Acct. 551 Final Project

Topics: Balance sheet, Generally Accepted Accounting Principles, Income statement Pages: 4 (1065 words) Published: March 15, 2013
Melissa Bedwell
D01608625
Final Course Project

Disclaimer: The following notes are based on a fictitious company and the numbers have no bearing on any real data. Note 1: Significant Accounting Polices
The financial statements of ABC Company have been prepared in agreement with current accounting rules and regulations, and are compliant under GAAP. ABC Company is a parent company, and all reporting rules and regulations have been adhered to in the reporting of ABC Company's subsidiaries. ABC Company and all subsidiaries use the same accounting methods. Individual columns that do not total within the financial statements and related data are due to differences in rounding. Note 2: Inventory

The ABC Company values its inventory at market value. These inventories are maintained on the last-in, first-out, meaning that the most recently produced items are recorded as sold first for the ABC Company’s inventory products. The cost average method is used when maintaining the cost of spare parts. Note 3: Property, Plant and Equipment

All property, plant, and equipment for the parent and subsidiary companies are recorded at historical cost. The method of depreciation for each asset is determined according to current accounting rules and regulations as set forth by GAAP. All amortization, including the amortization of intangible assets, is on a straight-line basis over the estimated life of the intangible asset. All useful asset lives for amortization and depreciation have been estimated as accurately as possible. Any changes that occur in estimations are thoroughly noted and accounted for in the respective period when it is determined that the useful life should be changed. Note 4: Contingencies and Liabilities

ABC Company is subject to claims and liabilities from time to time that are typically related to lawsuits. We follow GAAP standards for recognizing all contingent liabilities. The accrual and relevant notes relating to any and all contingent liabilities is...
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