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    Public Company LTD Is A Large Publicly Held Company With

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    Taimour Hassan
    Public Company Ltd is a large publicly traded company that earns $300 million per year before taxes. It spent $45 million this year to provide basic literacy training to employees to allow them to use new automated equipment. Management proposes capitalizing the $45 million and amortizing it over 15 years, but the external auditor must determine if this is appropriate accounting or if the costs should be expensed instead.

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    Public Company LTD Is A Large Publicly Held Company With

    Uploaded by

    Taimour Hassan
    12 views1 page
    Public Company Ltd is a large publicly traded company that earns $300 million per year before taxes. It spent $45 million this year to provide basic literacy training to employees to allow them to use new automated equipment. Management proposes capitalizing the $45 million and amortizing it over 15 years, but the external auditor must determine if this is appropriate accounting or if the costs should be expensed instead.

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    Public Company Ltd is a Large Publicly Held Company With

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    Public Company Ltd is a large publicly traded company that earns $300 million per year before taxes. It spent $45 million this year to provide basic literacy training to employees to allow them to use new automated equipment. Management proposes capitalizing the $45 million and amortizing it over 15 years, but the external auditor must determine if this is appropriate accounting or if the costs should be expensed instead.

    Copyright:

    © All Rights Reserved
    Download as PDF, TXT or read online from Scribd
    Download as pdf or txt
    12 views1 page

    Public Company LTD Is A Large Publicly Held Company With

    Uploaded by

    Taimour Hassan
    Public Company Ltd is a large publicly traded company that earns $300 million per year before taxes. It spent $45 million this year to provide basic literacy training to employees to allow them to use new automated equipment. Management proposes capitalizing the $45 million and amortizing it over 15 years, but the external auditor must determine if this is appropriate accounting or if the costs should be expensed instead.

    Copyright:

    © All Rights Reserved
    Download as PDF, TXT or read online from Scribd
    Download as pdf or txt
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    Public Company Ltd is a large publicly held company with

    #3886
    Public Company Ltd. is a large, publicly held company with shares actively traded on the
    Toronto Stock Exchange and that has earnings before tax of S300 million per year.Public
    Company has spent $45 million in the current year to improve basic literacy skills of its
    employees (i.e., reading, writing, and arithmetic) to allow the introduction of high- tech,
    computerized, automated equipment. Without this training, efficient and effective
    implementation of the new production process is unlikely to occur. Management of Public
    Company proposes that the entire amount be capitalized and amortized over the next 15 years
    (the estimated average remaining working life of the trained workers).The partner in charge of
    Public Company’s external audit has approached you to prepare a memo for her on this matter.
    The memo should identify and discuss important theoretical and practical issues that might
    influence her, as the external auditor, as to whether she is prepared to accept Public
    Company’s proposal as appropriate accounting for this S45-million expenditure. If she rejects
    the proposal, the alternative is to expense the training costs.Required:Identify important
    concepts, principles, and ideas that you should incoqxirate into your memo.View Solution:
    Public Company Ltd is a large publicly held company with

    ANSWER
    http://paperinstant.com/downloads/public-company-ltd-is-a-large-publicly-held-company-with/

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