Judgment Case 3 – 8 Post Fiscal Year-End Events

Northwest Distribution Corporation had three significant events in the midst of their December 31, 2011 fiscal year-end, and March 15, 2012, the date that their financial statements were issued. It is unequivocal to analyze each event and use your best thought process to determine if it is necessity to disclose this information as a subsequent event disclosure none, as need by the pecuniary score Standards Board, ASC 855: Subsequent Events, Statement of Financial news advertise Standards No. 165, 2009. Event 1: On January 22, 2012, the comp all negotiated a major merger with Blandon Industries. The merger go away be turn on 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 nice 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 definitely would not take to be disclosed. Even though it does not state here, it could real well up be a situation that would affect under a related- society transaction.

A transaction of this geek could involve owners, management, families of owners or management, associate companies and other parties that can limit or be influenced by the company (Spiceland, et al., 2011, p. 126-127). When related-party transactions occur, companies moldiness disclose the nature of the relationship, deliver the goods a description of the transactions, and report the dollar amounts of transactions and any amou nts due from or to related parties (Spicelan! d, 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, lay it on our website: OrderCustomPaper.com

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