...Background Big Bear Power is a public utility with a strong financial position for the past several years. As a result of having a positive cash flow, Big Bear is in compliance with all of its debt covenants. Big Bear has entered a 10 year non-cancelable lease with Goliath Company for a combustion turbine. The lease is signed on December 15, 2010 and the right to use the turbine begins on January 1, 2011. Relevant Issues and Case Facts The case focuses on whether certain costs and provisions associated with the lease would be included in “minimum lease payments” under ASC 840 under leases. There are three specific provisions under question: legal fees paid in negotiating the lease contract, a possible penalty paid by Big Bear to Goliath in the event that Big Bear a “material adverse change” that leads to a default on its debt covenants, and increasing level rents equal to the increase in consumer price index. Provision 1: In negotiating the lease, Big Bear has paid $500,000 to it outside legal counsel. Big Bear is also required to pay $1 million in legal fees incurred by Goliath. Provision 2: A provision in the lease states that Big Bear must pay a penalty to Goliath if Big Bear’s bank declares a default under its primary credit arrangement. The provision is dependent upon whether or not there is a “material adverse change” in Big Bear’s financial condition. Big Bear believes that the likelihood of default is remote. Goliath and Big Bear’s bank have no relationship...
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...832 under the Executory Costs “These expenditures simply are expensed by the lessee as incurred” So, for the legal fees paid by Big Bear to Stripe, Berry, Mills and Buck LLP they should be expense when incurred and not included in the minimum lease payments. So, the legals fees that were paid for Goliath Co. for the structuring of the lease would be included in the minimum lease payments but the fees paid to Stripe, Berry, Mills and Buck LLP by Big Bear for its own legal fees would not be. ASC 840-10-25-5 For a lessee, minimum lease payments comprise the payments that the lessee is obligated to make or can be required to make in connection with the leased property, excluding both of the following: a. Contingent rentals b. Any guarantee by the lessee of the lessor's debt and the lessee's obligation to pay (apart from the rental payments) executory costs such as insurance, maintenance, and taxes in connection with the leased property. Provision 2 According to ASC 840-10-25-14 all the conditions have to exits in order for the penalty payment to be excluded from the minimum lease payment all of the following have to be true. Not all of these are present. The “Material adverse change” is not defined in the lease agreement there is no “Predefined criteria” for a default. Therefore the penalty payments should be...
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...edition of our Financial Reporting Developments publication on accounting for transfers and servicing of financial assets. This publication has been updated for further clarification and enhancements to our interpretative guidance. Applying ASC 860 in practice continues to be challenging. ASC 860’s scope is wide and applies to more than just securitizations. Moreover, ASC 860 relies in part on legal interpretations to determine the accounting for the transfer. Additionally, a transferor’s continuing involvement — which can vary significantly from transaction to transaction — will also affect the accounting analysis, requiring a complete understanding of both the business purpose and the form of the transaction. The authoritative literature on accounting for transfers of financial assets continues to change. The FASB is currently finalizing a project that would amend the accounting for repurchase-to-maturity transactions and repurchase financings and require new disclosures for certain transfers accounted for as sales and secured borrowings. In addition, the AICPA is updating its guidance on the use of legal interpretations as evidential matter to support management’s assertion that a transfer of financial assets has met the isolation criterion in ASC 860. This publication includes excerpts from and references to the FASB’s Accounting Standards Codification, interpretive guidance and examples. Practice continues to develop and additional authoritative guidance in this area could be issued...
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...Standards Codification (ASC) 740, Income Taxes, we addressed (1.) What are the four possible sources of taxable income according to ASC 740? (2.) How much of the reversing taxable temporary differences may be considered in estimating taxable income? (3a.) In evaluating the income LOL is projecting related to future operations, is LOL in a cumulative loss position? (3b.) May LOL exclude the impact of the impairment of the non deductible goodwill when estimating future taxable income? (3c.) May LOL exclude the expense from writing off the accounts receivable from the customer who declared bankruptcy when evaluating the projections of future income? (3d.) Does the evidence of historic losses affect our ability to accept the company’s estimate of future growth? (3e.) In evaluating the income that LOL is projecting related to future operations, what evidence might you ask for to support the company’s projections? (4.) Would the tax- planning strategy to sell and lease back manufacturing equipment be a tax- planning strategy that is considered prudent and feasible? (5.) Would the tax-planning strategy to sell but not lease back the primary manufacturing facility be a tax-planning strategy that is prudent and feasible? We first looked to see if a valuation allowance should be necessary for the deferred tax asset (DTA). The following analysis helped us reach our conclusion that a valuation allowance was necessary. Four sources of taxable income According to ASC 740-10-30-18 there...
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...Codification. When assessing the minimum lease payments, we reviewed the legal costs incurred to Big Bear’s external legal counsel (Stripe, Berry, Mills, and Buck LLP) pertaining to the negotiation of the lease terms. We also examined the provision requiring Big Bear to pay a penalty if it were to default under its current credit arrangement with its bank, as well as the effect on monthly payments that are subject to an increase in the consumer price index calculation. Provision One First we will review the costs incurred during the negotiating of the lease terms. Big Bear is required to pay its external legal counsel $500,000 in legal costs. This amount should not be included in its minimum monthly payments because per accounting guidance ASC 840-10-25-5: For a lessee, minimum lease payments comprise the payments that the lessee is obligated to make or can be required to make in connection with the leased property, excluding both of the following: a) Contingent rentals b) Any guarantee by the lessee of the lessor's debt and the lessee's obligation to pay (apart from the rental payments) executory costs such as insurance, maintenance, and taxes in connection with the leased property. Therefore, any amount incurred by Big Bear during the negotiation...
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...Software Revenue Recognition A Roadmap to Applying ASC 985-605 Third Edition December 2011 Subtopic 985-605, Software—Revenue Recognition, from the FASB Accounting Standards Codification®, is copyrighted by the Financial Accounting Foundation, 401 Merritt 7, PO Box 5116, Norwalk, CT 06856-5116, and is reproduced with permission. SOP 97-2: Copyright 1997–2009 by American Institute of Certified Public Accountants, Inc. Used with permission. This publication contains general information only and Deloitte is not, by means of this publication, rendering accounting, business, financial, investment, legal, tax, or other professional advice or services. This publication is not a substitute for such professional advice or services, nor should it be used as a basis for any decision or action that may affect your business. Before making any decision or taking any action that may affect your business, you should consult a qualified professional advisor. Deloitte shall not be responsible for any loss sustained by any person who relies on this publication. As used in this document, “Deloitte” means Deloitte & Touche LLP, Deloitte Consulting LLP, Deloitte Tax LLP, and Deloitte Financial Advisory Services LLP, which are subsidiaries of Deloitte LLP. Please see www.deloitte.com/us/about for a detailed description of the legal structure of Deloitte LLP and its subsidiaries. Certain services may not be available to attest clients under the rules and regulations of public accounting...
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...Work Plan for the Consideration of Incorporating International Financial Reporting Standards into the Financial Reporting System for U.S. Issuers A Comparison of U.S. GAAP and IFRS A Securities and Exchange Commission Staff Paper November 16, 2011 OFFICE OF THE CHIEF ACCOUNTANT UNITED STATES SECURITIES AND EXCHANGE COMMISSION This is a paper by the Staff of the U.S. Securities and Exchange Commission. The Commission has expressed no view regarding the analysis, findings, or conclusions contained herein. TABLE OF CONTENTS I. II. Introduction..........................................................................................................................1 Methodology ........................................................................................................................2 A. Scope of the Analysis...............................................................................................2 B. MoU and Other Joint Projects..................................................................................3 C. SEC Rules and Regulations .....................................................................................8 D. General Observations and Clarifications .................................................................8 Comparison of Requirements ............................................................................................11 A. Accounting Changes and Error Corrections...
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...UNITED STATES SECURITIES AND EXCHANGE COMMISSION WASHINGTON, D.C. 20549 FORM 10-Q Indicate by check mark whether the registrant: (1) has filed all reports required to be filed by Section 13 or 15 (d) of the Securities Exchange Act of 1934 (the “Exchange Act”) during the preceding 12 months (or for such shorter period that the registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days. Yes No Indicate by check mark whether the registrant has submitted electronically and posted on its corporate Web site, if any, every Interactive Data File required to be submitted and posted pursuant to Rule 405 of Regulation S-T (§232.405 of this chapter) during the preceding 12 months (or for such shorter period that the registrant was required to submit and post such files). Yes No Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, or a smaller reporting company. See the definitions of “large accelerated filer,” “accelerated filer” and “small reporting company” in Rule 12b-2 of the Exchange Act. (Check One): Large accelerated filer Non-accelerated filer (Do not check if a smaller reporting company) Accelerated filer Smaller reporting company Indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Exchange Act). Yes No As of November 2, 2011, the registrant had 30,764,596 Common Shares and 1,084,747 Class B Common...
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...SCIENCE OF RISK Company Profile Verisk Analytics (NASDAQ: VRSK) provides information about risk to professionals in many fields, including insurance, healthcare, financial services, supply chain, and others. Through its renowned ISO brand, the company has delivered data, analytics, and decision support services for the property/casualty insurance industry for more than 40 years. Using advanced technologies to collect, analyze, develop, and deliver information, Verisk Analytics helps customers evaluate and manage risk. The company draws on vast expertise in actuarial science, insurance coverages, fire protection, fraud prevention, catastrophe and weather risk, predictive modeling, data management, economic forecasting, social and technological trends, and many other fields. To meet the needs of diverse clients, Verisk Analytics employs an experienced staff of business and technical specialists, analysts, and certified professionals. In the United States and around the world, Verisk Analytics helps customers protect people, property, and financial assets. For more information, visit www.verisk.com. Financial Highlights Revenues $ Millions 1,500 GR CA .5 = 14 % Adjusted EBITDA $ Millions 700 600 500 1,200 GR CA 5. 3 =1 % 900 400 300 200 600 300 100 0 2008 2009 2010 2011 2012 0 2008 2009 2010 2011 2012 2012 Sources of Revenues 2012 Revenues by Operating Segment Decision Analytics: 62% Property/Casualty Insurance: 32% Subscriptions and Long-Term...
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...ordinary shopping. Our heritage includes magical special events – the Macy’s Thanksgiving Day Parade, Fourth of July Fireworks, flower shows, fashion extravaganzas, celebrity appearances, cooking demonstrations and holiday traditions ranging from the arrival of Santa Claus to tree lightings and animated window displays. But beyond these signature events, Macy’s delivers magical moments every day with our merchandise, a great deal of which is sold exclusively through our stores, as well as our shopping environment and service. You’ll see our newest looks in fashion magazines. Our associates take the extra step to help a customer in need. Turn the corner in a store, and a display will capture your attention and your imagination. Events and style trends come alive on macys.com. Every year, we receive tens of thousands of messages complimenting our people and saluting the shopping experience at Macy’s. It’s all part of the excitement that we’ve been creating for 151 years. Growing Through Localization...
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...VIRTUAL PIGGY, INC. FORM 10-K ANNUAL REPORT Year Ended December 31, 2014 | | | | | Page | PART I | | | | | | Item 1. | Business | 1 | Item 1A. | Risk Factors | 8 | Item 1B. | Unresolved Staff Comments | 17 | Item 2. | Properties | 17 | Item 3. | Legal Proceedings | 17 | Item 4. | Mine Safety Disclosures | 17 | | | | PART II | | | | | | Item 5. | Market For Registrant’s Common Equity, Related Stockholder Matters and Issuer Purchases of Equity Securities | 18 | Item 6. | Selected Financial Data | 20 | Item 7 | Management’s Discussion and Analysis of Financial Condition and Results of Operations | 20 | Item 7A. | Quantitative and Qualitative Disclosures About Market Risk | 26 | Item 8. | Financial Statements and Supplementary Data | 26 | Item 9. | Changes in and Disagreements With Accountants on Accounting and Financial Disclosure | 26 | Item 9A | Controls and Procedures | 26 | Item 9B. | Other Information | 27 | | | | PART III | | | | | | Item 10. | Directors, Executive Officers and Corporate Governance | 28 | Item 11. | Executive Compensation | 28 | Item 12. | Security Ownership of Certain Beneficial Owners and Management and Related Stockholder Matters | 28 | Item 13. | Certain Relationships and Related Transactions, and Director Independence | 28 | Item 14. | Principal Accountant Fees and Services | 28 | | | | PART IV | | | | | | Item 15...
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...UNITED STATES SECURITIES AND EXCHANGE COMMISSION WASHINGTON, DC 20549 FORM 10-K (Mark One) ANNUAL REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the fiscal year ended December 31, 2009 TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE EXCHANGE ACT For the transition period from to Commission File No. 0-28882 WORLD HEART CORPORATION Delaware (State or other Jurisdiction of Incorporation or Organization) 4750 Wiley Post Way, Suite 120 Salt Lake City, Utah USA (Address of Principal Executive Office) (801) 355-6255 (Registrant’s Telephone Number) Securities registered pursuant to Section 12(b) of the Exchange Act: Title of each class Name of each exchange on which registered 52-2247240 (I.R.S. Employer Identification No.) 84116 (Zip Code) Common Stock, $0.001 par value NASDAQ Capital Market Securities registered pursuant to Section 12(g) of the Exchange Act: None Indicate by check mark if the registrant is a well-known seasoned issuer, as defined in Rule 405 of the Securities Act. Yes No Indicate by check mark if the registrant is not required to file reports pursuant to Section 13 or 15(d) of the Exchange Act. Yes No Indicate by check mark whether the registrant (1) has filed all reports required to be filed by Section 13 or 15(d) of the Exchange Act during the preceding 12 months (or for such shorter period that the registrant was required to file such reports), and (2) has been subject to such filing requirements...
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...ACC 563 Quizzes and Exams – Perfect Score Guaranteed Follow the link below to purchase Solutions http://www.hwmojo.com/products/acc563-quizzes-and-exams We have all assignments, Cases and Exams for ACC 563 and many other classes. Email us support@hwmojo.com All Quizzes, Midterm Exam, Final Exam Solution Instant Download Chapter 1 Multiple Choice: 1. Which of the following bodies has the ultimate authority to issue accounting pronouncements in the United States? a. Securities and Exchange Commission b. Financial Accounting Standards Board c. International Accounting Standards Committee d. Internal Revenue Service Answer 2. What historical evidence of the business operations of the private estate of Apollonius was discovered early inthe20th century? a. The Iliad b. Plato's Republic c. The Zenon papyri d. Pacioli’s work, Summa de Arithmetica Geometria Proportioni et Proportionalita, Answer 3. Who has been given credit or developing the double-entry system of bookkeeping? a. Francis Wheat b. Fra Luca Pacioli c. A. C. Littleton d. William Paton Answer 4. Which of the following was not a criticism of the development of accounting standards by the Accounting Principles Board? a. The independence of the members of the APB. The individuals serving on the board had full-time responsibilities elsewhere that might influence their views of certain issues. b. The structure of the board. The largest eight public accounting firms...
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...chapter addresses these factors separately, they interact with and affect one another. For example, global competitors have emerged in Australian markets partly because technological developments have enabled them to access Australian consumers. Similarly, consumer demand for certain financial products, such as securitised home mortgages, has been stimulated by technological developments that have made those products both feasible and accessible to consumers. 3.4 This chapter also considers market implications of these driving change, including changes to wholesale markets, financial providers, products, and distribution channels. Some of these implications are evident as early trends now, and the real question factors service market is how . . . 45 Financial System Inquiry quickly such trends will be borne out. Others fall into the realm of the merely possible. In order to frame recommendations about the future regulatory framework, it is important to identify the range of possible implications. The regulatory system needs to be flexible enough to anticipate and react to the range of possible developments in the financial system, to avoid inhibiting changes except in cases where there are essential public policy reasons for doing so. 3.5 The chapter concludes by...
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...Morningstar Document Research FORM 10-K ORACLE CORP - ORCL Filed: June 28, 2011 (period: May 31, 2011) Annual report with a comprehensive overview of the company ® ℠ Table of Contents UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 FORM 10-K ⌧ ANNUAL REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the fiscal year ended May 31, 2011 OR � TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the transition period from to Commission file number: 000-51788 Oracle Corporation (Exact name of registrant as specified in its charter) Delaware (State or other jurisdiction of incorporation or organization) 54-2185193 (I.R.S. Employer Identification No.) 500 Oracle Parkway Redwood City, California (Address of principal executive offices) 94065 (Zip Code) (650) 506-7000 (Registrant’s telephone number, including area code) Securities registered pursuant to Section 12(b) of the Act: Title of each class Name of each exchange on which registered Common Stock, par value $0.01 per share The NASDAQ Stock Market LLC Securities registered pursuant to Section 12(g) of the Act: None Indicate by check mark if the registrant is a well-known seasoned issuer, as defined in Rule 405 of the Securities Act. YES ⌧ Indicate by check mark if the registrant is not required to file reports pursuant to Section 13 or Section 15(d) of the Act. YES � NO...
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