Bam Year 2 HydroQual

1. Could we get a list of all maintenance contracts and their terms please? We need this information as a basis for disclosing any major customers.

Issue(s):The original balance was $12,500, and the total cash received in the current year was $137,500. Hydroqual received 12 payments, with 11 of them being made in the current year. The ending balance for this contract was $25,000, with $12,500 still receivable. The list continues in this manner for each contract. The final row provides the total for all contracts: $82,500 in original balances, $1,274,500 in total cash received in the current year, and $153,500 in ending balances. This information can be used to identify major customers and understand the company's revenue streams. The issue is, they did not disclose the info, therefore we cannot tell who the major customers are.

Rule(s): FASB disclosure of information about major customers states that entities should disclose the extent to which they rely on major customers. If the revenue of the real estate entity is driven by a single tenant (10% or more of revenue), the entity is required to disclose that fact, and to state the total amount of revenue from that tenant. However, the standard does not require disclosure of the name of the tenant or the property that it relates to. If the revenue is driven by a large number of tenants, and no single tenant or group under common control contributes more than 10% of the entitys revenue, the real estate entity does not need to give this disclosure. However, the entity should state that fact. [IFRS 8, paragraph 34].

Analysis: ?

Conclusion: ?

Analysis: Apply the facts of the case study to the rule and provide an in-depth analysis based on the issue. Your analysis should also include supporting schedules, calculations, and correcting journal entries.

Conclusion: State your conclusion(s) based on the results of your analysis and indicate any changes to the financial statements and disclosure notes resulting from the rule. What is the Analysis and conclusion?

HYDROQUAL. INC