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.
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
Other People’s Words: The Cycle of Low Literacy by Victoria Purcell-Gates recounts the author’s two-year journey with an illiterate Appalachian family. Purcell-Gates works with Jenny, the mother, and her son, first grader Donny, to analyze the literacy within the household. Throughout the journey, we learn the definition and types of literacy, the influences of society and the environment, and the impacts of literacy on education from the teacher’s perspective. In order to evaluate literacy in the household, one must study multiple types, including functional, informational, and critical literacy. As the name implies, functional literacy incorporates reading and writing as tools for everyday survival. Informational literacy is used through text to communicate information to others. The highest level of literacy, critical literacy, requires critical interpretations and imaginative reflections of text. In her study, Purcell-Gates strives to teach Jenny and Donny functional literacy.
Paragraph 5.7.10 a gain or loss on a financial asset measured at fair value through other comprehensive income in accordance with paragraph 4.1.2A should recognize in the other comprehensive income, except the impairment gains or losses and foreign exchange gains and losses until the financial asset is derecognized or reclassified. When the financial asset is derecognized the cumulative gain or loss previously recognized in another comprehensive income is reclassified from equity to profit or loss as a reclassification adjustment. If the financial asset is reclassified out of the fair value through other comprehensive income measurement category, the entity should account for the cumulative gain or loss that was previously recognized in other comprehensive
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.
The amendments in this Accounting Standards Update improve financial reporting by eliminating the exceptions for qualifying special-purpose entities from the consolidation guidance and the exception that permitted sale accounting for certain mortgage securitizations when a transferor has not surrendered control over the transferred financial assets. In addition, the amendments require enhanced disclosures about the risks that a transferor continues to be exposed to because of its continuing involvement in transferred financial assets. Comparability and consistency in accounting for transferred financial assets will also be improved through clarifications of the requirements for isolation and limitations on portions of financial assets that are eligible for sale accounting.
Chang, S. Suk, D. Failed takeovers, methods of payment, and bidder returns, Financial Review. 33 (2), May 1998.
To help accounting professionals easily navigate through 50-plus years of unorganized US generally accepted accounting principles (GAAP) and standards the Trustees of the Financial Accounting Foundation approved the Financial Accounting Standards Board (FASB) Accounting Standards Codification (Codification.) By codifying authoritative US GAAP, FASB will provide users with real-time and accurate information in one location. Concurrently, FASB developed the FASB Codification Research System; a web-based system allowing registered users to electronically research accounting issues. Since 2009, the codification became the single source of nongovernmental authoritative GAAP.
Francis Latanowich one of the sears several bankruptcy customers decided he wanted to reopen his case. Latanowich begged the court to reopen his case. In 1996 Judge Carol Kenner discharged Latanowich’s debt but Latanowich agreed to repay sears 1, 161 he owed for a tv, car battery, and other goods. Latanowich received a letter that said he was at risk of losing his possessions if he didn’t continue to keep his credit card open.
Racial politics in America have developed around the “American Dream,” a concept which has polarized racial discussions as White versus Black, as a juxtaposition between the haves and have-nots. In “Letter to My Son,” an excerpt from Between the World and Me published in Atlantic Monthly on July 4, 2015, Black activist and educator Te-Nehisi Coates warns his son of the complexity of being Black in America, and illustrates the purposeful inaccessibility of the “Dream” to Black Americans by imparting anecdotal wisdom, summarizing historical context, and referencing current events. While Coates is addressing his son, publishing the letter to a wider audience allows others, especially White Americans, to observe an intimate conversation that many
We will follow proper accounting and disclosure practices. All record keeping and financial statements will be prepared according to GAAP standards and reviewed by an independent
The article "Dear Dads: Save Your Sons" by Christopher Bacorn, published in Newsweek on December 6, 1992. To try and sum up this article, it begins by telling a sad story about a mother bringing her out of control son to Christopher Bacorn after charges had been filed and counseling was recommended. The father had left the family four years before. Since that time the son had become uncontrollable. Mr. Bacorn listened to the mother's story and discovered that there are no men in her life. He believes that what is most necessary is a relationship between a man and the young boy and that a boy doesn’t need a mentor in his life he only needs a more experienced friend which should be in this case his father .He reflects that in today’s world
Analyse the relationship between the mother and her son in The Son's. Veto by Thomas Hardy showing how their behaviour and attitudes were. affected by the society. "The Son's Veto" is a short story that focuses on a woman, Sophy, who is torn between two conflicting social classes. Sophy is an uneducated parlour maid who marries a man above her class to secure her future. The son that is the outcome of the marriage is arrogant and self - centred.
Furthermore, the new entity had a solid capital structure with 40% equity and also 43.3% subordinated debt
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.