Accounting

Xilinx, Inc. designs, develops, and markets complete programmable logic solutions, including advanced integrated circuits, software design tools, predefined system functions delivered as intellectual property cores, customer training, field engineering and technical support. Customers are electronic equipment manufacturers primarily in the telecommunications, networking, computing, industrial, and consumer markets. Products are sold globally through a direct sales management organization and through franchised domestic and foreign distributors. (Source: Company 2007 Form 10-K)

3. What was the balance of Walmart’s allowance for doubtful accounts (ADA) as of January 31, 2012?

347 U.S. 483 Argued December 9, 1952 Reargued December 8, 1953 Decided May 17, 1954 APPEAL FROM THE UNITED STATES DISTRICT COURT FOR THE DISTRICT OF KANSAS* Syllabus Segregation of white and Negro children in the public schools of a State solely on the basis of race, pursuant to state laws permitting or requiring such segregation, denies to Negro children the equal protection of the laws guaranteed by the Fourteenth Amendment -- even though the physical facilities and other "tangible" factors of white and Negro schools may be equal. (a) The history of the Fourteenth Amendment is inconclusive as to its intended effect on public education. (b) The

3. In this particular case, due to lack of proper revenue recognition in previous periods in this audit, many challenges in using financial information surfaced.

Intangible assets are one of the most significant items in Myers financial statement. It consists of goodwill, brand names and trademarks, software and leases. AASB 136 Impairment of Assets requires Goodwill and some of the brand names that are indefinite useful life to test for the impairment. In Myer, there is no impairment loss. Furthermore, the accumulated amortisations of the other intangible assets are shown in the table X have a total value of $73585 thousand. According to AASB 117 Leases, the total rentals leases over the leases term are being expensed on a straight-line basis. In contrast, Myer’s competitor David Jones has only two intangible assets goodwill and software. The accumulated amortisation for software is $28808 thousand which is shown in the table X and it is the total value of accumulated amortisation.

The three main events in the life of an asset are the acquisition, useful life, and disposal or retirement. At the end of an asset’s life, gain or loss of its disposal is recorded. A gain or loss will take place at the disposal of any assets and should be logged as journal entry along with any related incidental cost. The unrealized gains and losses are noticed according to its earnings. All changes whether upward or downward that involves investment shares are shown as income or losses with a change in market value that requires an adjustment to its carry value.

Financial statements indicate that the carrying value of the total net assets, $51,271 is greater than then predicted fair value of $37,800. This indicates that impairment potentially exists, and further analysis shall be conducted. In the second step of the qualitative assessment, Sprint’s fair value of goodwill is predicted to be $17,246 assuming the company’s share price falls to $14 in the fourth quarter. The fair value estimate is lower than the carrying value of $30,718, indicating that impairment has occurred. Sprint’s loss on impairment, the difference between the fair and book value, is calculated to be $13,471.

Excello accounting standards in the case study shows that the CFO wanted to make a decision based on an operating decision going against accounting standards. GAAP principles must be followed by Excello when preparing financial statements. When the company releases the financial statements, it must be in compliance with GAAP. With that in mind, the accounting department must also comply with GAAP principles when the $1.2 million sale is posted. Excello must follow revenue recognition rules when the sale is recognized by the company. Revenues resulting from selling inventory must be recognized at the date of the sale, often viewed under date of delivery. If the company used accrual basis of accounting, the revenues are recognized when they are earned, and expenses are matched with the revenues generated by the sale. So for Excello, the sale cannot be reported in 2010 because the sale would occur in 2011. Because Excello still possess the goods at the end of the year, the sale recognition cannot occur. The financial statements have to reflect the true accounting activities for 2010, so the reports are transparent, reliable and consistent. If Excello went ahead and reported the revenue in 2010, the report will not be truthful and unreliable for

9. (TCO B) Variable expenses for Alpha Company are 25% of sales. What are sales at the break-even point, assuming that fixed expenses total $150,000 per year:

and the nature of the industry. Net income has ranged from a net loss of $1.9 billion in 2009, to a

On June 24, 2010, the FASB and the IASB published for public comment an exposure draft, which was open for public comment through October 22, 2010. The key concept was about revenue from contracts with customers, except for financial instrument contracts, insurance contracts, leasing contracts, nonmonetary exchanges contracts. There are approximately 1,000 comment letters was received. Find one comment letter on the FASB website that raises questions about the proposed new standard and briefly explain the issue. The core principle of the proposed standard on revenue recognition is that a business entity should recognize revenue for goods and services such that the amount reflects the consideration that the business entity receives, or

Put a star next to requirements and copy it down* : she asks you to determine if they comply with IFRS and to proide both she and Rusty with a report on your findings.

Costs assigned to the building of a house should appear on the income statement when

Revenue recognition is a difficult matter in accounting. The company’s results differ depending of the method used to recognized earnings. This is a complex situation since business activities are broad and intricate. Therefore, policies and regulations are imperative to reduce manipulation of financial statements.

the value of many acquired businesses. Nevertheless IFRS 3 is much more than an accounting convention. The transparency promoted by this standard will allow analysts extraordinary insight into the performance of the purchased business. Shareholders will be in a better position to understand what they have actually got for their money. The implications for preparers are that they must understand and be ready to meet the challenges that IFRS 3 signifies, by making sure they have the necessary provisions in place such as training and equipment. One of the main concerns is that measuring intangibles is not simply a one-off process. When a business is purchased, a process known as a purchase price allocation is necessary to assign the purchase consideration across the assets of the business. Only once the fair values are calculated for the intangibles, the preparers can determine the extent of the goodwill. Business will now as a result have to carry out impairment tests to check and, if necessary, correct the value of goodwill and long-life intangibles. For example, if a