Case 11-2(b) Fair Value Disclosures Case 11-2(b) is an extension of Case 11-2(a). For this case‚ assume that the Case 11-2(a) facts remain‚ with the exception of the additional assumptions listed below for each security. As stated in Case 11-2(a)‚ Family Finance Co. (FFC) accounts for its investments at fair value‚ with changes in fair value reflected either in earnings (for trading securities) or other comprehensive income (OCI) (for available-for-sale (AFS) securities). 1 Because FFC uses
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Molex’s external auditors‚ Deloitte &c Touche‚ had accused both of failing to disclose an $8 million pre-tax inventory valuation error in a recent letter of representation to the auditors. In response‚ King and Bullock argued that at the time of their letter they had determined that the financial impact of the error was immaterial. Despite an inquiry by the Audit Committee‚ which concluded that management had not deliberately withheld information from the auditors‚ Deloitte & Touche was not satisfied
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What economic factors appear to have contributed the most recent (2008/09) recession in the UK economy? In 2008-2009 there had been a decline in the UK economy GDP for 6 consecutive quarters due to many economic factors. An overall summary of the factors to have caused the recession are: the decrease in production and construction output & weaker service industries distribution. The first the factor contributing to the recession was the subprime credit crunch crisis. ‘The credit crunch refers
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HKU833 STEPHEN KO AIRASIA: FLYING LOW-COST WITH HIGH HOPES AirAsia started out as a Malaysian government-controlled‚ full-service regional airline that offered slightly lower fares than its number-one competitor‚ Malaysia Airlines (“MAS”). In December 2001‚ private entrepreneur Tony Fernandes took over the debt-ridden airline for the symbolic sum of US$0.26. Despite the air-travel downturn following the 11 September 2001 terrorist attacks‚ Fernandes believed that the timing for entering
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BCCI CASE Introduction: On July 5‚ 1991‚ an incident that has been described as the biggest bank fraud in history came to a head when regulators in seven countries raided and took control of branch offices of the Bank of Credit and Commerce International (BCCI). Monetary losses from the scandal were huge‚ with estimates ranging from $10 billion to $17 billion though many billions have since been recovered for creditors by the banks liquidators‚ Deloitte & Touche. The scandal had been developing
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09/08/2014 Mini Case Investing in TUFS This case is about a company that goes by the name of Northern Insurance . Who makes a large investment
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Case 10-02: Ida’s Impairment In April 2011‚ the FASB issued an exposure draft on testing goodwill for impairment. Under the proposal‚ entities would have the option of performing a qualitative assessment before calculating the fair value of the reporting unit (i.e.‚ step 1 of the goodwill impairment test). If entities determine‚ on the basis of qualitative factors‚ that the fair value of the reporting unit is more likely than not greater than the carrying amount‚ a quantitative calculation would
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auditing public audit firms and individual auditors. This was done through establishment of proper quality control measures on the work of auditors to minimize the audit risks that firms could face while conducting their work. The Ligand Pharmaceuticals case presents a perfect situation where the Sarbanes Oxley act was violated and required the enforcement of the law by the PCOAB. The questions that follow will therefore try to address the auditing provisions that were brought by the SOX‚ the role of the
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to change auditors under Italian law. Grant Thornton remained in charge of auditing services provided to off-shore subsidiaries located in the Cayman Islands. Fraud related activities continued to be discovered when the new appointed auditor‚ Deloitte & Touche Spa‚ received a forged letter that confirmed the existence of the nonexistent account. Further investigation resulted in the company’s filing for bankruptcy protection against the revelation of massive missing or nonexistent funds previously
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Case 09-1: Velocity Cellular Page 1 D I S C U SS I O N M A T E R I A L S O b j e c t i v es o f t h e C a se This case gives students the opportunity to use accounting and auditing literature and professional judgment to research complex accounting issues effectively and efficiently. Specifically‚ students will be able to: Understand the application of the guidance in ASC 605-25‚ as amended by ASU 2009-13‚ to complex multiple-deliverable arrangements. Understand the application of the
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