Judgment Case 3 – 8 Post Fiscal Year-End Events

Northwest Distribution Corporation had three significant events surrounded by their December 31, 2011 fiscal year-end, and March 15, 2012, the date that their financial statements were issued. It is guiltless to analyze each event and use your best thought process to determine if it is demand to disclose this information as a subsequent event disclosure none, as take by the fiscal score Standards Board, ASC 855: Subsequent Events, Statement of Financial score Standards No. 165, 2009. Event 1: On January 22, 2012, the comp all negotiated a major merger with Blandon Industries. The merger ordain be ratiocination by the middle of 2012. In my opinion this is an event that should be bring out on the financials. This doesnt seem to be ripe a possibility. It seems that all of the necessary work has been done, since it will be completed by the middle of 2012. If this event was respectable something that they were just thinking about, then it definit ely would not strike to be disclosed. Even though it does not state here, it could truly well up be a situation that would return under a connect- society transaction.

A transaction of this grapheme could involve owners, management, families of owners or management, associate companies and other parties that can bring or be influenced by the company (Spiceland, et al., 2011, p. 126-127). When related-party transactions occur, companies essential disclose the nature of the relationship, deliver the goods a description of the transactions, and make-up the dollar amounts of transactions and any amounts d ue 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. 57, 1982. If this is not a related-party transaction, it is not necessary to disclose, but if it was my responsibility, I credibly would choose to include a disclosure statement....If you want to arise a full essay, assure it on our website: OrderCustomPaper.com

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