Case 10-1 SolvGen Inc. Direct Drugs Inc. (Direct) is planning to acquire SolvGen Inc. (SolvGen or the Company), a publicly owned company, during the fourth quarter of fiscal year ending December 31, 2010. Direct has engaged our audit engagement team to perform due diligence procedures, with an emphasis on the review of two separate material agreements: (1) a research and development agreement and (2) a license and distribution agreement, both executed by SolvGen during the first quarter of fiscal year 2010. Direct’s management provided the engagement team with the following memo describing the Company’s revenue recognition policy: M EMO To: Audit Engagement Team From: CFO, SolvGen Inc. Subject: Revenue Recognition for Research and Development and License and Distribution Agreements Date: November 30, 2010 SolvGen Inc. (the Company), an SEC registrant, is a pharmaceutical development company. SolvGen entered into a five-year research and development agreement with Careway Pharma Inc. (Careway) on January 1, 2010.
SolvGen Case Write Up Facts: SolvGen Inc., an SEC registrant, is a pharmaceutical development company. SolvGen entered into a five-year research and development agreement with Careway Pharma Inc. on January 1, 2010. The research and development agreement calls for SolvGen to further develop proprietary instrument systems. In connection with executing the research and development arrangement, SolvGen and Careway also entered into a five-year license and distribution agreement dated January 1, 2010. Under the terms of the research and development agreement, SolvGen retains all intellectual rights to the results of the research and development agreement (even in the event of default by the Company).
Bionic Body (“Bionic”), a SEC registrant, is a biological medical device company that focuses on the development of implantable biological devices, surgical adhesives, and biomaterials. Bionic could benefit from the approval of the Heart Valve System since it has a supplementary device that could be used in tandem with the Heart Valve System. As part of a financing strategy to support its operations, Hearts sold Bionic $3.5 million of Series A Preferred Shares (the “Shares”) of the Company with a par value of $1 per Share. The transaction was completed on November 30, 2011. As part of the Series A Preferred Stock purchase agreement, Bionic has the following rights: • Board Rights — As the holder of the preferred stock, Bionic is entitled to appoint one member to the Company’s board of directors (the “Board”).
• The milestone consideration must be reasonable relative to all deliverables and payment terms in the arrangement” Once the company has set the milestones it will recognize the revenue in the period that the milestone is achieved. MILESTONE RECOGNITION and DELIVERABLES The deliverables for SolvGen Inc that compromise to make the milestones are the research phase and the completion/launch of the instrument systems. Since SolvGen is launching different versions of their instrument systems, there are multiple milestones that the company will account for. With the project going on for five years the milestone are set by when the phases have been accomplished and the instrument systems have been launched.
Task 1—Accreditation Audit Evidence of Standards Compliance Assessment Code: AFT 2—Task 1 Kerri Laughlin WGU-429495 January 8, 2015 Mentor: Michelle Caldwell Nightingale Community Hospital Executive Summary With the upcoming survey by The Joint Commission (TJC) within the next 13 months, four areas of primary focus are recognized: Information Management, Medication Management, Communication, and Infection Control. In this document, the focus will cover the compliance status, plan for compliance and justification for Communication within Nightingale Community Hospital (NCH). An internal audit has been performed in order to take an in-depth look at our preparedness for our upcoming TJC survey. A. Compliance Status
Introduction: Recently Eye Vision Inc. has entered into a contract with Holland Hospital to sell its Clear View Laser. Included in the contract is a two-year maintenance plan that Holland Hospital has elected to purchase. This information is included in Audit Senior Jason Doolittle's memo to Eye Vision’s Audit Working Papers in conjunction with the first quarter review of the revenue line items for Eye Vision. Given this information, several determinations must be made in coordination with the Accounting Procedures contained within the FASB Codification. First, the determination needs to be made that the software is essential to the tangible product's functionality, leading to a conclusion of whether or not the agreement between Eye Vision
Hospital Recommendation Nightingale Community Hospital is up for accreditation by the Joint Commission in 13 months, a number of audits were recently completed, the following information is an overview of those findings and discussion of what the PPR, Periodic Performance Review, revealed about the conduct, process, procedures and care our staff and facility provide our patients. According to the Joint Commission website the description of PPR is when “an organization reviews its compliance with all applicable Joint Commission accreditation requirements; completes and submits to The Joint Commission a Plan of Action (POA) for any accreditation requirement with which it is not in full compliance, including the identification of a Measure
Contract Negotiation: The Government, Bobby Dodd Institute and the Emergency Services Dispatchers Latasha Hudson HRM 595 David Blake October 19, 2012 Table of Contents Introduction Negotiations The Current Situation What Bobby Dodd Wants What the Current Employees Want Offers and Counteroffers The Solution Introduction Currently, the Emergency Services contract for 911 operators and Desk Clerks on Fort Benning, GA is being operated by Eagle Systems and Services Incorporated. Eagle Systems maintained the contract for five years. As of 31 October 2012 a new government contractor is set to take over the. As with any organization, a change in management brings about the fear of organizational changes. Employees fear the
Question Why should a professional accountant be aware of the Ethics Code of the International Federation of Accountants (IFAC)? Answer: * Because the IFAC Code is the newly defined standard to which all IFAC members including the AICPA, CICA and ICAEW, IMA and SMAC* have pledged to harmonize their Codes to during the next 5 years. * The IFAC Code contains the common elements to which all professional accountants will adhere. *(SMAC….. Social Mobile Analytics and Cloud (SMAC) technology) 2. ------------------------------------------------- WorldCom: The Final Catalyst What this case has to offer * When WorldCom announced massive overstatements of profit in June 2002, it completely shattered the trust in corporate accountability and governance that President Bush and others had been trying to rebuild.
From 2005-2008 three states, NY, CA, & TX, participated in a trial run program by Medicare in which $900 million was regained from errors or fraud. Department of Health and Human Services (HHS), as of Sept 14, 2011 ruled that the Medicaid Recovery Audit program go into effect. This is a key part of Obama Administration’s plan to reduce waste, fraud and abuse. This audit program will help all states identify and regain improper Medicaid payments. This program will majority be self-funded, paying the auditors fee out of any improper payments they uncover and regain going back 3 years.