Current Trends in Accounting ACCT6140Standards
May 17, 2015
Delineating Related Intel Pentium Accounting Research Questions
The purpose of this paper is to define research questions (below) relating to "Accounting for the Intel Pentium Chip Flaw" (Hawkins, Miller & Narayanan, 2009). The questions are as follows; (A3.1) If you were an accountant for Intel, what specifically would be the relevant accounting research question with respect to the Intel Pentium chip flaw? (A3.2) What constrains Intel's decisions about how to account for the Pentium chip flaw? (A3.3) What do you need to know, estimate, and assume to answer the …show more content…
When reverse engineering department test the product, it is essential to perform blind analysis to minimized bias of the result. Assumptions—if the client is following proper electronic commerce practices and has implemented proper controls, it can be assumed that its activities are reliable.
Interpretation or Inference—since this assurance service falls under the domain of consulting services, the practitioner would follow consulting standards in conducting the review and reporting on the reliability of the activities (Weirich, Pearson & Churyk, 2010). Implications or consequences—if activities are not reliable, the practitioner will so state in the report (Financial Accounting Standards Board, 1975).
Intel Management Recommendations
I recommend Intel management to tackle the problem and offer free service for defective or flaw chip. Management should stop the advertisement campaign and spend it on material improvement. It is vital to recognize the loss current financing offices. Since this loss is a contingent loss, disclose it in the financial statements. A loss contingency should be accrued by a charge to income if (1) it is probable that a loss has been incurred and (2) the amount of the loss can be reasonable estimated. I recommend an efficient accounting system to audit the process
These principles are cost effectiveness, usefulness, and flexibility. Cost effectiveness simply means that the benefits received must outweigh the