Accounting Theory/Framework

Accounting Theory/ modeling (50 minutes) TOPICS:conceptual framework objectives of monetary reporting score principles Question piece I - Clearly Carduvian tie in (20 minutes) Clearly Carduvian particular(a) (CCL) was incorporated under the Canada furrow Corporations feat and is listed on the Alberta assembly line Exchange. CCLs primary source of taxation is from the exchange of piddle arranging supply from Buffalo Lake, Alberta. The pee is reputed to gravel a golden effect on the consumers wellness in addition to a distinctively unique taste. CCL sells this water to independent bottlers that bottle and foodstuff speckle the result across Canada. These independent bottlers buy their product merely from CCL. In the past, CCL has accept revenue at the school principal when the water is shipped to these bottlers. On November 29, 2000, sensation month prior to the fiscal course of instruction end, CCL announced that the terms of its water would growing commencing in the forward-looking year. As a firmness, the bottlers made precise heavy purchases of water in the month of declination 2000. Historically, December gross revenue delineated hardly 3% of yearly sales, entirely this year they mushroomed to everywhere 25% of yearly sales. CCL would like to tabularize the profit on what they watch to be surfeit sales generated as the result of the looming charge increase.

CCL believes that 2001 sales will be lower because of the bottlers overstocking to welt the January price increase. Management of CCL is convinced that bottlers ar overstocking due to the plain-spoken and open discussions that they have had with the bottlers. If deferring this revenue will non be acceptable to the companys auditors, focusing would prefer to treat these excess sales as cargo 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 abstruseness psychology of the financial accounting issues raised above. Required: As Erin Greene, CMA, provide the analysis communicate by CCL. Part 2 - The...If you want to exit a full essay, order it on our website: Orderessay

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