Friday, November 22, 2013

Judgment Case 3 – 8 Post Fiscal Year-End Events

Northwest Distribution Corporation had three significant events betwixt their December 31, 2011 fiscal year-end, and March 15, 2012, the date that their financial statements were issued. It is stainless to analyze each event and use your best survey to determine if it is demand to disclose this information as a subsequent event disclosure none, as needed by the fiscal score Standards Board, ASC 855: Subsequent Events, Statement of Financial account statement Standards No. 165, 2009. Event 1: On January 22, 2012, the comp all negotiated a major merger with Blandon Industries. The merger impart be final stage by the middle of 2012. In my opinion this is an event that should be bring out on the financials. This doesnt seem to be salubrious a possibility. It seems that all of the necessary work has been done, since it will be completed by the middle of 2012. If this event was respectable something that they were just thinking about, then it defi nitely would not pick out to be disclosed. Even though it does not state here, it could precise well up be a situation that would advert under a relate- society transaction.
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A transaction of this eccentric person could involve owners, management, families of owners or management, associate companies and other parties that can mould or be influenced by the company (Spiceland, et al., 2011, p. 126-127). When related-party transactions occur, companies must(prenominal) disclose the nature of the relationship, deliver the goods a description of the transactions, and root word the dollar amounts of transac tions and any amounts due from or to related! parties (Spiceland, et al., 2011, p.127). If this is the case, then it is to be disclosed on the financials as required by FASB ASC 850 -10-50; Related party Disclosures Overall - Disclosure, Statement of Financial Accounting Standards No. 57, 1982. If this is not a related-party transaction, it is not necessary to disclose, but if it was my responsibility, I credibly would choose to include a disclosure statement....If you want to arise a full essay, severalize it on our website: OrderCustomPaper.com

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