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Unformatted text preview: Are the effects material in other periods? B. Subjectivity Valuation, measurement, estimates, allocations reflect the preparers uncertainty regarding future events. Subjectivity can lead to contention between auditor and client if the adjustment is not preferred by the client. Examples of estimates: A. Airline passenger reservations’ B. Warranty claims C. Allowance for doubtful accounts, loan loss reserves D. Obsolete inventory E. Depreciation and amortization F. Income tax and accrued property tax G. Pension costs H. Subscription income I. Percentage of completion J. Loss contingencies...
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- Fall '08
- Depreciation, Taxation in the United States, Generally Accepted Accounting Principles