Jodi OliverNotes to Consolidated Financial StatementsACCT-551Professor John ZapapasOliver Knife and Tool is a Colorado-based manufacturer of outdoor knives, tools and accessories. All products are made in the USA and we also offer a line of knives and tools designed specifically for adventurous women. Oliver brand knives and tools offer a wide variety of sporting, work and professional knives and tools that feature purposeful designs and are built to withstand a lifetime of daily use. We have used several innovative custom knife makers and designers to help us create our unique knife, tool and accessory products. The result is the highest quality custom designs available to the consumer for everyday use. All Oliver knives and tools are constructed incorporating the most advanced and latest proven production methods and the highest quality steels available, forged and assembled by hand in the USA. Fiscal year The company's fiscal year ends on January 31. All exercises presented will cover a period of 52 weeks. Principles of Consolidation The consolidated financial statements of the Company include the accounts of all and all operating subsidiaries. Any intercompany accounts or transactions will be eliminated from the financial statements. Use of Estimates The Company's financial statements are prepared in accordance with U.S. GAAP guidelines and require management to make estimates or assumptions that affect the amounts presented in the financial statements. The estimates given are based on management's knowledge of current and future actions the company may take. Estimates are used for assets, liabilities, sales, and expenses, as well as related information and ba...... middle of paper ...... target company. It will also determine the price/terms of a transaction that Oliver Knife and Tool is willing to offer and accept. Note 10 Contingencies and Liabilities Oliver Knife and Tool offers will replace a defective unit at no cost to the customer within one year of purchase. Oliver Knife and Tool will only have actual liability if the units are defective. Oliver Knife and Tool will have no liability or warranty expense if there are no defective units. Note 11 Changes in accounting principles or estimates When the company receives new information showing that a previous estimate is incorrect, the company will incorporate the new estimate in determining the financial result. declaration from that moment on. This will affect the balance sheet and income statement for current and future financial data. An information note will explain the change in net income estimate.