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Auditing and Assurance Services 1st Edition by Iris Stuart
Edition 1ISBN: 978-0073404004Auditing and Assurance Services 1st Edition by Iris Stuart
Edition 1ISBN: 978-0073404004 Exercise 14
ThyssenKrupp
ThyssenKrupp issued the following footnote in the interim financial statements for the first quarter ending December 31, 2007:
On the basis of the authorization granted by the Annual Stockholders' Meeting on January 18, 2008, the Executive Board of ThyssenKrupp AG resolved on January 31, 2008 to purchase up to around 15.8 million treasury shares before the authorization expires on July 17, 2009. This represents around 3% of the capital stock.
a. Is this a type I or type II subsequent event Explain your answer.
b. Were the financial statements changed to reflect this decision
c. Why was this information disclosed Why would outsiders be concerned about the purchase of treasury stock
ThyssenKrupp issued the following footnote in the interim financial statements for the first quarter ending December 31, 2007:
On the basis of the authorization granted by the Annual Stockholders' Meeting on January 18, 2008, the Executive Board of ThyssenKrupp AG resolved on January 31, 2008 to purchase up to around 15.8 million treasury shares before the authorization expires on July 17, 2009. This represents around 3% of the capital stock.
a. Is this a type I or type II subsequent event Explain your answer.
b. Were the financial statements changed to reflect this decision
c. Why was this information disclosed Why would outsiders be concerned about the purchase of treasury stock
Explanation
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Footnotes:
A footnote refers to the add...
Auditing and Assurance Services 1st Edition by Iris Stuart
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