...Financial Accounting Assignment IV Group 7 Raghu Arun T V N 1401098 Rajat Ramesh 1401099 Raushan Kumar 1401100 Rohith Ambati 1401102 Sangameswaran Ashwin 1401104 2. What were the reasons behind the accounting fraud: Accounting fraud refers to the fraud that is committed by a company by maintaining false information about the sales and income in the company books, With an intention to inflate the worth of company's assets or profits, When a company is actually operating at a loss. The major reason behind the occurrence of accounting fraud at WorldCom Telecommunication company, The CEO of the company Ebbers focused largely on being the No.1 stock on Wall Street rather than capture market share or being global. This has led to creation of a pressure among the top management to meet the most important performance indicator Expense-to-Revenue(E/R) ratio, even when the entire telecommunication industry is facing adverse conditions at the onset of economic recession and the aftermath of the dot-com bubble collapse. This pressure on top management provided the necessary motivation to commit to fraudulent accounting practices. Adding to the motivation, the culture within the organization is very diluted with no proper corporate code of conduct and WorldCom has completely failed to integrate the people, cultures and incompatible legacy accounting systems of 60 different organizations it has acquired. Also, WorldCom encouraged an attitude conveyed from top...
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...Question 1 (a) (i) Cost of 80% Investment in Meagan Co NCI: 20% of FV of Identifiable net assets Identifiable assets and Liabilities(1000000+2000000) Excess Fair Value over Carrying Amount(250000-350000) Fair Value of identifiable net assets Implied Value of 100% of Meagan Co Carrying amount of Meagan Co Calculation of Acquisition Differential: 3,000,000.00 3,000,000.00 (100,000.00) 2,900,000.00 Common Shares Retained Earnings 1,000,000.00 2,000,000.00 Acquisition Differential Allocated: Inventory(250000-350000) Goodwill 20% 580,000.00 3,580,000.00 3,000,000.00 580,000.00 (100,000.00) 680,000.00 (ii) Acquisition Differential Amortization and Impairment Schedule Inventory Goodwill Balance Jan 1, 20X2 (100,000.00) 100,000.00 - - 595,000.00 680,000.00 (68,000.00) (17,000.00) 580,000.00 32,000.00 (17,000.00) Amort/Impairmen t for 20X2-20X5 Amor/Impairmen t for 20X6 Balance Dec 31, 20x6 595,000.00 (iii) Intercompany Transactions: Intercompany Profits: Before Tax 35% Tax After Tax Opening Inventory - Meagan...
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...CHAPTER 2: Recording Process ( SWD: Lecture Review) What is an account? An account is an accounting record of increases and decreases in a specific asset, liability, or owner’s equity item. For example, Softbyte (the company discussed in Chapter 1) would have separate accounts for Cash, Accounts Receivable, Accounts Payable, Service Revenue, and Salaries Expense. In its simplest form, an account consists of three parts: (1) a title, (2) a left or debit side, and (3) a right or credit side. Because the format of an account resembles the letter T, we refer to it as a T account. Debits and Credits The terms debit and credit are directional signals: Debit indicates left, and credit indicates right.They indicate which side of a T account a number will be recorded on. Entering an amount on the left side of an account is called debiting the account. Making an entry on the right side is crediting the account.We commonly abbreviate debit as Dr. and credit as Cr. Double-entry accounting system • Each transaction must affect two or more accounts to keep the basic accounting equation in balance. • Recording done by debiting at least one account and crediting another. • DEBITS must equal CREDITS. If Debits are greater than Credits, the account will have a debit balance. If Credits are greater than Debits, the account will have a credit balance. The normal balance of an account is on the side where an increase in the account is recorded. The Journal Companies initially record transactions...
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...WA 1-8 Explain who the stakeholders are that would be interested in the financial reporting of the company and what information would be most relevant to these stakeholders. Stakeholders: - Investors o Investors would be interested in their financial reporting because they would need to see if the company is making profits, their current situation, losses that they could have incurred and why this has happened, current and future projects, and etc. This information is important to the investors because they need to see whether this investment into the company is a good one or not. A good one in terms of its return on investment, stability, and risks. If it’s not a good investment then investors would likely sell their stocks of this company as they do not want to take any more losses. - Creditors o Creditors would be interested in their financial reporting because they would need to see the performance of the company and its current situation. This is important because they would need to determine whether the company is able to pay back its loans that the creditors have lent. If they are not able to then the creditors would want the company sell of its assets so that they can gain back the principal plus interest of the loan. - Management o Management would be interested in their financial reporting because they would need to see whether company is making profits or not. This is important because it reflects their performances. Good performances would mean they have...
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...AFW 2491 COMPANY REPORTING ASSESSMENT TASKS SEMESTER 2 2010 Assignment 1 Learning objectives assessed: This assessment task is designed to test a student’s achievement of objectives 1 and 4. It is an individual assessment task. Weighting: 10% Task details: The process of adopting the IFRS in Australia has led to some significant changes to some accounting standards and minor changes in others. A number of countries throughout the world are now undergoing a similar process as they too adopt the IFRS regime. However, a single global set of accounting standards has not been achieved as the United States continues to apply its own Generally Accepted Accounting Principles (US-GAAP) as endorsed by the US Financial Accounting Standards Board (FASB). In 2003 the International Financial Accounting Standards Board (IASB) and the US Financial Accounting Standards Board (FASB) commenced a joint project with the aim of converging the IFRSs and FASB standards. This project will result in further changes which will flow through to Australia, but when complete, may ultimately result in a true international standardisation of accounting and a single set of global financial accounting standards. This task requires you to consider the implications to Australian financial reporting if this international standardisation occurs. What benefits can Australia expect from all this international standardisation? Required: In an essay you are required to explain “the benefits Australia can expect...
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...Intermediate Accounting 1 -- Spring 2014 Financial Accounting Standards Codification Research Assignment Questions In order to complete this assignment, you will need to access the Financial Accounting Standards Board (FASB) Financial Accounting Standards Codification database. The related information for this is posted on Blackboard for this course. The UH copy of the FASB Financial Accounting Standards Codification (FASC) can be accessed at: http://aaahq.org/ascLogin.cfm. The FASC is the one and only source of the technical GAAP standards. Other sources are no longer accepted as GAAP. The student log in information is: Username: AAA51654 / Password: xY8Z67e. After you sign in – click on “FASB Accounting Standards Codification” on the screen and the database will open. There is a “search” box in the top right of the screen. If you scroll over the topics (Assets, Liabilities etc.) on the left side of the welcome page you will see the subtopics and contents – click on the subtopic and it will take you to the related Codification content. The class assignment/project that you are responsible for is comprised of researching several of the more current technical topics in accounting and responding to several specific related technical standard questions about the topics. For some of the topics (see below) you will also be asked and responsible for interpreting how the technical standard is applied or what the objective(s) of the related GAAP rules are attempting to address or other...
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...healthcare organizations face an intimidating financial situation in today’s healthcare atmosphere. “Decreasing revenues, increasing costs, and high consumer expectations present a complex challenge for healthcare administrators and medical directors who must not only manage in today’s climate, but also position their organizations for tomorrow’s storms” (Gale Group, 2004, p. 2). This paper will summarize the four elements of financial management; summarize generally accepted accounting principles and general financial ethical standards; and provide examples from articles that reflect ethical standards of conduct and financial reporting practices. Four Financial Management Elements Planning, controlling, organizing and directing, and decision making are the four elements of financial management. The purpose of planning is for the financial manager to identify the objectives and identify the steps required to achieve those objectives. The purpose of controlling is for the financial manager to review and compare current reports against previous data to ensure the plans, set by the organization, are being followed properly and efficiently. The purpose of organizing and directing is for the financial manager to ensure effective resource use and provide daily supervision. Lastly, the purpose of decision making is for the financial manager to make informed choices through primary tasks of analysis and evaluation. These four elements of financial management are the key to leading a...
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...ACC 563 WEEK 4 ASSIGNMENT 1 STRAYER LATEST To purchase this visit following link: https://coursehomework.com/product/acc-563-week-4-assignment-1-strayer-latest/ Contact us at: HELP@APEXSEEKERS.COM ACC 563 WEEK 4 ASSIGNMENT 1 STRAYER LATEST Assignment 1: Research of Emerging Accounting Issues For this assignment, you will need to go to the FASB Website and review the issue that the Emerging Issues Task Force (EITF) is working on at http://www.fasb.org/jsp/FASB/Page/SectionPage&cid=1218220137528. From the current issues described on the Website, you will need to select an issue of interest to you and identify it for the assignment. Write a six to eight (6-8) page paper in which you: 1. Research the role of the Emerging Issues Task Force (EITF) as it relates to the Financial Accounting Standards Board (FASB). Evaluate its effectiveness with finding resolutions to emerging accounting issues. 2. Research the emerging issue you selected from the EITF’s current issues page and evaluate the key areas being addressed by the EITF. 3. Assess how a company’s accounting and financial reporting is likely to be impacted by the work being done by the EITF on this issue. 4. Create a response to the EITF recommendation on the issue that you would submit during the public comment period. 5. Evaluate thACC 563 WEEK 4 ASSIGNMENT 1 STRAYER LATEST To purchase this visit following link: https://coursehomework.com/product/acc-563-week-4-assignment-1-strayer-latest/ Contact us at: HELP@APEXSEEKERS...
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...Government and Non-Profit Accounting )Complete Class Click This Link to Get The Tutorial: http://www.myhomeworkspot.com/ACC455-Corporate-Taxation-Complete-Class-002.htm Week 1 Individual Governmental Accounting Standards Board (GASB) and Financial Accounting Standards Board (FASB) Analysis Paper Prepare a 350- to 700-word paper comparing and contrasting GASB and FASB accounting. Explain the objectives of the two standards boards and how they are similar and different. Describe how the modified accrual basis of accounting differs from full accrual accounting. Format your paper consistent with APA guidelines. Discussion Questions DQ 1 Log into http://www.charitynavigator.org/. Choose a good charity and a bad charity and explain why you feel they should labeled good or bad. DQ 2 What is fund accounting? How does it compare to proprietary accounting? Why is fund accounting necessary? What are the major fund types? DQ 3 What are some examples of government and not-for-profit organizations? How do businesses measure success? How do government organizations measure success? DQ 4 What is the purpose of CAFR? What are the components of CAFR? Why is the Federal Government not subject to GASB 34? How do government-wide financial statements add information not available in fund financial statements? Week 2 Individual Ch. 1, 2, & 3 Textbook Exercises Resources: Ch. 1, 2, & 3 of Government and Not-for-Profit Accounting Prepare written answers...
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...UNIVERSITY SCHOOL OF BUSINESS ADMINISTRATION AND EXTENDED LEARNING INTERMEDIATE ACCOUNTING I Semester: Fall 2014 August 27, 2014 – December 17, 2014 Course: ACCT 307 Intermediate Accounting I Credits: (3) Credit Hours Prerequisites: ACCT 206 Location: Woodhaven, Room 4 Days/Times T/TH (8:00am–9:30am) Instructor: Stephen B. Bates MBA, CPA, CGMA Office: Aquinas Hall, Rm. 17 Office Hours: T (1:30-4:30 p.m.)NE / TH (1:00-2:30 p.m.)WH Telephone: (267) 341-3522 E-mail: sbates@holyfamily.edu Catalog Course Description Preparation and interpretation of complex accounting statements, in particular assets using contemporary reporting techniques. Study of financial statements as well as in-depth analysis of the individual components of statements, with specific emphasis on current FASB statements and International Financial Reporting Standards. Students will utilize computerized spreadsheets to solve problems. Required Textbook Kieso, Weygandt, Warfield. INTERMEDIATE ACCOUNTING 15th Edition, 2013. John Wiley & Sons, Inc. Hoboken, N.J. ISBN – 978-1-118-14729-0 Other Required Resources Students will be required to access portions of selected financial statements of publicly held corporations via the internet. Additionally, three financial statements, Tootsie Roll, Hershey, and DuPont will be handed out. These statements...
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...refer to Part A of the Code of Ethics of the Australian Accounting Profession discussed in Chapter 29 of the text. (25 marks) EARNINGS MANAGEMENT 2. “Numerous pieces of evidence suggested that earnings management – the managerial use of discretion to influence reported earnings – was a widespread corporate practice at Computer Associates.” Distinguish between accrual-based earnings management and real activities manipulation. Explain what is meant by a trade-off between the two. Which type of earnings management was practised at Computer Associates? Academic support should be provided (see the attached reference list) from at least two articles. (25 marks) CORPORATE GOVERNANCE 3. Corporate governance is defined as the system by which companies are directed and controlled" (Cadbury Committee, 1992). Discuss the role of specific corporate governance mechanisms that may have alleviated earnings management at Computer Associates. Academic support should be provided (see the attached reference list) from at least two articles. (25 marks) LOBBYING 4. The fraudulent activity at CA centred on issues of earnings management concerning revenue recognition. On 14 November 2011 the International Accounting Standards Board (IASB) and the US Financial Accounting Standards Board (FASB) issued for public comment a revised draft standard to improve and converge the financial reporting requirements of International Financial Reporting Standards (IFRSs) and US...
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...good or bad. DQ2: What is fund accounting? How does it compare to proprietary accounting? Why is fund accounting necessary? What are the major fund types? DQ3: What are some examples of government and not-for-profit organizations? How do proprietary businesses measure achievement? How do government organizations measure success? DQ4: What is the purpose of CAFR? What are the components of CAFR? Why is the Federal Government not subject to GASB 34? How do government-wide financial statements add information not available in fund financial statements? Business - Accounting ACC 460 Week 1 Individual Assignment Governmental Accounting Standards Board (GASB) and Financial Accounting Standards Board (FASB) Analysis Paper ACC 460 Week 2 Individual Assignment Ch. 1, 2, 3 Textbook Exercises ACC 460 Week 2 Learning Team Assignment CAFR Budget Analysis ACC 460 Week 3 Individual Assignment Ch. 2, 4, 5, 6 Textbook Exercises ACC 460 Week 3 Learning Team Assignment Ch. 4 6 Textbook Problems ACC 460 Week 4 Individual Assignment Ch. 9 10 Textbook Exercises ACC 460 Week 4 Learning Team Assignment Ch. 5 10 Textbook Problems ACC 460 Week 5 Individual Assignment Accountability in Reporting Memo ACC 460 Week 5 Individual Assignment Ch. 12 Textbook Exercises ACC 460 Week 5 Individual Assignment SFAS 116 and 117 Executive Summary ACC 460 Week 5 Learning Team Assignment Ch. 9 11 Textbook Problems ...
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...ACC 557 Week 3 Assignment 1 Assignment 1: Review of Accounting Ethics Due Week 3 and worth 200 points Many organizations have been in the news over the past few years due to accounting ethical breaches that have affected their customers, employees, or the general public. Search the Internet or the Strayer Library to locate a story in the news that depicts an accounting ethical breach. You may select from any type of organization about which you have information or a curiosity. Write a four to five (4-5) page paper in which you: 1. Given the corporate ethical breaches in recent times, assess whether or not you believe that the current business and regulatory environment is more conducive to ethical behavior. Provide support for your answer. 2. Based on your research, describe the organization, the accounting ethical breach and the impact to the organization related to ethical breach. 3. Determine how the organizational ethical issue was detected and how management failed to create an ethical environment. 4. Analyze the accounts impacted and / or accounting guidelines violated and the resulting impact to the business operation. 5. As a CFO, recommend which measures could have been taken to prevent this ethical breach and how each measure should be implemented in the future. 6. Use at least four (4) quality academic resources in this assignment. Note: Wikipedia and other Websites do not quality as academic resources. The specific course...
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...UNIVERSITY, POMONA ACC 311 Intermediate Accounting I SPRING 2016 PROFESSOR: Dr. Hassan Hefzi OFFICE: 164-2085 OFFICE HOURS: 12:30 - 2:00 MW PHONE: (909) 869-2385 And by appointment E-mail: hhefzi@cpp.edu (I do not respond to e-mails on weekends) Text and other Materials: 1. Intermediate Accounting, Spiceland, Sepe and Nelson, 8th Ed., McGraw-Hill, 2016. 2. The Wall Street Journal, or the Journal of Accountancy. 3. FASB, Concept Statements No5, 6, 7 & 8). At http://www.fasb.org. Course Description: Analytical study and application of accounting theories and techniques including current literature of authoritative accounting organizations. 4 lecture/problem solving. Prerequisite: A minimum grade of “C” (2.0) in ACC 304 and a passing grade on the Graduation Writing Test. Non-accounting majors should refer to the current Cal Poly Pomona Catalog. Course Objectives: This course is aimed primarily towards those who will be providers of financial information for external use—those who will be primarily responsible for observing, selecting, measuring, and reporting financial information for external decision making. The main objective is to develop skills of APPLICATION AND ANALYSIS, i.e., to demonstrate the use of appropriate concepts, standards, and techniques after having considered the needs of financial statement users and how the behavior of the users may be influenced by financial accounting information. Achieving this objective requires...
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...Running head: EMERGING ISSUES Assignment #2 Emerging Issues Task Force Abstract In 1982, the Financial Accounting Foundation Structure Committee produced a report on operating efficiency that indicated a need for more timely guidance on implementation questions. That report resulted in the formation of an advisory group, which evolved into the Emerging Issues Task Force (EITF). This task force was established to assist the Financial Accounting Standards Board (FASB) in improving financial reporting through the timely identification, discussion, and resolution of financial accounting issues. (FASB, 2011) This paper discusses and explores the EITF in greater detail. Discuss how the Emerging Issues Task Force influences Generally Accepted Accounting Standards. The Emerging Issues Task Force (EITF) was formed in 1984 to respond to the recommendations of the Financial Accounting Standards Board (FASB) task force on timely financial reporting guidance. The EITF influences general accepted accounting standards by providing improved financial reporting through timely identification, discussion, and resolutions within the framework of an existing authority. The EITF designed to reduce diversity in practice on current issues in a quick and timely manner that should not exceed three to four annual meetings. This advisory board also minimizes the need for the FASB to spend time and effort addressing narrow implementation, application, or other emerging issues that...
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