ACC 703 Lecture : Week 9 PCA & Notes.docx
3 Dec 2012
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Document Summary
9% of entell, choice of ifrs 9 of ias 39. Going concern issues reflected in share price. Lorne: prospective treatment of change from cost to equity: use facts given to support recommendations. *ditch solution manual with regards to joint ventures: not relevant anymore. What is 16% charge: arbitration report should conclude recommendation to clarify agreement or provide written addendum. Need to clarify intent to ensure internally consistent reasoning. Is purpose of agreement to measure not income of tropical for distribution to citrus and. Bottle: reach a conclusion: reimbursement of expenses is intent. Base analysis of acct policies using reference to jv agreement, not necessarily gaap. Any financial statements can be adjusted, but agreement is to be followed. Bottle must disburse cash every two years. Other issues with recommendations (2) interest on machinery purchase: need to clarify intent of 16% charge and if is an interest charge, reject interest expense as it reflects double charge.
