Shakespeare Inc., a private publishing company issued its F/S on March 20, 2012. There were several accruals and events that the management of Shakespeare is considering to determine if they should be recognized or disclosed in Dec 31, 2011 F/S. In my opinion, the important things to focus on subsequent events are the period they effect and if their influence is material or not, so that in conclusion, the F/S are fairly presented.…
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.…
MEDICATIONS: Prednisone 7.5 mg Po daily, estradiol 0.5 mg Po QAM, Mobic 7.5 mg Po daily recently discontinued because of questionable allergic reaction, HCTZ 25 mg Po every other day, and oral calcium supplements, in the past she has been on penicillamine, azathioprine, and hydroxychloroquine but she has not had azulfidine, cyclophosphamide, or chlorambucil.…
SOCIAL HISTORY: Patient admits alcohol in jesting on nights and weekends. Denies tobacco use, denies illicit drug use. He is married.…
Energy Inc. (Energy, or the Company), which operates in the oil industry, is a U.S. subsidiary of a U.K. entity that prepares its financial statements in accordance with IFRS and U.S. GAAP. A draft law in a country where Energy operates in, which requires a cleanup of land already contaminated, will possibly be enacted shortly after the year-end.…
Understanding the flow of cash within an organization is critical to knowing the health of an organization. Without this understanding, a business may run into a situation where even though they are profitable, they may not have enough cash on hand to meet their obligations. This paper will look at the case study Eat at My Restaurant – Cash Flow (Gibson, 2013) and will analyze the difference between net cash provided by operating activities and net income and determine which a better indicator of long-term profitability is. It will then provide an analysis of the cash flow ratios for each of the firms contained in the case study. Finally, this paper will conclude with a determination of if one of the companies in the case study has a cash flow problem.…
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:…
Auditors are potentially liable for monetary damages and subject to criminal penalties for failure to perform professional services properly.…
1. Using Excel sheet provided, and the recommended consequential disclosures as a basis for your analysis, what recommendations would you give Phillips on each of the items listed below? In each case, justify your recommendations and estimate how much the decision will change the true value of the company and its value in the eyes of an investor in a private company.…
An increase in cash operating expenses decrease NOPAT, which in turn makes ROC extremely sensitive when this ratio goes up; in general when total operating expenses go up NOPAT goes down, thus ROC goes down. In addition if the COGS increase this drastically drops ROC. The total assets has a big impact on ROC an increase of 1000m increased ROC by a full 1.5 percent. The ROC is also very sensitive to the Price to Earnings ratio turnover; yet the receivable-turnover figure has little impact. Inventory turnover is also a factor that affects ROC drastically, a small decrease in inventory turnover drops the ROC drastically as shown below. But most interesting was that sales growth did not have any effect on ROC.…
Certain code violations will lead to civil accountant liabilities, while some can lead to criminal accountant liabilities. Fraudulent financial reporting is reported to the SEC and can lead to criminal prosecution. Malpractice is reported to the AICPA and can lead to civil liabilities. In the financial sector, insider trading is closely monitored by the SEC, and they have the right to ask the courts to impose criminal and civil penalties.…
CHAPTER 24 Full Disclosure in Financial Reporting ASSIGNMENT CLASSIFICATION TABLE Topics Questions Brief Exercises Exercises Problems Cases * 1. The disclosure principle; type of disclosure.…
1. The ethical pressure and dilemmas of the BP Oil spill stem from the severity of the situation and long term impact of this disaster. From a society aspect to the environmental hazards, everybody has been, and will be affected long term. The ethical issues in this case is the compensation to people who have suffered mental illness problems i.e. PTSD due to this spill. The determination of such claims, bogus or not have to be judged accordingly. The ideology of this being a long term psychological event without physical harm stirs opinions. The pressure of claiming that “you have to draw a line somewhere” becomes the topic of debate thus requiring the ultimate ethical decision making.…
1. If one was to apply the hierarchy of needs theory, the best thing to do would be to focus on the needs of the employees and give them benefits in order to reward the amount of hours that they work. This system would encourage workers to put in more hours and due to this better work ethic difference percentages would decrease. When it comes to the ERG theory the manager took away the workers existence needs by increasing the work load for the same amount of rewards. This would make any employee uneasy and would probably create animosity between the manager and his employees. Due to this poor decision that the manager made the company will more than likely take a loss and the manager will still lose his bonus. When it comes to the acquired needs theory the manager thought about his own needs to obtain bonus rather than the employees needs to get a free meal and make the employees happy and make them feel as if they are not getting cheated. This decision of increasing employee hours to retain their rewards was one that would not increase the need for affiliation. This choice did display the need for power to control his employees and to help himself in the process. This theory is the most applicable to the situation because the manager is in the process of losing control of his employees and he creates a rule in order to maintain his power needs. This rule is also created because in the mangers eyes this sets the bar higher and makes the employees want to do more in order for them to gain the reward.…
* The principal strategic was to make great bread broadly available to consumers across the United States.…