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Accounting Research
Please answer the below listed questions stating the facts, issue, conclusion yes or no and analysis.
Part 1 -
- The Heather Company's fiscal year ends on June 30. Its employees (with at least three months of experience) are entitled to 12 paid sick days annually for each calendar year beginning on January 1. An employee not taking his/her earned sick days would receive payment thereon on December 31 of that year. How should Heather record and measure such a liability as of June 30th?You Answer:- Facts- Issue- Conclusion - yes or no?- Analysis Per ASC 710-10-25-1,
Part 2 - - Albright Inc. has recently issued a 10% stock dividend to its existing stockholders. As a result of the issuance of the stock dividend the market price of the stock declined 25%. Albright has requested your assistance as to treating this stock dividend as a stock split. Would this be acceptable under GAAP?You answer :- Facts- Issue- Conclusion - yes or no- Analysis - ASC505-20-25-1 through 25-3
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