nortel - guarantee and commitment According to the...

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Shantorria Neal ACC/230 Nortel Networks Case 1/7/11
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After thoroughly researching question number three from the Nortel Networks Case here is what I came up with. From what I can interpret, it seems that Nortel has about seven guarantees and four commitments. It is believed that in order for a guarantee to be effective it must also be fair. In order for it to be fair it must state its financial effect, give a description and nature of the guarantee, proved the possibility or reimbursement and show an indication of the uncertainty of the given situation. The financial statements are good, because Nortel has given a substantial explanation of each
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Unformatted text preview: guarantee and commitment. According to the checklist, It is acceptable to say that the guarantees are ascertained within the FASB guidelines. The disclosures conforms to FASB, USGAAP and within the International Accounting Standards guidelines. The effect of uncertainty has been provided for very clearly as well as the time frame for each guarantee. I can only find one agreement that needs to be improved. That agreement just so happen to be the agreement about the third party debt. I came to the conclusion that there should be a clause created within this agreement in order to present an enhanced image....
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This note was uploaded on 03/19/2011 for the course ACC 230 taught by Professor Unknown during the Fall '10 term at University of Phoenix.

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nortel - guarantee and commitment According to the...

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