...Case 11-7: Food for Thought The Audit Committee of the Board of Directors of Allfoods Corporation: Allfoods Corp. acquired 80% of the outstanding common stock of Baked Beans Corp in a business combination on February 1, 2009. Allfoods paid $40 million in cash and issued two million shares of Allfoods common stock to the selling shareholders of Baked Beans. Allfoods stock options will replace all outstanding stock options granted to Baked Beans employees as required by the merger agreement. This transaction has been accounted for in accordance with ASC 805, Business Combinations. We have determined that consideration transferred amounts to $135 million, land and buildings should be recorded using the “in-use” valuation premise and intangible assets should be recorded at fair value. The following pronouncements have been used in making our decision: ASC 718, ASC 805-10-25-23, ASC 805-20-25-4, ASC 805-20-30-6, ASC 805-30-25, ASC 805-30-30-7, ASC 805-30-30-9, ASC 805-30-30-11, ASC 820-10-35-10, ASC-820-10-35-11. Consideration Transferred ASC 805-30-30-7 requires that an acquirer measure and recognize the fair value of the consideration transferred in a business combination as of the acquisition date. However, ASC 718 is applied to measure the share based payment awards. Consideration transferred may include cash, other tangible and intangible assets, business and subsidiary of acquirer, contingent consideration, equity instrument etc. Common Stock According...
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...Food for Thought Jason West English 215 Research and Writing December 4, 2014 Strayer University Dr. Loretta Samuel-Crosson I. Introduction The discussion about genetically modified organisms (GMO) is enormous and intense. GMOs do not require any scientific testing on humans to examine the safety, but society is told that these GOMs are safe for consumptions. Other countries have various beliefs. The main drawback is the excessive use of herbicides. Often, weeds can become resistant the GMOs, and more powerful chemicals may be required. Furthermore, plants that cannot be controlled through current measures could create a problem in the future. Significant issues arise when arguing against the use of GMO crops and the potential for environmental damage and human well-being. The United States Government should be more aggressively involved in restructuring federal laws forcing Biotech companies to test its products scientifically and label them accordingly? History Genetically Modified Food is the method by which genes segment are altered and transferred artificially from one organism to another. Genes, which are constructed of DNA, contain the order to which cells generate certain proteins; these proteins in turn form the foundation for maximum purpose of a cell. Therefore, it is central to understand what GMOs are. GMOs are well-defined organisms whose DNA has been altered in a non-natural technique. GMO...
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...Food for Thoughts 1. ASC 805-10-55-2 Business combination an acquirer might obtain control of an acquire in variety of ways, cash, cash equivalents, or assets. 4million-acquisition costs. ASC 805 – 30-25-5 The consideration the acquirer transfers in exchange for the acquire includes any asset or liability resulting from a contingent consideration arrangement. 20million- contingent consideration. ASC 805-30-30-11 The portion of the fair-value based measure of the replacement award that is part of the consideration transferred in echange for the acquire equals the portion of the acquire award that is attributable to precombination service. 5million precombination services. ASC 805-30-30-13 The portion that is attributed to postcombination sercive. 7million postcombination services. 40million + 70million = 110million + 20million = 130million + 5million = 135million consideration transferred. 2. ASC 820-10-35-12 fair value if the asset is determined based on the price that would be received in a current transaction to sell the asset assuming that the asset would be used with other assets as a group and that those assets would be available to market participants. In-Use Land 21million + building/machinery 7million = In-Use 28 million ASC 820-10-35-13 fair value of the asset is determined based on the price that would be received in a current transaction to sell the asset standalone basis. In Exchange Land to be used for residential subdivision 30million + auctioned...
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...E. AUDIT EVIDENCE 1. 2. 3. 4. 5. 6. The Use of Assertions by Auditor Audit Procedures The Audit of Specific Items Audit Sampling and Other means of Testing Computer-Assisted Audit Techniques Not-for-Profit Organisations The Use of Assertions by Auditor What are substantive procedures? Substantive procedures are tests to obtain audit evidence to detect material misstatements in the financial statements. Substantive procedures generally include analytical procedures and test of detail of transactions, account balances and disclosures. What are the assertions used by auditors? Hint: PROVE Presentation and disclosures (or Classification and understandability) Records completeness, accuracy, cut-off (correct accounting period) Obligation (or rights and obligation) Valuation and allocation Existence Audit Procedures What are some of the typical audit tests? Confirming compliance with law and accounting standards Reviewing notes for understandability Reviewing of post year-end items Cut-off testing Analytical review Confirmations Reconciliations to control accounts Recalculation of correct amounts Third party confirmation Reviewing invoices for proof that item belongs to the company Matching amounts to invoices Confirming accounting policy consistent and reasonable Reviewing post year-end payments and invoices Expert valuation Physical verification Inspection...
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...Question 1: The total consideration transferred by Allfoods in the acquisition of Baked Beans is $135 million. The considerations consisted of cash paid, stock issued, and the fair values of a contingent consideration and precombination services This final calculation was determined by reviewing FASB Accounting Standard Codification 805 “Business Combinations”. Authoritative Literature: The $40 million in cash transferred by Allfoods is included in the overall considerations according to ASC Section 805-20-30-1 “Measurement Principle. The Section states, “The acquirer shall measure the identifiable assets acquired, the liabilities assumed, and any noncontrolling interest in the acquiree at their acquisition-date fair values.” The second part of the consideration transferred was the two million shares of Allfoods common stock. When the business combination was announced, the share price of Allfoods was $30 and when Baked Beans was acquired, the share price was $35. In accordance with ASC Section 805-10-25-23 “Acquisition-Related Costs”, the price of the stock at the acquisition date is the amount that should be used in the calculation. Per Section 25-23, “The acquirer shall account for acquisition-related costs as expenses in the periods in which the costs are incurred and the services are received, with one exception. The costs to issue debt or equity securities shall be recognized in accordance with other applicable GAAP.” Since two million shares were issued at $35...
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...but affects our planet too. Back in 2008 Nestlé Canada released an ad stating that bottled water “is the most environmentally responsible consumer product in the world.” My question is, exactly how is destroying our planet to make a product that will be disposed of within 10 minutes of purchasing it environmentally responsible? Due to consumer demand in the US, 17 million barrels of oil are used to make the bottles that house the same water that comes flowing out of your tap at home. To put this into perspective 17 million barrels is capable of fuelling 1.3 million cars for one year. Another way to look at it is by envisioning that the same bottle you are drinking out of is filled a quarter of the way with oil. Now that mental image you thought of is how much oil was needed for that single bottle. And if that weren’t bad enough, the pollution involved in shipping this product around the planet has greatly contributed to our worldwide crisis! Does this really make sense? Not only is it the product leaving a huge ecological footprint in production but also in the end of its life cycle. As a global effort, society does a very poor job at preforming the basics of recycling. In which case it leaves about five in every six bottles sitting in landfills where they sit, out living you and your grandchildren. So where do the “recycled” plastic bottles go? This is a common question that is posed however, there are very few answers. Truthfully, shiploads are sent around the world, a majority...
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...American Dietary Issues: A Personal Responsibility? Throughout American history, American food has represented a big and controversial issue for its consumers. Consumers are getting warn out from diseases that food causes them. On the other hand, the intervention of the government seemed to symbolize a way to fix nutrition problems for some consumers, while for others, that intervention is unnecessary. The government’s influence may be seen in the dietary habits of Americans as consumers are affected by illnesses; however, the dietary habits are entirely the responsibility of the individuals who may be informed by stigmatization and the media. When it comes to diseases produced by eating habits, consumers, doctors, nutritionists, and government representatives are agree that “something” has to be done to end this...
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...In this article,” Food as Thought: Resisting the Moralization of Eating” by Mary Maxfield. There are a few things in order to lose weight, go on a diet, being healthy and also eating healthy. We continue to believe what is the right way or by being healthy in the way we view foods that involves eating less and more differently as we should by eating the right way. There are a few key things to understand in order to fulfill our basic needs such as, being able to differentiate between the good and bad cravings our body has, knowing what nutrition facts are showing that certain foods put into our bodies, and most importantly how to read and comprehend nutrition facts and how to live a healthy lifestyle. And although nutrition may seem of concern...
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...Food for Thought: Improving School Lunch Programs Clorissa Torres Lindsay Ludvigsen English 115 February 20, 2013 Schools across the nation have implemented a new breakfast & lunch program, to include healthier choices amongst children, adolescents and teens eating in their school cafeterias every day. The program was designed to allow the children attending school to receive healthy, low cost or free meals while fighting childhood obesity and hunger. The National School Lunch Program is a federally-assisted program implemented across the nation within public or non-profit private schools and day cares with children high school age & under. The program itself is costing 11.1 billion dollars to run in 2012-13 which is only 5.73 percent of the US budget. The money it is costing the US to run the program is allowing 32 million children a chance to have at least two whole meals a day, with a possible snack if they participate in a school-based after school programs. The USDA also provides the schools participating with federal cash and commodity support. The program entails that for each child who receives free lunch, the school will get $2.86 cents back, for each child who receives reduced lunch the school will get $2.46 cents back & for each child who pays for lunch the school will get $.70 cents back ; this also entails that for every snack a child receives free the school will receive $.78 cents, for every snack a child receives reduced the school...
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...living in the streets for a while with no food or anything. He decided that it would be a good idea to go back to his house with his father and older brother and ask if he could work as a servant for them so he could earn money and have a place to stay and food to eat. The first form of deception in this story was the one where Macbeth deceived Duncan. tTis message is made because the young boy thought that he would have enough money live off of and have enough money to party with and blow on strippers and so much more. He blew so much money on strippers that he did not have enough money to even have a place to live and money to get himself food. That is a huge message because the young boy thought that he was set for life, but yet he was wrong. The second example of deception in the...
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...Food Intake 3 Days Working with the Wiley PLUS iProfile has gotten better. At first it was not that much fun entering food was difficult. After working with the program it has gotten easier and I like working with it. And that is a big part of being able to use a tool like this. If you do not like it you will not use it. Reviewing the foods that I taken in over the three days the protein that I take in is mostly from Beef and chicken. But I am learning that there is protein in a lot of what I eat that I did not know about. Like in coffee, potato chips, salad, chocolate candy. This was shocking to me; my thought pattern was that all proteins are just from meat. Next I looked at carbohydrates witch I believed that they only came from bread. As I am learning that it comes from other things like salad, iced tea, jalapenos, and cheese. Looking for the lipid in my diet according to My Pyramid I have no intake of Oil. That is there is no present age of oil or it is under ten present. Which I thought that there would be a lot more oil in my food just in the cooking of the food. After reviewing my DRI I noticed that my carbohydrate intake is too low. I take in 182 g and it should be 311 – 449 g. To change this could add more whole grain breads and pastas because that would add carbohydrates and more fiber. My protein is also to low I get 47 g when I should be getting about 69 – 242 g. To get that up I am going to try and eat more turkey. And with the holidays...
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...women do the cooking, men go to the kitchen as a profession, and the most important the food industry confronted millions of American women and tried to refashion them in their own image. This caused Americans to think differently of their eating. She also says in this introduction that the 1950’s were not what you thought they were. The purpose of the author writing this book was to inform us that the 1950’s were not what we thought it was, and especially not the food industry....
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...It is about balancing between the thought. I feel that CBT can best compliment treating anorexia because it can help treat the negative self image one has for themselves. Talking about my own experience, I once suffered from anorexia. I would have this negative perception about myself and my body. This led me to exercise a lot and diet. I would go days without eating anything but only water and fruits. I was already underweight but still wouldn’t give up because I felt really bad about my body image. This went on for about a year till I finally realized that it needed to stop. Although I didn’t go for counselling or wasn’t introduced with cognitive behavioural therapy, I started having control over my thoughts and emotions. I altered my thoughts about my body image and then finally had the courage to stop the harm I was doing to myself physically as well as psychologically. This is why I strongly feel that CBT can be very useful in treating anorexia. An anorexic needs to change their misconception such as that they are fat or that their body defines them. For such change, CBT can be introduced as it helps in alternation of such...
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...impact on. Before, the role of CSR was not highly required or rather thought of, but consumers today are interested in companies, which are socially responsible. If companies loose sight of their consumer’s thoughts it will impact any potential of growth and hamper profitability leading it to cease in existence. This is why; CSR highlights corporate actions and business models related to social, environmental and economic facets within the world today. In regard to understanding CSR better and deeper we were asked to choose a company we could relate our readings and concepts from the Harvard Business Review by Porter & Kramer 2006 and by Zadek 2006. Initially I had trouble choosing a company as my interest in working is majorly in NGOs. I sought out to understand their CSR but after a couple of searching, I was made aware they mainly collaborate with corporate organizations to promote CSR. Such NGOs like Save the Children, ILO, UNDP all align themselves to create a guideline for companies to function with CSR in mind. So next I thought about considering a company that had built in values of CSR from the beginning- thinking understanding a company who had a ‘proactive’ approach to CSR would be interesting. For which, I have chosen ‘Whole Foods Market’, as the company to base my paper on. As stated in their 2012 Annual Report, Whole Foods Market is the world’s leading retailer of natural and organic foods and America’s first national “Certified Organic” grocer. The Company...
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...morning, 40,000 children will die from starvation. The day after tomorrow, 40,000 more children will die. Nearly 870 million people of the 7.1 billion people, or one in 8 people, in the world suffer from undernourishment. Almost all of the hungry people, 852 million, live in under developing countries while the other 15 million live in developed countries. World hunger has been and will continue to be an ongoing issue until ethical action will be taken. The world produces enough food for everyone, however, not many people have sufficient land to grow, or income to purchase enough food. But what is being done to minimize world hunger? There is a societal responsibility as well as a governmental responsibility that should be utilized in order to reduce this issue. However, neither category of people will take the time to realize how bad world hunger has really become. There are several ethical issues involved with the minimization of world hunger including those of the three theories of ethical thought: consequential, deontological, and humanist theories. I, also have my personal opinion about the actions or lack thereof, involved with this minimization. It's simple to ignore something you can't necessarily see. Understanding that there is world hunger is one thing, but taking action to minimize it is another. It is a population's responsibility as a whole to work together in order to make a difference in the world's hunger rate. This includes society's responsibility and the...
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