Question

Provide all the details information.

Explain the effects on the financial statements of the Boeing company (Ticker: BA) with regard to the

*Recent announcement of a design issue with the 737-800 max Airline. Your answer should address Balance Sheet, Cash flow and Statement of operation concerns and you should pay special attention to any matters relating to Long Term Assets and Intangible.

BOOK Intermediate Accounting

Answer 1

1) If the inventory is in stock, than the fair value in the market needs to be studied, according to it value to inventory would be determined. It should appear at Cost or Net Realizable Value whichever is lower.

2) Impairment of Intangible Assets like patents to be amortized (in addition to normal amortization).

3) If this is only aircraft in the company, than going concern conditions should be checked.