Prepaid Stored Value Cards

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,

* 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

10. Review the adequacy of the allowance for uncollectible accounts by performing the following procedures: a. Review the aged trial balance of accounts receivable with the president. b. Review confirmation exceptions for indications of disputed amounts. c. Analyze and review trends in the following relationships: (1) Accounts receivable to net sales. (2) Allowance for bad debts to accounts receivable. (3) Bad debt expense to net sales. 11. At year-end, review the file of sales invoices that are waiting to be matched with delivery receipts for any sales transactions that were not executed and, therefore, should be recorded in the subsequent period. 12. For all sales recorded in the last week of the year inspect the related delivery receipt to determine that the sale occurred before 12/31/X5. 13. Review credit memoranda for sales returns and allowances through the last day of fieldwork to determine if an adjustment is needed to record the items as of year-end. 14. Perform analytical procedures for sales and accounts receivable including comparison of the following to prior years and/or industry data: a. Gross profit percentage by month. b. Sales by month by salesperson. c. Accounts receivable turnover. d. Advertising expense as a percentage of sales. e. Net receivables as a

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.

“We certify that the attached work is entirely our own, except where material quoted or paraphrased is acknowledged in the text. We also declare that it has not been submitted for assessment in another unit or course.”

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

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.

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

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.

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

It is founded on the argument that income statements and financial position ofaccounts change with sales. Sales forecast is the key determinant of the method of percentage of sales. Based on this method, financial statements of Pro-Forma can beprepared. In addition, the Body Shop will be able to identify external financial need (EFN). In this method, the first step is usually the expression of the income statements and balance sheet accounts which differ directly with change in sales. The Body shop company will do this by dividing the balance for the accounts for (2001) by sales revenue for the current year (2001). In the Body Shop balance sheet, the accounts which are generally tied with sales are cash (calculated as 3.7%), inventories (calculated as 13.7%),and net fixed assets (calculated as 29.6%), other current assets (calculated as 4.7%),accounts receivables (calculated as 8.1%), other assets (calculated as 1.8%), and accounts payable (which is 2.9%).The overdrafts, other current liabilities, and long-term liabilities are not tied with sales directly. The change that result in these accounts depends on the method Body Shop decides to employ in raising the required amount of cash to sustain the sales growth as forecasted. For income statements, costs are also expressed as the percentage of sales. The assumption in this case is that all costs remain at a sales percentage that is fixed. The cost of sales

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

mechanism of the free market; (2) restraining merchants from encouraging or pressing each Defendant to compete over card acceptance fees; (3) insulating each Defendant from completion from rival networks that would otherwise encourage merchants to favor use of those networks’ cards; (4) inhibiting other networks from competing on price at merchants that accept Defendant’s General Purpose Cards; (5) Restrict merchants from promoting payment methods other than their own; (6) restricting merchants from competing for customers with discounts, promotions, r other forms of lower prices and other benefits enabled by customers’ use of lower cost cards or other payments; (7) causing increased prices in the form of higher merchant card acceptance fees; (8) causing increased retail prices for goods and services paid generally by customers; (9)reducing output of lower-cost payments methods; (10) stifling innovation in network services and card offerings that would emerge if competitors were forced to compete for merchant business at the point of sale; and (11) denying customers information about the relative cost if each Defendant’s General Purpose Card usage compared to other card usage that would cause more consumers to choose lower-cost payment methods,

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