Intermediate accounting Essay Example | Topics and Well Written Essays - 750 words

Intermediate accounting - Essay ExampleThis is because the problems with outlaststock mart are seasonal worker and past experience and solutions largely serve as guiding principles for present and even the foreseeable future(a) anomalies.Three Little Pigs Inc. is a public entity with three types of inventories viz. live hogs ready for sale, developing animals, and impact pork products consisting of loins, ham and bacon. The Company maintains live hogs and process plants at various locations. Also, there are live hogs in some locations which cannot be easily transported and processed at the Companys main processing plants, and, as a result, these live hogs have to be sold to thirdly parties at spot market prices.The current problem the prudence is facing is the result of spot market prices for live hogs that have diminutiond. The causes mentioned for the decline are not specific except the capture of the Big Bad Wolf. Whatever the reasons, they are potent enough to bring about a decline in prices due to surplus production. However, the management take by its CEO, Farmer Joe, is confident of a turnaround during the third and fourth quarters of the year with a specifically good projection for the last quarter. The management is also positive that the intact revenues for the pork products and total revenues for sale of live hogs to third parties, based on current spot prices, will be social enough to offset losses incurred due to price decline in the second quarter.Due to the swag in the second quarter, the management is of the view that there may be lower of cost or market issues involved in the Companys inventory of live hogs and developing animals held for sale to third parties as on September 30, 2002. Thus, the urge to go for evil evaluation is present. (Lower of Cost or Market)However, management must be cautious in acting upon impairment evaluation although expert opinion of impairment evaluators can help increase