Accounting Analysis In the accounting analysis part, we will discuss and analyse SUL’s accounting policy by identifying its key accounting policies, assessing the accounting flexibility, evaluating the accounting strategy, evaluating the quality of disclosure, identifying red flags and undoing accounting distortions to evaluate that if SUL’s financial statement is transparent and not misleading. Also, we will compare these elements to its competitors in order to give investors a clearer vision of its accounting quality. Step 1: Identify Key Accounting Policies The company’s fiscal year is comprised 52 or 53 calendar weeks and financial year 2014 ends at the end of June. Following the regulation of Australian Accounting Standard Board (AASB) and International Financial Reporting Standards (IFRS), SUL prepare its financial statement which requires management to make assumptions and estimates and explains in the footnotes. SUL considers any original maturity is 3 months or less highly liquid investment as cash and cash equivalents. SUL is also a consolidated company who has subsidiaries so the financial report is a consolidated one. The key accounting policies in Super Retail Group are the policies that govern the inventory value, revenue/expense recognitions and depreciation. On the other hand, the policies that govern the inventory value are essential to all retail business. SUL recognizes retail and interest income as its revenue. Sale of goods is recognized when the time of
cognizant of the fact that the choices he makes can affect the price a buyer pays
1. How does PPLS create value for its customers? What are the critical risks that it has to manage well?
As noted in Wikipedia Oracle is headquartered in Redwood, California. It was founded in 1977 and is the world's third largest soft wear developer in sales. According to Yahoo Finance Oracle is a multi-faceted operation. Oracle provides a vast amount of services for the internet and computer. It provides cloud applications, IT consulting services, licenses middleware software which includes database and database management. It has 115,000 full time employees and is run by co-founder, CEO Larry Ellison who has been the only CEO of the company since it's inception. Also noted in Wikipedia he is the top paid CEO in the world. In 2013 Oracle
3. Store equipment of $44,000 was purchased by signing a short-term note payable. Also, a $150,000 telecommunications system was acquired by issuing 3,000 shares of preferred stock.
33. Manufacturing overhead consists of: A. B. C. D. all manufacturing costs. indirect materials but not indirect labor. all manufacturing costs, except direct materials and direct labor. indirect labor but not indirect materials.
1. Jensen Company purchased a new machine on September 1, 2012, at a cost of $128,000. The company
Lockett's contribution was $420,000 in 2015 and benefits paid were $375,000. Lockett estimates that the average remaining service life is 15 years.
When this happen or the cash flow is stable it means that this company can be solvent and will meet its cash needs.
The company normally sells 10,000 units at a price of $88 each. Adler has a one-time opportunity to sell an additional 3,000 units at $70 each in a foreign market, which would not affect its present sales. If the company has sufficient capacity to produce the additional units, acceptance of the special order would affect net income as follows:
For full disclosure, the financial information is based on pure estimation. We are privately held with five employees and therefore there are no publicly held financial information. The two owning partners keep the financial information in lockdown, without access to the employees. In addition, looking at other accounting offices within our size range has the same limitation on financial access. Comparing our firm to the big four accounting firms would be illogical as there is a massive discrepancy in size and revenue. Therefore, based off minimal discussions with either boss and using comparative expenses or percentages, the attached excel file presents the following:
10. When investments are classified as available-for-sale, fair-value changes are recognized in the balance sheet as unrealized gains or losses (AOCI) that affect owners’ equity. Please indicate if the above statement is true or false.
If there is a reduction in the benefit plan, there is a decrease in the defined benefit obligation. The amount if past service costs is calculated by an actuary, and add or deduct to the beginning balance of the obligation for calculation of interest cost for the year.
According to the above definition Employee Apple is not considered as assets, Apple is neither tangible or non-tangible asset we can not convert apple to cash, although Apple has contribution to future economic benefit, Apple future benefit contribution to the business cannot be measure , Apple cannot purchase by the company (Apple does not have a value), Apple cannot be sold.
CCL is a CCPC and follows ASPE. It is the second year that my firm auditing for CCL. It is CCL’s responsibility to correctly record accounting transaction and preparing financial reports. Manager should be unbiased to fairly present financial reports within GAAP. After careful analysis, I presented several accounting issues and related analysis as follow.
12 months of the reporting date are measured at their nominal amounts based on remuneration rates which are expected to be paid when the liability is settled. All other employee benefits or liabilities are measured at the present value of the estimated future cash outflows to be made in respect of services provided by the employees up to the reporting date.