Prepaid Stored Value Cards

* Full revenue recognition method would recognize total revenue and total cost at the date of sale. Adjustments will be recognized when the warranty is used in the contract period, giving by the FASB’s Statement of Financial Accounting Concept No. 5, “Recognition and Measurement in Financial Statements of Business Enterprises”. When revenue is recognized and at the end of initial

One of the most important parts of a business is the financial management. Each and every other company always strives to have the best management when it comes to its finances. Most organizations have come up with plans and marketing strategies. This is due to the fact tat when companies finances are poorly managed then definitely the whole company is likely to be in trouble or even come down. The financial techniques and principles in most cases comprise of quite a number of aspect for instance those that we intend to look at in this paper-the financial reporting. This will basically comprise of the quality of data and information that the company produced to some of the various stakeholders. Other than that, the paper will also analyze the financial position and performance of the organization using accounting ratios. Another important aspect of financial principles is costing. This basically entails the cost of producing goods and services in the company and how it generally affects the overall performance of the company. The paper will also delve into how important costs in the pricing strategy of the business are. It will further come up with a costing and pricing system that can help the company improve. Last but not least, we focus on the company's budgets and budgetary control. Here there are very important areas that have to be looked into, for

New accounting rules will affect the company’s revenue recognition in the upcoming year. Many companies such as Rolls-Royce Holdings will be affected by this change. Rolls-Royce Holdings books its revenues even before its services performed. For instance, they sell large engines and maintenance service, and Rolls-Royce Holdings booked the revenue even 1.5 years in advance. They will no longer able to book this unperformed revenues for the upcoming year. The investors will have a better picture on the firm’s revenues based on the new revenue recognition. Some sectors, such as telecommunications, media and pharmaceuticals, are expected to be affected more than others, because the firms recognize revenues before they perform the services. Moreover,

The revenues for company-operated stores and licensed stores are identified separately on the Consolidated Statement of Earnings, but there is no way to identify how much deferred revenue one is generating over the other for management decisions. It is possible that the revenue earned in Licensed Stores Revenues includes gift card products. This would mean that both company-operated stores and licensed stores hold the deferred revenue liability and presents a challenge to management for recording revenue. Identifying how to de-recognize these gift card liabilities poses a significant challenge for management.

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In the course of normal business operations certain transactions require specific treatment in accordance with generally accepted accounting procedures (GAAP). To properly prepare financial statements, the analysis of working papers is imperative to insuring compliance. Clarification of why information is needed about adjusting lower cost of market inventory on valuation, capitalizing interest on building construction, recording gain or loss on asset disposal, and adjusting goodwill for impairment is presented here.

This is a discussion of two types of accounting methods that most companies use, accrual basis or cash basis. A definition of both concepts and comparisons between the two methods will be discussed. In addition, it describes and examines the difference in the managing of those methods and which form of accounting method is more useful and beneficial to provide information to users for different purposes. In cash basis accounting, revenue is recorded only when the cash is received, and expenses are recorded only when cash is paid. The Generally Accepted Accounting Principles (GAAP) prohibits preparing an income statement using the cash basis of accounting as it violates the matching principles and revenue recognition. An

Similarly, under AIFRS, the financial service fees associated with the store card revenue are recognised in 2005 and 2006. Because the amounts of financial revenue recognised are similar to the amounts of financial expenses, it could be assumed that these similar amounts of financial expenses are recognised as financial revenue in 2002, 2003 and 2004. Simply, the same amounts could be added in interest revenue.

Preparing different income statements captures information in diverse ways to facilitate decision making on internal matters. The management needs to understand cost behavior in order to control the costs. Besides the production costs, changing sales patterns affects profitability and there is a need to achieve better sales accuracy after understanding cost behavior. Variable costing also captures information about the impact of changing operation on profitability and the management is better placed to make pricing decisions to maximize

Big companies with investments are expected to pay dividends to investors and shareholders the moment the investments profits are coming in. These profits are then shared among the investors like cash payments. Silver Cards Cobranded Prepaid assist large companies in sharing the dividends based on the mode of transaction preferred by the investors. Since cash is considered as been an inconvenience mode of transaction, cobranded card programs with prepaid cards or debit cards are most times used.

Card holders have several countermeasures, including complex software which can assemble a vest interaction and guesstimate the possibility of fraud. For example, a large trade occurring in a great distance from the cardholder’s home might seem mistrustful. Merchants may be commanded to call the card holder for authentication, or reject the transaction or do whatever they want. Customers must call the issuer and prove their identity to get their card back.

Pay cards are a good way to insure all employees get their pay at the same time and it is faster than a paper check. Reliability is key when delivering payroll funds. It is easier to manage money with a card than if it is all cash in hand. It also cuts out the need for a bank if employees do not have one or wish to have one. It is a green option because it is paperless. This paperless method can save employers a lot of money. It also saves employees money because they don’t ever need to use expensive check cashing companies.

In today’s economy, cash or a credit card is needed to meet the basic human needs. It is an apparent fact that we need cash or credit cards to purchase items such as food, clothing, and to buy gas. Also, when you are out shopping and discover that you have used all the cash in your possession, it is then that you realize that the advantage of having a credit card. Furthermore, with cash, you are restricted to the amount in your wallet or purse; however, a credit card allows you to pay for your purchase at a later date. Both cash and credit cards can be useful when you manage them wisely. While cash and credit cards are similar in that they both are readily accessible, used for goods and services at the time of purchase, they are dissimilar because of theft, high- interest rates, identity theft.

The credit card is an adaptable repayment tool accepted at over 30 million locations worldwide as it has turned into a good choice for cash. On many events, situations come up where you will need more cash than what exactly are immediately available. Emergencies such as a home or car vehicle repairs, medical expenditures, travel for a family group crisis, are achievable instantly with a greeting card. Such credit spending should be achieved with a short-term

The principles are the result from the accounting practice that has been used and improved over the time. The deeper explanation about the statement is that, accounting standard such as IFRS is created based on the previous accounting practice itself rather the theories. The theories are useful in guiding the other field like finance and economics. There is also evidence that the accounting theory exists after standard has been practiced (Cluskey, Ehlen and Rivers 2007). The father of accounting, Luca Pacioli explained about double-entry booking in one of his studies. The study described the practice and explained to the readers the logic behind it. The research had given birth to dozens of studies made by theorist to further discuss about the accounting practice. By this evidence, the readers can also conclude that not only the standard that exist from accounting practice but in fact, accounting theory also exist to explain the nature of the practice. Back to the purpose of this paper, accounting theory plays no role in the setting of accounting standard is approved by two points: the process of setting accounting standard itself is a political activity and the development of accounting standard is influence by the existing accounting practice not accounting