1) Future tolling rights are legal claims to collect charge from public levied for passage along a particular road‚ highway‚ or bridge‚ at a later time (Oxford Advanced Learner’s Dictionary). Future tolling rights of the M7 toll-road are BrisConnections’ intangible assets. The road is a public-private partnership with the Queensland government (Wikipedia)‚ in which private companies build the roads and are given a limited franchise. When the franchise expires‚ ownership is transferred to the government
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Polluter Corp. Polluter Corp. is a company that operates three plants in the United States. They make different cleaning products which are sold to customers. The U.S. government sells or gives out emissions allowances to companies‚ including Polluter Corp.‚ which determines a set amount of pollutants and greenhouse gases a company can let into the environment. These are given out to help discourage pollution by companies. “EA’s” are assigned a year that a company can use in‚ and they also
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Polluter Corp. Polluter Corp. is a company that operates three manufacturing facilities and produces household cleaning products in the United States. The U.S. government grants this company with emission allowances (EAs) that can be used during 2010 to 2030. According to The Federal Energy Regulatory Commissions (FERC)‚ Polluter Corporation records emission allowances as elusive assets with a cost basis of zero. The fiscal year is December 31. To control and decrease the release of pollutants
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3. Before FIN 46 (R) became effective‚ the SPEs/conduits for securitization are rarely consolidated by their sponsors or transferors based on the consolidation rule of ARB 51. Answer the following: (a) Discuss the consolidation guidance under ARB 51. Under ARB 51‚ consolidated financial statements are usually necessary for a fair presentation when one of the companies in the group directly or indirectly has a controlling interest in the other companies. ARB 51 stated consolidation guidance as “usual
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a) The bank unveiled a plan to tackle community concerns so that it would be seen in a more positive light. Because banks offer services which are so essential (providing an opportunity to exploit customers)‚ they deal with high levels of customers and generally make large profits. Also‚ interest rates naturally fluctuate between high and low levels (controlled by the government to manage inflation - not the individual banks). For these reasons they have developed a generally bad reputation with
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Billy’s Beats Inc. Billy’s Beats Inc. (Billy’s)‚ an SEC registrant‚ is a new audit client with a fiscal year-end of December 31‚ 2012. Billy’s manufactures musical instruments. Billy’s acquired Little Drummer Boy Inc. (Little Drummer) in 2012 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‚ plant‚ and equipment acquired were 30 years for the plant
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Are the following assets? If so‚ whose assets‚ and why? (a) Members of the Australian hockey team (b) A 9-month lease agreement to rent a business office (c) Expenditure on research and development (d) An unsigned‚ documented contractual agreement to build specialised equipment for a client (e) A building bequeathed to a firm (f) A 5-year option to acquire property‚ where the option was purchased by the company a year ago (a) Human resources arguably meet the definition of assets of the
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Case One: Cool Beans Rouses Corp. (Rouses) is a calendar year-end company. On February 1‚ 2014‚ Rouses announced that it was acquiring 80 percent of the outstanding common stock of Best Beans Ever Corp. (Best Beans Ever) in a business combination. On the acquisition date‚ Rouses paid $40 million in cash and issued two million shares of Rouses common stock to the selling shareholders of Best Beans Ever. All of the outstanding stock options granted to employees of Best Beans Ever will be replaced
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Patent costs treatment and impairment testing on patents Ying Wampler Keller Graduate School of Management of DeVry University ACCT540 Dr. Racic Patent costs treatment and impairment testing on patents Patent costs treatment and impairment testing on patents Introduction XYZ Research Company was incorporated in 2010 and their business mainly focuses on developing new technology for interplanetary exploration. Due to the nature of their business‚ the majority of their business costs are
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Case 04-3 : Home Computer‚ Inc. Kamontip Sakdivorapong ______________________________________________________________________________________________ Home computer‚ Inc. has 3 business segments: Computer manufacturing‚ printer manufacturing and retail store. (1) computer manufacturing: Home computer will discontinue its video monitor operations at Seattle plant and establish a replacement in Sacramento. Other component parts will continue to be manufactured at the Seattle
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