Case 12-03 - Contingencies Scenario 1 Energy should recognize a provision as of December 31‚ 2011‚ in reporting to its U.K. parent under IFRSs and in reporting to its U.S.-based lender in accordance with U.S. GAAP. IFRS and GAAP follow three steps in order to determine if a provision should be recognized. They are: a) the entity has an obligation
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cmeasurement date). Because the accounting under Opinion 30 was based on the intended actions of management at a plan date‚ future operating losses and other future costs that did not meet the definition of liabilities were recognized as liabilities under that Opinion. The Board’s conceptual framework‚ which sets forth the definition of a liability‚ was developed subsequent to the issuance of Opinion 30. 111. Under Issue 94-3‚ future costs directly associated with the discontinuance (restructuring)
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SUBJECT: Deciding the Appropriate Extent of Audit Performed for Billy’s Beats for Asset Valuation Billy’s Beats Inc.‚ an SEC registrant‚ is a new audit client with a fiscal year-end of December 31‚ 2010. Billy’s is a manufacturer of musical instruments. Billy’s acquired Little Drummer Boy Inc. in 2010 for $575 million in cash. Significant assets acquired included property‚ plant‚ and equipment totaling $865 million and other assets totaling $145 million. The useful lives assigned to the property
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Professional Accounting I Assignment #2 1. For the equipment Hemo-Tech should use its best estimate of selling price. Since it does not have a price on its own and the two competitors’ sell a different model or the same model to a different set of customers‚ it must use its best estimate according to 605-25-30-6C. Since the cost to manufacture the equipment including labor‚ materials‚ and allocated R&D is known‚ as well as an estimated markup based on its history of margins as well
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In the aftermath of corporate scandals and the passage of the Sarbanes-Oxley Act of 2002 (SOX)‚ the audit committee is vested with greater authority to oversee fi nancial reporting and the appropriation of assets. As a result‚ the audit committee is responsible for adequate supervision and reporting and for responding to: • fraud in a fi nancial statement audit; • actual‚ perceived or potential confl icts of interest; • anonymous tips and complaints; and • through interaction with general
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is a symbol of the backwards past. To the white people‚ he is a symbol of black inferiority‚ and the sheriff is more than happy to listen to and publicize his story. Trueblood states that before‚ no one would help him‚ but now curious people are very willing to offer him aid. When the white people of the area found out what Trueblood did‚ they listened intently to his story and offered him help as well. This is what inspired him to embellish his story for his audience. Mr.Norton has a very unusual
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Lack of Information Case Lack of Information (LOI) has 25 warehouses which contain asbestos. LOI has chosen not to recognize an asset retirement obligation for any of the warehouses. There are three different sets of facts as to why LOI is not recognizing an obligation. For each set of circumstances we will determine if LOI is properly omitting an asset retirement obligation or if further action is necessary. 23 of the 25 warehouses reside in states with special asbestos handling and removal laws
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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 11-3 Master of the Universe Saturn Inc. (“Saturn”) and Venus Inc. (“Venus”)‚ two unrelated parties‚ form Jupiter‚ a joint venture. Saturn owns 51 percent of Jupiter and Venus owns 49 percent of Jupiter. The purpose of Jupiter is to own and operate organic clothing design and manufacturing facilities and sell organic clothing to unrelated retailers. When Jupiter was formed‚ Saturn contributed $561 million to Jupiter and Venus contributed four manufacturing facilities with an assembled
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Name: Leigha Smith Date: 10-22-14 School: Elkmont Facilitator: Roop 3.03 Walden Reading Questions Answer the following questions in complete sentences (18 points). 1. Why did Thoreau go to Walden? He wanted to find the real meaning of life. 2. How did he want to live his life? Without care 3. In the first paragraph you read‚ Thoreau says‚ “I did not wish to live what was not life‚ living is so dear…” In what ways might society “live
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