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Full Download Intermediate Accounting Volume 2 7th Edition Beechy Solutions Manual
Full Download Intermediate Accounting Volume 2 7th Edition Beechy Solutions Manual
https://testbankfan.com/download/intermediate-accounting-volume-2-7th-edition-beec
hy-solutions-manual/
Case 12-1
Ski Incorporated
Overview
Ski Incorporated (SI) is a public company therefore you are using IFRS. The bank loan
has a minimum current ratio so you will need to be careful and watch for any impacts on
the ratio. You have had a tough year this year with a taxable loss so the bank financing is
critical to your operations. Management will be concerned with their bonus based on net
income but this will not be a concern this year with the taxable loss since there will not be
any bonus.
Issues
1. Taxable loss
2. Revenue recognition memberships
3. Revenue recognition guests
4. Special promotions
5. Coupons
6. Dealer Loan
7. Lawsuit
8. Lease
9. Gasoline storage tanks
1. Taxable loss
SI had a taxable loss of $400,000 in 20X5. Since this is the first ever taxable loss the loss
would be carried back for up to three years to recover past taxes paid at the tax rates in
those years. Usually you would want to go back three years first so that if you incur
another loss next year you can still go back to the other two years if there is taxable
income remaining. This will result in an income tax receivable which will increase
current assets and have a positive impact on your current ratio.
Language: English
Another time, being disturbed in his sleep, the factor finds that in
an adjoining room,—
Soon quarreling over their cards, the planters’ wives fall into
abuse, and one says scornfully to the other:—