The Statement Of Financial Statements

Considering the tax planning, SOX identify the potential risks of the similar firm conducting both tax services and auditing for a business by changing the relationship between the audit Committee of company and external auditors, thus providing a new obligation for the tax services to be pre-approved by the audit committee while the auditors are not limited from the tax services they can offer (Piotroski & Srinivasan, 2007). The Security Exchange Commission specifies that the audit committee in charge of retention and appointment of auditors must examine first, transactions primarily suggested by the accountant of the firm, secondly transactions which the only purpose is tax evasion, and lastly the treatment of tax that may not be assisted by the Internal Revenue Code of the United States and associated regulations (Piotroski & Srinivasan, 2007). Tax evasion constitutes the illegal nonpayment of tax and cannot be condoned (Raabe, et al., 2015). Those three

This research project will analyze the recent changes in the disclosure requirements for income taxes. On July 26, 2016 the Financial Accounting Standards Board (FASB) published for comment a proposed Accounting Standards Update (ASU) on Income Taxes (Topic 740): Disclosure Framework—Changes to the Disclosure Requirements for Income Taxes. The FASB had received 52 comment letters by the due date of September 30, 2016. The Board issued the amendments in the proposed Update on Topic 740 as part of the disclosure framework project. The new ASU would change, add, and cancel previous income tax accounting disclosure standards. The new amendments would include requirements for all entities (public and private) to disclose certain

Recognition of the possible stance the IRS will take is the first step to evaluating whether the matter should be published as an addendum to the financial statements. The Securities and Exchange Commission (SEC) made multiple changes on how a company needed to report and disclose relevant financial information to provide transparency to investors due to the birth of Sarbanes Oxley (SOX). Consequently, public companies’ management must reveal their knowledge of any current or potential financial concerns “that might materially affect their financial statements” on their annual 10-K and quarterly 10-Q filings (Chasen, 2015).

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At the beginning of November in 2007 the Statement of Financial Statements (SFAS) board decided to postpone the enactment of FIN 48 financial reporting and accounting and income taxes until later that year on December 15, 2007. The purpose of FIN 48 is to force public companies to analyze companies tax positions and evaluate the probability that their tax position will

Two additional areas that concern management are accounting policies and FASB standards changing. Accounting policies dictate that “properties to be disposed of are reported at the lower of their carrying amount or fair value, reduced for estimated disposal costs, and are included in other current assets” (F. Phillips, 2006). The Landry’s acquisitions increased the properties to approximately 300, but as the disposal of the properties occurs the loss will be significant.

In this report I will be describing how legislation and accounting concepts, could affect a business company’s accounting policies. I will also be talking what Acts contain, concepts and their importance, and also accounting policies. I will be supporting my work with examples.

Accounting Information is the pearl of any organization. It is how a business provides its investors as well as other stakeholder parties’ direction towards a healthy economic decision in favor of the business. Regulation of these information and standardizing the process would lead to that organization solving the problem of ‘information asymmetry’. (Watts & Zimmerman, 1978)

The financial condition of a company as reported in the company’s financial statements for a period gives company management the information needed to make vital business decisions including the decision to expand in nature or how to determine industry trends in nature by using a trend analysis. In this paper, I will discuss Landry’s Restaurants management assessments of the financial condition and explain whether or not those assessments agree with my previous assessments supported by a trend analysis. I will also discuss management’s concerns and identify and recommend a course of action for weaknesses not discussed by management.

After more than 10 years updates on FASB statements, finally in February 1992, FASB Statement that establishes financial accounting and reporting standards for the effects of income taxes that result from an enterprise 's activities during the current and preceding years. It requires an asset and liability approach for financial accounting and reporting for income taxes was issued which was thought to illustrate the whole area of Deferred Taxes.

Not-For-Profit financial statement preparers might experience dramatic changes in practice as a result of new standards which proposed on April 22, 2015. Before that time, the FASB has endeavored to eliminate differences in reporting between Not-For-Profits and business enterprises. In this new model that uses a different approach to presenting financial information, a key target is to make a consistency to all NFPs. For examples, NFPs within the proposal’s range would be required to demonstrate standardized operating measures. In addition, for the statement of cash flows, it asked to use the direct method to show it. Other proposed changes are designed to make it simplified and clarify the reporting of classes of net assets in the statement of financial position. For instance, expand disclosures related to the expense and liquidity. In the following sections, I will list the updated changes and compare the differences between the old version and the new one. By contrasting the old and the new, we could get to know how should we put the new regulation into use.

The forecasted profit and loss statement will allow Columbia Memorial Hospital to predict their upcoming financial performance over an accounting period. One of the best predictors of the future can come from healthcare managers analyzing data, which in turn gives them the information needed to identify whether the organization can make a profit for the given period (57).

Financial statements have several key components and specific criteria into them to relay the detailed information for auditors and management. A deeper look into financial statements and the many concepts surrounding them are needed to explain in more detail. It’s also important to recognize the Auditor’s opinion letter, balance sheet, operating statement, statement of changes in net assets, and statement of cash flows and footnotes of their involvement in the process. Relevant accounting articles are a useful supplement to financial statements and how they enhance concepts in the financial statement. The meaningful uses of financial statements for health care organizations are the epitome of current and future success of financial health.

Cash flow forecasting sets out anticipated inflows and outflows of cash in the coming months of trading. Cash flow can be described as the movement of money through the business and it is one of the most important aspects of financial management to keep the business solvent and trading. It is possible for a company to be cash rich but not generating any profit and also for a profitable business to have no cash and be unable to pay its creditors. There are two main ways to avoid cash flow problems; Speed up cash inflows and delay cash outflows. (Marcousʹe, 2003) Cash flow forecasting is different from the cash flow statement, whereas the cash flow statement shows what has happened in the past i.e historical data the cash flow forecast is based on an estimate of future cash flow. By creating a detailed estimate of the inflows and outflows expected in the next period the company can derive the cash flow forecast and by calculating each month’s figures the cumulative cash position can be assessed. This gives the company an idea of any times that they may face a negative cash flow balance and arrangements can be made to make sure extra finance is available in this period. (Lines and Marcousʹe et al., 1996)

Two of the most contentious issues currently facing the accounting world are how to report revenue received from contracts and how to report income tax expenses. Both these issues have been at the centre of much criticism in recent years and this has led to current standards being reviewed and new standards being put in place with the aim to give a more accurate picture of a company’s performance in a given time period.