Memo on Earthquake - Essay Example

Only on StudentShare

Extract of sample
Memo on Earthquake

Option #1 is to report it as an extraordinary loss separate from operations. And Option #2 is to report the loss in a continuing operation but treat it as a separate part in the income statement. These two options would require proper disclosure in our footnotes of the event. The reporting of extraordinary items (losses) has an advantage, that is, they are not included under normal operating income which will be construed by stakeholders and creditors as items that will not happen in the foreseeable future. Hence, the event’s effects on net income are not in any way reflects the true status of the business operation since it is not a recurring event. According to Financial Accounting Standards Board (FASB) Accounting Standards Codification (ASC) 225-20-45-2 “extraordinary items are events and transactions that are distinguished by their unusual and by infrequency of their occurrence. Thus, both of the following criteria should be met to classify an event or transaction as an extraordinary item”. CHHS has to decide whether the earthquake meets both criteria. ...Show more


Date: To: INTRUSCTOR’S NAME Chief Financial Officer (CFO) Carter Hawley Hale Stores (CHHS) Inc. From: Your Name Controller CHHS Re: Recommended Reporting of the Losses Suffered from the Earthquake on the Income Statement On October 17, 1989, a Richter scale earthquake caused significant amounts of monetary damage to the San Francisco Bay area…
Author : zwelch
Save Your Time for More Important Things
Let us write or edit the essay on your topic
"Memo on Earthquake"
with a personal 20% discount.
Grab the best paper

Related Essays

PR Communication Memo
The resigning CFO had been serving the company for five years and his services to the company are highly appreciated. He was a part of the company during the company’s major successes and his contributions to the achievements of the company would always be appreciated.
3 pages (750 words) Essay
Executive Memo on Accounting for Pensions and Elimination of Segments
There are four (4) categories identified in this standard: short – term employee benefits, post – employment benefits, other long – term employee benefits and termination benefits. This memo describes the required reporting for post – employment benefits, which include pensions and other post – employment benefits.
3 pages (750 words) Essay
Risk Assessment and Return Memo
In order to create portfolio, my most important priority has been to select four stocks after analyzing the risks and return of each of the stock. This would allow me to diversify the portfolio and make sure that the portfolio the risk is minimized and returns are maximized.
5 pages (1250 words) Essay
Reporting Requirements Memo
The first project is about examination and engagement work for a small county hospital and the other for a private not-for-profit nursing home. This memo consists of the required information that will help our firm in the bidding process. At the beginning of this memo there is an analysis of accounting reporting requirements for private non-for-profit nursing homes under Financial Accounting Standard board.
5 pages (1250 words) Essay
This shall provide an overview of the type of business ownership they will opt for, the kind of accounting information system they will select, the set of individuals for whom their financial statements shall be important and lastly the constraints to which they will be subjected to in case of financial reporting.
3 pages (750 words) Case Study
Tax Researh memo (Corporate Formation and Basis Calculation!)
The corporation will develop, manufacture and distribute radar detectors. Acme, Inc. will require a land, a building, equipment, legal services and know-how to create software that will mass produce the road runner trap. Barry Brown decides to contribute the land and the building, with the land having a basis of $60,000 and an FMV of $80,000, and the building having a basis of $90,000 and an FMV of $200,000.
5 pages (1250 words) Research Paper
Starbucks's finacial analysis
The cost incurred by the company for raising equity is in the form of allocation of profits by the company to its shareholders and in the form of dividend payments to the equity-holders (Pratt, 2003). The cost of equity is calculated is calculated
3 pages (750 words) Essay
It even depicts the strategic options that the organization is going to pursue out of the several options in order to attain success in future. These strategic options range from diversification
1 pages (250 words) Essay
Find out how much would it cost
to get a custom paper written by a pro under your requirements!
Win a special DISCOUNT!
Put in your e-mail and click the button with your lucky finger
Your email