There was not a written agreement between United Thermostatic Control and the customers, so therefore, the shipments should not have been sent. Campbell had been reassured by Lorenzo, Executive Vice President of sales and marketing, that there is nothing wrong with recording the revenues in 2010, however, this was still a concern for the CPA, Tony Cupertino. The legality of the events was within the laws of federal, state and local government. Reporting the revenue properly after sending out the shipments would not have violated the FOB shipping point. Although the shipments were sent before they were scheduled to, Cupertino was uncertain whether to pursue this issue any further.
If Carrie said that she need the answer that day, and Antonio could not give it to her, then Carrie would not have breached the contract and then Carrie could then sold the encyclopedias to Norvel. Carrie did not make an offer to Norvel, but by accepting the offer from him, and did not wait to hear from Antonio, she was in breach of the contract with Antonio. Carrie is not obligated to sell the encyclopedias to Norvel because she had an agreement to with Antonio. Carrie had agreed to wait for
The company uses netting policy for cash collaterals held against them. If the fuel derivatives are in net asset position, the cash collateral amounts are netted again current outstanding derivatives associated with that counterparty. Current Assets: Inventory a. Inventory Turnover: Southwest’s cost of goods sold has been consistent for the past 4 years. Inventory for 2011, 2012 and 2013 were consistent until a significant drop in 2014.
If this event was just something that they were just thinking about, then it definitely would not need to be disclosed. Even though it does not state here, it could very well be a situation that would fall under a related-party transaction. A transaction of this type could “involve owners, management, families of owners or management, affiliated companies and other parties that can influence or be influenced by the company” (Spiceland, et al., 2011, p. 126-127). “When related-party transactions occur, companies must disclose the nature of the relationship, provide a description of the transactions, and report the dollar amounts of transactions and any amounts due from or to related parties” (Spiceland, et al., 2011, p.127). If this is the case, then it is to be disclosed on the financials as required by FASB ASC 850 -10-50; Related party Disclosures – Overall - Disclosure, Statement of Financial Accounting Standards No.
What is bill and hold transaction? Can revenue ever be recognized if such an arrangement exists? Ans: Bill and hold transactions are those transactions that occur when a company invoices its customer, but has not yet shipped the products. The revenue recognition is appropriate when the products are delivered assuming the seller had no rights or risks associated with the products once they were
Company’s in the IPO process and newly public companies are not required to provide either a management assessment or an auditor attestation report until they file their second annual report with the SEC. While companies in the IPO process are not required to comply with these regulations, in order to prepare for these certifications and audit, it is important to establish, document, and monitor compliance of internal controls as early as possible. 2. One practice the LJB is doing right and should continue to do is the use of pre-numbered invoices. This prevents transactions from being skipped over or recorded more than once.
Municipal bonds had traditionally been considered an effective investment vehicle for property casualty insurance companies and for individuals in high federal tax brackets. For that reason, face value yields on muni bonds are generally below those of Treasuries given the net premium after-tax considerations. At the time of the case, the top marginal federal income tax rate was over 50% (not including state and local taxes). In the years leading up to the case, both interest rates and the marginal tax rate had been very volatile. The top marginal tax rate at the time the portfolio had been purchased was 70%, it then fell to 50% and was scheduled to drop further in the coming years.
This right will not be affected by any Account Specific Terms which would otherwise prevent you closing your account or closing it without loss of interest or additional charges. 11 CHANGES TO CREDIT INTEREST RATES AND EXCHANGE RATES 11.1 Reasons for changing credit interest rates 11.1.1 We may change the interest rates we pay on credit balances: (a) to respond proportionately to a change in the Bank of England’s base rate or any other publicly listed market rate; (b) to respond proportionately to changes in the interest rates paid by other banks and financial institutions on personal current accounts; (c) to reflect changes in the costs we reasonably
The decrease in staff costs of €10,199 from 2009 to 2010 could be a possible cause for the increase. Lease rentals and other hire charges decreased by €196. Restructuring costs also decreased by€13,584. 12. Identify three efforts made by the Group to emerge from the economic downturn.
Refer to situation anaylsis 2. Internal Marketing Audit Operating Results Total group sales have reduced by £225.9m to £923.2m, plus a 12.1 decline in sales. “An adverse movement in the Hong Kong dollar, offset by favourable movements in the Euro and Singapore dollar, impacted sales by £0.4m and operating profit by £nil.”(HMVgroup, 2012). Sales lessened from £1,102.2m to £873.1m and the costs afore tax and special items were £16.2m, which is down from a profit of £16.2m in the previous period. Furthermore, significant charges of withdrawn operation of £33.5m were sustained in the year.