... includes: 1. Grant Australian financial service license and Australian credit license ASIC has the power to legalize or licensing a person who carries on financial services business. It is aim to give an investor a confidentiality to deal with the persons who are legally licensed by ASIC. In relation to the license that provided by ASIC, it is intended to ensure the financial services business fulfill their obligation according to the standards and meet the public prospect. Then this will help ASIC to take any action to protect the investors from engaging any misconduct that possibly occurs. 2. Investigate any suspect breaches of law and require the company books at the examination Under the ASIC Act, ASIC has the power to examine or investigate any breaches and institute civil or criminal proceedings...
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...standardisation of accounting standards. Firstly, the standardisation of accounting standards makes it easier for international investors to better understand, compare, and interpret the financial performance and position of companies from different countries that are in competition with each other or are operating within a similar industry. Greater comparability and analysis of information helps these international investors to make more efficient, educated and intelligent investment decisions, particularly when it comes to deciding between the alternative investments on offer, and helps them to take advantage of the risk reduction that is possible through international diversification. Secondly, the harmonisation of international accounting standards reduces barriers to capital inflows by helping companies raise capital in domestic as well as international markets. This is useful particularly for those companies that find it difficult to obtain the funding necessary for their long-term growth and expansion projects in their local economy due to a scarcity of resources. To overcome this problem, companies can have their securities listed on foreign stock exchanges and in doing so, be able to significantly expand their base of capital funding. Harmonisation makes this possible because investors as a result are better able to understand the status of companies, thereby also increasing their confidence in investments. Thirdly, internationalisation of accounting standards has become...
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...disqualified can be a director. Is it appropriate that there be no qualifications for directors? Should there be different requirements for directors of proprietary companies and directors of public companies? ANSWER Sections 201B(1) and 201B(2) of the Corporations Act 2001 stipulate that directors must satisfy a minimum age requirement of 18 years and are ineligible for appointment if they are disqualified from managing corporations. This qualifies a large proportion of the Australian population. Nonetheless, it is appropriate that there be no qualifications for directors; the corporate form should be available to everyone. The onerous obligations imposed on directors set a high benchmark for Australian directorship. To require positive qualifications would disqualify many competent directors. Qualifications would be inappropriate in many business contexts because the skills required of directors are specific to the corporation. Directors can rely on the expertise of employees with legal and financial qualifications in the performance of their duties. If qualifications were imposed on directors, a higher standard should be required of those in public companies. The actions of directors have a profound influence on the community, yet ‘[a director] is not bound to bring any special qualifications to his office.’ In AWA Ltd v...
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... to accompany Company Accounting 10e by Ken Leo, Jeffrey Knapp, Sue McGowan & John Sweeting Prepared by Peter Baxter [pic] © John Wiley & Sons Australia, Ltd 2015 Chapter 1: Nature and regulation of companies Multiple-choice questions 1. The advantages of a company over a partnership and sole trader do not include which of the following? a. Members are able to sell their shares at any time to another person without having to obtain permission from the other members. b. Members are liable for only a limited amount of the company’s debts. c. A company has a legal existence distinct from its owners. *d. A company is only entitled to raise small amounts of cash by issuing shares. Correct answer: d Learning Objective 1.1 ~ summarise the nature and attributes of a company 2. In Australia, the Corporations Act 2001 is administered by the: a. Australian Securities Exchange. b. Australian Accounting Research Foundation. *c. Australian Securities and Investments Commission. d. Securities and Exchange Commission. Correct answer: c Learning Objective 1.1 ~ summarise the nature and attributes of a company 3. The two main types of companies permitted to be registered under the Corporations Act 2001 are a: a. private company, and a proprietary company. b. public company, and a trade union. *c. proprietary company, and a public company. d. proprietary company, and a partnership. ...
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...owned either by non-governmental organizations or by a relatively small number of shareholders or company members which does not offer or trade its company stock (shares) to the general public on the stock market exchanges, but rather the company's stock is offered, owned and traded or exchanged privately. More ambiguous terms for a privately held company are unquoted company and unlisted company. Though less visible than their publicly traded counterparts, private companies have major importance in the world's economy. In 2008, the 441 largest private companies in the United States accounted for US$1.8 trillion in revenues and employed 6.2 million people, according to Forbes. In 2005, using a substantially smaller pool size (22.7%) for comparison, the 339 companies on Forbes' survey of closely held U.S. businesses sold a trillion dollars' worth of goods and services (44%) and employed 4 million people. In 2004, the Forbes' count of privately held U.S. businesses with at least $1 billion in revenue was 305.[1] Cargill, Koch Industries, Bechtel, Publix, Pilot Corp., Deloitte Touche Tohmatsu (one of the members of the Big Four accounting firms), Hearst Corporation, Cox Enterprises, S. C. Johnson, and Mars are among the largest privately held companies in the United States. KPMG, the UK accounting firms Ernst & Young and PricewaterhouseCoopers, IKEA, Trafigura, J C Bamford Excavators (JCB), Lidl, Aldi, LEGO, Bosch, Rolex, Ferrero, Bertelsmann and Victorinox are some examples...
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...Company Companies limited by Shares P 1.06 Characteristics: Most common type Liability is limited to the amount outstanding to the company when the share were issued; Any amount that is owed by the shareholder is available only to the liquidator upon the winding up of the company to pay the company’s creditors e.g. if a share issued at $1.00 is paid to only $0.25, the shareholder would owe the company 75 cents per share in the event of liquidation. 2． Companies limited by Guarantee P 1.06 Characteristics: They are restricted to being public companies The company does not have a share capital and members are not required to contribute capital to the company; On winding-up, the amount...
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...Scopes, Methodologies, Data sources, Limitations and Research strategy. The 2nd chapters flash on IAS and BAS, it include History of IAS, Bangladesh Accounting Standard (BAS) Scopes, Current Status of Bangladesh Accounting Standard Data sources, IAS vs. BAS Data collection and IAS 1 Presentation of Financial Statement. The 3rd chapter of this report is Overview of Cash Flow Statement. It includes what is cash flow statement, Objective of cash flow statement, Structure of the Cash Flow Statement, Presentation of a Cash Flow Statement and History of IAS-7. In 4th chapter contains the analysis and findings about some selected companies in Bangladesh which includes Pharmaceuticals industry, Bank Industry, Leasing industry, Textiles industry, Food & beverage industry. And, final chapter of this report contains some finding and recommendations are given to touch the landmark of quality cash flow statement and some similarities & dissimilarities and note disclosure practices. Introduction A set of International accounting and reporting standards, that will help to harmonize company’s financial information, improve the transparency of accounting and ensure that investors receive more accurate and consistent reports. Statements of International Accounting Standards issued by the Board of the International Accounting Standards Committee (IASC) between 1973 and 2001 are...
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...Chapter 1: Introduction to accounting Multiple Choice 1. Which of these is a decision relevant to the accounting function of an entity? a. Whether debts can be repaid b. Finding the most cost effective way to produce goods c. The investment prospects of the entity d. None of the above e. All of the above 2. Under the Framework describes the qualitative characteristic of relevance as: a. information that is of value to users in decision making. b. information that can be classified. c. information that can be recorded in accounting reports. d. information that can be reliably measured. e. information that is understandable 3. Which of these is not likely to be the responsibility of a bookkeeper? a. Preparation of a bank reconciliation b. Calculation and payment of wages c. Selection of an accounting package to be used by the firm d. Checking on a customer's credit rating e. All are likely to be the responsibility of a bookkeeper 4. The information about a customer that would be of most interest to a supplier is: a. profit. b. ability to pay off debts as they fall due. c. annual dividends. d. taxable income. e. compliance with accounting standards. 5. The information that would be of most interest to an organisation's production manager is: a. continuity of orders for the factory. b. ability to pay off debts as they fall due. c. annual dividends. d. taxable income. e. compliance with accounting standards. 1 6. The external user of accounting information is: a. Purchasing officer...
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............................. 2 1.1 Luca Pacioli: Father Of Modern Accounting ...................................................................................... 2 1.2 19th Century – The Beginnings of Modern Accounting in Europe and America ............................... 3 1.3 20th Century – The Development of Modern Accounting Standards................................................. 4 1.4 21st Century – Accounting Regulation in Modern Commerce ........................................................... 4 2. DEVELOPMENT OF ACCOUNTING .................................................................................. 4 3. EVOLUTION OF ACCOUNTING ......................................................................................... 5 4. THE CONSEQUENCE OF DOUBLE ENTRY ..................................................................... 6 5. RECENT GROWTHS AND DEVELOPMENTS IN ACCOUNTING ............................... 7 6. LOOKING TO THE FUTURE ............................................................................................... 8 REFERENCES .............................................................................................................................. 9 1. INTRODUCTION The main objective of this study is to critically review the Origin, Growth and Development of accounting theories and their impacts on financial reporting. Other objectives are to explore accounting theory in resolving areas of diversities among users of financial...
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...Solution Manual to accompany Accounting: Business Reporting for Decision Making 4e Jacqueline Birt, Keryn Chalmers, Suzanne Byrne, Albie Brooks & Judy Oliver Prepared by Jacqueline Birt John Wiley & Sons Australia, Ltd 2012 Chapter 1: Introduction to accounting Comprehension Questions 1.1 What is a business transaction and how does it relate to the accounting process? Illustrate the concept of a business transaction with five examples relating to a mobile phone distributor. A business transaction can be defined as external exchanges of resources between the entity and another entity or individual that affects the assets, liabilities and owners’ equity items in an entity. The accounting process is the identifying, measuring and communicating of economic information about an entity to a variety of users for decision-making purposes. The first component of the process is the identification of business transactions which are then measured and communicated to the different users of financial reports. Business transactions for a mobile phone distributor include the following: 1. The contribution of capital by the owner to commence the business. This transaction would increase cash (asset) and increase capital (equity). 2. The purchase of inventory (mobile phones) on credit. This transaction would increase inventory (asset) and increase creditor (liability). 3. The payment of office rent. This transaction would decrease cash (asset) and decrease...
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...country’s Number One supplier of high-voltage grid stations, switchgear products and systems, power distribution and power transformers, and network consultancy. The company has also built a new 220-kV power transformer factory, and is poised to meet the demand in this sector nationally and in the region. Siemens' overall involvement in the region dates back almost 140 years. The company's name first became known through the construction of the Indo-European telegraph line from London to Calcutta in 1870. Siemens' first office in what is now Pakistan opened in 1922. The Siemens Pakistan Engineering Company Ltd. was founded in 1953 as a private company, and in 1963 the company was reorganized as a public limited company. Introduction and purpose: This Code of conduct (Ethics) of Siemens Pakistan Engineering Co. Ltd. ("the Company") helps in maintaining and following the standards of business conduct of the Company. The purpose of the Code is to deter wrong-doing, promote ethical conduct in the Company and ensure compliance with the legal requirements, the matters covered in this Code are of the utmost importance to the Company, its stakeholders and business partners. Further, these are essential so that the Company can conduct its business in accordance with its stated values and its legitimate interests. Applicability: The Code is applicable to the following persons unless repugnant to the context or specified otherwise in this code: (a)Members of the Board of Directors of...
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...Annual Report 2012 Year ended March 31, 2012 Our founder, Dr. Minoru Shirota, successfully strengthened and cultivated Lactobacillus casei strain Shirota while working in a microbiology laboratory at Kyoto Imperial University School of Medicine (now Kyoto University). In 1935, he began sales of a fermented milk drink under the brand name Yakult. Contents 01 02 04 06 10 14 16 22 24 26 29 30 56 57 The Sources of Yakult’s Strength Yakult Consumption around the World / Financial Highlights Message from the Chairman and President Interview with the Chairman and President Special Feature: Global Yakult, Global Smile Operating Performance Highlights Review of Operations Corporate Social Responsibility (CSR) Research & Development Corporate Governance Board of Directors and Corporate Auditors Financial Section Global Network Corporate Data More than 75 years since then, Yakult has conducted its business activities around the world in ways based on Dr. Shirota’s philosophy—Shirotaism (preventive medicine, the link between a healthy intestinal tract and a long life, and offering products at a price affordable to everyone)—explained on the next page. As of March 31, 2012, as a Probiotics* pioneer, we help to protect people’s health in 32 countries and regions, including Japan. In addition to fermented milk drinks, Yakult operations in Japan today include a pharmaceuticals business, in which we handle an anticancer drug widely used worldwide, as well as a cosmetics business...
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...Fast-moving consumer goods (FMCG) or consumer packaged goods (CPG) are products that are sold quickly and at relatively low cost. The term FMCGs refers to those retail goods that are generally replaced or fully used up over a short period of days, weeks, or months, and within one year. This contrasts with durable goods or major appliances such as kitchen appliances, which are generally replaced over a period of several years. FMCG have a short shelf life, either as a result of high consumer demand or because the product deteriorates rapidly. Some FMCGs – such as meat, fruits and vegetables, dairy products and baked goods – are highly perishable. Other goods such as alcohol, toiletries, pre-packaged foods, soft drinks and cleaning products have high turnover rates. An excellent example is a newspaper- every day's newspaper carries different content, making one useless just one day later, necessitating a new purchase every day. The following are the main characteristics of FMCGs:[1] • From the consumers' perspective: • Frequent purchase • Low involvement (little or no effort to choose the item – products with strong Brand loyalty are exceptions to this rule) • Low price • From the marketers' angle: • High volumes • Low contribution margins • Extensive distribution networks • High stock turnover Examples include non-durable goods such as soft drinks, toilees, and grocery items.[1][2] Though the absolute profit made on FMCG products is relatively small, they generally...
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...Executive Summary In the performance of a risk-based audit, adequate planning is of paramount importance as it allows to direct the audit effort towards the areas expected to be most at risk of material misstatement. Additionally, adequate planning helps identify and resolve problems on a timely basis and allows the auditor to organize the engagement, including selecting suitably experienced team members to deal with specific risks, so that it can be performed in an effective and efficient manner. ISA 300 in particular requires setting out an overall audit strategy and a detailed audit plan. The overall audit strategy should indicate the scope of the work, the resources to be allocated to specific high-risk areas in terms of experienced staff or hours and the timing of the work. A more detailed audit plan follows on from the approach identified in the audit strategy and indicates the audit procedures to be performed in respect of specific items in the financial statements and their timing. The audit strategy and the audit plan are not necessarily separate documents or processes as they are strictly interrelated. For example the results of initial risk assessment procedures, like the entity’s business risk assessment or the assessment of internal control, will inform the planning for further audit procedures and, vice versa, the outcome of detailed audit procedures may be so different from what expected at the time of planning to require a modification of the audit strategy and...
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...Chapter One INTRODUCTION 1.1 Introductory Background of the issues on the Topic: Analyzing Performance Evaluations involves evaluating three characteristics: a Bank’s liquidity, profitability and efficiency. A short-term creditor, such as a bank, is primarily interested in liquidity---the ability of the borrower to pay obligations when they come due. The liquidity of the borrower is extremely important in evaluating the safety of a loan. A long-term creditor, such as a bondholder, looks to profitability and solvency measures that indicate the Bank’s ability to survive over a long period of time. Long-term creditors consider such measures as the amount of debt in the Bank’s capital structure and its ability to meet interest payments. Similarly, stockholders look at the profitability and solvency of the Bank. They want to assess the likelihood of dividends and the growth potential of the stock. Performance managers review and analyze the firm’s Performance Evaluations periodically, both to uncover developing problems and to assess the firm’s progress toward achieving its goal. These actions are aimed at preserving and creating value for the firm’s owner. Performance ratios enable Performance managers to monitors the pulse of the firm and its progress towards its strategic goals. Although Performance Evaluations and Performance ratios rely on accrual concepts, they can provide useful insights into important aspects of risk and return that affect share price, which management...
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