Please see the below example and do the CA9.2 question like that. The format should look like the example!!!!

ANALYSIS (3) - ISSUE: ATLAS PROMISE - ALTERNATIVES 1. INCLUDE WITH SUBSCRIPTION SALES 2. SEPARATE PERFORMANCE OBLIGATION - COMPANY WOULD HAVE TO ESTIMATE THE NUMBER OF ATLASES TO BE DELIVERED - COMPANY WOULD HAVE TO DETERMINE HOW MATERIAL THE ATLAS SALES WOULD BE CONCLUSIONS AND RECOMMENDATIONS - ISSUE: RIGHT TO REFUND - GIVEN THAT THE COMPANY DOES NOT HAVE SUFFICIENT DATA ON CANCELLATION RATES RECOMMEND WAITING UNTIL REFUND PERIOD HAS EXPIRED TO RECOGNIZE REVENUE - ISSUE: BILL AND HOLD - GIVEN THAT THIS IS A NEW CUSTOMER, AND THAT MAGAZINES LOSE VALUE WHEN THEY ARE NOT CURRENT RECOMMEND RECOGNIZE REVENUE ON DELIVERY - ISSUE: ATLAS PROMISE - THIS SHOULD BE TREATED AS A SEPARATE PERFORMANCE OBLIGATION Instructions Adopt the role of the company's accountant and analyze the financial reporting issues. CA9.2 Finance Cando Communications (CC) is a public company that owns and operates 10 broadcast television stations and several specialty cable channels, 10 newspapers (including the International Post), and many other non-daily publications. It has a 57.6\% economic interest in Australia TV (in Australia) and a 29.9\% interest in Ulster TV (in Northern Ireland). According to the notes to the annual financial statements, the company owns approximately 15% of the shares and all the convertible and subordinated debentures of Australia TV. The convertible debentures are convertible into shares that would represent 50\% of the company's total issued shares at the time of conversion. In total, including the debentures, the investment in Australia TV yields a distribution that is equivalent to 57.5% of all distributions paid by Australia TV. CC has a contractual right to be represented on the board of directors and has appointed three of the board's 12 members. Although the company has tried to influence the decisions made by Ulster TV management, it has been unsuccessful and does not have any representation on the board of directors. Investments represent approximately $150 million (about 5% of total assets). Even though revenues were up by 15%, net income was only $8 million for the year, down from $50 million the prior year. Instructions Adopt the role of a financial analyst and analyze the financial reporting issues. CONCLUSIONS THE CONTROLLER SHOULD RECOMMEND 1. RECOGNIZE REVENUES AFTER THE REFUND PERIOD HAS EXPIRED FOR NEW SUBSCRIPTIONS 2. RECOGNIZE REVENUES AFTER THE GOODS HAVE BEEN DELIVERED FOR THE WAIT AND HOLD CUSTOMER 3. TREAT THE SALES OF THE ATLAS AS A SEPARATE PERFORMANCE OBLIGATION ENVIRONMENT SCAN: THE PRINTED MAGAZINE SECTOR HAS BEEN IMPACTED SEVERELY BY THE ADVENT OF ONLINE MEDIA. THIS SHOULD BE FACTORED INTO THE ANALYSIS Case 6.1 - 1) ENVIRONMENT: MAGAZINE PUBLICATION - MATURE ENVIRONMENT -MANY OTHER FIRMS PRESENT - 2) SITUATIONAL FACTORS: 18 MONTHS OLD, MODEST CIRCULATION, PLANS TO GO PUBLIC, PROBABLY NOT VERY LIQUID OR SOLVENT - 3) NOT TOO MUCH QUANTITATIVE INFORMATION - 4) DISCIPLINES INVOLVED: FINANCE, ACCOUNTING, MARKETING - 5) UNCERTAINTIES: RELIABILITY OF NEW STORE, 25\% CANCELLATION RATE, SUCCESS OF NEW PROMOTION? - 6) BANK MANAGER CONSERVATIVE, MARKETING AGGRESSIVE, CONTROLLER (YOU) ACCOUNTING PROFESSIONAL ETHICAL (Alt + A) ASSESSMENT C6.1 - ASSESSMENT TECHNIQUES 1. FINANCIAL ANALYSIS: CHOOSE APPROPRIATE ACCOUNTING POLICY, ESTIMATE FUTURE CURRENT AND DEBT-EQUITY RATIOS 2. RISK EVALUATION: REFUNDS, WAIT AND HOLD 3. MATERIALITY ASSESSMENT: ATLAS PROMISE 4. ENVIRONMENT SCAN: MEDIA PUBLISHING SECTOR ANALYSIS ISSUE: RIGHT TO REFUND ALTERNATIVES 1. RECOGNIZE REVENUES AND ESTIMATE REFUND LIABILITY USING EXPECTED VALUE METHOD 2. RECOGNIZE REVENUES AFTER REFUND PRIVILEGE HAS EXPIRED COMPANY EXISTS FOR ONLY 18 MONTHS - NOT MUCH DATA ON ITS CANCELLATION RATES ANALYSIS (2) - ISSUE: BILL AND HOLD - ALTERNATIVES 1. RECOGNIZE REVENUE WHEN SALE IS MADE 2. RECOGNIZE REVENUE WHEN DELIVERED THIS IS A NEW CUSTOMER MAGAZINES LOSE VALUE IF THEY ARE NOT CURRENT ANALYSIS (3) - ISSUE: ATLAS PROMISE - ALTERNATIVES 1. INCLUDE WITH SUBSCRIPTION SALES 2. SEPARATE PERFORMANCE OBLIGATION - COMPANY WOULD HAVE TO ESTIMATE THE NUMBER OF ATLASES TO BE DELIVERED - COMPANY WOULD HAVE TO DETERMINE HOW MATERIAL THE ATLAS SALES WOULD BE CONCLUSIONS AND RECOMMENDATIONS - ISSUE: RIGHT TO REFUND - GIVEN THAT THE COMPANY DOES NOT HAVE SUFFICIENT DATA ON CANCELLATION RATES RECOMMEND WAITING UNTIL REFUND PERIOD HAS EXPIRED TO RECOGNIZE REVENUE - ISSUE: BILL AND HOLD - GIVEN THAT THIS IS A NEW CUSTOMER, AND THAT MAGAZINES LOSE VALUE WHEN THEY ARE NOT CURRENT RECOMMEND RECOGNIZE REVENUE ON DELIVERY - ISSUE: ATLAS PROMISE - THIS SHOULD BE TREATED AS A SEPARATE PERFORMANCE OBLIGATION Instructions Adopt the role of the company's accountant and analyze the financial reporting issues. CA9.2 Finance Cando Communications (CC) is a public company that owns and operates 10 broadcast television stations and several specialty cable channels, 10 newspapers (including the International Post), and many other non-daily publications. It has a 57.6\% economic interest in Australia TV (in Australia) and a 29.9\% interest in Ulster TV (in Northern Ireland). According to the notes to the annual financial statements, the company owns approximately 15% of the shares and all the convertible and subordinated debentures of Australia TV. The convertible debentures are convertible into shares that would represent 50\% of the company's total issued shares at the time of conversion. In total, including the debentures, the investment in Australia TV yields a distribution that is equivalent to 57.5% of all distributions paid by Australia TV. CC has a contractual right to be represented on the board of directors and has appointed three of the board's 12 members. Although the company has tried to influence the decisions made by Ulster TV management, it has been unsuccessful and does not have any representation on the board of directors. Investments represent approximately $150 million (about 5% of total assets). Even though revenues were up by 15%, net income was only $8 million for the year, down from $50 million the prior year. Instructions Adopt the role of a financial analyst and analyze the financial reporting issues. CONCLUSIONS THE CONTROLLER SHOULD RECOMMEND 1. RECOGNIZE REVENUES AFTER THE REFUND PERIOD HAS EXPIRED FOR NEW SUBSCRIPTIONS 2. RECOGNIZE REVENUES AFTER THE GOODS HAVE BEEN DELIVERED FOR THE WAIT AND HOLD CUSTOMER 3. TREAT THE SALES OF THE ATLAS AS A SEPARATE PERFORMANCE OBLIGATION ENVIRONMENT SCAN: THE PRINTED MAGAZINE SECTOR HAS BEEN IMPACTED SEVERELY BY THE ADVENT OF ONLINE MEDIA. THIS SHOULD BE FACTORED INTO THE ANALYSIS Case 6.1 - 1) ENVIRONMENT: MAGAZINE PUBLICATION - MATURE ENVIRONMENT -MANY OTHER FIRMS PRESENT - 2) SITUATIONAL FACTORS: 18 MONTHS OLD, MODEST CIRCULATION, PLANS TO GO PUBLIC, PROBABLY NOT VERY LIQUID OR SOLVENT - 3) NOT TOO MUCH QUANTITATIVE INFORMATION - 4) DISCIPLINES INVOLVED: FINANCE, ACCOUNTING, MARKETING - 5) UNCERTAINTIES: RELIABILITY OF NEW STORE, 25\% CANCELLATION RATE, SUCCESS OF NEW PROMOTION? - 6) BANK MANAGER CONSERVATIVE, MARKETING AGGRESSIVE, CONTROLLER (YOU) ACCOUNTING PROFESSIONAL ETHICAL (Alt + A) ASSESSMENT C6.1 - ASSESSMENT TECHNIQUES 1. FINANCIAL ANALYSIS: CHOOSE APPROPRIATE ACCOUNTING POLICY, ESTIMATE FUTURE CURRENT AND DEBT-EQUITY RATIOS 2. RISK EVALUATION: REFUNDS, WAIT AND HOLD 3. MATERIALITY ASSESSMENT: ATLAS PROMISE 4. ENVIRONMENT SCAN: MEDIA PUBLISHING SECTOR ANALYSIS ISSUE: RIGHT TO REFUND ALTERNATIVES 1. RECOGNIZE REVENUES AND ESTIMATE REFUND LIABILITY USING EXPECTED VALUE METHOD 2. RECOGNIZE REVENUES AFTER REFUND PRIVILEGE HAS EXPIRED COMPANY EXISTS FOR ONLY 18 MONTHS - NOT MUCH DATA ON ITS CANCELLATION RATES ANALYSIS (2) - ISSUE: BILL AND HOLD - ALTERNATIVES 1. RECOGNIZE REVENUE WHEN SALE IS MADE 2. RECOGNIZE REVENUE WHEN DELIVERED THIS IS A NEW CUSTOMER MAGAZINES LOSE VALUE IF THEY ARE NOT CURRENT