MGAB02H3 Study Guide - Final Guide: Earnout, Financial Statement
6 Jan 2016
School
Department
Course
Professor
Document Summary
You are playing the role of a financial consultant. The battleford family has just received the financial statement for the year ended july 31, 2014 from the new owner. Since the final earnout calculation is based on the profits generated in the year ended july 31, 2014, the. They would like to see accurate and reliable financial report prepared by the new owner. It would seem that the battleford family will be a primary user and your goal will be to assist them to review the financial statement and come up with a fair earn out value. The proper reporting of profit will directly affect the results of the earnout calculation: issues/analysis/recommendation, expense recognition signing bonuses of star players. there are 2 options that can be considered in accounting for these costs the signing bonuses can either be expensed or capitalized.
