Reference no: EM13994231
In the March 2012 meeting of Valleck Corporation's board of directors, a question arose as to the way a possible obligation should be disclosed in the forthcoming financial statements for the year ended December 31. A veteran board member brought to the meeting a draft of a disclosure note that had been prepared by the controller's office for inclusion in the annual report. Here is the note:
On May 9, 2011, the United States Environmental Protection Agency (EPA) issued a Notice of Violation (NOV) to Valleck alleging violations of the Clean Air Act. Subsequently, in June 2011, the EPA commenced a civil action with respect to the foregoing violation seeking civil penalties of approximately $853,000. The EPA alleges that Valleck exceeded applicable volatile organic substance emission limits. The Company estimates that the cost to achieve compliance will be $190,000; in addition the Company expects to settle the EPA lawsuit for a civil penalty of $205,000 which will be paid in 2014.
"Where did we get the $205,000 figure?" he asked. On being informed that this is the amount negotiated last month by company attorneys with the EPA, the director inquires, "Aren't we supposed to report a liability for that in addition to the note?"
Required:
Explain whether Valleck should report a liability in addition to the note. Why or why not? For full disclosure, should anything be added to the disclosure note itself?
|
What did you like or dislike about the dance
: In the dances you chose, please relate the class assignments given to you in class such as unison phrases, storytelling, manipulation, partner work, repetition etc... to the work performed on stage. What did you like or dislike about the dance
|
|
Implement methods in bayesian time series modelling
: Implement methods in Bayesian time series modelling - Write up methods and results sections in a format that is suitable for publication,
|
|
How fast must the muons be traveling relative to earth
: Scientists have observed the average lifetime of these rapidly moving particles to be about 10 times longer than what it would be for muons in the laboratory reference frame. Approximately how fast must the muons be traveling relative to Earth?
|
|
Indicate whether each of the following financial measurement
: Ford Motor Company uses LIFO to account for all of its domestic inventories. A note to the company's financial statements indicated that: If the FIFO method had been used instead of the LIFO method, inventories would have been higher by over a billio..
|
|
Should anything be added to the disclosure note itself
: Explain whether Valleck should report a liability in addition to the note. Why or why not? For full disclosure, should anything be added to the disclosure note itself?
|
|
Describe the sdlc stages and the steps
: A detailed explanation of the security measures you would incorporate into each stage of the SDLC in order to ensure security best practices are followed all along the life cycle of the project
|
|
What is the mass of the car in kg
: At a college homecoming 18 students lifted a sports car. Each student exerted 400N of upward force on the car. What is the mass of the car in kg? What is its weight in lbs?
|
|
What is the cost to heat the garage for six hours
: On a cold winter day, the outside temperature is -5.0 °C. What is the cost to heat the garage for six hours at these temperatures if the cost of electricity is $ 0.11/kWh?
|
|
Compute the variable overhead rate and efficiency variances
: Labs, Inc., produces various chemical compounds for industrial use. One compound, called Fludex, is prepared using an elaborate distilling process. Compute the variable overhead rate and efficiency variances. What relation can you see between this ef..
|