Questions On Financial Reporting And Corporate Reporting

The conceptual framework is an attempt to provide a metatheoretical structure for financial accounting. SFAC No.3 defines 10 elements of financial statements. It is obviously a resolution of the definitions presented in the discussion mem for the conceptual framework project. Elements are what accounting professionals measure and the attributes is about how to measure. Definitions can be helpful to the financial statements which have been formulated in order to help professionals to specify the qualification are. Also, the definitions must be expressed in the metatheoretical structure.

(Ohara, 2007) Most financial statements are made public for the benefit of stakeholders and potential investors. The bottom-line is that financial statements are the main source for analyzing how well a company is operating. The income (or profit and loss) statement is simply a report card of how much activity (revenue) was performed in the period, how profitable that activity was (gross profit/loss), and what it cost the contractor to run the business (overhead). (Murphy, 2006)

During the PRE-IFRS accounting system and where worldwide accounting diversity was widespread, a number of PRE-IFRS developmental factors were found to be the cause behind international differences in ownership and financing of companies and led to differences in the financial reporting practices of multi-national corporations (MNCs). This type of environment created extensive opportunities for corruption and poor performance and made it hard to compare global companies. The following four main PRE-IFRS development factors have the biggest impact on international business accounting practices: source of finance, legal system, taxation system and political and economic ties (Meek & Saudagaran, 1990). Even though the International Financial

Excello Telecommunications was presented with a dilemma on how the company should report earnings so that they would appear to have met earning estimates for the 2010 financial year. The CFO, Terry Reed, was concerned with how failure to meet earning estimates would affect bonuses, stock options, and the share price of Excello stock. On December 201, 2010, the company sold $1.2 million of equipment to Data Equipment Systems. However, Data Equipment Systems requested that Excello hold on to the product until January 11, 2011, because they do not have the

1. The percentage analysis of increases and decreases in individual items in comparative financial statements is called

On January 1, Puckett Company paid $2.64 million for 88,000 shares of Harrison’s voting common stock, which represents a 40 percent investment. No allocation to goodwill or other specific account was made. Significant influence over Harrison is achieved by this acquisition and so Puckett applies the equity method. Harrison distributed a dividend of $2 per share during the year and reported net income of $613,000. What is the balance in the Investment in Harrison account found in Puckett’s financial records as of December 31?

In this paper we will discuss Walmart’s Balance sheet and Income Statement. We will analyze the company’s total assets at the end of the most recent annual reporting year and to why it is important. We then will talk about the company’s total assets, how much cash and cash equivalents did the company have, as well as, the amount of accounts payable at the most recent year, and from the previous year. What the company’s net revenues are from the last three annual reporting periods, the change in dollars in the company’s net income from the most recent annual reporting period to the previous annual reporting period. We will

3. Offer Data Equipment a 10 percent discount to take the product by December 31.

If I had to narrow my composing process down it would be between two processes, the Think-Aloud Protocol & Process Log. A think-aloud protocol is the process of verbally speaking the words as you write them as well as saying aloud what you are thinking. “A process log is a journal in which you discuss what you are writing, what you are reading in relation to your written work, and how writing for class relates to other writing you are doing or have done.”

All companies are obligated to corporate reporting under the Corporations Act 2001. It involves corporate reporting through the implementation of an audit committee. This motion requires accountability and transparency, without it, companies may be viewed as sneaky and troublesome. JB Hi-Fi has established an Audit and Risk Management Committee (ARM) as stated in their annual reports. This committee meets regularly and are independent of the company as they are non-executive directors. To further demonstrate JB Hi-Fi’s integrity, Deloitte Australia is used as an independent auditing company to additionally declare the annual financial reports as unbiased, factual and honest.

Which of the following is a benefit of securitization through the use of a properly structured SPE to a company?

Accounting treatment for income taxes for for-profit entities is subject to Australian Accounting Standard Board (AASB) 112 Income Taxes. In accounting for income tax, complying with tax-effect method involves the occurrence of tax consequences due to different treatments are applied for transactions and other events happened inside an entity for accounting and taxation purposes, namely current tax consequences and future tax consequences.

In order for capital markets in the U.S. economy to operate effectively, corporate governance measures are needed to ensure adequate controls. Corporate governance is the system of regulations and processes in which various interests both directly and indirectly guide a company’s relationship with the capital marketplace. Businesses have obligations to various groups of stakeholders whom rely on financial reporting information in order to make sound market decisions. The reforms under ACA conform to the corporate governance model as presented in Figure 1. ACA legislation demonstrates the marketplace’s demand for universal healthcare coverage and reforms. Functioning under the employer mandate, companies must provide transparent and high quality reports to demonstrate compliance. In addition, since most of the provisions under ACA and the employer mandate are tax related, this causes most of the reporting process to take place on tax returns and monitoring to be fulfilled by the IRS.

Existing and potential investors use the financial reporting in order to make an informed decision about whether or not to invest or continue to invest in the company by comparing the results obtained in the current year to that of the previous year as well as to other companies financial reporting. Lenders and other creditors use it for a credit check required by the National Credit Act in order to ensure that the company can settle its liabilities before enabling them to purchase on credit. SARS will use the reporting of a company to check the credibility of the company’s tax returns, ensuring that all necessary information regarding the amount owed to them is disclosed.

According to the Financial Accounting Standards Board (FASB) Accounting Standards Codification Topic 230 (ASC 230), cash flows are classified in the Statement of Cash Flows (SCF) as cash flows from operating, investing, and financing activities. ASC 230 replaced FASB Statement No 95 (SFAS-95). This paper will discuss certain problems in SFAS-95 that continue to exist. Certain related cash flows are classified differently because of inconsistencies and ambiguities in classification. Further, the indirect method is widely executed while the direct method discloses more cash flow information. This paper alerts users to make more informed assessments of cash flow information with regards to the subtotals from operating, investing, and financing activities. This paper also suggests the FASB require the direct method for reporting purposes to improve investors’ and creditors’ judgment accuracy. At the same time, this paper provides users ratios to assess the quality of income to make more informed decisions.