{"id":29222,"date":"2024-07-04T20:38:03","date_gmt":"2024-07-04T20:38:03","guid":{"rendered":"https:\/\/www.writemyessays.app\/blog\/questions\/back-to-the-future-or-how-a-product-sold-almost-60-years-ago-resulted-in-a-current-financial-statement-restatement\/"},"modified":"2024-07-04T20:38:03","modified_gmt":"2024-07-04T20:38:03","slug":"back-to-the-future-or-how-a-product-sold-almost-60-years-ago-resulted-in-a-current-financial-statement-restatement","status":"publish","type":"questions","link":"https:\/\/www.writemyessays.app\/blog\/questions\/back-to-the-future-or-how-a-product-sold-almost-60-years-ago-resulted-in-a-current-financial-statement-restatement\/","title":{"rendered":"Back to the Future” (Or How a Product, Sold Almost 60 Years Ago, Resulted in a Current Financial Statement Restatement)"},"content":{"rendered":"
<\/div>\n
\n

This an assignment for 8 pages in a word document and an excel
\ndocument<\/b><\/p>\n

 <\/p>\n

Back to the Future” (Or How a Product, Sold Almost 60
\nYears Ago, Resulted in a Current Financial Statement Restatement)<\/p>\n

Read the following Case Study:<\/p>\n

 <\/p>\n

Franz, D. R. (2018). \u201cBack to the future\u201d (or how a product
\nlast sold almost 60 years ago resulted in a current financial statement
\nrestatement)Links to an external site.. Issues in Accounting Education, 33(2),
\n9\u201317.<\/p>\n

 <\/p>\n

Answer the following questions:<\/p>\n

 <\/p>\n

In preparing your answers for questions 1 to 4, you will
\nneed to refer to OI\u2019s amended 10-K for 2015, which can be found by clicking
\nhereLinks to an external site..<\/p>\n

 <\/p>\n

Website for amended 10-K for 2015:<\/b> https:\/\/www.sec.gov\/Archives\/edgar\/data\/812074\/000155837016005950\/oi-20151231x10ka.htm<\/p>\n

 <\/p>\n

What journal entry would OI have made to record the
\nadditional $295 million of asbestos liability?<\/p>\n

Briefly summarize the effect of the restatement on the
\nfollowing financial statements.<\/p>\n

The income statement.<\/p>\n

The balance sheet.<\/p>\n

The statement of cash flows.<\/p>\n

The statement of share owners\u2019 equity.<\/p>\n

What accounts were affected? By how much? What other
\ndisclosures were impacted? Note 1 in the restated 2015 10-K describes the
\nchanges.   <\/span><\/p>\n

Explain why OI\u2019s treatment resulted in an increase to the
\nearnings for 2015, 2014, and 2013.<\/p>\n

Based on OI\u2019s disclosures in the 10-K prior to restatement,
\nwas it clear that the firm was using a three-year period to estimate asbestos
\nlitigation? Be sure to explain your response.<\/p>\n

The discussion between the SEC and OI was extensive and
\ninteresting. Appendix A shows all of the correspondence between the two and
\nincludes web links to the letters. The following questions are based on those
\nletters and the information in the case.<\/p>\n

Briefly summarize OI\u2019s justification of its treatment of the
\nunasserted asbestos liability. What are the pros and cons of OI\u2019s original
\ntreatment of the asbestos liability?<\/p>\n

Briefly summarize the SEC\u2019s position regarding the treatment
\nof the unasserted asbestos liability. What are the pros and cons of the SEC\u2019s
\napproach?<\/p>\n

Which approach do you find preferable and why? You can
\nchoose either OI or the SEC, but your analysis needs to be based on something
\nother than the fact that the SEC prevailed or OI did not.<\/p>\n

How is OI\u2019s experience with asbestos litigation similar to
\nGarlock\u2019s? How is it different?<\/p>\n

Approaching this issue as a member of OI\u2019s executive
\nmanagement group, describe how your approach to asbestos litigation would be
\nsimilar to or different from OI\u2019s.<\/p>\n

 <\/p>\n

 <\/p>\n

You must submit an Excel file as a separate file
\nsupporting your submission.<\/b><\/p>\n

 <\/p>\n<\/div>\n","protected":false},"excerpt":{"rendered":"

This an assignment for 8 pages in a word document and an excel document   Back to the Future” (Or How a Product, Sold Almost 60 Years Ago, Resulted in a Current Financial Statement Restatement) Read the following Case Study:   Franz, D. R. (2018). \u201cBack to the future\u201d (or how a product last sold […]<\/p>\n","protected":false},"author":2,"featured_media":0,"comment_status":"open","ping_status":"closed","template":"","meta":[],"disciplines":[44],"paper_types":[],"tagged":[],"aioseo_notices":[],"_links":{"self":[{"href":"https:\/\/www.writemyessays.app\/blog\/wp-json\/wp\/v2\/questions\/29222"}],"collection":[{"href":"https:\/\/www.writemyessays.app\/blog\/wp-json\/wp\/v2\/questions"}],"about":[{"href":"https:\/\/www.writemyessays.app\/blog\/wp-json\/wp\/v2\/types\/questions"}],"author":[{"embeddable":true,"href":"https:\/\/www.writemyessays.app\/blog\/wp-json\/wp\/v2\/users\/2"}],"replies":[{"embeddable":true,"href":"https:\/\/www.writemyessays.app\/blog\/wp-json\/wp\/v2\/comments?post=29222"}],"version-history":[{"count":0,"href":"https:\/\/www.writemyessays.app\/blog\/wp-json\/wp\/v2\/questions\/29222\/revisions"}],"wp:attachment":[{"href":"https:\/\/www.writemyessays.app\/blog\/wp-json\/wp\/v2\/media?parent=29222"}],"wp:term":[{"taxonomy":"disciplines","embeddable":true,"href":"https:\/\/www.writemyessays.app\/blog\/wp-json\/wp\/v2\/disciplines?post=29222"},{"taxonomy":"paper_types","embeddable":true,"href":"https:\/\/www.writemyessays.app\/blog\/wp-json\/wp\/v2\/paper_types?post=29222"},{"taxonomy":"tagged","embeddable":true,"href":"https:\/\/www.writemyessays.app\/blog\/wp-json\/wp\/v2\/tagged?post=29222"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}