Already have an account? Get multiple benefits of using own account!
Login in your account..!
Remember me
Don't have an account? Create your account in less than a minutes,
Forgot password? how can I recover my password now!
Enter right registered email to receive password!
Earnings management- Examples of where accounting can produce different numbers legally (honestly?).- Interesting ones - perhaps; • LIFO, FIFO Average Cost (Physical / Perpetual) • Depreciation- Why does management do it (not tax)?- Why not produce any numbers you like?- Why not require only one method or estimate?- Why would managers manage earnings?- NOT TAX - we are talking about ‘managing' reported accounting profits not taxable income.- Don't you want to look good - if you can choose which photo, which assessment marks to include etc- Managers want to show results that make their job easier: • High profits - great manager - she should be paid more • Low profits - not ripping the public off - should get government protection - shouldn't be taxed more.- Why not produce any numbers you like?- There are rules; revenue recognition, conservatism etc but there still is ‘wiggle' room (weighted ave v's FIFO).- Corporate law - fraud when you just make up the numbers.- Auditors who independently check that the numbers are ‘true and fair' or ‘presented fairly' within the ‘accounting reporting framework' (e.g. HC)- Post settling up - you can only lie so often.- Why not require only one method or estimate?- That adds a new kind of distortion.- Let's consider a pair of shoes!- How do we depreciate them; method, life, residual value?- Accelerated? Ten years? Always have some value?- OR Straight line? Two years? Zero residual- Imposing structure still gives distortions!- What are we attempting to achieve when producing financial statements? • Useful information (SAC 2 Objective of Financial Reporting) Barth showed useful for predicting.- How do we make the information useful? • Make it relevant, reliable, understandable etc (IASB Framework, Qualitative Characteristics of Financial Reporting) - But problems still remain. • Relevant or Reliable? • Relevant to whom? • Investors or creditors, casual observer?- Conceptual Framework and its application.
lily flour company manufactures flour by a series of three processes beginning with wheat being introduced in the
On January 1, 2006, Matrix Corporation issued $800,000, 5%, 5-year bonds dated January 1, 2006, at 95. The bonds pay annual interest on January 1. The company uses the straight-line method of amortization and has a calendar year end.
Hodge Inc. has some material that originally cost $74,600. The material has a scrap value of $57,400 as is, but if reworked at a cost of $1,500, it could be sold for $54,500.
What are the auditing procedures Green should consider performing to gather evidence concerning subsequent events?
The goggles sell for a retail price of $8.00 per pair. The sports apparel division is doing a promotion whereby each customer that purchases a swimsuit during the month of May receives a free pair of goggles. The apparel division would like to pur..
Compute the rate of return for each division using the return on investment (ROI) formula stated in terms of margin and turnover.
Briefly explain why the owner's investment and revenues increased owner's equity, while withdrawals and expenses decreasedowner's equity.
Use the checklist to outline phases of the internal control evaluation. You may use the (1) components of internal control, or (2) relevant assertions as headers within your checklist.
Prepare a statement of financial condition for Mr. Holz as of December 31, 2008. Assume any gain on subsequent sale of the residence will not be tax-exempt.
stephanie is the two-year old daughter of jason and kelly larkspur. stephanie starred in several television commercials
Qualitative considerations often play into capital investment analysis. Reflect on an investment that a company you are familiar with has made.
Given the facts presented, discuss the various factors that affect the reli- ability of (1) the comparable uncontrolled price method, (2) the resale price method, and (3) the cost-plus method.
Get guaranteed satisfaction & time on delivery in every assignment order you paid with us! We ensure premium quality solution document along with free turntin report!
whatsapp: +1-415-670-9521
Phone: +1-415-670-9521
Email: [email protected]
All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd