Accounting Theory/Framework

Accounting Theory/Framework (50 minutes) TOPICS:conceptual framework objectives of pecuniary reporting accounting principles Question Part I - clearly Carduvian hold in (20 minutes) Clearly Carduvian Limited (CCL) was incorporated to a lower place the Canada Business Corporations feat and is listed on the Alberta Stock Exchange. CCLs primary line of descent of revenue is from the exchange of urine system supply from buffalo Lake, Alberta. The water is reputed to have a palmy effect on the consumers health in addition to a distinctively unparalleled taste. CCL sells this water to independent bottlers that bottle and market speckle the crossing across Canada. These independent bottlers buy their product merely from CCL. In the past, CCL has recognized revenue at the point when the water is shipped to these bottlers. On November 29, 2000, one month prior to the fiscal course of teaching end, CCL announced that the price of its water would increase commencing in the advanced year. As a firmness, the bottlers made very heavy purchases of water in the month of December 2000. Historically, December sales define only 3% of yearly sales, but this year they mushroomed to all over 25% of yearly sales. CCL would like to defer the profit on what they consider to be excess sales generated as the entrust of the looming price increase.

CCL believes that 2001 sales will be lower because of the bottlers overstocking to soap the January price increase. Management of CCL is convinced that bottlers are overstocking due to the plain-spoken and aerofoil discussions that they have had with the bottlers. If deferring this revenu! e will not be pleasurable to the companys auditors, management would prefer to treat these excess sales as consignment sales, with the recognition of revenue taking place in 2001 or when the bottler eventually sells this product. CCL has approached you, Erin Greene, CMA, to provide an depth psychology of the fiscal accounting issues raised above. Required: As Erin Greene, CMA, provide the analytic thinking requested by CCL. Part 2 - The...If you want to electrical outlet a full essay, order it on our website: BestEssayCheap.com

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