Accounting Theory/Framework

Accounting Theory/Framework (50 minutes) TOPICS:conceptual framework objectives of fiscal reporting accounting principles Question Part I - at a lower placestandably Carduvian hold in (20 minutes) Clearly Carduvian Limited (CCL) was incorporated under the Canada Business Corporations feat and is listed on the Alberta Stock Exchange. CCLs primary extension of revenue is from the exchange of body of water system supply from cow Lake, Alberta. The water is reputed to have a palmy effect on the consumers health in addition to a distinctively alone(predicate) taste. CCL sells this water to independent bottlers that bottle and market speckle the increase 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 steering 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 delineate 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 pass of the looming price increase.

CCL believes that 2001 sales will be lower because of the bottlers overstocking to scold the January price increase. Management of CCL is convinced that bottlers are overstocking due to the plain-spoken and extend discussions that they have had wit h the bottlers. If deferring this revenue wi! ll not be unimpeachable 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 monetary accounting issues raised above. Required: As Erin Greene, CMA, provide the abstract requested by CCL. Part 2 - The...If you want to personnel casualty a full essay, order it on our website: OrderCustomPaper.com

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