U.S. GAAP vs. IFRS Research & Presentation “Revenue Recognition – Goods and Services”
From a critical perspective, it has often been argued that the GAAP policies currently followed in the US are quite distinct (Simlogic, 2012). Based on this understanding, accounting practices that are followed under the International Financial Reporting Standards (IFRS) system, will also be critically evaluated in contrast with US GAAP in treating revenue recognition transactions related to both goods and services.
Table of Contents (Part-1) 2 (Part-2) 4 (Part-3) 6 References 8 (Part-1) It is evident from the definition of derivatives that they redistribute and reallocate the risk generated in the economy. In such circumstances derivatives are the perfect instrument to transfer risk, which can utilized either for hedging risk or obtaining risk (European Union Committee, 2010).
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Public budgeting refers to the process of involving the selection of ends, as well as means in order to be able to reach those ends. This process takes into account the government decisions regarding translation of public policies into some targeted and feasible developmental actions.
The auditors are under the control of the firm and therefore they subliminally use creative accounting techniques in order to benefit their employers (Lennox, 1999). In the process of protecting their partners, sometimes they get away and in few cases they cannot and face serious charges of fraud, misrepresentation and even extortion.
For example, the financial management is mainly used for core financial purposes like maintain the books of accounts and maintain the financial soundness of the company. Financial management is mainly used for evaluating the profitability, liquidity, stability, efficiency and investment analysis of the company.
The crisis was a collective result of the sovereign debt crisis, crisis related to liquidity and also a crisis in the growth and competitiveness in that area. The countries in the European Union found it difficult to repay their debt without the support of any other entity.
The company will represent various businesses in the industry, including builders, mortgage lenders, owners and tenants, commercial real estate developers, institutional investors and financiers, and real estate investment trusts. The manager of the company is James Mark.
It reveals the magnitude, nature along with the distribution on the basis of which financial funds are allocated in a particular organisation. The notion of capital structure signifies the assets and the liabilities of an organisation. In this regard, every organisation possesses a capital structure in accordance with which income along with expenses is determined.
The Efficient Market Hypothesis maintains that all the stocks are perfectly priced in accordance with their inherent investment properties, and the knowledge of all these properties is possessed equally by all the market participants. In short, the price of a stock is an accurate reflection of all the market information available.
FINANCIAL STATEMENTS OF JT ENGINEERING FOR THE FINANCIAL YEAR 2012 In addition to the above financial information, it is also important to understand various accounting concepts and principles based on which these financial statements are prepared.Gross profit margin is an analyzing tool which assists in identifying how effectively and efficiently the company is utilizing its raw materials, variable cost related to labor and fixed costs such as rent and depreciation of property plant and equipment.
The fact remains that the CRAs will not be able to satisfy the policy makers in removing the flaws in the rating methods. From the research, the CRAs were not able to improve the corporate governance. The research will try and point out on the role and benefit of credit rating agencies which are private companies with one aim of assess the rate the issue of debt to individual, company and even the government.
Interest is the idea that one dollar invested today at the present time is worth more than the same amount in the future due to its potential earning ability (Investopedia). The financial decision making process whether it is from the perspective of the investor or a firm, is primarily concerned with determining how monetary value of capital will be affected by the expected returns (payoff) associated with the different investment alternatives.
This helps the organization in ensuring the financial reporting procedure is within the established regulations and the accounting ethics practices (TJX.com, 1). In addition, it helps the senior management and audit committee in ensuring there is efficient, adequate and effective internal control systems in the company.
The aim of this report would be to evaluate the sustainability reporting guidelines that has been designed by GRI and different facets of assurance engagement in order to analyse and compare whether the sustainability reports of companies follow these guidelines while preparing the report or not.
This research dwells on activity based costing and traditional costing. Cost allocation in companies can provide inaccurate information about the profitability of their goods and services. Traditional cost allocation methods allocate overhead cost outlays with the aid of one driver like direct labour hours, direct labour dollars, or machine hours.
The paper tells that Nike location is in the United States of America. The operation of the company persists in a way that corporate a normal business environment. This means that analysis of the strategic competitive advantage of the company is the drivers for the business growth. A good management position concerning the main product lines will yield positive results.
The researcher states that the regulation of the financial global market is a problem as there are risks involved in the foreign currency. Some writers argue that most of the firms in the different parts of the world might be experiencing difficulties due to the trading activities rather than banking.
Since the household costs of funds are driven by cash rate set by RBA, the standard variable housing rate can be assumed to follow the trend of cash rate. Recent developments in Australian economy show that, there has been an increased widening of the spread between major banks’ standard variable housing rate and the cash rate, since 2007.
Contents Particulars Pg. No. Executive Summary 4 Introduction 6 Discussion 6 Conclusion 13 References 16 Presentation 17 Executive Summary: Marvel toys private ltd deals in the import and export business from China to throughout UAE. It operates through a warehouse in Dubai Jabel Ali Free Trade Area.
Basically there are two kinds of laws governing the international trade scene namely: public international laws and private international laws. Public international law is concerned with the rights between nations and its citizens whereas, private international laws deals with activities between private person, juridical or natural, in concern with relationship to more than one nation.
Accounting and Finance Financial analysis of Morrison’s and comparison with Tesco Introduction One of the most famous ways to analyze the performance of an organization is to analyze its financial statements and calculate various financial ratios. The ratios can be analyzed over a period of time and compared to other companies in the same industry.
1 International enforcement of judgments is a necessary adjunct to international trade and commerce. Enforcement of foreign judgments in England provides in many cases a remedy to satisfy an order to pay damages against a domiciled defendant or a defendant that owns assets in England.2 The principal factor, which determines the applicable rules for enforcing a judgment in England from a foreign jurisdiction, is the identity of the court, which gives judgment (the "Adjudicating Court").
Comcast Corporation, or generally Comcast is the home internet service provider and cable operator in the United States. It is also the third largest provider of home telephone service in US. The Comcast is headquartered at Philadelphia in Pennsylvania. This organization works in tie up with several other cable networks including Style Network and other related businesses.
The tax base of the town is 60% residential, 30% commercial and 10% industrial. The police in this town have ensured that law and order are maintained at all times. The diligence of the officers at my station has ensured that this town is grouped among those that are safest in the region.
It is used by companies to track progress as well as manage the implementation of their strategies (Horngren et al 2011). BSC represents a set of measures that are carefully selected from an organisation’s strategy (Niven 2008; qtd. in Finkler 2010, p. 299).
In order to answer these questions various models have been proposed. In a similar situation, it is necessary that the management of the organization understands the return that their investors are expecting. This rate is sometimes referred to as the cost of capital or the expected rate of return.
The basic premise of the research is to generate an understanding about fraud and role of external audit; how frauds have taken place in Canadian organizations, its impact and the limitations of external audit to face the problems of fraudulent activities. Fraud can be defined as a pan planned activity which is intended to betrayal another party.
The main reason behind the collapse of the company was the non transparency of the financial statements. The financial statements did not provided proper information to the shareholders and the market analyst as a result they were unable to judge the performance of the company.
There are a number of historical buildings that provide revenue for the city that needs to be renovated in order to generate more income. The police department needs to renew some of their fleet and this need to be done on a phased basis starting with this budget.
The company was performing well before 2008 when it was outsourcing all its manufacturing to Japanese and Chinese manufacturers with embedded low labor costs and low shipping costs in Japan as well as China as compared to manufacturing in Nashua. This case didn’t sustain for long as wages and labor costs accelerated after the activities of the 2008 Beijing Olympics Games in China with increase in material and energy prices also coming into existence.
Critically assess how the use of IFRSs contributes to increased transparency for stakeholders, and the extent to which IFRSs can influence economic stability. You should develop your arguments in the context of appropriate accounting theory. The international business scenarios has evolved in the last decades more than it had for many previous years.
Tammy should therefore, has to consider other factors such as shipping cost, location of the store, reputation of the brand, service availability and may be other individuals’ experience so as to purchase a better home for entertainment center. SOLUTION 2 Purchasing cost Cash price=$1500+ ($450 for 48 months) =$23,100 Value of the Loan at the End=$4,000 Total Interest= (1500 X .04 X 4) = $240 Buying Cost= (21,600+240)-4000=$19,340 Leasing Cost Lease Payment= (450 X 36) =$16,200 Interest= (500 X .04 X3) =$60 Charges=$600 Leasing Cost= Lease Payment +Interest +Charges Leasing Cost= (16,200+80+600) = $16,860 SOLUTION 3 Purchase price=$180 Rate=5% earned on savings Time=10 years Future value=?
TESCO workforce is approximately 47,000 employees that are scattered in its 4,331 store that are scattered in 14 countries. TESCO realizes the importance of establishing cordial relationships with its customers, business partners, employees, suppliers, and the community that it serves.
Budgets put into perspective the future financial goals of a firm. Divergent views on budget-making process obfuscate budget-making process through ethical and communication in practice issues. Adverse budget situations sometimes require unraveling for the budget to deliver on its broad mandate of keeping the organization strategically alert.
Case Summary A married couple consisting of a business manager and a nurse bred horses for profit within Code Section 183. While the couple had their losses, records declared that taxpayers made a profit. Before the couple began horse breeding, they engaged in courses about horse breeding, and put together extensive business plans, which allowed them to conduct the horse breeding in a proper businesslike approach.
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This research will begin with the statement that the prevailing economic circumstances dictate that accounting is extremely significant. Accounting is a structure which creates, sustains and audits the financial records of an institution. It is a system that evaluates the financial situation of a commercial organization by analyzing the sales, expenses of and expenditures of overheads.
However, the most important cause of this global financial crisis was the burst of housing bubble in United States which led to several other problems. Real estate bubble is created as a result of rise in values of property which reaches to levels that are unsustainable and then begins to decline from that stage.
The US treasury was one of the driving forces behind the rise or decline of the yield curve in 2000. The timing of the market can thus be assessed by the yield curve as to whether it will yield profit or loss in the share market. The Yield curve as discussed above has various securities with different holding period return.
The statistics, numbers, and graphs illustrated during the course of this assignment depict the starters of the disasters and the ones that are the reactive economies. Soros (2009) states that the UK is more of a trendsetting economy in the European trade zone, and other economies, despite being independent, tend to follow the trend.
One of the major changes that were introduced by European Union in the year 2002 was the requirement to adopt International Accounting Standards (IAS) from January 2005 onwards. This initiative was taken by European commission. The initiative was taken to strengthen the capital market, by creating a common accounting standard for reporting.
First, the information provided has to useful to the end users of the financial reports. Secondly, the board wishes to educate as well as guide the end users of financial reports be it issuers or auditors. GABS intends to achieve these two objectives through its four core values.
Usefulness of Annual Reports
There are several stakeholders of all organizations, including investors, government, banks, creditors and shareholders. Investors are one of the stakeholders that utilize the financial information obtained through annual reports to make investment decisions.
This study would be on, the effect of financial crisis on small enterprises, other modes of financing other than bank loans, and capturing the point of view of the various participants in the financing markets. The ability of a small business or firm, to access finance is of significance in order to fund the investments for the business for ensuring the growth and development of the venture.
The research delves on the necessity to implement the COSO Framework in all United Kingdom entities. The COSO Framework enhances the internal control activities’ reduction of fraudulent and erroneous reports. The Committee of Sponsoring Organisations (COSO) framework monitoring process focuses on enhancing the preparation of financial reports of all entities, especially companies engaged in computerised generation of financial reports.
Biolea produces olive oil from the olive groves that are present in the Astrikas Estate in North-Western Crete in Greece. The olive oil is stone-milled and cold pressed. Biolea maintains transparency and accountability as a foundation of its operation and trade with its client base.
The first step in examining the relationship between the two variables is use of a scatter plot. The aim of this step is to form a general pattern and establish whether there is any deviation from this general pattern. Figure 1 below shows how WHEATSF correlated with WHEATHD.
Conclusion 9 4. List of Works Cited 10 1. Nike Inc. Company Information Nike Inc. is headquartered in Beaverton, Oregon and is the world’s largest seller of athletic footwear and athletic apparel with revenue in 2012 of $ 24 billion. The company was founded in 1962 and changed its name in 1972 to Nike, the Greek goddess for victory.
The forecasted cash flow shows the cash that is expected to be projected into business for a given period of time. The second part of the cash flow forecast shoes the amount of cash that is expected to be disbursed within that time. The third part is what shows the balance of the two.
The plan not only helps me in highlighting my weaknesses but also give me a clear picture where I am standing at certain date of the week and it also helps me to manage my finances in a much better and productive way through which I can change my spending into investments.
In order to make investments, first of all it is required to examine own risk profile in order to evaluate overall acceptance to take risk which is influenced by numerous factors such as current financial situation, personal needs and goals, time horizon, structure of my current investment, risk tolerance attitude, investment goals and objectives, liquidity, age and income and degree of familiarity with investment issues.