Weather Or Not ARO Should Be Recognized In All Three Situations.
Asset Retirement Obligations
This memo is intend to present appropriate treatment of the ARO estimation problem experienced by the Lack of Information (LOI) based on the findings from interviews with all 50 of the warehouse managers and on-site visits at each of the 50 locations of its warehouses countrywide. The onsite observations search for any evidence of damages in both the on-site property like the roof, walls, floors and general conditions. The interview with the managers obtains information about the characteristics of the warehouses that are not readily observable. The information obtained is very important in the preparation of the fiscal
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From previous transactions with the same third party, LOI is never allowed to remove the assets from the warehouse.
Moreover, there is no sufficient information provided in ASC 410-20-25-10 to determine the fair value of the ARO due to the uncertainty of LOI to require removing the asbestos. This also applies to two of the warehouses residing in areas with no laws in place requiring special handling and disposal of the asbestos on building demolition or renovation. Lastly, the remaining 13 warehouses with asbestos residing in states with special asbestos handling and disposal laws, LOI has owned and operated for more than 50 years only incurring just minor renovations and repairs and has no plans in future to make significant renovations or demolish except for minor repairs and maintenance. The problem with ARO is the presence of an indeterminate settlement data as in ASC 410-20-25-10.
ASC 410-20-25-10
According to ASC 410-20-25-10, instances may occur in which insufficient information to estimate the fair value of an asset retirement obligation is available. For example, if an asset has an indeterminate useful life, sufficient information to estimate a range of potential settlement dates for the obligation might not be available. In such cases, the liability would be initially recognized in the period in which sufficient information exists to estimate a range of
After having a very successful performance and getting second place on the first Littlefield simulation game we knew what we needed to do to win the second simulation game. We were very eager to outperform our competition and we almost did so, but ended up in second place again with a cash balance of $2,660,393.
Sparkle Company is a Nigerian diamond mining company. Sparkle is a joint venture, 50 percent owned by Shine and 50 percent owned by Brighten. Both Shine and Brighten are U.S.-based companies with their functional currency being the American dollar. Sparkle Companies functional currency is that of Nigeria, being the Naira. During 2009, Sparkle had several transactions with its joint venture owners and outside parties. The details of Sparkle’s transactions are three loans, three expenditures, and one revenue stream. The loans the company took out were $1 million from Brighten, $1 million from Shine, and 300 million Naira from a local Nigerian bank. The expenditures
2. Is there evidence of disparate impact against African Americans in the decisions that were made? On what basis did you arrive at this position? Illustrate how the “80 percent rule” can be used with the data in Exhibit 3.2.1 and whether there was a violation of this rule.
ASC 320-10-35-35: “In periods after the recognition of an other-than-temporary impairment loss for debt securities, an entity shall account for the other-than-temporarily impaired debt security as if the debt security had
This case is talking about an executive retreat. It was introduced by John Matthews who was a executive had been selected to attend the two-and-a-half-week retreat. The retreat was more like a competition about academic and athletic. The team members should not only get know each other and cooperate with teammates but also need to compete with others. The whole participants were broken into five groups and their aim was to win the competition. There are several sessions about academic and athletic that the participants should complete. After the introduction part the case showed the experience of John. Before the group meeting John was wondering and worried about this retreat. When he was taking the first group meeting, he tried to learn
Second, the manufacturing order costs for non-stocked items was calculated by dividing total manufacturing order costs for non-stocked items by the number of orders for non-stocked products. Non-stocked products have additional costs associated with processing orders that went above and beyond the costs associated with a stocked product. The third step involved determining what the S"A allocation factor would be for calculating the S"A volume related costs. This allocation factor would then be applied to manufacturing COGS. The fourth and final step involved the calculation of the operating profit based on backing out volume related costs from sales revenues followed by deducting S"A and manufacturing order costs from the resulting gross margin to arrive at a operating profit.
Lack of Information (LOI) owns and operates 50 warehouses throughout the country. As part of LOI’s efforts to identify potential asset retirement obligations, LOI’s internal audit group held interviews with all 50 of the warehouse managers and also performed site visits at each of the 50 locations. The related findings of the interviews and site visits noted the following facts:
On a snowy January evening, the Midwestern Medical Group (MMG) management team held a retirement party for Judith Olsen, MMG president. During the evening, Olsen reflected back on the years she had worked for MMG with mixed feelings about her experience. Over the course of their eight-year integration
The FASB Codification provides guidance on how developing animals and animals available and held for sale are to be valued. Section 905-330-35-2 states that developing animals are to be valued at the lower of cost or market. Section 05-330-32-3 states that animals available and held for sale are to be valued:
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.
Jacquelyn Young hired the law firm of Becker & Poliakoff to represent her in her federal employment discrimination lawsuit against her employer. The firm associate that filed the action made a mistake by attaching the wrong U.S. Equal Employment Opportunity Commission (EEOC) right-to-sue letter. The court dismissed the claims. The law firm did not try to re-file using the correct attachment, or try to dismiss the motion. Thirteen months later, the law firm informed Young that the claims had been dismissed, and that the firm was withdrawing from representing her further with the case.
* Expected that the asset will be sold or disposed of before the end of its estimated useful life
recognized. At worst, there is not sufficient information (based on ASC 410-2025-10) to determine the fair value of the asset retirement obligation as it is
As discussed two weeks ago, I have a doctor’s appointment at 10:40am tomorrow, so I will leave the office by about 10:00am to be on time.