Case Study: Accounting for Subsequent Events Background: Scenario: Subsequent Event 1: Subsequent Event 2: Subsequent Event 3: Accounting Considerations: XYZ Corporation, a publicly traded company, operates in the technology sector. The fiscal year-end is December 31. The financial statements are typically issued in March following the year-end. As of December 31, Year 1, XYZ Corporation is finalizing its financial statements. However, subsequent events occur after the year-end that may impact the financial statements. The key events are as follows: In January Year 2, XYZ Corporation experiences a significant decline in the market value of its inventory due to unforeseen technological changes. The decline affects the carrying amount of the inventory as of December 31, Year 1. In February Year 2, XYZ Corporation's major supplier declares bankruptcy. This bankruptcy jeopardizes the continuity of the supply chain and may result in the impairment of certain assets recorded on the balance sheet as of December 31, Year 1. In March Year 2, the government announces a new tax regulation impacting XYZ Corporation's future tax liabilities. The regulation is enacted after December 31, Year 1, but its effects must be considered in the financial statements. The accounting team must evaluate how to incorporate these subsequent events into the financial statements for the year ended December 31, Year 1. They need to determine the appropriate recognition, measurement, and disclosure for each event. Objective Type Question: Question: Considering the subsequent events in the case study, which accounting principle or standard guides the recognition, measurement, and disclosure of events that occur after the financial statement date but before the issuance of the financial statements? a) Matching Principle b) Consistency Prin ple c) Materiality Principle d) Subsequent Events Principle

Read Financial Statement Analysis Case 3: Deere & Company and answer questions a) & b).

Current Attempt in Progress GAAP requires that all companies that issue an annual report should issue interim financial reports. O the three basic financial statements should be presented each time an interim period is reported upon. O the discrete view is the most appropriate approach to take in preparing interim financial reports. O the same accounting principles used for the annual report should be employed for interim reports.

Question: Prepare a statement of profit or loss and other comprehensive income for the year ended 31 December 2021 Below is the list of nominal ledger balances of Tonson Plc at 31 December 2021. Tonson’s financial year end is at 31 December. Nominal ledger closing balances at 31 December 2021 The following information is relevant. 1. Closing inventory at 31 December 2021 is £45,000 On further investigation of the suspense account in the trial balance above, it was discovered that: An expense of £8,250 for legal services had been posted to the suspense account and a cash receipt of £15,750 had been posted to the suspense account. This represented the disposal proceeds from selling equipment, which had been purchased on 1 March 2017 at a cost of £48,000. Tonson depreciates non-current assets as follows: buildings at 1 per cent on a straight-line basis plant and equipment at 10 per cent on a straight-line basis motor vehicles at 20 per cent on a reducing balance basis.…

The annual reports of public corporations normally include a section on Management Discussion and Analysis (MD&A). Please examine the MD&A section of your selected company and let us know about any comments included regarding management's assessment of the company's liquidity and the availability of capital to the company. Also, please select one of the profitability ratios and calculate or find it for your company. Please let us know what this profitability ratio indicates about the financial health of your company.

Your firm has been engaged to examine the financial statements of Buffalo Corporation for the year 2020. The bookkeeper who maintains the financial records has prepared all the unaudited financial statements for the corporation since its organization on January 2, 2015. The client provides you with the information. Buffalo CorporationBalance SheetDecember 31, 2020 Assets   Liabilities Current assets   $1,899,000   Current liabilities   $956,000 Other assets   5,138,660   Long-term liabilities   1,471,000         Stockholders’ equity   4,610,660     $7,037,660       $7,037,660   An analysis of current assets discloses the following.       Cash (restricted in the amount of $298,000 for plant expansion)   $582,000   Investments in land   187,000   Accounts receivable less allowance of $30,000   487,000   Inventories (LIFO flow assumption)   643,000     $1,899,000       Other assets include:       Prepaid expenses   $62,000   Plant…