Acct. 551 Final Project Essay

1056 Words5 Pages
Melissa Bedwell
Final Course Project

Disclaimer: The following notes are based on a fictitious company and the numbers have no bearing on any real data.
Note 1: Significant Accounting Polices
The financial statements of ABC Company have been prepared in agreement with current accounting rules and regulations, and are compliant under GAAP. ABC Company is a parent company, and all reporting rules and regulations have been adhered to in the reporting of ABC Company's subsidiaries. ABC Company and all subsidiaries use the same accounting methods. Individual columns that do not total within the financial statements and related data are due to differences in rounding.
Note 2: Inventory
The ABC Company values its inventory at
…show more content…
The estimates of ABC Company and all subsidiaries are thoroughly analyzed before their respective inclusion on the financial statement. If conditions warrant a change in accounting principle, the events surrounding the change are disclosed, and the effects of the changes in accounting principles are also disclosed. Although these instances are infrequent, full disclosure is practiced when they do occur. Our main areas of accounting estimates include estimates for intangible assets and trade receivables.
Note 6: Post Balance Sheet Events
ABC Company includes post-balance sheet events in our notes. All contingencies or events that occur after the balance sheet date can have a material impact on our operating results, including the operating results of our subsidiaries. All events are fully disclosed. The potential impact of the event is also disclosed, along with the estimate of how significantly the event may impact our financial position.
Note 7: Mergers and Acquisitions
Effective as of May 1, 2012, ABC Company merged with XYZ Company through a stock-for-stock merger exchange. As a result of the merger, 2 million shares of company stock were issued for each share of XYZ Company outstanding stock. The merged company will retain the name of ABC Company. The merger was the direct result of ABC Company's strategic seven-year plan to expand operations by merging with smaller

More about Acct. 551 Final Project Essay

Get Access