Ultima Case Study

Generating high sales volume and rapid inventory turnover by offering fee-paying members low prices on nationally branded and private-label products. Yes, it is appealing because the fees paid by members allowed for sufficient supplemental revenues while the turnover rates allowed Costco to receive cash for inventory before it had to pay many of its merchandise vendors.

"The Framework states that the objective of financial statements is to provide information about the financial position, performance and changes in financial position of an entity that is useful to a wide range of users in making economic decisions."

Per the provisions of Statement No. 34, governments must report their capital assets similarly to business in their government-wide statements; however, the information provided is still inadequate to facilitate the major types of decisions and judgments made by statement users. There are some people, who agree to the above statement, and some are not; regardless of the information provided it is important to be correct and adequate in order to know as a government leader where the money has been spend and how it has to be spent; it is government’s moral obligation to report it in their government-wide statements. Therefore, this paper is going to address about whether it is important to report capital assets similar to businesses, differences between moral obligation bonds from other types of debt, and it is about why one government assume a moral obligation for another government’s bonds.

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)

4.3 The objective of financial statements is to provide information about the financial position, performance and changes in financial position of an enterprise that is useful to a wide range of users such as suppliers, customers, government agencies or financial institutions in making economic decisions, for instance, whether to grant a loan or to give credit to the company. At the financial year end the Finance Director at IWL prepares the following financial statements:

Financial reporting is the communication of financial information n to relevant stakeholders. The reporting may include general purpose reports such the balance sheets, equity reports and balance sheets. Additionally, the items such as press releases meeting minutes, and auditors reports are included as part of the financial reports (Greuning, 2009). The reporting of financial information depends on the regulatory body under which the company operates. Questions have been raised on the different evaluation of financial records employed by the regulatory bodies. Both US GAAP and IFRS have weaknesses that affect the financial reporting by either complicating the reporting or being too general to accommodate special cases.

1. Cash normally consists of coins and currency on hand, bank deposits, and various kinds of orders for cash such as bank checks, money orders, travelers’ checks, demand bills of exchange, bank drafts, and cashiers’ checks. Balances on deposit in banks which are subject to immediate withdrawal are properly included in cash. Money market funds that provide checking account privileges may be classified as cash. There is some question as to whether deposits not subject to immediate withdrawal are properly included in cash or whether they should be set out separately. Savings accounts, time certificates of deposit, and time deposits fall in this latter category. Unless restrictions on these kinds of deposits are such that they cannot be converted (withdrawn) within one year or the operating cycle of the entity, whichever is longer, they are properly classified as current assets. At the same time, they may well be presented separately

Pension assets are labeled in the financial statements as stocks, bonds, and other to represent other comprehensive income. (Amir E.)

Measures assets and liabilities in monetary units and in accordance with cost principles. Communicates information about assets (resources), liabilities (out side claims), and owners’ equity.

These reports collect related items of content to display or link to them in those conclusions of the financial year, therefore; for this reason, does not uncover whichever the measure of unpaid liabilities alternating the possessions the firm need at present. Secondly, the financial formation of clear and distinct sounds gives just those relating to, measuring, or measured by the quantity of something rather than the quality and furthermore, most of many of the data regarding the financial issues of the firm (Vogel, 2014).

Organizations produce financial statements that give data about their money related position and execution. This data is utilized by an extensive variety of partners (e.g., financial specialists) in settling on financial choices. Regularly, those that possess an organization, the shareholders, are not those that oversee it. In this way, the proprietors of these organizations (and different partners, for example, banks, suppliers, and clients) take solace from the autonomous affirmation that the monetary explanations genuinely present, in every single material regard, the organization 's money related position and execution.

According to Black (2009: 2), accounting can be defined simply as the recording, summarizing and interpretation of financial information. A more detailed definition is that offered by the American Accounting Association (1966), as follows: ’The process of identifying, measuring and communicating economic information to permit informed judgments and decisions by users of the information’. This means that, in terms of identifying, this should focus on the key financial segment of an organization, like liabilities, assets and capital. Measuring, on the other hand, refers to the budget of the company and it shows a true and fair view of the organization. Next, communicating refers to the financial information which is transmitted to the people who need this information.

The chapter will provide the rationale for banking and its supervision. A brief mention has been made of the high level segmentation of banking, which will be explored further in the next chapters. The chapter ends with the description of typical financial statements in a bank. The description of the terms in a financial statement have been kept to a level suitable for an introductory course.

These measures ought to require high calibre, straightforward and equivalent data in money related proclamations and other monetary answering to help speculators, different members on the planet 's capital markets and different clients of budgetary data settle on financial choices. (Oreshkova)

A business sector is fluid if brokers can execute their exchanges promptly (promptness, or the pace of doing an exchange), and where huge arrangements have little effect on present and ensuing costs or Bid-ask spread. The business sector liquidity