investors by accelerated the company's recognition of equipment revenue by over $3 billion and increased its pre-tax earnings by approximately $1.5 billion (Berger & Niemeier, 2002). Xerox settled the case by paying a 10 million dollar penalty, restating the financial statements for years 1997-2000, and to have a committee of outside directors review the company’s accounting controls and policies. The official complaint filed by the SEC highlights the problems that led to the senior management
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maintain a capital structure which reflects the use of a prudent level of debt funding so as to reduce the group’s cost of capital without adversely affecting either of their credit ratings. (What is Going Concern? Explained with list of going concern problems indications) Historical Cost
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Problems Facing Hampton • Hampton seeks to renew its current $I million note payable by 3 months, whilst securing an additional $350,000 in loans payable in 3 months. • Some issues faced by Hampton as it seeks the new loan and renews the current loan o Monthly interest rate of 1½ % on the Principal and additional $350,000 (if secured) and ability to repay loan with these interest payment commitments o Old machinery requiring upgrade to effectively meet capacity production. o Limited free cash
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the chief financial officer, the head of the public relations and the chief regulatory officer) voice their views on the risks, collectively bringing a multiple stakeholder perspective to the risk profile. The case challenges students to define the problems and risks that the company faces, given its strategic objectives, its evolving risk profile, and the changing environment. The case also offers a discussion ground for defining the role of the chief risk officer, and the relationship between risk
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Current Strategy Evaluation Current Strategy McDonald’s current strategy of “being better, not just bigger” involves delivering locally-relevant restaurant experiences, improving existing restaurants, and create new products that meet the changing needs of its customers. This strategy works towards increasing sales and guests counts while optimizing operations to increase profitability. Much of McDonald’s strategy involves promoting new and classic menu items such as the Big Mac, McCafé
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material misstatement is moderate. This memo presents the potential high-risk areas as followings. Revenue Recognition GM’s major sources of revenue is manufacturing and marketing branded consumer foods sold through retail stores. It also supply branded and unbranded food products to the foodservice and commercial baking industries. The competition and seasonality is critical factors in estimating the revenue of the company. Additionally, estimate of coupon redemption, product returning and uncollectible
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reporting: 1. To estimate annual earnings 2. To make projections 3. To identify turning points 4. To evaluate Management Performance 5. To supplement the annual Report. Problems in Interim Reporting * Accounting Problems: * Inventory Problems: There are three types of problems; * Determination of Inventory quantities * Valuation of inventories * Adjustment of valuation * Matching principle: Business operations are not similar throughout the
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the major points covered in each case and problem. CASES Case 5-1 In this case, students must discuss how to value employees and patentable products and how these assets should be amortized or checked for impairment on an annual basis. Case 5-2 (prepared by Peter Secord, Saint Mary’s University) In this real life business combination, students are directed to identify all of the intangible assets acquired and to discuss the valuation problems associated with them. Case 5-3
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Highest Level of Deficiency Case ACC 410 Auditing August 24 For each of the following independent cases, state the highest level of deficiency that you believe the circumstances represent – a control deficiency, a significant deficiency, or a material weakness. Explain your decision in each case. Case 1 The company processes a significant number of routine intercompany
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departments, and faculty may approach assessment and its documentation differently, one approach is to provide specific questions on exams that become the basis for assessment. To aid faculty in this endeavor, we have labeled each question, exercise and problem in Intermediate Accounting, 7e with the following AACSB learning skills: Questions 1–1 1–2 1–3 1–4 1–5 1–6 1–7 1–8 1–9 1–10 1–11 1–12 1–13 1–14 1–15 1–16 1–17 1–18 1–19 1–20 1–21 1–22 1–23 1–24 1–25 1–26 1–27 1–28 1–29 AACSB Tags Reflective thinking
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