You are a newly promoted audit manager at a national CPA firm with international affiliates, and you are very excited about being part of the audit…

You are a newly promoted audit manager at a national CPA firm with international affiliates, and you are very excited about being part of the audit team of a major client of the firm: a large pharmaceutical corporation that participates in the U.S. government’s Vaccine for Children Program (VCP). The VCP purchases its federal stockpile of pediatric vaccines from only a small, select group of major pharmaceutical companies deemed eligible to participate in this program. This vaccine stockpile is a strategic reserve in which vaccine makers maintain a six month supply. Your appointment to this audit team bodes well for your long-term goal of becoming a partner at the firm.” p. 691

“As part of your audit planning, you begin by reviewing U.S. generally accepted accounting principles (GAAP) revenue recognition concepts and criteria, followed by transaction-specific guidance that directly relates to pharmaceutical companies’ vaccine stockpiles, which are classified as bill-and-hold sales. You know that a bill-and-hold sale is a sale in which the buyer purchases products and requests that the seller hold the product to be delivered upon request at a future time. The seller can charge the buyer an inventory carrying cost. Sometimes, the buyer pays for the product before it is shipped, such as the VCP in which your client participates. The government prepays for the stockpiled vaccines, which are stored by the vaccine companies in their warehouses and are not delivered until the government—in this case, the Centers for Disease Control (CDC)— request delivery. The vaccine makers are also required to rotate the inventory as the vaccines expire. p. 692

  • Does the transaction described above qualify as a bill-and-hold sale under ASC 606? Why or Why not? Support your answer from authoritative sources. You may also include non-authoritative sources to support your conclusions. 

Memo Format  

  • Facts/Background: State the relevant facts surrounding the issue
  • Questions (issues): List the researchable questions you are trying to answer.
  • Analysis: Include all relevant authoritative guidance along with analysis of how the guidance applies.
  • Conclusion: Sate the conclusion based on your research, highlighting key factors considered. Provide more detail for highly judgmental issues.
  • Financial Statement and Disclosure Impacts: Summarize financial statement accounts affected and any disclosures required. Include journal entries when possible.

Show more

Calculate Your Essay Price
(550 words)

Approximate price: $22

Calculate the price of your order

550 words
We'll send you the first draft for approval by September 11, 2018 at 10:52 AM
Total price:
$26
The price is based on these factors:
Academic level
Number of pages
Urgency
Basic features
  • Free title page and bibliography
  • Unlimited revisions
  • Plagiarism-free guarantee
  • Money-back guarantee
  • 24/7 support
On-demand options
  • Writer’s samples
  • Part-by-part delivery
  • Overnight delivery
  • Copies of used sources
  • Expert Proofreading
Paper format
  • 275 words per page
  • 12 pt Arial/Times New Roman
  • Double line spacing
  • Any citation style (APA, MLA, Chicago/Turabian, Harvard)

Our guarantees

Delivering a high-quality product at a reasonable price is not enough anymore.
That’s why we have developed 5 beneficial guarantees that will make your experience with our service enjoyable, easy, and safe.

Money-back guarantee

You have to be 100% sure of the quality of your product to give a money-back guarantee. This describes us perfectly. Make sure that this guarantee is totally transparent.

Read more

Zero-plagiarism guarantee

Each paper is composed from scratch, according to your instructions. It is then checked by our plagiarism-detection software. There is no gap where plagiarism could squeeze in.

Read more

Free-revision policy

Thanks to our free revisions, there is no way for you to be unsatisfied. We will work on your paper until you are completely happy with the result.

Read more

Privacy policy

Your email is safe, as we store it according to international data protection rules. Your bank details are secure, as we use only reliable payment systems.

Read more

Fair-cooperation guarantee

By sending us your money, you buy the service we provide. Check out our terms and conditions if you prefer business talks to be laid out in official language.

Read more