Accounting 3301

Accounting 3301-02 Case 1 1.  State the criteria for recognizing an event as an remarkable head as written in the FASB Codification.   FASB statute 225-20-45 1. legal opinion is required to segregate in the income teaching method the cause of events or transactions that are extra prosy items (as required by paragraphs 225-20-45-10 with 45-11). An event or transaction shall be presumed to be an ordinary and usual activity of the reporting entity, the effects of which shall be included in income from cognitive outgrowths, unless the evidence all the way supports its classification as an howling(prenominal) item. 2: State the knows of the case. The aftermath of the case is that the accompany sustained a tax pass of $8.4 one million million million The loss was primarily due to $10 million in expenses related to product recall   Why is the write of manifestation of the recall amount contentious? The issue was arguable because if reported as an extraordinary item their income from continuing operation allow show an append from the prior year.

  Why is intromission as an extraordinary item on the income statement a positive choice for the company?  Because it testament shows an increase in prior year profit The Stock market depart valuate the continued growth in ongoing posit ivity and willing discount the onetime loss! Also it would increase the company bonuses What are the negative consequences of presenting the item as extraordinary on the income statement? The negative consequences are if the extraordinary item is if not unconquerable and it happen again then it will show multiply the loss and will affect bonuses and the company overall profit 3:  List the stakeholders (parties) involved and those that will be affected by the decision. The stakeholder is the company...If you want to get a full essay, order it on our website: OrderCustomPaper.com

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