5. Which event after the end of reporting period would generally require disclosure? a. Retirement of key management personnel b. Settlement of litigation when the event that gave rise to the litigation occurred in a prior period c. Strike of employees d. Issue of a large amount of ordinary shares 268

5. Which event after the end of reporting period would generally require disclosure? a. Retirement of key management personnel b. Settlement of litigation when the event that gave rise to the litigation occurred in a prior period c. Strike of employees d. Issue of a large amount of ordinary shares 268

Intermediate Accounting: Reporting And Analysis

3rd Edition

ISBN:9781337788281

Author:James M. Wahlen, Jefferson P. Jones, Donald Pagach

Publisher:James M. Wahlen, Jefferson P. Jones, Donald Pagach

Chapter4: The Balance Sheet And The Statement Of Shareholders' Equity

Section: Chapter Questions

Problem 3C

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Statements 1. Revenue and expense accounts are audited in conjunction with related 2. 3. The 4. 5. 6. 7. Material fluctuations revealed by analytical procedures should be investigated to determine whether they are indicative of material in the financial statements. When paper paychecks are issued, the company's of the company. A 11 accounts. department of the company should authorize changes in employee pay rates. should distribute them to the employees is a list of all specific disclosures required by financial accounting standards. The primary purpose of the primarily responsible for the fairness of the financial statements. The auditors should obtain a letter from the client's attorneys describing is to have the client's principal officers acknowledge that they are 8. In estimating the total likely misstatement in the financial statements, the auditors should combine misstatements, projected misstatements, and judgmental misstatements. 9. If the auditors conclude that the total…
What are the major types of subsequent events? Indicate how each of the following “subsequent events” would be reported.(a) Collection of a note written off in a prior period.(b) Issuance of a large preferred stock offering.(c) Acquisition of a company in a different industry.(d) Destruction of a major plant in a flood.(e) Death of the company’s chief executive officer (CEO).(f) Additional wage costs associated with settlement of a four-week strike.(g) Settlement of a federal income tax case at considerably more tax than anticipated at year-end.(h) Change in the product mix from consumer goods to industrial goods.
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