The company to report record earnings  for the year

Assignment Help Financial Accounting
Reference no: EM13874310

It is the end of 2010, and, as an accountant for Newell Company, you are preparing its 2010 financial statements. On December 29, 2010, the management of Newell decided to sell one of its major divisions, subject to some legal work that is expected to be completed during the first week in April 2011 (after the 2010 financial statements have been issued). During 2010, the division earned a small operating income that is just enough for the company to report  record earnings  for the year. However, the estimated fair value of the division at the end of 2010 is less than its net book value, so that management anticipates the component will be sold at a loss.
The president of Newell stops by your office and says to you,  You have been doing a fine job. Keep up the good work, because you are heading for a promotion in early 2012. Once we report the record earnings for 2010, our stockholders and creditors will be happy. Then I think our earnings for 2011 will be high enough so that the loss we expect to report in 2011 on the sale of the division will not look so bad.  After the president leaves your office, you continue preparing the 2010 financial statements.

Required:
From financial reporting and ethical perspectives, what information, if any, will you include about the upcoming sale of the division in the 2010 financial statements?

Reference no: EM13874310

Questions Cloud

What dynamic role do it managers play in it governance : What dynamic role do IT managers play in IT governance? Why is IT governance necessary? What is the exposure if a company ignores IT governance
Discuss the investment process and the general steps : Distinguish between strategic asset allocation and tactical asset allocation
Write about the modules of an erp system : write about the modules of an ERP system.The advantages of using an ERP system in business
How many grams of iron were in the sample : A sample of iron was heated to 125.0 degrees Celsius, then placed into 375 g of water at 19.8 degrees Celsius. The temperature of the water rose to 25.6 degrees Celsius. How many grams of iron were in the sample?
The company to report record earnings  for the year : It is the end of 2010, and, as an accountant for Newell Company, you are preparing its 2010 financial statements.
Determine the number of calories needed : A 100.0-g sample of copper is heated from 10.0 degrees Celsius to 100.0 degrees Celsius.Determine the number of calories needed. (The specific heat of copper is 0.0921 cal/g degrees Celsius.)
How does heterogeneous products downstream make it difficult : How does heterogeneous products downstream make it more difficult for a regulator to monitor and test for discriminatory access?
Identify as many features of paul''s letters : "Identify as many features of Paul's letters as you can in 1 Corinthians." In other words, draw the tree diagram of the letter structure of 1 Corinthians
Calculate the value of change in rh : The reaction of hydrogen sulfide(g) with oxygen(g) to form water(g) and sulfur dioxide(g) proceeds as follows: 2H2S (g) + 3O2 (g) -----> 2H2O (g) + 2SO2 (g)

Reviews

Write a Review

Financial Accounting Questions & Answers

  What is the balance remaining and monthly payment

What is the balance remaining on a $100,000 30-year mortgage, at 6% with payments of $599.55, after you have made 299 payments? What is the monthly payment on a $1,000 loan that is 18% per year, compounded weekly. Assume 52 weeks per year and that yo..

  Determining when firms are allowed to elect the fair value

Is IFRS or U.S. GAAP more restrictive for determining when firms are allowed to elect the fair value option for financial assets and liabilities? Explain.

  Definition of primary and secondary market

Definition of Primary and Secondary Market and identification of their role in Finance.

  Calculation of wages paid to employeesthe following balance

calculation of wages paid to employees.the following balance sheets are provided for victor foodscash and cash

  Fairfax company uses weighted-average process costing to

fairfax company uses weighted-average process costing to account for its production costs. direct labor is added

  The founder of alchemy products inc discovered a way to

the founder of alchemy products inc discovered a way to turn lead onto gold and patented this new technology. he then

  Purpose of production report in process costing

Explain the Purpose of Production report in Process Costing and Determine the main function of the process costing production cost report?

  How does each of the transactions change the companys

How does each of the transactions change the companys financial condition - The business distributes $100,000 of the profit it earned during the year to its shareowners.

  Prepare adjusting entries for the year ended

Prepare adjusting entries for the year ended December 31, 2013, Employee salaries are owed for 3 days of a regular 5-day work week. Weekly payroll, $8,000. The balance in Supplies before adjustment is $1,600. A physical count reveals $350 of supplies..

  Discuss necessary preparation and planning for the lily firm

Discuss the necessary preparation and planning for the Lily Company annual audit before beginning field work at the client's office.

  At the beginning of 2012 the jeater company had the

at the beginning of 2012 the jeater company had the following balances in its accountscash 4300inventory 9000common

  Uses the perpetual method and records merchandise at net

MoCo begins operations in April, uses the perpetual method, and records merchandise at net. MoCo makes two purchases on account Terms are 1/15,n/45. on April 4, MoCo purchases merchandise for $3,000, which it pays on April 16. On April 11 makes a $9,..

Free Assignment Quote

Assured A++ Grade

Get guaranteed satisfaction & time on delivery in every assignment order you paid with us! We ensure premium quality solution document along with free turntin report!

All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd