Table of Contents

The Soft Close. 1

Introduction. 1

Soft Close Overview.. 1

Soft Close Advantages. 1

Soft Close Disadvantages. 1

Applicability of the Soft Close. 2

Types of Activities Not Addressed. 3

Deleted Step – Account Reconciliations. 3

The Bank Reconciliation. 4

Deleted Step - Accruals. 4

Altered Step – Depreciation and Amortization Recognition. 5

Deleted Step – Physical Inventory Counts. 6

The Gross Profit Method. 6

The Retail Inventory Method. 7

Altered Step – Overhead Allocations. 8

Deleted Step – Intercompany Eliminations. 9

Altered Step – Reserve Account Updates. 9

Deleted Step – Revenue Accruals. 10

What to Include in the Soft Close. 10

The Soft Close in Multiple Subsidiaries. 11

The Risk Environment for a Soft Close. 12

Soft Close Disclosures. 12

Summary. 13

Review Questions. 14

Answers to Chapter Questions. 15

Glossary. 17

Index. 18

 

Final Examination.......................................................................................................................................................20