The Following Event Occurred After the Company's Year-End but Before

question 132

Essay

The following event occurred after the company's year-end but before the completion of the audit. For this subsequent event, determine whether the event:
•requires an adjustment to the year-end financial statements,
•requires note disclosure, or
•requires neither adjustment to recognized amounts nor disclosure.
New technology makes a major capital asset redundant or causes it to lose significant fair market and salvage value. (Justify your recommendation).

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Definitions:

Gestational-age Infants

Infants categorized based on their age in weeks since the beginning of the mother's last menstrual period, used in assessing preterm or full-term birth status.

Congenital Abnormalities

Birth defects or disorders that are present from birth, which can result from genetic or environmental factors.