...Introduction Pharma Co. is a U.S. subsidiary that has a U.K. parent company and a U.S. based lender. They are in the process of restructuring the company and the question has been presented as to whether or not they should record a provision for the restructuring according to GAAP and IFRS guidelines. It is found that they do meet the qualifications for being liable and should therefore record a provision for both their U.K. parent company and their U.S. lenders. Evidence for this conclusion is reported herein. Issue 1: Restructuring Plan Under IFRS In order to best report to its U.K. parent company, Pharma Co. should acknowledge its existent restructuring plan as it meets all provision requirements set out by the IFRS and therefore should recognize a liability. According to IAS 37 paragraph 14, a provision will be recognized when it fully meets three particular criteria. These criteria are, put simply: the entity must have a prior obligation, that obligation must likely require some economic reimbursement to be settled and a reliable estimate of that cost should be possible [IFRS, 2009]. In regards to the first part of those criteria, the irrevocable contracts Pharma Co. has agreed to terminate its lease as well as entered into contracts with relevant parties, these qualify as a past event that holds them to a prior obligation [IFRS, 2009]. These contracts and tied in with relocation, and training costs which present a clear probably outflow of resources so the second...
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...IFRS vs. GAAP: Same or Different ACC407 January 27, 2013 Catherine McBride IFRS vs. GAAP: Same or Different The Financial Accounting Standards Board (FASB) and the International Accounting Standards Board (IASB) are working on nearly a dozen joint projects designed to improve both U.S. Generally Accepted Accounting Principles (US GAAP) and International Financial Reporting Standards (IFRS), and ultimately make the standards fully compatible. But in the mean time, the two predominant accounting standards to this day are the U.S. GAAP (Generally Accepted Accounting Principles) and IFRS (International Financial Reporting Standards). These two standards have several differences because they both take a completely different approach to their methodology. The U.S. GAAP is more rule-based, where IFRS is principal-based. With IFRS's principal-based approach, a lot of room was left open for interpretations for similar transactions. It gives room for second guessing, debate and conjecture. Anytime you have a fundamental system that can be debated you create a forum of uncertainty that then requires an arbitrator who can settle the dispute. This arbitrator is called the standards setting board, and it provides fewer exceptions than a rule based system (Parrott, 2008). With the U.S. GAAP you have a rule-based system. This is a more clear approach that distinguishes between what seems correct and what is correct. There is no room for interpretation. Each process has a set...
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...IS3120 | Final Project | Designing a Network for NCIF | | Keith | 11/26/2013 | This document details the network for NCIF outlining the network design, consisting of various standards, classes and IP addressing for subnets. | NCIF is an industry leading research and development firm consisting of eight (8) regional offices in seven (7) countries, including the United States, Germany, Africa, India, Australia, Brazil, and China, with eleven(11) district or branch offices, consisting of 225,000 employs worldwide. NCIF resides in Hopkinton, MA (USA). Communicating to the consumer is the key element in a successful business. Due to a fast paced world there are modernized techniques that all companies need to adapt and implement when it comes to marketing. There is several ways a company can reach out to their clients. A company must dedicate their time to keep their presence known to the public. In order for Johnson and Company to stay competitive and market to their clients and prospects, there are suggestions I have to help make this happen. First, the phones systems need to be updated from an analog system to a Voice Over IP (VOIP) system. One of the main advantages of VOIP is receiving and taking calls away from the office, if you have an internet connection. Another advantage to a digital phone system is clear and crisp sound creating a better experience for the caller. With VOIP you can set up phone conferences allowing you to see and hear the client or...
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...studies that show the power of incentives to drive employee engagement and customer loyalty. The concept of Corporate Social Responsibility has emerged as a significant element for many programs. Competition and the economy have narrowed the once generous margins for incentive companies. Recent research by the Incentive Research Foundation (IRF) and others, pulse studies and Delphi panels offer some pragmatic insights about where the reward for performance industry has been and where it is heading. As the IRF looked toward 2011 and beyond, it analyzed existing research, scanned incentive industry and business publications, and sought input from industry leaders. This effort yielded the following “11 trends for 2011”. Upon closer examination, the eleven trends can be grouped into four major categories: Economy (1, 2, 3) Government (4) Motivation (5, 6, 7, 8) Technology (9, 10, 11) As you review these trends, the IRF hopes you will analyze how they reflect your own views and experience, and then think about how these factors might affect you and your work as we head into a new year and changed economy. 1. CAUTIOUS OPTIMISM EMERGES At the 2010 IRF Roundtables, approximately four in ten participants said the economy has had a slightly positive impact on their ability to plan and implement non-cash incentive (travel/merchandise) programs....
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...WACC AND DCL CALCULATION OF ASHOK LEYLAND Part 1: WACC CALCULATION WACC is the rate that a company is expected to pay on average to all its security holders to finance its assets. It is the minimum acceptable return that a company must earn on an existing asset base to satisfy its stakeholders. Calculation of WACC as on 31st March 2012 Total Debt of the company = Rs 2395.53 Cr Interest = 255.25 Cr Rs. The cost of Debt before tax = Interest/Tax *100 = 10.65 Now, Tax% = Tax/PBT = 124/689.97 = 0.1797 Hence, Cost of debt after tax = (Cost of debt before tax*(1-Tax %)) = (10.65*(1-.1797)) = 8.74 ……… (1) Now, the cost of Equity at Market price according to CAPM model is given as IRF + (RM-IRF)*Beta……. (2) Where IRF is risk free return, in this case it is 8% ……. (3) RM is the market return, i.e. change in the market indices over one year given as ((30.30-28.45)/28.45)*100 = 6.50 % ….. (4) Share price as on 31st march 2012 = 30.30 Share price as on 31st march 2011 = 28.45 The beta value for Ashok Leyland is given as 1.1 in the CRISIL official website Now putting the value of Beta along with equations (3) & (4) in (2), we get, Cost of equity = 8 + (6.50-8)*1.1 = 6.35% …. (5) Let us assume that the cost of reserves and surplus is equivalent to the cost of equity i.e. 6.35% … (6) Now assigning weights, The total equity in the market for Ashok Leyland is 2660700000 * market price as on March 31st 2012 30.30 = 8061.921 Cr Rs. The total debt = 2395.53 Cr Rs. Total reserve = 2632.34 Cr...
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...Graded Assignments The following sections contain student copies of the assignments. These must be distributed to students prior to the due dates for the assignments. Online students will have access to these documents in PDF format, which will be available for downloading at any time during the course. Course Revision Table Change Date | Updated Section | Change Description | Change Rationale | Implementation Quarter | 11/04/2011 | All | New Curriculum | | December 2011 | | | | | | | | | | | | | | | | | | | | | | | | | | ------------------------------------------------- Graded Discussion/Assignment Requirements Discussion or Assignment Requirements documents provided below must be printed and distributed to students for guidance on completing the discussions and assignments and submitting them for grading. Instructors must remind students to retain all handouts and assignment documents issued in every unit, as well as student-prepared documentation and graded deliverables. Some or all these documents will be used repeatedly across different units. Unit 1 Assignment 1: Effects of Routing on Current Communication Methods Used by Organizations Learning Objectives and Outcomes * Explore the effects of routing on current communication methods used by organizations. Assignment Requirements The Johnson Company provides networking components and services. It sounds simple, but management knows it takes a lot of planning...
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...Running head: REHABILITATION CARE IN A SPECIALIZED SETTING Rehabilitation Care in a Specialized Setting: A Multidisciplinary Concept Analysis Dorota M. Loney University of Texas at Arlington school of Nursing In partial fulfillment of the requirements of N5327 Analysis of Theories in Nursing Rhonda Mintz-Binder, RN, MN, DNP April 29, 2012 Rehabilitation Care in a Specialized Setting: A Multidisciplinary Concept Analysis First we need to understand what Rehabilitation is to be able to focus on its concept analysis. It is a part of the continuum of care as it focuses on increasing a patient’s function for self care and mobility. The need for a rehabilitation care concept in a specialized rehabilitation hospital increases as the length of stay decreases in acute hospitals after surgery or procedures due to the financial burden on insurances, Medicare, Medicaid, and the acute hospitals themselves. No longer do we see in the United States two week long acute hospital stays after major surgeries, strokes or other injuries that affect the activities of daily living (ADL). The hospitals discharge patients back home much sooner than before or transfer them to facilities for further recovery. Unfortunately some of these facilities are long term acute care hospitals or nursing homes where continuing daily therapy is very limited. The fortunate ones get admitted to a specialty hospital called a rehabilitation (rehab) hospital that this paper will focus on. Here, nurses, occupational...
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...Administrative Assistant, to be named, will provide clerical support including: providing and compiling necessary documentation required to support the IRF projects and SRS; tracking publications supported by the program and preparing and submitting annual progress reports, scheduling and supporting the meetings of the Collaboratory, and organizing flights, hotels, meeting rooms, and scheduling for of annual meetings. Jessica Wang Cheng, Fund manager, She has been a research fund manager at UCLA for 28 years and has extensive experience with PO1 and UO1 grants requiring oversight of subcontracts and coordinating fiscal management between institutions. Vadim Bichko, PhD. Vice President of ChemDiv Inc, Medicinal chemistry consultant. ChemDiv is the recognized global leader of pre-clinical chemistry and biology for drug development and clinical trials. Dr. Bichko is a virologist with 15 years of successful research and development management experience in pharmaceutical and biotechnology companies. Jean Gudas, Ph.D. Vice President of Research and Development of ImaginAB, Inc. Antibody-based imaging consultant. ImaginAB develops and commercializes engineered antibody fragments...
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...Michael Trusov, Randolph E. Bucklin, & Koen Pauwels Effects of Word-of-Mouth Versus Traditional Marketing: Findings from an Internet Social Networking Site The authors study the effect of word-of-mouth (WOM) marketing on member growth at an Internet social networking site and compare it with traditional marketing vehicles. Because social network sites record the electronic invitations from existing members, outbound WOM can be precisely tracked. Along with traditional marketing, WOM can then be linked to the number of new members subsequently joining the site (sign-ups). Because of the endogeneity among WOM, new sign-ups, and traditional marketing activity, the authors employ a vector autoregression (VAR) modeling approach. Estimates from the VAR model show that WOM referrals have substantially longer carryover effects than traditional marketing actions and produce substantially higher response elasticities. Based on revenue from advertising impressions served to a new member, the monetary value of a WOM referral can be calculated; this yields an upper-bound estimate for the financial incentives the firm might offer to stimulate WOM. Keywords: word-of-mouth marketing, Internet, social networks, vector autoregression Michael Trusov is Assistant Professor of Marketing, Robert H. Smith School of Business, University of Maryland (e-mail: mtrusov@rhsmith. umd.edu). Randolph E. Bucklin is Peter W. Mullin Professor of Marketing, Anderson School of Management, University...
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...Nature of IASB: The International Accounting Standards Board (IASB) is a Londonbased organization which seeks to set and enforce standards for accounting procedures. Over 100 countries currently require or permit companies to comply with IASB standards. It is responsible for maintaining the International Financial Reporting Standards (IRFS). The organization was preceded by the International Accounting Standards Committee (IASC). The IASB's Role: Under the IFRS Foundation Constitution, the IASB has complete responsibility for all technical matters of the IFRS Foundation including: ● full discretion in developing and pursuing its technical agenda, subject to certain consultation requirements with the Trustees and the public ● the preparation and issuing of IFRSs (other than Interpretations) and exposure drafts, following the due process stipulated in the Constitution ● the approval and issuing of Interpretations developed by the IFRS Interpretations Committee. IASB’s Objectives: ● to develop, in the public interest, a single set of high quality, understandable, enforceable and globally accepted international financial reporting standards (IFRSs) based upon clearly articulated principles. These standards should require high quality, transparent and comparable information in financial statements and other financial reporting to help investors, other participants in the world's capital markets and other users of financial information make economic decisions; ● ● to promote t...
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...Efficient Securities Markets and International Financial Reporting Standards Efficient Securities Markets and International Financial Reporting Standards Introduction As of January 2011 Canada’s publicly accountable enterprises (PAEs) will have to adopt International Financial Reporting Standards (IFRS) as their accounting framework under which financial statements are prepared. This means the accounting standards Canada had been using generally accepted accounting principles (GAAP) will no longer apply. What will this mean for PAEs and their investors? Will there be more or less decision useful information and will securities markets become more efficient with Canada’s adoption of IFRS or is it the same business, just different accounting? Executive Summary Comparing financial statements internationally has become difficult as accounting rules and standards have evolved differently depending on the country due to history, culture, political influence and economics. That is why the IFRS have been created and currently there is almost 100 countries that adhere to IFRS standards. Canada too has decided it must join and in 2011 all Canadian PAE’s will report under IFRS. There are both pros and cons for investors who will be relying on financial information from companies that are using IFRS’s foundation. The adoptions of IFRS will likely cause recognition, measurement and presentation differences in a company’s financial statements. Although IFRS’s...
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...Running head: BAPTIST REHABILITATION Issues Paper/Baptist Rehabilitation-Germantown Delia Brinson HSM 420/DeVry University Instructor: Cynthia Newell December 12, 2010 Baptist Rehabilitation-Germantown Located just east of Memphis, Tenn., Baptist Germantown concentrates on a comprehensive array of rehabilitation and diagnostic services, both inpatient and outpatient, to treat many types of injuries and conditions, such as stroke, arthritis, spine and back disorders and injuries, fractures, amputations, and spinal cord and head injuries. From bone, muscle and joint injury, to neurologic diseases and disorders, Baptist Germantown is committed to meeting and exceeding your individual needs, down to the easy-access parking. All of the equipment and expert personnel are there to meet your individual rehabilitation needs. In addition to the services offered, Baptist Germantown works closely with a network of community-based Baptist rehabilitation clinics to provide efficient, convenient, high-quality musculoskeletal, neurologic and occupational rehabilitation to the greater Memphis area. Clinics are located in the Midtown, Bartlett and Cordova. Description of Organization Baptist Rehabilitation Germantown is a private company categorized under Physical Therapists and located in Germantown, TN. Records show it was established in 1997 and incorporated in Tennessee. Current estimates show this company has an annual revenue of 13,100,000 and employs a staff of approximately...
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...United States Security and Exchange Commission is planning to switch to IFRS in 2015. There are many differences between the accounting methods that could result in different reporting. However on the same note, they also have some features in common. When having a good understanding of both methods, this will allow the companies to make better business decisions that are flexible and effective. IFRS 2-1: In what ways does the format of a statement of financial or position under IFRS often differ from a balance sheet presented under GAAP? Accounts are required by the GAAP to be listed by liquidity. Cash would be listed first because it is a current asset whereas a shareholder equity would be last because it is a non-current asset. However, IRFS do not required accounts to be listed in a specific order on the financial statement. Therefore most companies report in reverse order of liquidity. The bottom line is providing a nice clear understanding of the companies’ assets to who use financial statements. IFRS 2-2: Do the IFRS and GAAP conceptual frameworks differ in terms of the objective of financial reporting? Explain. No, GAAP and IFRS have similar ways in prospects to financial reporting. They both believe financial reporting should be relevant and represented frequently. Any Information that is...
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...INVENTORIES For Merchandising Firms Inventories are valued at cost, net of discounts, and including transportation and other costs (ie: import duties) to prepare the goods for sale. Buying Inventory: * DR Merchandise Inventory, CR Cash/Accounts Payable Selling Inventory: * DR A/R or Cash, CR Revenues * DR Cost of Goods Sold Expense, CR Merchandise Inventory Lower of Cost or Market (LOCOM): * Inventories can sometimes decrease in value while stored due to market conditions, obsolescence or damage * Accounting standards require firms to subject their inventories to an impairment test at fiscal year-end and, where the FMV < Purchase Price, write down the value of their inventory * FMV in IRFS = “net realizable value”; in US GAAP = “replacement cost” * For example, if you purchased 200 ropes at $40 but they are only worth $30 at year end: * DR Impairment expense $2000, CR Accumulated Inventory Impairment $2,000 * The reason we don’t subtract impairment directly from merchandise inventory is because the loss is still unrealized and there is a possibility of recovery in the future. * For example, say market conditions improved and now ropes were valued at $50 * DR Accumulated Inventory Impairment $2,000, CR Impairment Expense $2,000 * Here it does not matter how much greater the value is, we do not account for increases in value Methods of Inventory Valuation * FIFO (First...
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...Globalisation of Financial Reporting (IFRS and IAS) In the 15 years since the start of the 21st century there has been many dramatic changes in the financial world. These dramatic changes included the collapse of some of the world's largest corporations , many of whom were making fraudulent financial reports at the time of their demise (such as Enron Corporation and WorldCom) , the downfall of one of the worlds “Big Five” accounting firms ; Arthur Anderson (which was directly related to the Enron scandal) and an economic collapse that resulted in many national economies suffering hugely. However despite these dramatic changes, nothing has been more significant than the rapid acceptance of International Financial Reporting Standards (IRFS) across the globe. This means that companies from all over the world are beginning to adhere to a single set of global accounting standards. This wide acceptance of IFRS has stemmed from globalisation. Globalisation is the process by which companies begin to trade on an international scale and spread their influence globally (e.g NIKE & McDonalds) , often having numerous headquarters across the world. What is IFRS? International Financial Reporting Standards are designed to be used as a universal language for conducting business across the world, their goal is for company accounts to be coherent across all international borders. The concept of IFRS was inspired by how the EU implemented a system where as all member countries began...
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