The Government Accounting Standards Board Statement 45 Essay example

According to the fact of this case, Parent Co. (Parent) wholly owns Poor Son Co. (Poor Son) as a legal subsidiary, and both of them all nonpublic companies. However, in January 2007 Poor Son filed a voluntary bankruptcy under Chapter 11 of the U.S. bankruptcy code because of its inability of meet obligations as they became due. Then, Parent claimed the loss of control of Poor Son and deconsolidated Poor Son from its financial statement. Through the bidding process in May 2009, Poor Son and OtherCo, the winning sponsor, filed a joint plan of reorganization to the bankruptcy court, but the plan was rescinded by OtherCo later due to significant market value shrink of Poor Son. After that, the

Under IFRS, companies may elect to account for actuarial gains/losses in a manner such that the gains/losses are permanently excluded from the primary statement of operations. Differing restrictions over how assets are valued for the purposes of determining expected returns on plan assets exist under IFRS. IFRS allows for the separation of certain components of net pension costs whereas US GAAP and Mexican FRS do not. The interest cost and return on assets components of pension cost may be reported as part of financing costs within the statement of operations under IFRS as opposed to operating income under US GAAP and Mexican FRS.

Companies can cover employees’ expenses in two ways: through an “accountable plan” or a “non-accountable plan.”

ORL adapts a flexible business model depending on changes of the market. In general, ORL’s strategy is to provide worldwide luxury brands and it focuses on channel of distribution, extension of Asian market and licensed brand.

The last several decades have been a turbulent period for management accounting in the United States. Many U.S. businesses failed in the international market, and the management accounting profession recognized that some of the blame rests upon shortcomings in the information provided to managers. A continuous flow of articles dating back to the mid-1980's such as Kaplan (1986) or Chalos and Bader (1986) has criticized contemporary management accounting systems. On the other hand, Reider and Saunders (1988) offered a defense of contemporary management accounting methods asserting that the methods are adequate but have not been used appropriately.

Tremendous pressure is placed upon accountants and executives to provide favorable financial conditions of their organization (Sherman & Young, 2001). As such, accounting practices are continually a source of question and concern for many organizations in reporting profits and corporate financial information to shareholders, stock markets, and government filings. Hence, the role of the ethical accountant and executives becomes crucial to the continued success and operation of the organization. Consequently, pitfalls or minefields of questionable accounting practices must be avoided.

Many alternative methods exist for implementing financial management systems, and the organization should choose methods appropriate for its particular scale of operations. If the grantee organization is unable to meet the standards that are covered here, NEA funding may be terminated and the organization may be deemed ineligible to receive subsequent financial assistance or may be placed on an alternative method of funding.  Recipients must have accounting structures that provide accurate and complete information about all financial transactions related to each Federally-supported project.  Grant expenditure records must be at least as detailed as the cost categories indicated in the approved budget (including indirect costs that are charged to the project). Actual expenditures are to be compared with budgeted amounts.  Accounting records are to be maintained on a current basis and balanced monthly.  Costs may be incurred only during the grant

Over the years, with the corporate development and social or statutes pressure, some concepts and standards related with audit is uncertainly or ambiguous. The obvious question is whether auditors should be blame when they failing to warn investors to ailing firms’ financial problems and risks (McNabb, 2009). In my opinion, auditors should be blame when they did not provide sufficient and useful information to alert to investors.

The topic to be discussed in this research paper is that of pensions. Pensions are an important topic in the field of accounting due to all the specific accounting methods and procedures that go along with them as well as the fact that pensions are so widely used and can make up a large part of a company’s expenses. Within the topic of pensions to be covered in this paper fall the concepts of the types of pension plans, pension obligations and plan assets, pension expense, as well as various reporting issues.

The mutual set of accounting criteria used to develop medical centers financial statements are known as generally accepted accounting principles (GAAP). GAAP are a mixture of respected criteria created by Securities and Exchange Commission (SEC) and accountants. The SEC has authority granted by The Securities Act of 1933 and the Securities Exchange Act of 1934, to determine reporting and disclosure requirements. Oversight is the general functions of the SEC, granting the Governmental Accounting Standards Board (GASB) to determine the standards. Generally accepted accounting practices are required for accountant to follow and medical centers to use so medical centers and provide investors with a minimal

It also allows the business to keep a track of money going in and out of the business. There are two main categories that all the elements fall into:

Operating results are regularly reviewed by the chief operating decision-maker to assess performance and make resource allocation decisions.

Property rights in long-term assets are generally acquired through purchases funded by either internal resources or funds borrowed form external sources. Nevertheless, a time line of the business and accounting issues are associated with the purchase of long-term assets. And these accounting issues include, in addition to the difficult financial decision, the valuation of the original acquisition cost, determining the amount of expense or periodic write-off, treatment of subsequent expenditures, and recording the disposal of the assets (Stice & Stice, 2014) , and have led to leasing as an alternative means to acquire long-term assets to be used by firms.

Pratt Company owns 80% of Storey Company’s common stock. During 2008, Storey sold $400,000 of merchandise to Pratt. At December 31, 2008, one-third of the merchandise remained in Pratt’s inventory. In 2008, gross profit percentages were 25% for Pratt and 30% for Storey. The amount of unrealized intercompany profit that should be eliminated in the consolidated statements is

Roles are different for management and Management accountant. Same person could do both, but the roles will completely differ. Thus, Management accountants support all the decisions made by the managers. They can mix up their roles that they have daily across the departments and multiple functions. In addition, it includes working for branches of companies that are located in other countries and preparing non-financial and financial work. Achieving an organisations strategic goals are vital, all the decisions made by management accountants has a huge impact to help them achieve their goal. Management accountant used to only provide, process and collect information during the year 1950.