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Financial Reporting Case analysis
Finance & Accounting
Pages 4 (1004 words)
Name Professor Course Date FINANCIAL REPORT Accounting Issues Central to the Case Philadelphia Communications Inc.’s case is quite clear in the way it exists. From the information provided both by the prior year’s records and Mr. Sigar, several deductions can be drawn and expounded upon with an aim at their solutions…
The Generally Accepted Accounting Principles (GAAP) also play a major role in the solving of the issues at hand (Epstein and Nach 77). The case involving Philadelphia Communications Inc. first of all presents the issue of disclosures before, during and after an Initial Public Offer. Since Philly had just recently completed an IPO, the SEC, FASB and IFRS requirements require certain disclosures concerning this process. Another issue arising out of Philly’s case is the testing and verification of receivables to the company. These too require certain considerations under the SEC, FASB and IFRS provisions. Revenue recognition needs to receive keen focus at this stage. The fact that the receivable support provided by the client does not specify interest or payment terms for the notes receivable from several of the company’s chief executive officer’s cousins is another issue of great concern. The bodies stated above, namely the SEC, FASB and the IFRS have provisions and requirements for these kinds of transactions and thus need to be followed (Shamrock 11). The family members, being considered related parties, need to have more disclosures besides those stated above. The family, though only actively represented by Mr. ...
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