...October 2008 Discussion Paper Snapshot: Preliminary Views on Financial Statement Presentation This snapshot is a quick introduction to the discussion paper Preliminary Views on Financial Statement Presentation. Its purpose is to provide a first insight into the major ideas presented in the discussion paper. The snapshot has been prepared by staff and is not an official technical document of the IASB or the FASB. Project objective: The objective is to create a standard that requires entities to organise financial statements in a manner that clearly communicates an integrated financial picture of the entity. The International Accounting Standards Board (IASB) and the US Financial Accounting Standards Board (FASB) are undertaking this project jointly. The discussion paper (DP) is the first step towards the creation of a standard. In the DP the boards explain the issue and present their initial ideas on the topic. The objective is to receive feedback from interested parties early in the process. Process stage: Comment deadline: The DP is open for public comment until 14 April 2009. Next step: The boards will consider responses to the DP and then develop an exposure draft (ED) that sets out a specific proposal in the form of a proposed standard. The boards expect to publish an ED in 2010. Why are we doing the project? Financial statements are important. The boards believe that a common format for financial statement presentation will improve communication between...
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...Ratios & Interpretation 6. Limitations of ratio analysis Accounting: Definition Is the process of Recording Classifying Summarizing Interpreting in journal in ledger and in Financial Statements financial information in order to make decisions Financial Statements Financial Statements present information about The financial position of an entity Its financial performance during accounting period Its cash flow Financial statements are 1. 2. 3. 4. 5. Statement of Financial Position Statement of Comprehensive Income/income statement Statement of Cash Flow Statement of changes in Equity Notes to the Financial Statements Elements of Financial Statements Statement of Financial Position shows the financial position of an entity as at a particular date. The financial position is shown by assets, liabilities and equity (capital) Income statement shows the financial performance of an...
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...Leases: Income Effects of Constructive Capitalization Eugene A. Imhoff, Jr.. Robert C. Lipe and David W. Wright Eugene A. Imhoff, Jr. is Professor at University of Michigan, Robert C. Lipe is Associate Professor at University of Colorado at Boulder and David W. Wright is Associate Professor at University of Michigan. SYNOPSIS: Lease contracts written in 1994 in the U.S. have been estimated at over $140 billion (London Financial Group Ltd. 1996). The amount of leasing activity continues to grow, particularly op erating-type leases which provide a source of off-baiance sheet financing. However, a recent publication by an international group of representatives from the FASB and six other national and international accounting standard setting bodies suggests that iease accounting should require alt lease contracts to be capitalized as assets and liabilities (McGregor 1996). This suggestion has also been made by the Association for Investment Management and Research (AMIR) in a December 1993 white paper. A previous Horizons paper by Imhoff et al. (1991) illustrated how to constructively capitalize operating leases. However, this prior study focused exclusively on the balance sheet effects for a single period, and assumed the income statement effects were negligible. The current study cites evidence that suggests the income statement effects may be material, and illustrates how to estimate the impact of constructive capitalization of operating leases on both operating income (before...
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...RUNNING HEAD: FINANCIAL STATEMENTS PAPER Financial Statements Paper ACC 290 Financial Statements Paper In this paper the four basic financial statements will be defined. Each of the four financial statements has its purpose for use. As part of the paper the description of the purpose of the four basic financial statements is acquired. The discussion of the financial statements would be useful to internal and external users is performed as well in this paper. The four basic financial statements are the balance sheet, income statement, retained earnings statement, and statement of cash flow (Kimmel, Weygandt, Kieso, 2011). The balance sheet is used to present a picture of what a company owns (Kimmel, Weygandt, Kieso, 2011). The balance sheet reports the amount of assets and claims to assets for a period of time (Kimmel, Weygandt, Kieso, 2011). Assets are items the company owns that could be used if needed to retain cash. The claims to assets are either creditor or owner. The creditor would be the individual or company that is using the asset as collateral to a debt. Once debt is paid the creditor releases asset back to owner. The income statement is used report the financial health of the company in a certain time frame (Kimmel, Weygandt, Kieso, 2011). The income statement provides the revenues and expenses in the time frame (Kimmel, Weygandt, Kieso, 2011). The revenue is the income funds, and expenses are the outgoing funds. The retained...
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...followed. The following approaches were followed in conducting this term paper. 1.1 Origin of the Report: The report is a partial requirement of the course Risk Management & Insurance (FIN 410). That is why our honorable instructor assigned us to do a term paper on Reliance Insurance Company Limited. The report is conducted based on the financial statement and the website of the company. This report is a reflection of what we have learned in between the course. 1.2 Objective and the Scope of the Report: The report was prepared as a part of our course work. The basic objectives of preparing this report are: * Analyze the financial statement of the insurance company and calculate different ratios. * Different policy the company offers. * Overall structure of the company. 1.3 Methodology of the Report: The term paper was based on different numeric values collected from the financial statement of the company and plotting them in different equations, also some information regarding the company was collected from the company’s website 1.4 Sources of Data: All the data and the information which was required to complete the term paper have been collected from the financial statements and the website of Reliance Insurance Company Ltd. That means, only secondary sources of data was used to complete the term paper, no primary source was used. 1.6 Limitations of the study: Of course this term paper is not flawless and we had several limitations. The limitations of the...
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...education in 2000/01 or later What details do I need to provide? You need to tell us some personal details and what your financial income was for the tax year 2013-14. You must tell us your 2013-14 income details as we cannot accept amounts from any other tax year. We need your income amounts so we can work out what the student(s) you are supporting are entitled to. How do I complete this form? This form is made up of 6 sections: section 1 - personal details section 2 - data sharing and you section 3 - your financial information for tax year 2013-14 section 4 - other income section 5 - income deductions section 6 - your dependants • Start by checking the details in section 1 and then work your way through the form. (Depending on your circumstances you may not need to complete every section) • Please refer to the Support notes at the back of this form each time you see n What if I have further questions? If you have further questions you can: • visit www.gov.uk/studentfinance • call us on 0300 100 0607 Where do I send my form? Once you have completed this form and signed and dated the declaration, please return it to Student Finance England, PO Box 210, Darlington, DL1 9HJ Please remember to pay the correct postage. What happens if my household income has dropped since tax year 2013-14? If your household income has dropped by 15%...
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...– covering the syllabus without excessive detail and containing a bank of practice questions for plenty of reinforcement of key topics • A key study guide – guiding you through the study text and helping you revise • An online question bank for additional reinforcement of knowledge • An exam kit – essential for exam preparation and packed with examstandard practice questions • 2 tutor-marked mock exams to be sat during your studies • Key notes - highlighting the key topics in an easy-to-use format Total price: £160.95 Visit us at www.emilewoolfpublishing.com distancelearning@emilewoolfpublishing.com tel: +44(0) 1483 225746 ACCA ACCA Paper F3 (INT) Financial Accounting (International) Welcome to Emile Woolf‘s study text for Paper F3 Financial Accounting (International) which is: Written by tutors Comprehensive but concise In simple English Used around the world by Emile Woolf...
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... | |Assets | | |Current assets: | | | Cash and cash equivalents |$6,550 | | Receivables |5,937 | | Inventories |40,714 | | Prepaid expenses and other |1,774 | | Total current assets |54,975 | |Property and equipment, at cost: | | | Land |25,612 | | Buildings and improvements |90,686 | | Fixtures and equipment...
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...Profit and Loss Statement Paper 04/21/2014 BSA/310 Profit and Loss Statement Paper A profit and loss statement is a statement that shows a company’s revenue and expenses over a particular period of time. A profit and loss statement covers net sales, cost of goods sold, gross profit, and net operating income to calculate how much money a business made or lost (net income). It is important for any business to keep an accurate accounting of all transactions to ensure an accurate profit and loss statement. Kudler Fine Foods, for example, has their profit and loss statement from the year ending December 31st, 2003 made publically available. Breaking down this statement will allow us to see how this company performed in 2003. Net Sales Net sales are calculated by taking the total amount of revenue generated from sales and subtracting sales returns and allowances. Sales returns are the loss a company receives from items that were returned for one reason or another. Sales allowances represents money that is lost by offering these returned products at a discounted rate (open box). Kudler Fine Foods generated $10,804,000 in gross sales. They incurred a loss of $7,800 due to sales allowances and returns. This equates to Kudler Fine Foods having net sales of $10,796,200 for 2013. Cost of Goods Sold Cost of goods sold, or COGS, represents the cost of obtaining a product that is to be sold. This can be through a third party wholesaler or through a company’s manufacturing...
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...Financial Statements Paper ACC/290 – Principles of Accounting I May 14, 2010 Adael Acosta Assessment • Individual Assigment: Financial Statements Paper Write a 700- to 1,050-word paper in which you do the following: o Identify the four basic financial statements. o Describe the purpose of each of the four financial statements. o Discuss how the financial statements would be useful to internal users, such as to managers and employees. o Discuss how the financial statements would be useful to external users such as investors and creditors. Format the paper consistent with APA guidelines. Abstract Accounting is a valuable service function designed to provide accurate and timely information to internal and external stakeholders. Those stakeholders rely on four primary financial statements: the income statement, the capital statement, the balance sheet, and the statement of cash flows. Naturally, you begin by studying those four financial statements and the accounting processes that lead to their creation. Those processes include recording financial transactions in journals and then posting to the general ledger. Financial Statements should be defined as journal entries. These entries tell a story about the daily accounting practices and they project the general assets and liabilities of any company. Journal entries must be consistent and must be entered on a regular basis. Investing in reliable accounting software would be a wise decision for any business...
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...Brooke Codification Research Paper Acc 303 11/15/2011 Introduction This paper is an analysis of the FASB Accounting Standards Codification and the Research System available through the AAA/FASB website. It will walk the reader through a select few topics focusing on how the codification literature addresses each topic. The first topic analyzed will be the definition of accounting policies. The paper will go on to discuss information available on comprehensive income, as well as net income. Comprehensive income and net income will also be compared and contrasted, with an example to illustrate each. Accounting Policies, as defined in the Codification literature Topic 235, Section 10 of the codification states, “The accounting policies of an entity are the specific accounting principles and the methods of applying those principles that are judged by the management of the entity to be the most appropriate in the circumstances to present fairly financial position, cash flows, and results of operations in accordance with generally accepted accounting principles (GAAP) and that, accordingly, have been adopted for preparing the financial statements.” The FASB codification, when put in place in 2009, redefined many of the internal accounting policies already in place within business entities. Fortunately for many companies, the codification offers a research system to search these new policies. There is also an extensive cross-reference feature which allows users to...
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...2016 REVENUES Sales by Company-operated restaurants Revenues from franchised restaurants Total Revenues OPERATING COSTS & EXPENSES Company-operated restaurant expenses Food & Paper Payroll & employee benefits Occupancy & other operating expenses Franchise rest.-occupancy expense Occupancy & other operating expense Selling, general & admin. Expenses Other operating (income) expenses Total operating costs & expenses Operating income Int. expense-net of capitalized interest of $9.4, $14.7, & $15.5 Non-operating (income) expense, net Income before provision for income taxes Provision for income taxes Net Income 2017 2018 2019 2020 $ 20,000.0 $ 22,000.0 $ 23,000.0 $ 24,000.0 $ 25,000.0 $ 9,000.0 $ 10,000.0 $ 11,000.0 $ 12,000.0 $ 13,000.0 $ 29,000.0 $ 32,000.0 $ 34,000.0 $ 36,000.0 $ 38,000.0 $ 6,000.0 $ 6,500.0 $ 7,000.0 $ 7,500.0 $ 8,000.0 $ 4,000.0 $ 4,300.0 $ 4,600.0 $ 4,900.0 $ 5,200.0 $ 3,500.0 $ 3,700.0 $ 3,900.0 $ 4,000.0 $ 4,100.0 $ 1,800.0 $ 2,000.0 $ 2,200.0 $ 2,400.0 $ 2,600.0 $ 4,200.0 $ 4,400.0 $ 4,600.0 $ 4,800.0 $ 5,000.0 $ 2,500.0 $ 2,600.0 $ 2,700.0 $ 2,800.0 $ 2,900.0 $ 220.0 $ 230.0 $ 240.0 $ 250.0 $ 260.0 $ 22,220.0 $ 23,730.0 $ 25,240.0 $ 26,650.0 $ 28,060.0 $ 6,780.0 $ 8,270.0 $ 8,760.0 $ 9,350.0 $ 9,940.0 $ 640.0 $ 680.0 $ 720.0 $ 760.0 $ 800.0 $ 10.0 $ 11.0 $ 12.0 $ 13.0 $ 14.0 $ 6,130.0 $ 7,579.0 $ 8,028.0 $ 8,577.0 $ 9,126.0 $ 1,500.0 $ 1,700...
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...tax reporting strategy, including financial reporting effects. I present preliminary results that Internal Revenue Service audit adjustments increase in the excess of book income over taxable income. This is evidence that firms incur additional costs for reporting higher book income than taxable income. I also investigate the relationship between compliance costs and taxes paid. Existing descriptive research emphasizes the social cost burden of such compliance costs. Preliminary results indicate that firms that spend more on tax research and planning report lower tax expense. results that proposed Internal Revenue Service (IRS) audit adjustments increase as the excess of book income over taxable income increases. This is evidence that firms incur additional costs for reporting higher financial statement income than taxable income. I also investigate how the level of conformity varies as the relative incentives for book income versus tax savings change. Tax regimes that require more conformity between book and tax accounting will likely induce higher tax payments than those firms whose incentives to maintain high book income are the greatest. In addition, government enforcement costs may be higher under a regime where the tax base is not as strongly related to financial income as is the present corporate income tax system. Second, I investigate the relationship between compliance costs and taxes paid using data from the Slemrod and Blumenthal (1996) Compliance Cost Study. Prior...
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...Principles (GAAP) and Income Tax Basis Basis of Depreciation 2 Abstract The basic concept of depreciation is based on the assumption that most property, plant, and equipment assets or depreciable assets have a useful life over which they are consumed. The portion of these depreciable assets consumed through usage or obsolescence is what accountant refers to as depreciation. The measurement of depreciation according to Generally Accepted Accounting Principles (GAAP) follow the “cost principle” and “matching principle”; in that depreciable assets cost should be valued at their original or historical cost, and that depreciation expense is recognized in the same period the benefit was derived from the consumption of the said asset. On the other hand, Income Tax Basis follows the concept of “recovery period”; in that businesses recover the cost of the depreciable assets faster because the period (useful life) is accelerated. This paper will compare and contrast Income Tax Basis for depreciation and GAAP basis for depreciation. Basis of Depreciation 3 Basis of Depreciation A Comparison Between Generally Accepted Accounting Principles (GAAP) and Income Tax Basis Depreciation...
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...RESEARCH PAPER ACCOUNTING 483 - FEDERAL TAX Section 01 1st Research Paper Fall 2011 Due Wednesday, October 26, 2011 Speedy Karr is the used car sales manager of Fast Talking Ed's Car Sales, a local new and used car dealership in Moscow, Idaho. Speedy Karr’s income is about $80,000 a year from his salary and bonus (his bonus is a percentage of the net income of the dealership). In addition to his income from Fast Talking Ed's, Speedy also has income from rentals of about $15,000 a year. Speedy's wife, Holiday, is employed, earning about $65,000 a year. Several years ago, Speedy became interested in auto car racing. In 2008, Speedy purchased a used car, which he converted into a racing stock car. The cost of the car, and the modifications made to it, cost Speedy about $75,000, which is being depreciated over a fiveyear life (using I.R.C. § 168). Speedy incurred additional expenses for the purchase of small tools, racing supplies, travel costs, etc. In 2008, Speedy begin entering the Spokane auto races. Because his job at Fast Talking Ed's required him to work at least one Saturday every month, Speedy was not able to enter all of the races held in Spokane, but did enter as many as possible. Spokane holds races every weekend from the first part of April through the end of September. Speedy had some success in winning races, but because of the limited number of races Speedy could enter and the limited purse, his gross income was only about $50 the first year, $125 the second year...
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