...Comprehensive Annual Financial Report Briefing: Each year the Los Angeles County Office of Education issues a Comprehensive Annual Financial Report (CAFR). The most recent report as the 2012 that was created by Alexander Cherniss, Ed.D., Chief Business Officer, fiscal year ending June 30, 2012. Presently no boundary changes during the fiscal year. The purpose of this paper is to provide an overview of government accounting and reporting. Governmental Accounting and Reporting Budgeting and accounting are predominantly vital for a government body. Any person with the competence to make decisions relating to the prevailing body should possess the essential understanding of budgeting and accounting. “The Governmental Accounting Standards Board (GASB) sets the accounting and financial reporting standards for state and local governments, whereas the Financial Accounting Standards Board (FASB) sets these standards in for-profit business” (Granof &Wardlow, 2011). Governmental purpose and missions differ from those of a for-profit business. For-profit business is vastly measured by increasing profits and shareholder worth. Economic metrics are based exclusively on revenue and net income margins, where there may not be as measurable for governmental financial reporting. Government financial report cannot be always measured in monetary trends but more on a service oriented and focus cannot always be measured in dollars and cents and tends to be based more so on service...
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...Introduction Technology is advancing at a very quick pace. Thirty years ago, businesses had large file cabinets and extra rooms to hold files in. When a company needed something from a supplier or another company they would communicate through the mailing system. In today’s world the extra rooms are no longer needed because all files are kept on a computer and corresponding with another company is done by email (Sullivan, 2012). A project manager for an IT project has to look at numerous factors when it comes to planning and executing an IT project. The first task would be to determine what problem the company is having and what can be done to solve it. The manager must find out what the customers overall goal is with the project and how the finished product will impact the company. The manager must decide who will provide the needed materials for the project and who and how many IT technicians will be needed. When looking at the overall project it must be determined how long it will take to complete. The manager must also understand that technology is constantly changing and the program they are developing must be acceptable to upgrades easily so it keeps up with technology. Another task the manager has to look at is what approach they will use to execute the project, will they use a traditional approach or an agile approach (Blair, n.d). For the given scenario, which project management approach would you recommend? Not knowing anything on this subject, I have spent numerous...
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...criterion/ criteria | | | | foundation | تأسيس | foundation | Found | | | notion | فكرة | notion | | notional | notionally | voluntary | اختياري, طوعي | volunteer | volunteer | voluntary | voluntarily | ministry | وزارة | ministry/ minister | minister | | | alternative | بديل , اخر | alternative | Alternate | alternative | alternatively | outcome | نتيجة, حصيلة | outcome | | | | stress | اجهاد , ارهاق | stress | stress | stressed | | seek | يبحث عن , ينشد | seeker | seek | | | adequate | كاف | adequacy | | adequate | adequately | regime | نظام الحكم | regime | | | | focus | بؤرة, محرق | focus | focus | focused | | occur | يحدث, يقع | Occurrence | occur | | | comprehensive | شامل | | comprehend | comprehensive | comprehensively | ink | حبر | ink | link | inky | | scope | مجال , فرصة | scope | | | | licence | رخصة | licence | licence | | | affect | يؤثر على | affectation | affect | affected | | distinct | واضح | distinction | distinguish | distinct/ distinctive | distinctly | category | فئة , صنف | category | categorize | | | philosophy | الفلسفة | philosophy | philosophize | philosophical | philosophically | consent | يوافق, يسمح | consent | consent | | | item | مادة , مفردة , بند | item | | | | priority | حق الافضلية , الاولية | priority | Prioritize | | | perspective | الرسم المنظوري | perspective | | | | Root Word | Sentence Examples | (e.g.) authority | "We understand...
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...6.1. What effect will an asset revaluation have on subsequent period’s profit? Explain your answer. If an asset’s carrying amount is increased as a result of a revaluation, the increase shall be recognized in other comprehensive income and accumulated in equity under the heading of revaluation surplus. However, the increase shall be recognized in profit or loss to the extent that it reverses a revaluation decrease of the same asset previously recognized in profit or loss. If an asset’s carrying amount is decreased as a result of a revaluation, the decrease shall be recognized in profit or loss. However, the decrease shall be recognized in other comprehensive income to the extent of any credit balance existing in the revaluation surplus in respect of that asset. The decrease recognized in other comprehensive income reduces the amount accumulated in equity under the heading of revaluation surplus. 6.4. For the purpose of AASB 116 or AASB 136, how is ‘recoverable amount’ determined? Recoverable amount is the higher of an asset's fair value less costs to sell (sometimes called net selling price) and its value in use where: fair value is the amount obtainable from the sale of an asset in an arm's length transaction between knowledgeable, willing parties, and value in use is the discounted present value of the future cash flows expected to arise from the continuing use of an asset, and from its disposal at the end of its useful life. Determining Recoverable Amount: ...
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...enterprise to display the items of other comprehensive income identified in this Statement with less prominence and to characterize them differently from other items of comprehensive income that are currently included in net income. Messrs. Cope and Foster believe that a primary objective in undertaking a project on reporting comprehensive income was to significantly enhance the visibility of items of other comprehensive income. They also believe that the Board inappropriately failed to respond to the clear and unequivocal call from users of financial statements for the transparent presentation of all items of comprehensive income, whose request is acknowledged in paragraphs 40 and 41 of this Statement. They also note that, as evidenced by the basis for conclusions in the Exposure Draft, the Board held views similar to theirs when it issued that document. I agree with Messrs. Cope and Foster’s concerns. My reason is as following: if the companies choose to report the items of other comprehensive income in the Statement of Changes in Equity, the visibility of these items will be decreased because there are many other important item in this statement, and the users may not focus on the important items of other comprehensive income, and at the same time, net income is reported in the Income Statement, which will make the financial statement users focus more on net income and earnings per share but not the items of other comprehensive income. b. I believe that potential adoption...
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...decreases in other comprehensive income as they arise. Accounting for plan terminations and curtailments and other circumstances in which recognition of gains and losses as a component of net periodic pension cost might not be delayed is addressed in the Settlements, Curtailments, and Terminations Subsection of this Section. (b) Explain the rationale behind the accounting method described in part (a). According to FASB ASC 715-30-35 35-22 Gains and Losses Asset gains and losses are differences between the actual return on plan assets during a period and the expected return on plan assets for that period. Asset gains and losses include both changes reflected in the market-related value of plan assets and changes not yet reflected in the market-related value (that is, the difference between the fair value of assets and the market-related value). Gains or losses on transferable securities issued by the employer and included in plan assets are also included in asset gains and losses. Asset gains and losses not yet reflected in market-related value are not required to be amortized under paragraphs 715-30-35-24 through 35-25. 35-23 Gains and Losses In other words, the expected return on plan assets generally will be different from the actual return on plan assets for the year. This Subtopic provides for recognition of that difference (a net gain or loss) in other comprehensive income in the period it arises. The amount recognized in other comprehensive income is also...
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...buying preferred and common stock. Several other events also affect paid-in capital. Retained earnings represents earned capital. Accumulated Other Comprehensive Income • LO18–2 Comprehensive income includes net income as well as other gains, losses, and other adjustments that change shareholders' equity but are not included in traditional net income. Comprehensive income extends our view of income beyond net income reported in an income statement to include four types of gains and losses not included in income statements: 1. Net holding gains (losses) on investments. 2. Gains (losses) from and amendments to postretirement benefit plans. 3. Deferred gains (losses) on derivatives. 4. Adjustments from foreign currency translation. OCI shares another trait with net income. Just as net income is reported periodically in the income statement and also on a cumulative basis as part of retained earnings, OCI too, is reported periodically in the statement of comprehensive income and also as accumulated other comprehensive income (AOCI) in the balance sheet along with retained earnings. In other words, we report two attributes of OCI: (1) components of comprehensive income created during the reporting period and (2) the comprehensive income accumulated over the current and prior periods. OCI is reported in the statement of comprehensive...
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...statement of financial position(n) current tax asset/liability(o) deferred tax asset/liability | (n) N/A - ADQ made a loss in previous year(o) DTA disclosed N/A DTL - set off of DTL SFP. P34 | YesYes | (n) Current tax payable disclosed(o) DTA and DTL disclosed SFP. P32 | YesYes | 101: 56 | Deferred tax asset/liability shall not be classified as current. | DTA and DTL classified as non-currentSFP. P34 | Yes | DTA and DTL classified as non-currentSFP. P32 | Yes | 101:82(d)& 112:77 | Tax expense disclosed separately in statement of comprehensive income. | Expense disclosed SCI. P33 | Yes | Expense disclosed SCI. P30 | Yes | 101:90101:91 | Tax related to each item of other comprehensive income disclosed separately or net of tax | N/A – no items of other comprehensive incomeSCI. P33 | Yes | N/A – no items of other comprehensive incomeSCI. P30 | Yes | 101:120 | Disclosure of accounting policy for tax | Policy disclosedN2(g). P39 | Yes | Policy disclosedN3(c). P35,36 | Yes | 107:35 | Cash flow from tax on income disclosed separately as operating. | Cash received disclosed as operating outflowSCF. P35 | Yes | Cash paid disclosed as operating outflow SCF. P33 | Yes | 112:79 | The major components of tax expense (income) shall be disclosed separately. | Full disclose in which...
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...| P | S | | | Total(USD) | Rate | Total(NTD) | Sales-COS-Dep.exp. | $ 578,300 | $ 377,000 | | | $955,300 | $30 | $28,659,000 | Income from S | 107,300 | | a. 107,300 | | 0 | | | Expenses | (450,000) | (261,000) | c. 14,500 | | (725,500) | 30 | (21,765,000) | Exchanges gain | | 5,800 | | | 5,800 | 30 | 174,000 | Net income | $ 235,600 | $ 121,800 | | | $ 235,600 | | 7,068,000 | OCI for the year-translation adjustment | (38,100) | (28,600) | c. 9,500 | a. 38,100 | (38,100) | 30 | (1,143,000) | | | | | | | | 3,805,500 | Total comprehensive income | $ 197,500 | $93,200 | | | 197,500 | | 9,730,500 | Retained Earnings 1/1 | $ 245,500 | $75,000 | b. 75,000 | | $245,500 | | 7,978,750 | Net income | 235,600 | 121,800 | | | 235,600 | 30 | 7,068,000 | Dividends | (100,000) | (42,600) | | a. 42,600 | (100,000) | 30 | (3,000,000) | Retained Earnings 12/31 | $ 381,100 | $ 154,200 | | | $ 381,100 | | 12,046,750 | OCI translation adjustment-1/1 | $0 | $0 | | | $ 0 | | | OCI for the year-translation adjustment | (38,100) | (28,600) | | | (38,100) | 30 | (1,143,000) | OCI translation adjustment-12/31 | $ (38,100) | $(28,600) | | | $ (38,100) | 30 | (1,143,000) | Other assets | $ 932,600 | $ 532,000 | | | $ 1,599,600 | 28.5 | 45,588,600 | Advance to P | | 84,000 | | d. 84,000 | 0 | | 0 | Investment In S | 551,600 | | | a. 26,600 b. 525,000 | 0 | | 0 | | | | |...
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...Haydee Tejada February 13, 2011 Case 2 a. Define Comprehensive and Other Comprehensive Income. b. Discuss alternative formats for reporting comprehensive income. c. Explain the usefulness of reporting the components of comprehensive income. Section 220 of the FASB codification discusses comprehensive income and all that’s included when reporting. Comprehensive income is the change in equity of a business during a period from transactions and other events and circumstances from nonowner sources. Comprehensive income includes all changes in equity during a period except those resulting from investments by owners and distributions to owners (FASB ASC 220-10-10-1). Other comprehensive income are the revenues, expenses, gains, and losses that under GAAP are included in comprehensive but excluded from net income (FASB ASC 220-10-15-3). When reporting comprehensive income, it should be presented in two sections, net income and other comprehensive income. The financial statement should show the total amount for net income together with the components that make up net income, the total amount for other comprehensive income together with the components that make up other comprehensive income, and total comprehensive income (FASB ASC 220-10-45-1A). Some items of other comprehensive income includes foreign currency translation adjustments, gains and losses on foreign currency transactions that are designated as economic hedges of a net investment in a foreign entity, gains...
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...COMPREHENSIVE PROBLEM: CHAPTERS 2 TO 4 Julie Molony opened Julie’s Maids Cleaning Service Inc. on July 1, 2008. During July, the company completed the following transactions. July 1 Issued $14,000 of common stock for $14,000 cash. 1 Purchased a used truck for $10,000, paying $3,000 cash and the balance on account. 3 Purchased cleaning supplies for $800 on account. 5 Paid $1,800 on a one-year insurance policy, effective July 1. 12 Billed customers $3,800 for cleaning services. 18 Paid $1,000 of amount owed on truck, and $400 of amount owed on cleaning supplies. 20 Paid $1,600 for employee salaries. 21 Collected $1,400 from customers billed on July 12. 25 Billed customers $1,500 for cleaning services. 31 Paid gas and oil for the month on the truck, $400. 31 Paid a $600 cash dividend. The chart of accounts for Julie’s Maids Cleaning Service contains the following accounts:No. 101 Cash, No. 112 Accounts Receivable, No. 128 Cleaning Supplies, No. 130 Prepaid Insurance, No. 157 Equipment, No. 158 Accumulated Depreciation—Equipment, No. 201 Accounts Payable, No. 212 Salaries Payable,No. 311 Common Stock,No. 320 Retained Earnings,No. 332 Dividends, No. 350 Income Summary, No. 400 Service Revenue, No. 633 Gas & Oil Expense, No. 634 Cleaning Supplies Expense, No. 711 Depreciation Expense, No. 722 Insurance Expense, and No. 726 Salaries Expense. Instructions: (a) Journalize and post the July transactions. Use page J1 for the journal. (b) Prepare a trial balance...
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...Media Summary The media sources I used this week are the same media sources I used in the previous weeks of this course. The media sources I used for this week’s topics included the textbook, the online videos provided, and my wife. I used the text book for most of the assignments this week. I felt like the text book for week 2 and week 3 did a good job of explaining the meanings of the topics presented and did not require additional readings. Chapter thirteen introduced the concept of sustainable income, or “the most likely level of income to be obtained in the future.”(Kimmel, Weygandt, Kieso, 2011). Chapter thirteen also explains how irregular items are presented, comprehensive income, the horizontal analysis, vertical analysis, how to compute ratios, and the concept of quality of earnings. Another valuable media source was the online videos. The video “Balancing the Books: Understanding Financial Reporting” discusses accounting tools, how the balance sheet works, profit and loss, and other topics. Like the previous videos, this video directly relates to and supports the topics in the text. Also, like the videos in previous weeks, the video is a nice change of pace from reading long text. I actually liked the videos used in week two more than the video used in this week’s lesson. The “Jeopardy” style video was a little boring and the way the contestant flashed back to his experiences made it a little drawn out for my taste, however I understand the attempt to make the...
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...Case 1 You have been hired as a consultant for Thomas Foods. Thomas Foods was incorporated in 1969. Thomas Foods sells produce purchased from farmers to neighborhood grocery stores throughout the country. Thomas Foods has asked you to implement a hedging strategy to mitigate the risks associated with any unexpected increase in price they would have to pay farmers for their harvested crops. Thomas Foods asks that you provide examples of how various hedging strategies could be implemented. The Controller of the company has no experience in this area and would need to understand the accounting treatment for whichever hedging strategy you select. Of significant importance to management is how any hedging strategy would impact operating income. =================================================================================== Case 2 You have been hired as a consultant for XYZ Research Co. XYZ Research Co. incorporated in 2010. XYZ ‘s business centers on developing new technology for interplanetary exploration. The company has many patents and has historically expensed all of the costs associated with obtaining their patents. The owners of XYZ Labs are unsure whether or not if any or all of its patent costs can be capitalized. They also are unsure if any impairment testing should be done periodically on their patents. You have been asked by the owners to look into these issues and provide the appropriate accounting treatment for patents. ===================================================================================...
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...Financial Reporting * Comprehensive Income * Issued to address the presentation of certain items that bypass the income statement and were recorded directly to equity * Focused on net income would not take into account comprehensive income items in measuring financial performance * Bypassed the incomes statement: recorded directly to stockholder’s equity * Foreign currency matters * Derivatives and hedging * Compensation –Retirement benefits. * Prior to ASC 220 entities were required to present only the accumulated balances in the statement of stockholder’s equity. To date, ASC 220 has required that comprehensive income be presented in financial statements. * ASC 220 must be reported one of three ways * Present separate statement of comprehensive income. * Combine statement of income & comprehensive income * Present comprehensive income as a section within the statement of stockholder’s equity. * GAAP vs IFRS * GAAP * Does not require a consecutive presentation of statement of income and comprehensive income. * Presents three alternatives of presenting comprehensive income * Separate statement * Combined statement with income statement * As part of the statement of changes in stockholders equity * IFRS * Presents two alternatives of presenting comprehensive income * Separate...
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...| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | Preparing a Comprehensive Case Analysis Avon vs. Competitors | | | | Carrie Rose Business Policy, Professor Frost 4/20/2012 | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | Preparing a Comprehensive Case Analysis Avon vs. Competitors | | | | Carrie Rose Business Policy, Professor Frost 4/20/2012 | History Avon is a global manufacturer and marketer of beauty, fashion, and home products. The company operates worldwide using a direct selling model; Avon has approximately 6.5 million independent representatives that sell their products for them across the globe. They are divided into six geographic locations: Latin America, North America, Central, Eastern, and Western Europe, Middle East, Africa, Asia Pacific, and China. The company has numerous distribution centers, manufacturing facilities, and administrative offices in every one of these locations. They initiated global expansion in the in the 1950’s, went public and was listed on the NYSE (New York Stock Exchange)...
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