...possibility of fraudulent accounting activities by corporations. There are two basic portions of the act, Section 302 and 404. Section 302 basically states that senior managers have to certify the accuracy of the accounts or reported financial statements. Section 404 was created as a requirement that management and auditors establish internal controls and reporting methods on the adequacy of those controls. (Investopedia.com) The Sabranes-Oxley Act has made accounting more of a “locked-down” procedure within a company. It no longer is easy to slip up on something or forget to add or subtract any information into a financial statement. Another thing the Sabranes-Oxley Act did was change the way a board of directors and the management level works together. Before it seemed like the board of directors worked for the management of a company, but now it seems like the management works for the board of directors. Which seems like it should be that way no matter what. Internal controls are what creates the Framework of the accounting act. They are there to offer the best and most promises to a company or organization. There are a few things that having an internal control can benefit your organization. The first one is the amount of research done in tax laws and tax planning topics. The other one is having alternative approaches to common and unique tax...
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...found out the unethical and illegal actions taken by his superior, John Boss, and his client, Barbara Doctor, during his attest performance; However, He did take the proper action to address his findings and failed to prepare an amended tax form for Barbara’s 2011 taxes. As John ordered Joe to do before John left the firm, Joe did destroy material audit records. According to AICPA’s Code of Professional Conduct, members of the AICPA are responsible for the rules addressed in the Code. Joe Accountant’s actions should be considered under the following rules: Article II (The public interest): “members should accept the obligation to act in a way that will serve the public interest, honor the public trust…” Article III (Integrity): “to maintain and broaden public confidence, members should perform all professional responsibilities with the highest sense of integrity.” Under the section of Subordination of Judgment, “the Code provides a three-step procedure so that members may rest assured that they have not improperly subordinated judgment.” (The Ethical and Legal Environment of Accounting, 2-4) The three steps are summarized as: 1. Consider if acceptable alternative is posted without material misrepresentation after appropriate research and consultation. 2. Make concerns known to higher internal authorities, keep documentation 3. Consult legal counsel and prepare for exit. Regarding Joe Accountant’s behavior during the event described in this case, Joe Accountant...
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...UNDERGRADUATE CURRICULA AND FACULTY 2007 – 2011 Proposed 2009 – 2013 2 Requirements for the BBA degree: Foundation Courses 40-41 Credits Core Courses 45 Credits Departmental Requirement 24 Credits Minor 15 Credits Total variable requirement for Graduation 124-125 Credits Foundation Courses Communication Skills ENG 101 ENG 102 ENG 105* ENG 106 ENG 202 Listening and Speaking Skills English Reading Skills Business English Advanced English Skills Introduction to English Literature 40-41 Credits 9 3 3 3 3 3 * Prerequisite ENG 101 & 102 Note: students not exempted from ENG 101 and ENG 102 will have to take ENG 101, ENG 102 and ENG 105. Note: students exempted from ENG 101 and ENG 102 will have to take ENG 105, ENG 106, ENG 202 Computer Skills CIS 101* CSC 101** Fundamentals of Computer System Introduction to Computer Science 3 3 3 * For students without basic knowledge of computer **For students with basic knowledge of computer & mandatory for students with Major in subjects offered from the SECS Numeracy MAT 100* MAT 210* Basic University Mathematics 1 Basic University Mathematics 2 6 3 3 3 *MAT 100 and MAT 210 mandatory for SLAS majors(English, Media & Communication, Anthropology) other than Sociology MAT 101* MAT 211* MAT 102* MAT 212* Intermediate University Mathematics II Probability and Statistics Introduction to Linear Algebra & Calculus Probability & Statistics for Sc. & Engr. 3 3 3 3 **MAT 101and MAT 211 mandatory for...
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...| Tax Research | | | Steven King | ACC 620M | July 26, 2011 | | | John R. Lane 1010 Ipsen St. Yorba Linda, CA 90102 Dear Mr. Lane: It is my pleasure to be an accountant to help you calculate your tax return of last year, and thanks for giving this opportunity for me! You asked me to work out your tax return of last year based on your situation and your income, and expenses last year. In my opinion, I think this is a simple case so that we just need to fill the form 1040. In reaching this conclusion, I consulted relevant provisions of the Internal Revenue Code (“IRC”), and applicable Treasury Regulations under the IRC. The facts as I understand them are as follows: you are a single taxpayer, and provided 100% of the support of your cousin. In addition, you want to take advantage of the presidential election campaign check-ff. Your also gave me some relevant information, such as salary, taxable pension, interest income, IRA deduction, and withholding. Since you have already filled out the Schedule A, the itemized deduction can be used directly. Therefore, in your case, we just need to put those numbers into the proper line of the form 1040 simply. First of all, we can check the Presidential Election Campaign on the top right of this form because you want to take the advantage of it. For the income section, we just put $20,000 into line7, which is your salary, $300 into line 8a, which is the taxable interest, and $31,000 into the 16b, which...
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...Auto Industry Ford – Tata Motors Financial Statements Identification Activity Required: Working within your assigned group, identify the following items in the Ford and Tata’s financial reports. Answer each of the following questions and identify where in the financial report (which statement, footnote, etc.) you located it and the specific page number. Take your time in completing this process, as the objective of the assignment is to familiarize you with the specific set of accounting statements you will be using throughout the semester. 1. Who is Ford’s/Tata Motor’s auditor? Ford’s auditor is Pricewaterhousecoopers. Page 270 in Exhibit 23 Tata Motor’s auditor is Deloitte Haskins & Sells. Page 107 in Table of Contents Item 16c 2. What set of accounting standards do each apply in preparing its financial reports? Ford: US GAAP. Page 74 Part 1 Item 7 Tata Motors: IFRS. Page 107 Item 16c 3. What form does each use to file its financial information with the SEC? Ford: Annual report pursuant to Section 13 or 15. Form 10K Tata: ANNUAL REPORT PURSUANT TO SECTION 13 OR 15(d). Form 20F 4. Within the financial report itself, where is the auditors’ report located? Ford: FS – 106 Tata: F2 5. What are the fiscal years included/covered within the two financial reports? Ford: 2010 Form 10-k Tata: 2011 Form 20-F 6. How long (number of pages) is each financial report, not including the “management’s discussion and analysis” (MD&A) Ford: 99 Tata: 101 7. Identify...
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...Teal Corporation would have a taxable gain of $150,000. The gain would be ordinary or capital depending on the type of property distributed. The E & P of Teal Corporation would be increased by $150,000 (the amount of gain to Teal) and decreased by $250,000 (the FMV of the property distributed). Teal’s E & P also would be decreased by the amount of tax due on the gain recognized. Grace would have dividend income of $250,000 and a basis in the asset of $250,000. b. The tax consequences to Teal Corporation would be the same as in a. Grace Corporation would have dividend income of $250,000, but only 20% of the $250,000, or $50,000, would be taxed to Grace. Because Grace Corporation has a 20% or more ownership interest in Teal Corporation, the 80% dividends received deduction is applicable. Grace Corporation would have a basis of $250,000 in the property. c. The tax consequences to Teal Corporation would be the same as in a. Grace would have a capital gain of $170,000 [$250,000 (value of the property) - $80,000 (basis in stock)] and a basis of $250,000 in the property received. d. The tax consequences to Teal Corporation would be the same as in a. Grace Corporation would have a capital gain of $170,000 [$250,000 (value of the property) - $80,000 (basis in stock)] and a basis of $250,000 in the property received. e. Assuming Grace is an individual, she would choose the qualifying stock redemption (option c). If the distribution...
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...Unethical Practices and Behavior in Accounting Name Institution Course Tutor Date Unethical Practices and Behavior in Accounting The Sarbanes-Oxley (SOX) Act of 2002 was passed by the congress to protect investors from fraudulent accounting activities by organizations (Hart, 2009). Investors depend on the information that they receive from accountants to make investment decisions and hence if incorrect information is provided, the investors make inaccurate decisions, which could be costly. Section 302 of the SOX Act makes it mandatory for the accuracy of reported financial statements to be certified by senior management. In addition, section 404 of the Act influences the quality of the financial statements by specifying that the management should establish internal controls (Hart, 2009). However, in spite of the emphasis of the SOX Act, accountants continue to practice unethical behavior in accounting. In his article, “What Are the Causes of Ethical Lapses in Accounting?” Jagg Xaxx outlines four situations that might lead to unethical practices and behavior in accounting. Xaxx has been a writer since 1983, focusing mostly on environmental issues, Buddhist iconography, and surrealism. For more than 12 years, Xaxx worked as a cabinetmaker and in house building and renovations. Xaxx holds a PhD in art history and has in depth knowledge in different fields. In this article, Xaxx identifies four reasons why accountants engage in unethical behavior. The first...
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...Health Care System in Turmoil Alice Felton MHA 622 Healthcare Ethics & Law Dr. Teresita Gonzalez August 5, 2012 Health Care System in Turmoil The current health care system in the United States is in turmoil for many years because of two major problems which continues to be: patient access to care and the cost of care. There are well over 50 million Americans who continue to be uninsured today and a national health care tax called the Patient Protection and Affordable Care Act of 2010 has been passed and challenged and upheld by the United States Supreme Court, as a tax not a law, here recently which is suppose to be an answer to most of our health care insurance issues. Even though most Americans may agree that our health care system is in turmoil and needs to be reformed, not everyone agrees that a national health care tax is the solution. In the United States as the health care system continues to be in turmoil the patients are continuing to struggle to keep their medical care and that can be either if they are trying to maintain at least a standard of care or just simply hoping that the medical facility that they may prefer, such as a local hospital or community center will be able to stay in business, or that they will have continued accessed to emergency rooms even if they are the uninsured. In the midst of this health care system turmoil there are other segments in the health care sector that may be experiencing financial problems, such...
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...Unethical Practices and Behavior in Accounting Name Institution Course Tutor Date Unethical Practices and Behavior in Accounting The Sarbanes-Oxley (SOX) Act of 2002 was passed by the congress to protect investors from fraudulent accounting activities by organizations (Hart, 2009). Investors depend on the information that they receive from accountants to make investment decisions and hence if incorrect information is provided, the investors make inaccurate decisions, which could be costly. Section 302 of the SOX Act makes it mandatory for the accuracy of reported financial statements to be certified by senior management. In addition, section 404 of the Act influences the quality of the financial statements by specifying that the management should establish internal controls (Hart, 2009). However, in spite of the emphasis of the SOX Act, accountants continue to practice unethical behavior in accounting. In his article, “What Are the Causes of Ethical Lapses in Accounting?†Jagg Xaxx outlines four situations that might lead to unethical practices and behavior in accounting. Xaxx has been a writer since 1983, focusing mostly on environmental issues, Buddhist iconography, and surrealism. For more than 12 years, Xaxx worked as a cabinetmaker and in house building and renovations. Xaxx holds a PhD in art history and has in depth knowledge in different fields. In this article, Xaxx identifies four reasons why accountants engage in unethical behavior. The...
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...TEACHER’S MANUAL to accompany CASES AND MATERIALS ON TAXATION OF BUSINESS ENTERPRISES Second Edition By Glenn E. Coven Mills E. Godwin Professor of Law College of William and Mary Robert J. Peroni Robert Kramer Research Professor of Law The George Washington University Richard Crawford Pugh Distinguished Professor of Law University of San Diego AMERICAN CASEBOOK SERIES® ® WEST GROUP A THOMSON COMPANY ST. PAUL, MINN., 2002 CHAPTER 1 INTRODUCTION Note to prior users: The order of this chapter has been revised. Users who wish to skip the introductory material and begin with the check-the-box regulations may now begin with paragraph 1075. [¶ 1000] A. HISTORY OF THE CORPORATE INCOME TAX This paragraph briefly summarizes the history of the corporate income tax. Some instructors may want to note here that the top corporate income tax rate reached a zenith in 1951 of 52 percent, before being reduced in 1964 to 48 percent, in 1978 to 46 percent, in 1986 to 34 percent (except for corporations with taxable incomes within a specified range that are subject to a top effective marginal rate of 39 percent). The maximum rate was raised in 1993 to 35 percent but only for a relative handful of generally publicly owned corporations earning over $10 million annually. [¶ 1005] B. COMPUTATION OF C CORPORATION'S TAXABLE INCOME This paragraph discusses the computation of a C corporation's taxable...
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...About Christiana Care Health System Christiana Care Health System, headquartered in Wilmington, Delaware, is one of the country's largest health care providers, ranking 22nd in the nation for hospital admissions. Christiana Care is a major teaching hospital with two campuses and more than 250 Medical-Dental residents and fellows. Christiana Care is recognized as a regional center for excellence in cardiology, cancer and women's health services. The system is home to Delaware’s only Level I trauma center, the only center of its kind between Philadelphia and Baltimore. Christiana Care also features a Level 3 neonatal intensive care unit, the only delivering hospital in the state to offer this level of care for newborns. A not-for-profit, non-sectarian health system, Christiana Care includes two hospitals with more than 1,100 patient beds, a home health care service, preventive medicine, rehabilitation services, a network of primary care physicians and an extensive range of outpatient services. With more than 10,500 employees, Christiana Care is the largest private employer in Delaware and the 10th largest employer in the Philadelphia region. In fiscal year 2013, Christiana Care had $2.51 billion in total patient revenue and provided the community with $27.3 million in charity care (at cost). WILMINGTON, Del. — The AstraZeneca HealthCare Foundation’s Connections for Cardiovascular HealthSM program today announced a grant of $213,094 to Christiana Care Health System to support...
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...TEACHER’S MANUAL to accompany CASES AND MATERIALS ON TAXATION OF BUSINESS ENTERPRISES Second Edition By Glenn E. Coven Mills E. Godwin Professor of Law College of William and Mary Robert J. Peroni Robert Kramer Research Professor of Law The George Washington University Richard Crawford Pugh Distinguished Professor of Law University of San Diego AMERICAN CASEBOOK SERIES® ® WEST GROUP A THOMSON COMPANY ST. PAUL, MINN., 2002 CHAPTER 1 INTRODUCTION Note to prior users: The order of this chapter has been revised. Users who wish to skip the introductory material and begin with the check-the-box regulations may now begin with paragraph 1075. [¶ 1000] A. HISTORY OF THE CORPORATE INCOME TAX This paragraph briefly summarizes the history of the corporate income tax. Some instructors may want to note here that the top corporate income tax rate reached a zenith in 1951 of 52 percent, before being reduced in 1964 to 48 percent, in 1978 to 46 percent, in 1986 to 34 percent (except for corporations with taxable incomes within a specified range that are subject to a top effective marginal rate of 39 percent). The maximum rate was raised in 1993 to 35 percent but only for a relative handful of generally publicly owned corporations earning over $10 million annually. [¶ 1005] B. COMPUTATION OF C CORPORATION'S TAXABLE INCOME This paragraph discusses the computation of a C corporation's taxable...
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...Unnati Investment Management Research Group Management Development Institute Tata Chemicals Ltd. Tata Chemicals Tata Chemicals was incorporated in 1939 after the acquisition of Okhamandal Salt Works Its products are divided into 3 categories Living essentials, Industry essentials and Farm essentials Presence in 4 continents Africa, Asia, Europe and North America It is the world’s second-largest producer of soda ash, leading manufacturer of soda ash in Africa, sodium Buy (CMP=318.10) carbonate, salt and sodium bicarbonate in Europe, and high quality soda ash through strategic acquisitions. The company reported the results of Q1 2012 indicating an 18 % increase in revenues q-o-q and a 0.6 % increase in net profits q-o-q. Segmental Break down of Revenue (FY-2010) Geographical Break down of Revenue (FY-2010) Soda Ash 1% Asia 1% 7% 10% 18% Complex Fertilizers 11% America 38% Urea Vaccum Salt 16% 72% Europe Africa Cement 26% Others INVESTMENT RATIONALE Growing Capacity Across domains •Expansion of salt capacity: 200K TPA debottlenecking capacity at 180 crores on track and expected to commence operations by March 2012. •Expansion of soda ash capacity at GCIP: Tata Chemicals plans to spend more than $100 million to expand soda ash making capacity by 400,000 tonnes •Fertilizer unit at Gabon: Setting up of 1.3 million TPA Urea capacity expected to be commissioned within 36 months I-shakti Success: First national brand for pulses launched...
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...business many requests will be made for its financial statements. Financial statements are intended to provide information on the recourses available to management, how these recourses were financed, and what the company has accomplished with them. Financial statements are formal presentations of the flow of money into, through and out of a business. Financial statements are comprised of four main areas - balance sheets, income statements, cash flow statements and retained earnings. 1.1 Balance sheet “The balance sheet shows what recourses (assets) the firm controls and how it has financial these assets. Specifically, it indicates the current and fixed assets available to the firm at a point of the time.” (Reilly,F.K, Brown, K.C, 2006, p.302) The balance sheet is a financial snapshot of the business on a particular...
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...Absolute number for dollars does not carry the same weight and importance to each company, so other types analysis needs to be used. In general analyzing financial statements allows the management to identify issues, make changes, and to take control to meet the goals set for the company. There are quite a few difference analyses that could be used. One such analysis is Horizontal analysis. In Horizontal analysis the changes and difference are an indication for further analysis. Horizontal analysis on its own will help identify potential issues, but even better would be to compare this company’s Horizontal analysis with similar companies in the same industry. Using dollars for the analysis can be deceiving, even within the same industry. A solution to the skewed numbers is to use percentages when comparing multiple companies allows the comparison to be reviewed on an even ground. An example would be company A and companies B both have an increase in earnings of $100,000. Company A has total earnings of $1 million, a ten percent increase, and company B $10 million, only a one percent increase. The smaller company will be happier with the increase then the larger. Within the industry, trends can be identified and corrected before they are out of control. A downfall to Horizontal analysis is that the numbers change from day to day. It is helpful to conduct this analysis as soon as the financials are available to prevent further loses. Another downfall to Horizontal...
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