...IASB and FASB Relationships IASB and FASB Relationships University of Phoenix ACC/541 University of Phoenix ACC/541 The International Accounting Standards Board (IASB) and the Financial Accounting Standard Board (FASB) have made huge changes in order to understand the relationship between the two. The IASB was created to provide observance in how the financial statements were published and their global acceptance and to work towards improvements of accounting standards. In this paper, brief analysis of the IASB and FASB history and how the MSA program prepares students for the career path in becoming a qualified accountant. The mission to improve and establish accounting and financial reporting for public and private sectors is entitled to the FASB. Both the IASB and FASB have the same tasks of improving common understanding of financial reporting, and regulating rules and laws with their own requirements on accounting. The FASB is a nonprofit organization that centers on GAAP and the IASB deals with the international financial standards board. The Master of Accountancy (MSA) program is designed to enhance the knowledge of people who already possess an undergraduate degree and they wish to continue their education. These programs are used to allow interactions with other individuals in learning solutions to problems in accounting. The MSA programs are allotted to provide students with historical perspectives of different aspects within accounting. Since...
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...Response to Client Request 1 Tiffaney Brown ACC/541 November 30, 2015 Kenneth Burton Memorandum To: | Jane Phoenix, supervisor | From: | Tiffaney Brown | Date: | November 30, 2015 | Re: | FASB research results | | | As you requested, I have completed the research on the lease types and lease structure issues on the Financial Accounting Standards Board (FASB) website for the Lone Star Trucking Company. I did specific research on direct financing, sales type, and operating leases. After going over the information I have, I will provide you my recommendation for handling the client’s situation According to the FASB, both the client and the client’s potential new customer need to determine if their arrangement will meet one or more of these four criteria: 1. Transfer of ownership – the potential lease will transfer ownership of the property to the lessee at the end of the designated lease term (fasb.org). The client will have met this criterion if the lease agreement provides for the transfer of title at or shortly after the end of the lease term. Usually, there is a nominal fee that is required by statutory regulation to transfer title. 2. Bargain purchase option – the potential lease will contain a bargain purchase option, where the lessee will have the option to purchase the asset for a percentage less than the fair market value (fasb.org). 3. Lease term - the potential lease term is equal to 75 percent or more of the estimated economic life of...
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...Explains how the impairment of the patent would be reflected on the financial statements in the event of losing a lawsuit - page 377 Response to Client Request II Week 4 Team A Names ACC/541 Date: MEMORANDUM TO: FROM: DATE: SUBJECT: Financial Implications of Pending Litigation ____________________________________________________________ __________________ Financial Implications The pending litigation has several implications for accurate financial reporting as established in the Generally Accepted Accounting Principles (GAAP). The immediate impact is the requirement for contingencies in the financial statements to report the potential that these statements will be restated to account for the outcome of the lawsuit. Pending the outcome of the lawsuit, the company may be required to reorganize their debts under a chapter 11 bankruptcy. The lawsuit also challenges the validity of a patent, which is a revenue generating asset of the client’s. Pending the outcome of the lawsuit, the patent will need to be tested for impairment. Reporting Requirements for Lawsuit Contingencies The implications for the lawsuit on the company financials depend upon the anticipated outcome of the lawsuit. If the anticipated outcome of the lawsuit is likely to result in a loss to the company, and that loss can be reasonably estimated, the loss should be accrued as estimated into the company financials, and noted as such, as detailed in the FASB Codification section...
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...Response to Client Request I Erica R Ford ACC/541 October 7, 2013 Professor Michael Meyer Response to Client Request I Memorandum October 7, 2013 To: Raelynn Floyd, Supervisor of Standards From: Erica Ford, CPA Re: FASB Lease Structures and types As per your request I have diligently conducted research to advise our clients of the best leasing option in regards to their current business proposition. Recently, I was informed last week of the new venture and the need to acquire 20 additional trailers to satisfy a job. The deal has a potential to be lucrative, therefore we must consider what leasing structure will work best for the client. The best sources to obtain information on leasing requirements and reporting is the FASB, Financial Accounting Standards Board. There are three components of leasing that I will discuss, directing financing, sales type and operating lease. Furthermore, I will make a recommendation based on the findings and current market conditions. Direct Financing Under the direct financing method, the lessor is essentially viewed as the lending institution for revenue recognition purposes (Schroder, Clark & Cathey). Direct financing is also considered a capital lease if it meets the criterion. To be classified as a direct financing lease the lease must meet one of the four following criteria set forth by SFAS No. 13: (1) the lease transfers ownership of the property to the lessee by the end of the lease term; (2) the...
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...Pension Reporting and Segment Elimination Requirements Deborah Hunter, Stephanie Murray, James Newsome, Sharon Stubbs, and Star Troutman ACC 541 January 14, 2013 Shauki Smith MEMORANDUM TO: CEO FROM: Team A DATE: January 14, 2013 SUBJECT: Pension Reporting and Segment Elimination Requirements CC: Shauki Smith This memo serves to provide an explanation of required reporting for define contribution, defined benefit, and other postretirement plans. In addition to pension reporting requirements, an explanation of the requirements for eliminating segments is also provided. Defined Contribution Plan In a defined contribution plan, companies will define how much they plan to contribute each period to the employee’s retirement benefits. The company defines the period. The company will contribute the amount to a funding agency such as a pension fund. The company is not liable for the amount of benefits the employee receives upon retirement. Therefore, the company must only contribute the amount that was set forth each period. Defined benefit plans, on the other hand, are more complex. Instead of contributing each period to the employees retirement account, the company agrees to provide a certain benefit amount each period upon retirement. Therefore, the company must ensure that the funding for such plans are adequate to cover the employee’s retirement benefit plan. Non-GAAP Funding Methods A company that offers defined benefit plans to their employees...
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...Accounting Standards Board Paper Cassandra Fatchett ACC/541 Monday, March 23, 2015 Christine Errico Accounting Standards Board Paper International convergence of accounting standards is not exactly a new idea. In the 1950’s, in response to economic integration post World War II, initial efforts focused on reducing the differences among accounting principles used in major capital markets around the world. By the 1990's, 40 years later, the idea of harmonization had been replaced by the concept of convergence. Rather than all accounting principles complement each other, it was decided that a new set of internationally recognized accounting standards would be used in all major capital markets. Convergence is described as making global accounting standards as similar as possible. All users of financial information should benefit from the increased comparability of the convergence of financial accounting standards. The FASB has always been on a mission to improve the financial accounting standards in the U.S. for the benefit of investors, lenders, creditors, and all other users of financial statements. They believe that pursuing convergence is compliant with that mission. In 2008, both the FASB and the IASB issued a memorandum of understanding on the convergence of accounting standards called the The Norwalk Agreement. It outlined the agreement made by both entities to address accounting practices that were considered to be deficient in the U.S., GAAP, as well as practices...
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...Request to Client Request II Team A ACC/541 November 25, 2013 Michael Meyer MEMORANDUM TO: Client FROM: Consulting Firm DATE: November 25, 2013 SUBJECT: Pending Lawsuit Effects FASB stipulations affect financial statements, mortgages, and patents when a business entity loses a case. This memo describes Codification 450-10-05-4 of the Financial Accounting Standards Board (FASB) that details the proper reporting of gain and loss contingencies, as well as standards for financial statements. This memo will provide relevant information concerning pending lawsuit effects for the use of clients and affected stakeholders. Reporting Requirements For Contingencies: Paragraph 450-20-25-1 sets forth the general rule on loss contingencies. The rule applies in the event a loss contingency is present, and the probability that an incident or event would occur to validate the loss, incurrence of liability, or damage of an asset that can vary from probable to reasonably possible (FASB, 1975). The term loss or losses is used as a means to cover charges against income or expenses. An estimated loss from a loss contingency can be charged to income based on FASB paragraph 450-20-25-2 when the two conditions given below are satisfied: I. There is available information before issuance of the financial statements that indicates it is possible an asset had been damaged or a liability had been incurred at the date of the financial statements...
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...Auditing a Publicly Traded Company Darren Bruneck, Andrew Green, Shalatikka Smith ACC/541 October 20, 2014 Christine Errico MEMORANDUM TO: Christine Errico, Manager FROM: Darren Bruneck, Andrew Green, Shalatikka Smith DATE: October 20, 2014 SUBJECT: Auditing a Publicly Traded Company The goal of any publicly traded company is to make a profit. Many factors come contribute to the equation to achieve this goal. The most important factor is compliance with the Accounting governing bodies, such as GAAP (Generally Accepted Accounting Principles). As an accounting firm it is essential to review your financial statements for consistency regarding the accounting treatment of share-based payment and accounting consolidation theory as it relates to special purpose entities and consolidations. Non Compensatory stock options are options that are not meant to compensate employees, but rather to raise capital or increase employee ownership in the company. If the option is non-compensatory then the company would treat them like any other stock sale. These types of options do not generate an expense for the company, so in this respect there is no affect to net income. Non-compensatory options must meet certain qualifications such as time in service, being a full time employee, and the same option must be available to all eligible employees. These types of options also have to be exercised in a specific period. Compensatory stock options are considered part...
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...Caltron Electronics, Inc. Reporting ACC 541 – Accounting Theory and Research April 22, 2013 MEMORANDUM To: Scott Calvin, Chief Financial Officer From: Chief Financial Analyst Subject: Peale, Gower & Quill Audit Report Date: April 22, 2012 Issue Results of the audit report prepared by Peale, Gower & Quill raised concern’s regarding four transactions and revenue recognition. Transactions in question involve Unix-based, high power minicomputers causing a total market capitalization in excess of $450 million. Currently, Caltron Computers, Inc. recognizes revenue when minicomputers are shipped. Orders involving bill-and-hold are recognized by the entire amount recorded as revenue. Current revenue recognition and bill-and-hold processes conflict with GAAP requirements, which indicate a need for change. Presented in this memo are the four transactions in question, explanations for concern, and detailed recommendations. Transactions in question Four transactions in question involve Elegant Housing, Inc., Alation Electronics, BTO Computer Leasing, and Harvey Industries. Elegant Housing, Inc. purchased two minicomputer systems totaling $400,000. A six-month trial period was allotted to ensure customer satisfaction with an option to return the two systems if unsatisfied. Elegant Housing, In. paid $20,000 at the time of shipment, November 15, 2011. Alation Electronics purchased one minicomputer system under a bill-and-hold arrangement. $250,000 of revenue...
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...Accounting Standards Board ACC/541 Accounting Standards Board Currently the International Accounting Standards Board (IASB) and the Financial Accounting Standards Board (FASB) are working on a joint venture known as the Norwalk Agreement that will most likely affect current and future individuals within the accounting field. Discussed within is the relationship between the IASB and FASB, the IASB equivalents of the original FASB pronouncements, and how a Master’s of Science in Accountancy program can prepare a student for a professional life within the field that will likely be affected by both boards. The History and Relationship of the IASB and FASB In 1973 both the FASB and International Accounting Standards Committee (IASC) were formed. FASB was created with the mission to establish and improve standards of financial accounting and reporting that foster financial reporting by nongovernmental entities providing decision-useful information to investors and other users of financial reports (Financial Accounting Standards Board, n.d.). The IASC began as the first body to set international standards and in 2001 the IASC became independent and further known as the IASB. Since 2001 the IASB has issued multiple International Financial Reporting Standards (IFRSs) that are currently permitted or required for more than 100 countries. In 2002 FASB and IASB began working with each other to improve and converge U.S. generally accepted accounting principles (GAAP) and IFRS (Financial...
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...W Accounting Standards Boards Miranda Arnold ACC/541 Cecil Lucy March 17, 2014 Accounting Standards Boards The International Accounting Standards Board (IASB) and the Financial Accounting Standards Board (FASB) first converged in 2002 following the Norwalk Agreement (Whittington, 2007). The convergence was inspired by the need of the boards to produce a solid infrastructure by uniting the two frameworks represented by each board in a bid to harmonize accounting practices worldwide (Whittington, 2007). Additionally, the convergence was also inspired by the need to attain improvement in accounting standards by achieving completeness, and improving coherence (Whittington, 2007). In the IASB framework for example, Bullen, and Crook (2005) note that there were specific areas of difficulty that benefited from the convergence. Some of these areas include the explicit meaning of what liability is, and the distinction between equity and liability. Joining Forces During the FASB/IASB convergence announcement in 2002, the two boards stated that they would work together to develop accounting standards for both cross-border and domestic financial reporting. They also stated that they would work toward making their respective standards compatible, and that future work programs would be done with the need to retain compatibility (Schroeder, Clark & Cathey, 2011). Another development in the FASB/IASB relationship took place...
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...Response to Client Request ACC 541 24, December 2012 Memorandum To: Supervisor From: Sarah Dixon Re: Leases and lease structure issues It has come to my attention of our client’s concern regarding the uncertain relationship with a customer who may potentially offer the company a significant growth benefit. The following memo will address the client’s concern and recommend a solution to the problem, giving a summary of several different types of leases. One of the most important issues here lies with understanding that the client’s main concern is trying to make as much profit as he possibly can for his regional trucking company. The opportunity offered to this client could potentially be very profitable if handled in the correct manner. The client has the option to either purchase twenty more trailers to accommodate this customer or use an alternative means of acquiring these assets known as leasing (Schroeder, 2011). I will explain leases and lease structure issues of several different types of leases including direct financing leases, sales type leases, and operating leases which could greatly benefit this client. A lease is a contractual agreement between the lessee, or the user, to pay the lessor, or the owner, for the use of an asset or services. Leases are classified under the Financial Accounting Standards Board (FASB) under the number 840. The lessee is the receiver of the services or assets under the lease agreement, and the lessor is the owner...
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...Accounting Standards Boards Name ACC/541 Date Instructor Name Accounting Standards Boards The International Accounting Standards Board (IASB) and the Financial Accounting Standards Board (FASB) first converged in 2002 following the Norwalk Agreement (Whittington, 2007). The convergence was inspired by the need of the boards to produce a solid infrastructure by uniting the two frameworks represented by each board in a bid to harmonize accounting practices worldwide (Whittington, 2007). Additionally, the convergence was also inspired by the need to attain improvement in accounting standards by achieving completeness, and improving coherence (Whittington, 2007). In the IASB framework for example, Bullen, and Crook (2005) note that there were specific areas of difficulty that benefited from the convergence. Some of these areas include the explicit meaning of what liability is, and the distinction between equity and liability. Joining Forces During the FASB/IASB convergence announcement in 2002, the two boards stated that they would work together to develop accounting standards that would be used for both cross- border, and domestic financial reporting. They also stated that they would work toward making their respective standards compatible, and that future work programs would be done with the need to retain compatibility (Schroeder, Clark & Cathey, 2011). Another development in the FASB/IASB relationship took...
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...Relationship between the IASB and the FASB ACC 541 Relationship between the IASB and the FASB The United States plays an enormous influence on the accounting standards set forth throughout the world in the global economy. The United States follows the Financial Accounting Standards Board (FASB) which has created a large number of accounting standards that are interpreted and accepted by international companies and by the International Accounting Board (IASB). The IASB plays a similar role like the FASB for the rest of the global economy. The IASB is located in London, England and is an independent, privately funded accounting standard-setter. The IASB board consists of members from nine different countries with the IASB’s sole purpose to ‘achieve convergence in accounting standards throughout the world’ (Cellucci, 2011). The IASB and FASB have been collaborating since 2002. This collaboration was derived to create a convergence of the United States Generally Accepted Accounting Principles (GAAP). The convergence project started when the two organizations met during a joint meeting in Norwalk, Connecticut on September 18, 2002. The two board’s goal for the convergence project was for developing a high-quality compatible accounting standards that can be used for both domestic and cross-border financial reporting. They also promised to use their best efforts to make their existing financial reporting standards compatible as soon as practicable and to coordinate their...
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...41 st Annual General Meeting of TAN CHONG MOTOR HOLDINGS BERHAD will be held at Pacific Ballroom, Level 2, Seri Pacific Hotel Kuala Lumpur, Jalan Putra, 50350 Kuala Lumpur, Malaysia on Wednesday, 22 May 2013 at 3:00 p.m. N I S S A N E L G R A N D I N F I N I T I F X 3 7 R E N A U L T M E G A N E R S CONTENTS 02 03 05 09 10 14 17 25 27 28 31 Corporate Information Business Divisions Report of the Board of Directors 8 Years Financial Highlights Profile of Directors Corporate Social Responsibility Report Corporate Governance Statement Internal Control Statement Other Statements and Disclosures Audit Committee Report Daily Share Price & Volume Traded on Bursa Malaysia Securities Berhad 33 Financial Statements 133 Ten Largest Properties of the Group 134 Shareholders’ Statistics 137 Notice of Annual General Meeting Form of Proxy CORPORATE INFORMATION Directors Dato’ Tan Heng Chew Executive Deputy Chairman and Group Managing Director Dato’ Ng Mann Cheong Senior Independent Non-Executive Director Dato’ Haji Kamaruddin @ Abas bin Nordin Independent Non-Executive Director Seow Thiam Fatt Independent Non-Executive Director Siew Kah Toong Independent Non-Executive Director Dato’ Khor Swee Wah @ Koh Bee Leng Executive Director Ling Ou Long @ Ling Wuu Long Executive Director Ho Wai Ming Executive Director Audit Committee Company Secretaries Yap Bee Lee Chang Pie Hoon Registered Address 62-68 Jalan Ipoh 51200 Kuala Lumpur Telephone : (03) 4047 8888 Facsimile...
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