocation Options for Fixed Manufacturing Overhead Costs Dear Mr. Oray‚ After researching the different methods allowed for you to use in allocating the fixed manufacturing costs to the work in process and finished goods I have come to the conclusion that normal capacity is the best method for your business. First I will define theoretical‚ practical and normal capacity and then I will explain to
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compare and contrast FASB Codification‚ SEC Rulings‚ real world financials‚ and utilize conceptual framework to demonstrate our accounting method for this case. Because litigation is unpredictable and complex‚ M Corporation should not accrue a liability on the 2007 financial statements. Management determined a loss was probable and estimated the loss to be in the range of $15-20 million with $17 million being the most likely amount of loss. According to FASB Codification 450-20-25-6‚ losses that
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as the Company has cleaned up contaminations in other countries in which it operates. As a result‚ Energy should recognize a provision. (ii) Under U.S. GAAP‚ Energy should recognize a loss for the cleanup costs in its 20x1 financial statements. ASC 450-20-25-2 provides that “an estimated loss from a loss contingency shall be accrued by a charge to income if (a) information available before the financial statements are issued indicates it is probable that a liability had
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5 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
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References: Financial Accounting Foundation. (2012). 280-10-50 Segment Reporting. Retrieved September 22‚ 2012‚ from FASB: https://asc.fasb.org/viewpage?nav_type=goto&ovcmd=goto&codification_text=280-10-50-11&codification_submit.x=23&codification_submit.y=9 Financial Accounting Standards Board. (1990‚ 12). Summary of Statement No. 106. Retrieved September 22‚ 2012‚ from FASB: http://www.fasb.org/summary/stsum106.shtml Financial Accounting Standards Board. (2006‚ September). Statement of
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Memorandum To: John J. Morris‚ Department of Accounting From: Group #1 (Anthony Smith‚ Jessica Kolb‚ Jeffrey Brownlee‚ Caleb Dykes) Date: 4/11/13 Subject: ACCTG 642: Case 10-1‚ SolvGen Inc. Statement of Relevant Facts Direct Drugs Inc. (Direct) has created a plan for the acquisition of SolvGen Inc. (SolvGen)‚ which is a publicly owned company. Direct has engaged an audit team to review agreement and procedures dealing with two separate material agreements. The first agreement is a
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Accounting Standards Board (FASB) released Statement No. 123 that “established a fair-value-based method of accounting for share-based payment arrangements with employees that supplemented APB Opinion No. 25” (Financial Accounting Standards Board [FASB]‚ 2004). Financial Reporting Standard 20 (FRS) requires accounting treatment be adopted by firms making share-based payments like our client and measure expenses‚ at fair value with respect to the share-based payments made. The FASB addresses the accounting
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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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To harmonize accounting practices between countries. 2. Which of the following is true about the FASB after the mandatory adoption of IFRS by US companies a. The FASB will serve in an advisory capacity to the IASB. b. The FASB will remain the designated standard-setter for US companies‚ but incorporate IFRS into US GAAP. c. The role of the FASB post-IFRS adoption has not been determined. d. The FASB will cease to exist. 3. Milestones in the transition plan for mandatory adoption of IFRS by US companies
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Print Form 00-1 2009 General Audit Engagement Checklist 20‚401 Section 20‚400 General Audit Engagement Checklist Checklist for Review of Audit Engagements Contents Section I. The Auditor’s Report With Regard to the Auditor’s Report............................................................................................... II. General Audit Procedures With Regard to Client Acceptance .................................................................................................. With Regard
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