Reference no: EM132460250

Question

I need one business letter (to a client)  and two interoffice memos (suitable for client file). This class is Accounting Research and Communication. 

The following can be used for both the letter and the memo, but I need three done in total( 1 business letter and 2 memos). 

Case Study 1

Facts: You are a corporate accountant for Omega Inc. Today's date is 12/31/20x6. You've been asked to review a contract in which Omega agrees to purchase 500 shares of GE stock from Zeta (seller) in 1 year (on 12/31/20x7), for $30 per share. Said another way, Omega has entered into a forward contract for the purchase of stock. 

Required: Does Omega's contract with Zeta meet the definition of a derivative? In your response, include applicable excerpts and guidance sandwiches that relate the guidance to this fact pattern. 

In your research, you need only consider the following paragraphs from the guidance:

FASB ASC 815-10-05-4

          ASC 815-10-10-1

         ASC 815-10-15-83, 15-88, 15-92, 15-96

        ASC 815-10-15-119 and 120

Case study 2 

Your company has just been named as defendant in a lawsuit related to a leak of chemicals, from one of your company's plants onto private property. The plaintiff is suing for $5 million in damages; your company's attorney believes the ultimate amount of loss could range between $1 million and $3 million, with no amount in the range more likely than other amounts in the range. The lawsuit is expected to be resolved in the middle of next year. 

Citing from authoritative literature address (1) whether a loss should be accrued, and for what amount, and (2) what disclosures should be made in the company's financial statements.