ASH ACC 306 W EEK 1 DQ 2 J UDGMENT C ASE 13-9 C HECK THIS A+ TUTORIAL GUIDELINE AT HTTP :// WWW. ASSIGNMENTCLOUD. COM / ACC ASH / ACC WEEK -1- DQ -2- JUDGMENT - CASE F OR MORE CLASSES VISIT HTTP :// WWW. ASSIGNMENTCLOUD. COM J UDGMENT C ASE 13–9 - V ALLECK C ORPORATION - L OSS CONTINGENCY AND FULL DISCLOSURE ● LO5 LO6 I N THE M ARCH 2012 MEETING OF V ALLECK C ORPORATION ’ S BOARD OF DIRECTORS, A QUESTION AROSE AS TO THE WAY A POSSIBLE OBLIGATION SHOULD BE DISCLOSED IN THE FORTHCOMING FINANCIAL STATEMENTS FOR THE YEAR ENDED D ECEMBER 31. A VETERAN BOARD MEMBER BROUGHT TO THE MEETING A DRAFT OF A DISCLOSURE NOTE THAT HAD BEEN PREPARED BY THE CONTROLLER ’ S OFFICE FOR INCLUSION IN THE ANNUAL REPORT. H ERE IS THE NOTE : HTTP :// WWW. ASSIGNMENTCLOUD. COM / ACC ASH / ACC WEEK -1- DQ -2- JUDGMENT - CASE HTTP :// WWW. ASSIGNMENTCLOUD. COM

O N M AY 9, 2011, THE U NITED S TATES E NVIRONMENTAL P ROTECTION A GENCY (EPA) ISSUED A N OTICE OF V IOLATION (NOV) TO V ALLECK ALLEGING VIOLATIONS OF THE C LEAN A IR A CT. S UBSEQUENTLY, IN J UNE 2011, THE EPA COMMENCED A CIVIL ACTION WITH RESPECT TO THE FOREGOING VIOLATION SEEKING CIVIL PENALTIES OF APPROXIMATELY $853,000. T HE EPA ALLEGES THAT V ALLECK EXCEEDED APPLICABLE VOLATILE ORGANIC SUBSTANCE EMISSION LIMITS. T HE C OMPANY ESTIMATES THAT THE COST TO ACHIEVE COMPLIANCE WILL BE $190,000; IN ADDITION THE C OMPANY EXPECTS TO SETTLE THE EPA LAWSUIT FOR A CIVIL PENALTY OF $205,000 WHICH WILL BE PAID IN “ W HERE DID WE GET THE $205,000 FIGURE ? ” HE ASKED. O N BEING INFORMED THAT THIS IS THE AMOUNT NEGOTIATED LAST MONTH BY COMPANY ATTORNEYS WITH THE EPA, THE DIRECTOR INQUIRES, “A REN ’ T WE SUPPOSED TO REPORT A LIABILITY FOR THAT IN ADDITION TO THE NOTE ? ” R EQUIRED : E XPLAIN WHETHER V ALLECK SHOULD REPORT A LIABILITY IN ADDITION TO THE NOTE. W HY OR WHY NOT ? F OR FULL DISCLOSURE, SHOULD ANYTHING BE ADDED TO THE DISCLOSURE NOTE ITSELF ?​