Northern Switching Ltd NSL is a manufacturer of digital switching
Northern Switching Ltd. (NSL) is a manufacturer of digital switching equipment and systems. The company has total assets of approximately $ 784 mil-lion. Each of the following events occurred after the end of NSL’s 20X8 fiscal year, but before the statements had been finalized:
a. NSL finalized an agreement to sell a major production facility to Cascade Cable Corporation for approximately $ 84 million cash. The sale includes buildings of approximately one million square feet, fixtures, equipment, and 63 acres of land. The property has an amortized cost of $ 56 million on NSL’s draft 20X8 SFP.
b. NSL reached agreement with an international banking corporation for credit support for up to $ 46 million of new sales to customers abroad.
c. The company has a U. S. subsidiary. NSL (i. e., the parent company) signed a repayment guarantee on a $ 100 million line of credit that Citibank issued to the subsidiary.
d. Marketable securities held by NSL at 20X8 year- end, reported on the year- end draft SFP at their market value of $ 27 million, were sold for $ 23 million.
e. The CEO of Crisco Corporation, NSL’s major competitor, accused a senior NSL executive of improperly accessing confidential information via an employee- only portal on Crisco’s website and using that information for competitive advantage. Crisco said that the company will file a lawsuit to recover $ 76 million in damages. NSL vehemently denies the allegation.

Discuss what disclosure, if any, NSL should give to each of these events in its 20X8 financial statements.

Membership TRY NOW
  • Access to 800,000+ Textbook Solutions
  • Ask any question from 24/7 available
  • Live Video Consultation with Tutors
  • 50,000+ Answers by Tutors
Relevant Tutors available to help