The following is the complete set of financial statements prepared by Oberlin Corporation: Notes to Financial Statements
Question:
Notes to Financial Statements
1. Goodwill is not being reviewed for impairment. The goodwill was acquired in 2007.
2. The amount, Due to Grant, Inc., is contingent upon the outcome of a lawsuit, which is currently pending. The amount of loss, if any, is not expected to exceed $300,000.
Required
Identify and explain the deficiencies in the presentation of Oberlins financial statements. There are no arithmetic errors in the statements. Organize your answer as follows:
1. Deficiencies in the statement of earnings and retained earnings
2. Deficiencies in the statement of financial position
3. General comments
If an item appears on both statements, identify the deficiencies for each statementseparately.
Goodwill is an important concept and terminology in accounting which means good reputation. The word goodwill is used at various places in accounting but it is recognized only at the time of a business combination. There are generally two types of... Financial Statements
Financial statements are the standardized formats to present the financial information related to a business or an organization for its users. Financial statements contain the historical information as well as current period’s financial...
Step by Step Answer:
Intermediate Accounting
ISBN: 978-0324300987
10th Edition
Authors: Loren A Nikolai, D. Bazley and Jefferson P. Jones