User Account

All Pages

The following selected circumstances relate

Assignment Help Accounting Basics
Reference no: EM13994925

The following selected circumstances relate to pending lawsuits for Erismus, Inc. Erismus's fiscal year ends on December 31. Financial statements are published in March 2012. Erismus prepares its financial statements according to International Financial Reporting Standards.

Required:

Indicate the amount of asset or liability that Erismus would record, and explain your answer.

1. Erismus is defending against a lawsuit. Erismus's management believes the company has a slightly worse than 50/50 chance of eventually prevailing in court, and that if it loses, the judgment will be $1,000,000.

2. Erismus is defending against a lawsuit. Erismus's management believes it is probable that the company will lose in court. If it loses, management believes that damages could fall anywhere in the range of $2,000,000 to $4,000,000, with any damage in that range equally likely.

3. Erismus is defending against a lawsuit. Erismus's management believes it is probable that the company will lose in court. If it loses, management believes that damages will eventually be $5,000,000, with a present value of $3,500,000.

4. Erismus is a plaintiff in a lawsuit. Erismus's management believes it is probable that the company eventually will prevail in court, and that if it prevails, the judgment will be $1,000,000. 

Reference no: EM13994925

Questions Cloud

Log transform a variable : Log transform a variable... if the values are too big. if the residuals (error) get bigger for bigger values of the variable.
Calculate the ditance between the first and second dark band : Calculate the distance, L, to the screen. Show all work. Calculate the ditance between the first and second dark bands in the interference pattern. Shown all work.
Calculate the three firm concentration ratio and interpret : Suppose the two industries exhibit the following market shares for firms:? Calculate the three firm concentration ratio and interpret. Calculate the Her find all Index and interpret. Which industry is the most competitive? Explain.
An outcome measured on a five-point scale : An outcome measured on a five-point scale (not at all to always)... is an example of an ordinal variable. has a behavior problem when it comes to residuals.
The following selected circumstances relate : Erismus is a plaintiff in a lawsuit. Erismus's management believes it is probable that the company eventually will prevail in court, and that if it prevails, the judgment will be $1,000,000.
How your nonverbal behaviors influence your communication : Consider your own communication style. Consider how your nonverbal behaviors influence your communication with others
Find a statistically significant correlation : Many samples, each of 100 observations, are drawn from a population in which there is a correlation of 0.70 between two variables. How often would you expect to find a statistically significant correlation?
Dimension reduction : Dimension reduction describes loss of precision. describes factor analysis. is an example of ANOVA. is a weight-loss program.
Treatment of relation between nominal-real interest rates : Frank and Sarah and Irving Irving Fisher is the real hero of the Frank and Sarah problem. His treatment of the relation between nominal and real interest rates and inflation suggests that if Frank wants a two percent real interest rate , the nominal ..

Reviews

Write a Review

Accounting Basics Questions & Answers

  Stock plus a right to receive another 25 shares

In an exchange qualifying for Sec. 351 tax-free treatment, Greta receives 100 shares of White Corporation stock plus a right to receive another 25 shares.

  Post the sales journal to the general ledger and accounts

T. M. Maxwell owns a retail business and made the following sales during the month of July 20--. There is a 5% sales tax on all sales. Record the transactions in the sales journal and verify the column totals and rule the columns. Post the sales jour..

  Muscle construction signs a contract to build a classroom

muscle construction signs a contract to build a classroom addition for smallville high school. the total price for the

  Provide a brief scenario of a specific type of business

Assess the importance of free cash flow in a growth company. Provide a brief scenario of a specific type of business that would benefit from free cash flow.

  Explain incentives of earnings management

Each literature review must be backed up by 5-10 articles, booksm journals and referenced.

  Type your question herelankford manufacturing carries no

type your question herelankford manufacturing carries no inventories. its product is manufactured only when a customers

  Income created during the reporting period

1.How do we report components of comprehensive income created during the reporting period?

  How can one contribute appreciated property without gain

Relative to corporate formation, how can one contribute appreciated property without gain recognition to the transferor?

  Average useful life for commercial buildings

Western Bank & Trust purchased land and a building for the lump sum of $3 million dollars.

  Compute npv and irr

1. Compute NPV and IRR for each project. 2. Rank the projects from 1 to 8 with 1 being the best project 3. Use the shaded green cells below for your computations and rankings

  Financial and nonfinancial information for operating people

How should the management accountant determinethe appropriate blend between financial and nonfinancial information for operating people?

  Provide an example of when reclassifying a long term

the current ratio measures the degree to which current assets cover current liabilities. a high ratio indicates a good

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!

Submit Assignment

Academics

Major Subjects

Majors

Get In Touch

whatsapp: +1-415-670-9521

Phone: +1-415-670-9521

Email: [email protected]

TERMS & POLICIES

HELP & SUPPORT

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