What is best course of action for great games moving forward

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Reference no: EM133337193

Assignment: Great Games have the following in their collection:

Current content	$1,049,782
Non current content	$1,286,417
Total:	$2,336,199
Gaming content	$350,430
Online Rental content	$1,985,769
Total:	$2,336,199

It's likely (by eighty percent) that future cash flows for Online Rental Content will be as follows (000's):

1	2	3	4
1,687,904	397,154	297,865	2,382,923

If competition increases, cash flows have a twenty percent change of being (000's):

1	2	3	4
1,350,323	317,723	238,292	1,906,338

Question: Discuss the accounting issue above using the following guideline:

1. Is this a matter of disclosure, recognition, measurement and/or presentation?

2. What are the implications of the matter described in Question 1? What effect will it have on Great Games's debt to equity and EPS?

3. What are the alternatives (if any) to the matter described in Question 1?

4. What is the best course of action for Great Games moving forward?

Reference no: EM133337193

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