Advanced Accounting 12th Edition by Joe Ben Hoyle,Thomas Schaefer , Timothy Doupnik

Exercise 1

An investment analyst has been studying the long-term prospects of Six Flags Entertainment Corporation and has asked for your assistance. Go to www.sixflags.com and click on "Investors" on the top of the page. Then, click on "Annual Reports" on the left side of the next page. Finally, click on "2012 Annual Report." Scroll down until you find the company's financial statements and look them over carefully. Focus on Note 1, "Chapter 11 Reorganization," and especially parts (a) "Plan of Reorganization" and (b) "Fresh Start Accounting and the Effects of the Plan."
Required
Write a memo to summarize the information found in this note and the impact on the financial statements of applying fresh start accounting.