TY - GEN
T1 - THE CASE OF THE SECURITIES AND EXCHANGE COMMISSION COMMENT LETTER
AU - Chyz, James
AU - Khanlarian, Cynthia J
AU - McCoy, Nicole R
PY - 2020
Y1 - 2020
N2 - John graduated with an accounting degree and started work at ACK Inc., a publicly owned corporation about six months ago. He helped the staff prepare the company's annual report that was submitted to the SEC at the end of the company’s fiscal year. They all celebrated when they finally finished by going out to eat. It was a big job and they all worked very hard. Now, three months later, the company's CEO just received a Comment Letter from the SEC. The SEC seems to think that the company changed its method of accounting for inventory, but John and the others know that the accounting method wasn't changed. They need to figure out what is going on.John started going through the report again. The company wrote that "We provide repair and maintenance services, including warranty repairs, for our customers' equipment. " But the SEC asked them, "We note your disclosure that work in process is valued at the retail rates of labor incurred and parts inventories used on service work in process at year end. Please tell us why your policy complies with ASC 330-10-30. John started reading his Accounting textbook to see if he could find the answer.
AB - John graduated with an accounting degree and started work at ACK Inc., a publicly owned corporation about six months ago. He helped the staff prepare the company's annual report that was submitted to the SEC at the end of the company’s fiscal year. They all celebrated when they finally finished by going out to eat. It was a big job and they all worked very hard. Now, three months later, the company's CEO just received a Comment Letter from the SEC. The SEC seems to think that the company changed its method of accounting for inventory, but John and the others know that the accounting method wasn't changed. They need to figure out what is going on.John started going through the report again. The company wrote that "We provide repair and maintenance services, including warranty repairs, for our customers' equipment. " But the SEC asked them, "We note your disclosure that work in process is valued at the retail rates of labor incurred and parts inventories used on service work in process at year end. Please tell us why your policy complies with ASC 330-10-30. John started reading his Accounting textbook to see if he could find the answer.
M3 - Conference contribution
BT - Unknown book
ER -