ACC 321- Memo #2 Response

ACC 321- Memo #2 Response - Accounting Memorandum To: Dr....

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Accounting Memorandum To: Dr. Rubin From: Nicholas Connolly Date: April 21 st, 2011 Subject: Danle Corporation Omitting Disclosure Introduction: The circumstances that Danle Corp. found themselves in are very unfortunate because going through litigation issues is never good for a company. The only way to regain creditability is to handle the situation as respectful and careful as possible. Going through a lawsuit too long can be detrimental to a company because investors or potential investors may see this as a weakness in a company. When disclosing any litigation issues, it is always important to have a correct and reliable number so investors can look Danle Corp. financial statements and make a reasonable assessment of how they perceive the company. That is why I believe that the conclusion reached by Danle to omit disclosure relation to the class-action litigation was appropriate for the year ended December 31 st , 2005 Purpose: My reasoning for this decision   is due to the fact that disclosing proper and complete
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ACC 321- Memo #2 Response - Accounting Memorandum To: Dr....

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