...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 can...
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...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.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...
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...practitioners except for three academicians. To emphasize its importance and the AIA’s intent to demonstrate leadership, Clem W. Collins, AIA president, was designated CAP chairman. George O. May, who had led the prior committee as well as the AIA Special Committee on Cooperation with Stock Exchanges, served as CAP vice-chairman. d) strengths; First, accounting practices, especially in terms of uniformity, improved significantly. Second, the private sector was firmly established as the source for accounting policy making in the United States. Accounting Research Bulletins (ARB) The CAP would issue 51 ARBs during its existence, several of which survive in today’s FASB’s Codification, and four Accounting Terminology Bulletins. e) weaknesses: The CAP decided early on that formulating a statement of broad principles would take too long and instead approached issues on a case-by-case basis. Without a framework and often without adequate research, the CAP relied on the members’ collective experience for agreement on member-suggested solutions. In 1949, the CAP reconsidered developing a framework but instead codified and updated its first 42 ARBs. The CAP was criticized for its piecemeal, “firefighting” approach to setting standards and its failure to reduce the number of alternative accounting procedures. f) reason for its creation and /or demise. The CAP was a great response to Accounting Series Release No. 4, but after 20 years few believed that its process could...
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...The Securities Act of 1933 The Securities Act of 1933 is also referred to as the “truth in securities” law. The Act has two objectives, one is requiring that investors receive financial and other significant information concerning securities being offered for public sale; and prohibit deceit, misrepresentations, and other fraud in the sale of securities (The Laws That Govern the Securities Industry , 2012). The Securities Act of 1934 The Securities Act of 1934 Congress created the Securities and Exchange Commission. The Act empowers the SEC with authority over all aspects of the securities industry. The Act also allows the SEC to require periodic reporting of information by companies with publicly traded securities. As well, the Act identifies and prohibits certain types of conduct in the markets and provides the commission with disciplinary powers over regulated entities and persons associated with them (The Laws That Govern the Securities Industry , 2012). Committee on Accounting Procedures (CAP) 1938 The Institute Committee on Accounting Procedures became the first accounting standard-setting body for the private sector. It was the predecessor to the Accounting Principles Board, created by the American Institute of Accountants (Moussalli, 2005). Accounting Principles Board 1959 The Accounting Principles Board replaced the CAP as the authoritative financial accounting body. The Accounting Principles Board was replaced in 1973 by the Financial Accounting...
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... India,and the former Soviet Union present a profusion of consumers and immense growth potential for multinational corporations. The trick is for senior management to fully understand that this market possibility exists and that tapping into it may require a radical departure from the traditional, developed-economy mindset. As Nike’s financial record indicates, market saturation and intense competition in Tier One economies has squelched Nike’s growth trajectory. While the Swoosh continues to penetrate typical Western markets, tapping into the increasing numbers of “middle and lower class” consumers in emerging markets could offer a phenomenal expansion opportunity if the firm can create the right business model. In addition, beyond the potential economic benefits from this venture, Nike’s World Shoe Project also offers a credible response to the labor issues that have buffeted the company, and leverages their efforts to minimize the environmental impact of their production activities. • Introduction/Background of the study The words “Just make me the shoe!” echoed down the boardroom table to Tom Hartage a 17 – year veteran of the running shoe company, Nike Inc. Tom Clarke, president of the company in 1998, had attended the meetings, seen the presentations and reviewed the numbers related to the market potential of China a rough gem with a booming population of 1.2 billion. He also knew that in many parts of the world, including China, people couldn’t afford...
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...Case 1-3 Politicalization of Accounting Standards Some accountants have said that politicalization in the development and acceptance of generally accepted accounting principles (i.e., standard setting) is taking place. Some use the term politicalization in a narrow sense to mean the influence by governmental agencies, particularly the SEC, on the development of generally accepted accounting principles. Others use it more broadly to mean the compromising that takes place in bodies responsible for developing these principles because of the influence and pressure of interested groups (SEC, American Accounting Association, businesses through their various organizations, Institute of Management Accountants, financial analysts, bankers, lawyers, etc.). Required: 1. The Committee on Accounting Procedure of the AICPA was established in the mid- to late 1930s and functioned until 1959, at which time the Accounting Principles Board came into existence. In 1973, the Financial Accounting Standards Board was formed, and the APB went out of existence. Do the reasons these groups were formed, their methods of operation while in existence, and the reasons for the demise of the first two indicate an increasing politicalization (as the term is used in the broad sense) of accounting standard setting? Explain your answer by indicating how the CAP, APB, and FASB operated or operate. Cite specific developments that tend to support your answer. 2. What arguments can be raised to support the...
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...Financial Reporting Timeline The creation of: 1. Committee on Accounting Procedures Role - With the recent increase in members, the SEC delegated the responsibility of issuing pronouncements on accounting principles to the Committee. The SEC worked with the Committee on Accounting Procedures to develop standards for accounting and financial reporting and issued 51 Accounting Research Bulletins (ARBs) over its lifetime. In 1949, they updated 42 of their original ARBs and codified them. a. History - In 1933, the Special Committee on Development of Accounting Principles was formed by the AICPA. Quite simply, this committee did not get much done and was replaced by the Committee on Account Procedures in 1936. For the first two years, this committee also made very little progress. In 1938, the Securities and Exchange Commission issued Accounting Series Release No. 4 which asserted that any financial statements prepared in accordance with principles that had no substantial authoritative support would be considered inaccurate. This prompted the CAP to expand from 7 members to 21 members and increased its activity. b. Structure – The Committee on Accounting Procedures was committee formed by the American Institute of Accountants after the SEC delegated to it the responsibility of issuing pronouncements on accounting principles without government council. Initially, the CAP wanted to create guidance for solving accounting problems, but did not believe they had enough...
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...Influences of emerging technology The impact of new and emerging technology on the global scale depends very much on the same factors that influence local acceptance and uptake. There are countries with different levels of industrialisation, technology infrastructure and wealth. Also political cultural and economic forces in present help various technologies succeed in some area and hinders them in others. If there is a rise in acceptance in technology it could create manufacturing opportunities. China with its huge population combined with political and cultural change has become the favoured location for many manufacturing industries. Countries with strong economic growth and population and a good disposable income are very accepting to the rapid uptake of technology. At the moment there is an enormous growth in information and communication fields. This has created a significant social change. (p167) Copy paragraph p168. Emerging technologies often result from an unorthodox combination of existing entities. The focus of these new technologies lies in the areas of: * Group collaboration on tasks * Next generation internet architecture that facilitates smoother communication * Real-world web services It is the norm to have multidisciplinary teams from around the globe working on one project. Collaboration tools * Podcasts * Peer to peer voice over IP * Desktop search * wikis Research of the new technologies p 170-171 Factors...
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...1-2. Identify and describe the five environmental differences between governments and for-profit business enterprises as identified in the Governmental Accounting Standards Board's Why Governmental Accounting and Financial Reporting Is—and Should Be—Different. The five environmental differences include mission/purpose, source of revenue, potential longevity, relationship with stakeholders, and role of budget. The mission/purpose is defined by the goals of the organization. The purpose of a commercial business is to make money. A non-profit organization’s purpose is to provide a service, without compensation from the people being served. The source of revenue comes from net income, which comes from a sale of goods or services in the private sector or in the public sector comes from tax dollars or donations. The longevity potential for a private business depends on the ability to generate a profit. In contrast a non-profit relies upon tax dollars or donations. The stakeholders of a private corporation are the owners/stockholder/investors. The stakeholders of a public organization are the taxpayers and general public being served. The budget in the private sector is flexible, depending on revenues and directors. The budget within a public organization is typically not flexible and has to be followed exactly. 1-3. Identify and briefly describe the three organizations that set standards for state and local governments, the federal government, and nongovernmental...
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...13184461 | | | |Center Name: Management Development Centre (MDC) | | | | | |Subject: Emerging Themes | | | | | |Word Count for Discussion Paper: | | | |Task One: 555 | |Task Two: 2,740 | |Task Three: 453 | | | |Submission Date: 24th November, 2011 | |...
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...to occur in the future. If both criterions are met, gains and losses resulting from the event can be reported as extraordinary items (Warfield, Weygandt, Kieso, 2008). The September 2001 terrorist attack on the World Trade Center destroyed many businesses and caused major devastation to others. The Emerging Issues Task Force is a component within the Financial Accounting Standards Board whose purpose is to provide guidance for implementation of FASB standards. The EITF was responsible for determining how business losses incurred as a result of the attack should be reported. After much consideration, the task force ruled that the losses could not be reported as extraordinary items, citing that measuring the losses would ne too difficult (Isodore, 2001). By definition, extraordinary items are unusual and infrequent. Based solely on the definition, the attack on the World Trade Center certainly met the criterion for extraordinary items. The attack was certainly unusual and infrequent. The attack had nothing at all to do with business activities, and nothing of that magnitude had ever occurred before, and there was no likelihood of it occurring again. The task force defended its decision by saying that companies could take advantage of the...
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...Achieving customermanagement excellence in emerging markets Consumer Packaged Goods September 2015 Cristina Del Molino Pavlos Exarchos Felipe Ize Achieving customer-management excellence in emerging markets Winners ask four critical questions about market-by-market growth, then tailor their channel-management approaches accordingly. For producers of consumer packaged goods, the road to sustained growth still passes through emerging markets. Despite some softening of enthusiasm for investment in the so-called BRIC markets—Brazil, Russia, India, and China—over the next 15 years nearly three-quarters of the world’s GDP growth will continue to come from emerging-market countries, including Ethiopia, India, Kenya, Mexico, Nigeria, and Vietnam. Growth in these parts of the world is being driven by forces that don’t show any signs of weakening: steady population expansion, rapid urbanization, a proliferation of technology, and gradual opening up of economies and adoption of market-oriented policies. Global packaged-goods producers can gain significant foothold in these markets if they manage talent shortages, infrastructure gaps, and the highly fragmented trade landscape. There is no one-size-fits-all approach to doing this. Our research demonstrates that outperforming consumer-packaged-goods (CPG) companies use a set of standardized practices or tools across markets to determine their priorities for growth in each country. They clearly define ...
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...temporary office space in Houston to accommodate the sales force. Specific information relating to the rental of office space include: • Eureka will continue to make fixe monthly lease payments for machinery at plant • Processing volume in the Denver shared service center is down by 40% due to the shut down plant • Eureka allocates the cost of the shared service center on volume basis Eureka’s legal counsel has determined that under the company’s property and casualty insurance, the company is entitled to insurance recovery for the fair value of the manufacturing plane in excess of the deductible, and that such recovery is probable. Specific Issues to Resolve • How should Eureka account for the anticipated insurance recovery for the manufacturing plant when such recovery has not been received but is deemed probable? Additional Facts Eureka’s legal counsel has also determined that under its business interruption insurance policy, Eureka is entitled to insurance recovery, subject to certain maximum limits and in excess of the deductible, for: 1. Fixed monthly lease payments for the leased machinery 2. Rental costs for the temporary sales office 3. Shared service center cost ordinarily allocated to the manufacturing plant’s operations; and 4. Gross margin that was not earned due to the suspension of normal operations Legal counsel has also determined that such recovery is probable. Additional Specific Issues to Resolve How should Eureka account for the anticipated insurance...
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...Accountancy is the production of financial records for organizations and shows readers in money terms the economic resources the company has under its control and represents it in terms of relevance and does this faithfully. Accounting is called “the language of business” because it acts as a vehicle for a business entity to report their financial information to groups of people outside of the company’s day to day activities. Some researchers believe the earliest instance of accounting was from a cave engraving in South Africa that was dated 76,000 years old. However the earliest proven accounting records have been dated back 7,000 years ago and were found in Mesopotamia. The people of the time relied on its primitive practices to record the growth of crops and herds. In Iran during the 4th and 3rd century, socioeconomic situations led to unequal distributions of wealth and so the leaders and priests appointed people to look after the financial matters. Godin Tepe, an archaeological site in western Iran, scripts only containing tables with figures were found. In Tepe Yahya, an archaeological site found in the Kerman Province in Iran, the scripts contained geographical representations as well. In both sites buildings containing large rooms for storage crops had tokens that were used for bookkeeping purposes on clay scripts which represented a cognitive leap for mankind. (Accountancy, n.d.) These early practices of record keeping were used mainly for the record keeper and...
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... FASB has a board full of members that participate in accomplishing the mission. There are 7 board members as well as several staff members that help assist. The board members are: * Russell Golden is a chairman. He began in July of 2013. He served six years as a staff member (technical Director) for the FASB before he got appointed to the chairmen. His term will end in 2017, but then he can get an appointment to an additional 3 more years. He is also chaired in FASB’S emerging issues task force. * James Kroeker is the vice chairman. He was appointed in September 2013. He served as the deputy managing partner for professional practice in Deloitte. Before that, he was the chief accountant of the Securities and Exchange Commission in 2009. He served as the senior accounting professional for the commission and the principal advisor to the commission on all accounting and auditing matters. Jim was also responsible for resolution of a wide range of globally significant accounting and auditing issues. * Daryl...
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