ABC Corp. (ABC), which operates in the oil industry, is a US subsidiary of a UK entity that prepares its financial statements in accordance with IFRS in reporting to its parent and US GAAP for reporting to its US based lender. ABC’s operations sometimes result in soil contamination. ABC cleans up this contamination when required to do so under the laws of the particular country in which it operates. One country in which ABC operates has no legislation requiring cleanup, and ABC has inadvertently contamined land in that country in prior years. As of December 31, 2020, it is virtually certain that a draft law requiring a cleanup of land already contamined will be enacted, but not until shortly after the year end. Required: Should ABC recognize a provision as of December 31, 2020, in reporting to its UK parent under IFRSs and in reporting to its US based lender in accordance with US GAAP

Según FASB Codification/ According to FASB Codification

Fanning company is considering the addition of a new product to its cosmetics line. the company has three distinctly different options: a skin cream, a bath oil, or a hair coloring gel. relevant information and budgeted annual income statements for each of the products follow. skin cream bath oil color gel budgeted sales in units (a) 110,000 190,000 70,000 expected sales price (b) $8 $4 $11 variable costs per unit (c) $2 $2 $7 income statements sales revenue (a × b) $880,000 $760,000 $770,000 variable costs (a × c) (220,000) (380,000) (490,000) contribution margin 660,000 380,000 280,000 fixed costs (432,000) (240,000) (76,000) net income $228,000 $140,000 $204,000 required: (a) determine the margin of safety as a percentage for each product. (b) prepare revised income statements for each product, assuming a 20 percent increase in the budgeted sales volume. (c) for each product, determine the percentage change in net income that results from the 20 percent increase in sales. (d) assuming that management is pessimistic and risk averse, which product should the company add to its cosmetics line? (e) assuming that management is optimistic and risk aggressive, which product should the company add to its cosmetics line?