Fundamentals of Financial Accounting 4th Edition by Fred Phillips,Robert Libby,Patricia Libby

Exercise 75

Understanding the Characteristics of Useful Financial Information and the Financial Reporting Process
Atari Incorporated began with $250 and an idea for a video game named Pong, eventually becoming a $28 million enterprise. Over the years, Atari has been owned by a variety of companies, including Time-Warner , Hasbro , and, most recently, Infogrames (a public company in France). Infogrames made the following announcement:

Required:
1. To which of the four factors that enhance the usefulness of information, introduced in Chapter 1, is the company referring
TIP: Rather than look for key words in the announcement, read it for meaning.
2. On what SEC form would the change in year-end be reported
3. Since the 2003 fiscal period includes only nine months, will the debt-to-assets, asset turnover, and net profit margin ratios be meaningful in 2003 Explain your reasoning.