TERMINATION AND RENEGOTIATION.
Abstract In both termination and renegotiation the professional accountant may serve very useful purposes. Audit reports of independent certified public accountants, if available, are requested by Price Adjustment Boards in all renegotiation proceedings and many termination proceedings. Such reports lend credence to the financial representations of contractors. Likewise, the professional accountant can render valuable assistance in the orderly and conscientious preparation of data submitted in renegotiation and termination. In all these matters, the professional accountant must maintain his status of unbiased independence, avoiding advocacy, which is fundamentally incompatible with his function as independent certified public accountant. Provision for the renegotiation refund should be included in the balance sheet as a current liability, and in the income statement, preferably, as a specific deduction from sales with the related tax computed accordingly. Obviously, it is imperative that accountants in both private and public practice be thoroughly familiar with requirements relating to renegotiation and termination and that they should clearly comprehend their own responsibility therein.
- DOI
- 10.2308/tar-7036735
- Volume
- 19 (2)
- Pages
- 117-130
- Language
- en
- Export
- BibTeX
- Sources
- openalex crossref