Case Test Essay

In my opinion, a great deal of Eagle e Mountain’s total cost should be expensed as a loss and written down to fair market value because it’s almost impossible to consider it a productive asset. Considering an asset hell d for future should be written down if there has been a significant impairment of value, FAA IR value of Eagle Mountain should reasonably be measured at present value of expected future e cash flows. In my opinion as auditor, Eagle Mountain should be reduced to its estimated f IR value in accordance with FAST ACS 3601035.

MSP should look at industry trends and r seasonably estimate what the state utilities would allow them to recover and pursue the project. Argument against construction costs expensed: It’s virtually impossible to be certain of Eagle Mountain’s future cash flows fro m operations. Essentially, recoverable costs from the plant will ultimately be determined by the state utilities commission or whether MSP abandons Eagle Mountain.