case 12

1924 words 8 pages
Hoang Thi Thanh Ha - 13200154
Case 12-2
To Recognize or Not to Recognize, That Is the Question

Shakespeare Inc., a private publishing company issued its F/S on March 20, 2012. There were several accruals and events that the management of Shakespeare is considering to determine if they should be recognized or disclosed in Dec 31, 2011 F/S. In my opinion, the important things to focus on subsequent events are the period they effect and if their influence is material or not, so that in conclusion, the F/S are fairly presented.
1. Should the information pertaining to actual claims incurred as of B/S date that became available after the B/S date be considered in determining management’s best estimate of the medical benefits payable? If so,
…show more content…
In accordance with ASC 805-10-20 (Business combination) regarding transaction or other events in which an acquirer obtain control of one or more businesses sometimes referred to as true mergers or mergers of equals also business combination. Therefore, the acquision of Hamlet should be classified in business combination. Also the acquisition was done after balance sheet date but before financial statements were issued making it a subsequent event. Whether the acquisition of Hamlet should be disclosed or recognized, depends on the acquisition was made before or after the financial date.
According to ASC 855-10-25-3 An entity shall not recognize subsequent events that provide evidence about conditions that did not exist at the date of the balance sheet but arose after the balance sheet date but before financial statements are issued or are available to be issued. There two types of subsequent events. The first type consists of events or transactions that provide additional evidence about conditions that existed at the date of the balance sheet, including the estimates inherent in the process of preparing financial statements (that is, recognized subsequent events). The second type consists of events that provide evidence about conditions that did not exist at the date of the balance sheet but arose subsequent to that date (that is, nonrecognized subsequent events. Since acquisition of Hamlet happened on March 10, 2011,


  • 12 Angry Men Analysis
    936 words | 4 pages
  • 12 Angry Men: Analysis of the Film
    3936 words | 16 pages
  • Industrial Psychology in 12 Angry Man
    3455 words | 14 pages
  • Persuasion in "12 Angry Men"
    1010 words | 5 pages
  • Unit 12 Task 2
    4257 words | 18 pages
  • Experiment 12: Calorimetry
    1884 words | 8 pages
  • case 12-3
    1831 words | 8 pages
  • 12 Angry Men Persuasion Techniques
    1419 words | 6 pages
  • 12 Angry Men: Leadership
    1940 words | 8 pages
  • 12 Years a Slave
    1673 words | 7 pages