Timeline of this case should be clearly organized in order to better understanding this case. In 2009, Poor Son transferred Rich Grandson to Parent. In 2010, Poor Son filed a voluntary petition for reorganization under Chapter 11 of the US bankruptcy code, and Parent deconsolidated Poor Son from statements. In 2011, Poor Son filed an action against Parent seeking to void the transfer of Rich Grandson. In May 2012, the bankruptcy court held a selection meeting in which it considered competing plans of reorganization submitted by four bidders. In June 2012, OtherCo, an unrelated party, became the wining plan sponsor. In July 2012, OtherCo rescind its offer because the bad evonomic condition. In December 2014, the bankruptcy court recommended …show more content…
The value of Poor Son declined significantly since external economic conditions. It shows that the fair value of Poor Son, the emerging entity, should be way less than its book value, and the value of assets is less than the total of liabilities and claims. Additionally, Parent will receive 100% voting shares of Poor Son and have the ability to name all members of Poor Son’s board of directors. This means that existing voting shares receive less than 50% of the voting shares of the emerging entity. For that reasons, Poor Son should apply “Fresh-Start” under ASC 852-10-45-19. In addition, ASC 852-10-45-21 illu strated that “the effects of the adjustments on the reported amounts of individual assets and liabilities resulting from the adoption of fresh-start reporting and the effects of the forgiveness of debt shall be reflected in the predecessor entity 's final statement of operations”. Thus, with the fresh-start reporting, financial statements for both Parent and Pool Son will be affacted. 4. May Poor Son apply pushdown accounting in its standalone financial …show more content…
An acquiree shall make an election to apply pushdown accounting before the financial statements are issued (for a Securities and Exchange Commission (SEC) filer and a conduit bond obligor for conduit debt securities that are traded in a public market) or the financial statements are available to be issued (for all other entities) for the reporting period in which the change-in-control event occurred. If the acquiree elects the option to apply pushdown accounting, it must apply the accounting as of the acquisition
We started our research by reading through the discussions posted within the Topic of Research. From there we read the recommended pages of the text, 20-2, 20-3, and 20-4 regarding the liquidation process. Using the CCH Tax Research Network, we used a selected content search, Federal Tax--Federal Tax Editorial Content--Standard Federal Tax Reporter (2014), to research the following laws: Section 331(a), 336(a), and 6901(a). We also used the Citator in CCH to review the facts and decisions shown in the liquidation cases of Kennemer and Al Zuni of Arizona.
The company was taking the big risks of financial. Due to the firm was started winding down after collapse of the Bear Stearns hedge fund. The firm also had accumulated a very large commercial real estate portfolio. The CEO of the firm believed that it had sufficient funds to tackle the problems after borrow money from the federal reserved investment.
The Dread Scott decision exacerbated the debate over slavery by declaring that blacks cannot be citizens and that Congress does not have the power to prohibit slavery in the territories, which further divided the North and the South. The decision also deeply affected politics, and was one of the causes of the Civil War.
The company has a responsibility to establish and implement internal and external controls for proper accounting reporting. Target Corporation has done a good job of developing these controls and thus the accounting has been reliable and accurate. To assist in a audit of the company, it must establish substantive procedures that can follow up on the EPS accounting policy. A testing to confirm events and their occurrence would be helpful to ensure that the events and transactions have actually occurred and are recorded in the financial statements accordingly.
Adams Johnson’s Pulitzer Prize-winning book, The Orphan Master’s Son, amazingly depicts the disturbing lives of North Koreans and government horrors through its simplistic language with relatable characters. The Orphan Master’s Son takes place in North Korea and revolves around Jun Do, who is the son of an orphan master, but who receives the shame that Koreans place on orphans. Then he enters the military where he learns different fighting tactics and becomes a professional kidnapper for the North Koreans. For his reward, the government assigns Jun Do to a listening position on a fishing boat where he becomes a hero for fighting the Americans with a story that the fishing crew and he invented to keep from getting placed in a prison camp after to one of their crewmates defects. Jun Do then goes to Texas as a translator, where he learns about freedom and other cultures. When the mission fails the government sends him to a camp where Jun Do’s name and identity die.
Corporations that have become insolvent can try to avoid bankruptcy and receivership by reorganizing their finances. The Bankruptcy and Insolvency Act deals with reorganizations and another federal statute, the Companies' Creditors Arrangement Act, may offer relief to some corporations. Some of Canada's biggest news stories of the past few years have concerned the attempts of major Canadian
PROTECTIVE DAD My paper is called “Protective Dad”. I decided to use a Hyundai commercial featuring Kevin Hart as the main character. Kevin Hart is playing the role as the father in the commercial. His daughter’s boyfriend wants to take her on a date so Hart gives permission.
In Gwynne Dyer’s article “Anybody’s Son Will Do”, the conversion of civilians to killers is being explained in stages. This articles focuses more on male psychology and malleable people. The author’s belief is that people can be easily brainwashed if they are put in constant stress. To support this idea, the author gives examples of military training around the world which psychologically destroys individual values and loyalties and rebuilds them to make combat troops that will do exactly what has been ordered and defend his groups to the death.
With Detroit filing for bankruptcy public policy came into play the bankruptcy court had to take action.
Prior to the winding-up of an insolvent company, its creditors may individually enforce any measure available to them in order to obtain payment of the debt owed to them by such company. However, upon the opening of the winding-up proceedings these individual actions are replaced by a collective insolvency regime which attempts to ensure the rateable and equitable distribution of the assets of the insolvent company among its creditors. This distribution is known as pari passu distribution.
Furthermore, the new entity had a solid capital structure with 40% equity and also 43.3% subordinated debt
Financial Accounting Standards Board. (1985). Statement of Financial Accounting Standards No. 86. Norwalk. Retrieved April 7, 2014, from http://www.fasb.org/cs/BlobServer?blobkey=id&blobnocache=true&blobwhere=1175820922177&blobheader=application%2Fpdf&blobheadername2=Content-Length&blobheadername1=Content-Disposition&blobheadervalue2=189998&blobheadervalue1=filename%3Dfas86.pdf&blobcol=url
What is the difference between a. and a. The argument of the debt financing being a risky venture since the proposition was to pay out to a sinking fund does not make sense. Over the course of the next seven years, CCI had a historical growth. in revenue of 9%. This growth along with the $2M tax shelter would.
In Ta-Nehasi Coates’s “Letter to my Son”, Coates addresses the overwhelming inequalities between African American culture and Caucasian culture in America. The state of diversity and equity in society is grim for a period of time. Every race constitutes individuals. The more close-mindedness is perpetuated, the more likely the majority of society will fall back into racist tendencies and acceptance of ethnic presumptions. Coates knows the hardship black population endured that white population will never understand. Coates subvert conventional discourse about the idea of supremacy by indicating intellectual delegitimacy; white people are smarter and degeneralizing bodies; to unlock the painful truths of America. Giving it a deeper connotation to depict those who is
The success of a company is very dependent upon its financial accounting. In accounting there are numerous Regulatory bodies that govern the accounting world. These companies are extremely important to a company because they set the standards when it comes to the language and decision making of a company. These regulatory bodies can be structured as agencies, associations, commissions, and boards. Without companies like the Security and Exchange Commission (SEC), The Financial Accounting Standards Board (FASB), the Governmental Accounting Standards Board (GASB), Internal Accounting Standards Board (IASB), Internal Revenue Service (IRS), and other regulatory bodies a company could not make well informed decisions. In this paper the author will look at only four of them.