Business/Professional Ethics Directors/Executives/Acct
8th Edition
ISBN: 9781337485913
Author: BROOKS
Publisher: Cengage
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(Economic Consequences) Presented below are comments made in the financial press.
InstructionsPrepare responses to the requirements in each item.(a) Rep. John Dingell, at one time the ranking Democrat on the House Commerce Committee, threw his support behind theFASB’s controversial derivatives accounting standard and encouraged the FASB to adopt the rule promptly. Indicatewhy a member of Congress might feel obligated to comment on this proposed FASB standard.(b) In a strongly worded letter to Senator Lauch Faircloth (R-NC) and House Banking Committee Chairman Jim Leach(R-IA), the American Institute of Certified Public Accountants (AICPA) cautioned against government intervention inthe accounting standard-setting process, warning that it had the potential of jeopardizing U.S. capital markets. Explainhow government intervention could possibly affect capital markets adversely.
Parkman Sporting Goods is preparing its annual report for its 2021 fiscal year. The company’s controller has asked for your help in determining how best to disclose information about the following items:1. A related-party transaction.2. Depreciation method.3. Allowance for uncollectible accounts.4. Composition of investments.5. Composition of long-term debt.6. Inventory costing method.7. Number of shares of common stock authorized, issued, and outstanding.8. Employee benefit plans.Required:Indicate whether the above items should be disclosed (A) in the summary of significant accounting policies note, (B) in a separate disclosure note, or (C) on the face of the balance sheet.
While doing some online research concerning a possible investment you come across an article that mentions inpassing that a representative of Morgan Stanley had indicated that a company’s pension plan had benefited itsreported earnings. Curiosity piqued, you seek your old Intermediate Accounting text.Required:1. Can the net periodic pension “cost” cause a company’s reported earnings to increase? Explain.2. Companies must report the actuarial assumptions used to make estimates concerning pension plans. Which estimate influences the earnings effect in requirement 1? Can any of the other estimates influence earnings? Explain.
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- Choose the correct. Which of the following is not exempt from registration with the SEC under the Securities Act of 1933?a. Securities issued by a nonprofit religious organization.b. Securities issued by a government unit.c. A public offering of $40 million to unaccredited investors under Regulation A.d. An offering to 40 sophisticated investors.arrow_forwardHow would a business manage its tax environment for sustainable growth in 2021 following the impact of COVID 19?arrow_forwardHelp me I got confusion on this , what is penalty on non compliances ? Starting 1 January 2020, the government began imposing a digital services tax (DST) of six per cent on foreign digital service providers (FSPs) in Malaysia. Based on the above required to explain and discuss clearly on penalty on non compliances Who was the penalty on non compliances and explain on it ?arrow_forward
- Note 32 lists “other provisions.”a. Do the beginning and ending balances of total provisions and retirement benefitsshown in Note 32 for fiscal 2015 tie to the balance sheet? By how much has thetotal amount of AF’s “other provisions” increased or decreased during fiscal 2015?b. Write journal entries for the following changes in the litigation provision thatoccurred during fiscal 2015, assuming any amounts recorded on the incomestatement are recorded as “provision expense” and any use of provisions is paid forin cash. In each case, provide a brief explanation of the event your journal entry iscapturing.i. New provision.ii. Use of provision.c. Is AF’s treatment of litigation provision under IFRS similar to how it would betreated under U.S. GAAP?arrow_forwardChief executive officer compensation can be a material amount andis often scrutinized by regulators, analysts, competitors, and investors. For CEOs of publiclytraded companies, compensation can consist of salary, bonus, stock option grants, or otherstock awards that can be restricted in terms of how long the officers and directors arerequired to hold the stock. The Proxy Statement for the 2012 Annual Meeting for GoldmanSachs reports the following values for 2011 compensation of the chairman and CEO.1. Salary of $2,000,0002. Bonus of $3,000,0003. Restricted Stock Units with a grant date fair value of $10,710,073. The grant date fairvalue is determined based on the closing price-per-share of the common stock onthe NYSE on the date of the grant and includes a 15% liquidity discount to reflectthe transfer restrictions on the common stock.a. Provide at least one audit procedure the auditor would perform to test the chairmanand CEO’s salary. What audit objective is satisfied with this audit…arrow_forwardFWB plc operates a defined benefit pension plan for its employees. The directors of FWBplc have adopted the revised provisions of IAS 19 (R) Employee Benefits.At 1 April 2013 the fair value of the pension plan assets was £2,700,000 and the presentvalue of the pension plan obligations was £3,000,000.The service cost for the year ended 31 March 2014 was £650,000. On 1 April 2013 thepension plan was amended to offer additional benefits to members resulting in past servicecosts of £200,000. The relevant discount rate for the year ended 31 March 2014 wasestimated at 5% and FWB plc paid £950,000 in contributions to the plan. The pension planpaid £320,000 to retired members in the year to 31 March 2014.At 31 March 2014 the fair value of the pension plan assets was £3,600,000 and the presentvalue of the pension plan obligations was £3,800,000.REQUIRED:a) Prepare, in accordance with IAS 19 (revised) Employee Benefits, the pension extractsin the income statement and statement of financial…arrow_forward
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