Week-2-Discussion-Putting-it-all-Together

Apr 30th, 2015
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The primary reason for Office Depot restating their financial statements was because in 2010 the Internal Revenue Service determined some losses were improperly accounted for, which forced the company to restate financial results that turned a meager 2010 profit of $33 million into a $46 million loss (Troy). The company’s 2010 financial statements included in the Original Form 10-K were prepared reflecting the expected carry back of certain net operating losses (http://www.annual reports.com).

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Assignment 2Accounting Changes for Office DepotDawna Berry, Rochelle Morton, Jose PintoACC 499 Undergraduate Accounting CapstoneProfessor Dr. M. Austin Zekeri November 1, 20121. Discuss the primary reason for the restatement and the impact to the financial results for the company you selected.The primary reason for Office Depot restating their financial statements was because in 2010 the Internal Revenue Service determined some losses were improperly accounted for, which forced the company to restate financial results that turned a meager 2010 profit of $33 million into a $46 million loss (Troy). The companys 2010 financial statements included in the Original Form 10-K were prepared reflecting the expected carry back of certain net operating losses (http://www.annual reports.com). The companys position was based on its view, after consultation with its tax advisor, that its tax losses qualified for extended carry-back provisions enacted in 2009. That position resulted in the company recognizing a tax benefit of approximately $80 million in the 2010 statement of operations (http://www.annual reports.com). The company filed its carry back claim in February 2011 and in March 2011, the claim was denied by the Internal Revenue Service. Because the company has recognized full valuation allowances on its domestic deferred tax assets, the tax benefits recognized in the 2010 financial statements no longer met the accounting recognition criteria (htt

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