Tweedy Inc. prepares its financial statements according to International Accounting Standards (IFRS). It recently estimated that it has a 99 percent chance of winning a lawsuit. Assuming Tweedy can reliably estimate the amount it would receive if it wins the lawsuit, it should. a. Accrue an asset for the lawsuit. b. Disclose the matter in the notes to the financial statements but not accrue an asset for the lawsuit. c. Make no mention of the lawsuit in the financial statements or notes. d. None of the above.

Consider the following independent situations. For each of the situations described, suggest the appropriate accounting treatment for recording the liability. Back-up your answer with reference to the appropriate recognition criteria and disclosure requirements for liabilities, as per AASB 137. a)A manufacturing company is being sued by a customer group for losses sustained due to a faulty product design. The company’s lawyers feel the suit will likely succeed, but they cannot estimate the potential amount of damages that will be awarded. B)A resource company is obligated by municipal regulations to clean up the site of an active drilling operation in 10 years’ time when the resource has been fully extracted. The company is in its first year of operations and has no previous experience in cleaning up drilling sites C) A mining company has determined that it will cost approximately $10 million to restore a site that it previously mined

You are negotiating a transaction for your client, Shark Corporation. Parties on the other side of the deal ask you for information about the structural stability of a building, which is a significant part of the transaction. Coleman, Shark’s tax director, tells you to say that everything is all right when the building has substantial hidden damage. Coleman tells you to say this because it would be more favorable to Shark’s position in the transaction. How would you respond to Coleman’s request? Be sure to cite research that supports your position. What if you have already told the other side that the building is fine when you learn about the problems? What other potential ethics issues do you see in this situation? Which AICPA Code(s) of Professional Conduct rules apply in this situation (explain how and why they apply)?

The Ministry of Magic, the regulator of businesses, is concerned about the public financial reporting that was produced by Eeylops Owl Emporium Ltd. The Ministry was aware that the emporium had not indicated that it was discontinuing a division of its business and that for the last financial year it had not included an acquisition of a new building in its balance sheet, which it had purchased some three months before the end of the financial year. Explain why the regulator is concerned with such oversights and what the emporium is required to do in each case.

You need to go the office of DTI if you will register your corporation. true or false? Registering your business trade name is done in the office of SEC C. Mayor’s Office DTI D. Philhealth Office Which of the following is not a benefit of record keeping? It will not help in managing potential risks. It will measure profit and performance. It will protect the rights of the owner. It will not let you know how much you are earning.

Kong Corp is currently experiencing an employee lawsuit for discrimination. There is a remote chance that the company will lose the lawsuit and no future outcome can be estimated. How should the company treat the lawsuit in their financial statements? As a liability on the balance sheet Ignore - no need to disclose in the financial statements or record as a liability As an HR complaint Disclose in the notes to the financial statements

Is it an entity inherent risk for the information below?  To help stimulate sales and operating efficiency, Marco Inc. recently instituted a profit- sharing bonus agreement for its employees, including top management. Management negotiated the plan because employees have gone without raises for several years. The agreement bases employee bonuses on unaudited net income for the past year because of the need to adjust employees' salaries at the beginning of each year. However, management will adjust future bonuses for any audit adjustments made after the bonuses are set based on unaudited data. The firm sets a bonus pool based on five percent of operating income, which limits the total available to pay bonuses. Management bases individual bonuses on an employee's position, length of service, and certain specific negotiated terms with individual officers. If it is an inherent risk, what is the feature of the firm that will possibly affect inherent risk and explain how and why; that is…

12) Yakov is an executive of Fit Corp., a chain of fitness clubs. For years, he successfully hid illegal and misleading accounting practices, but eventually, he was exposed and punished with a jail sentence under the A) Celler-Kefauver B) Glass-Steagall C) Dodd-Frank D) Gramm-Leach-Bliley E) Sarbanes-Oxley Act.

What is the required treatment of each of the below events in the financial statements? Justify your decisions.    a) On 25 July 20X9, Carey settled and paid a claim involving prior employees alleging sexual discrimination as a result of promotions announced at the Christmas party in 20X8. Five women who had been overlooked for management promotions undertook legal action in March 20X9.   b) On 1 August 20X9, Carey Ltd made an announcement to the Singapore Stock Exchange of its intention to take over a private engineering partnership. This would increase sales revenue of Carey Ltd by 15%. It was to be funded by a 1:10 rights issue.   c) On 12 August 20X9, a fire damaged the head office of Carey. The buildings, fixtures and fittings were only partly insured.   d) At its 5 September 20X9 meeting, Carey’s board of directors voted to double the advertising budget for the coming year and authorised a change in advertising agencies.

A mortgage agent has been charged by FSRA of providing false or misleading information to a client. Given this scenario which of the following is a potential penalty? Select one: a. Up to a $200,000 fine b. Up to a $25,000 fine c. Up to a $500,000 fine d. Up to a $100,000 fine