ACC 541 Week 4 Learning Team Response to Client Request II

1
ACC 541 Week 4 Learning Team Response to Client
Request II To purchase this material click below
link http//www.assignmentcloud.com/ACC-541/ACC-5
41-Week-4-Learning-Team-Response-to-Client-Request
-II Your client is being sued. You have asked
the clients lawyer about the possibility of
losing the lawsuit. The client, meanwhile, has
asked you to describe what would happen to his or
her financial statements. The client has also
informed you that by losing the lawsuit, he or
she anticipates losing the mortgage and has
started talking to a mortgage lender. The client
wants to know if part of the debt is forgiven, or
if the mortgage is rewritten, or if the mortgage
will be rewritten if he or she files Chapter
11.  The lawsuit also involves a patent held by
the company. The company had acquired a hedge
contract against the impairment of the patent.
Aside from the recovery of the hedge, the client
wants to know how the impairment of the patent
will be reflected on the financial statements in
the event of losing a lawsuit. 
2
Conduct research in FASB individually to answer
your clients questions. Write a 700- to
1,050-word memo as a team that is brief but fully
explores the issues. Include the following in
your memo           Report requirements for
contingencies and describe what would happen to
the financial statements if the client loses the
lawsuit.           Describe whether the clients
debt is forgiven if the mortgage is rewritten, or
if their mortgage will be written if they file
Chapter 11. How will the reporting on the
financial statement be determined?          
Describe how the impairment of the patent will be
reflected on the financial statements in the
event of losing a lawsuit.  Format your paper
consistent with APA guidelines. For more
classes visit www.assignmentcloud.com