...Reporting Paper ACC 541 November 21, 2011 Calie Lukenbill Dr. Sonja Wilson To: Sonja Wilson From: Calie Lukenbill Date: November 21, 2011 Subject: Pensions As you may know there are two types of pension plans that are most commonly used: a defined contribution plan and a defined benefit plan. “A defined contribution plan sets forth a certain amount that the employer is to contribute to the plan each period (Schroeder, Clark, & Cathey, "Pensions and Other Postretirement Benefits," 2011). “A defined benefit plan specifies the amount of pension benefits to be paid out to plan recipients in the future. Companies that use this plan must make sufficient contributions to the funding agency in order to meet benefit requirements when they come due” (Schroeder, Clark, & Cathey, "Pensions and Other Postretirement Benefits," 2011). The defined contribution plan makes no promises on what the ultimate benefits are to be paid. “The benefits received by the recipients are determined by the return earned on the invested pension funds during the investment period” (Schroeder, Clark, & Cathey, "Pensions and Other Postretirement Benefits," 2011). When you account for this plan the risk for future benefit is the employee and the employer’s only cash outflow is the annual contribution to the pension plan fund. “The pension expense is equal to the amount of promised annual contribution”(Schroeder, Clark, & Cathey, "Pensions and Other Postretirement Benefits," 2011). The financial...
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...The standard setting process The recent, high profile accounting scandals shook the foundations of the capital markets. Financial reporting furnishes investors and other stakeholders with reliable and relevant information. In the short term unethical financial reporting resulted in loss of billion dollars, but in the long term the impact was even more severe: loss of confidence in financial reporting as reliable source of information. The following reforms aimed to restore investor confidence in financial reporting and accounting profession. They reinforced the importance of ethics in financial reporting and provided recommendation on accounting standard setting process. The following paper provides a brief discussion on standard setting organizations and process and the authoritative sources of accounting. This study also covers the objectives of financial reporting and its role in today’s economy and concludes that ethics will remain cornerstone of the accounting profession. Table of Contents Abstract 2 The standard setting process 4 Standard setting process and authoritative sources of accounting information 5 Objectives of financial reporting 6 Ethics’ role in financial reporting 6 Conclusion 7 References 10 The standard setting process The dawn of the new century brought an economic downturn. The tragic events of 9/11 and the burst of the dot.com bubble accelerated the general decline. Investors kept corporate managements under constant pressure...
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...M E M O R A N D U M To: Michael Jones, CEO, XYZ Company From: Sonja Bauer, QRS Accounting Date: September 3rd, 2012 Re: Acquisition of ABC Company: Pension Plan and Segment Reporting The acquisition of ABC Company resulted in the acquisition of its two pension plans, to include a defined contribution plan, and a defined benefit plan. The transaction also resulted in XYZ Company gaining control of two segments that offer no real value to its current business, as they are redundant, and therefore will be eliminated. What follows is an overview of the reporting requirements for the pensions, and what must take place for the two segments to be disposed of. Under the defined contribution plan, ABC Company contributed 6% of their employees’ salary, per pay period, to a pension fund. The eventual retirement benefit is determined by the rate of return on the invested pension funds (Schroeder, 2011). In other words, ABC Company makes no guarantee of a specified amount that would be paid to an employee upon retirement. ABC Company’s only expense for the defined contribution plan is the cash that they contributed to the pension plan fund. Accordingly, the amount of the promised annual contribution would equal the periodic pension expense (Schroeder, 2011). XYZ Company will be required to disclose the plan on financial statements, as well as describe the employee groups covered and the basis for determining contributions, as well as any significant changes from one period to...
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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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...GUIDELINES...............................................................................7 REAR YARD FENCE GUIDELINES ......................................................................................9 PLAY EQUIPMENT GUIDELINES ......................................................................................11 SATELLITE RECEIVER (DISH) GUIDELINES ..................................................................13 GENERAL IMPROVEMENTS, LANDSCAPE & MAINTENANCE GUIDELINES..........14 LIST OF RECOMMENDED PLANT SPECIES ....................................................................19 EXHIBIT A REQUEST FORM 2 CHRISTENBURY MASTER ASSOCIATION, INC. ARCHITECTURAL CONTROL COMMITTEE INTRODUCTION The Architectural Control Committee (ACC) is providing the attached Architectural Design Guidelines (“Guidelines”) in accordance with that Declaration of Covenants, Easements, Conditions and Restrictions (“Declaration”), for purposes of establishing and maintaining exterior design elements throughout Christenbury. This document should be filed with the homeowners’ copy of the Declaration received at closing. It is the responsibility of each homeowner to pass along the Declaration and Guidelines to any future buyer of their home at Christenbury. It is important to note that the Guidelines are applicable to most all future building exterior and property...
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...Jose Cando ENGL-2327 April 26, 2014 Balcones Fiction and Poetry Winners Reading Event: Natalie Diaz’s Reading of When My Brother Was an Aztec Outside the ACC Theater on April 9th, the public was greeted by tables of refreshment including fruits cheeses and crackers which was a nice surprise. Although, I had expected a packed theater, only about forty people were waiting inside. The event started at 6:30 pm when Charlotte Gullick, the chair of the creative a writing department took the stage. After promoting some of creative writing classes at ACC, she described the significance of the Balcones prizes. A teacher from the English department took the stage next to talk a little more about the Balcones prize. He pointed out that Natalie Diaz was the sixteenth winner of this prize. He described Ms. Diaz as a woman with her foot “in three different worlds.” Her childhood was spent on the Mojave reservation in the California Desert. She attended college in Virginia on a basketball scholarship, and from there she played professional basketball in Europe and Asia. After injuring her knee, she left basketball to study poetry in graduate school. Therefore, he claimed, she has a foot in the worlds of the reservation, basketball and poetry. With that, he welcomed Nathalie to the stage. Nathalie jumped into reading her poem, “When My Brother Was an Aztec.” I was shocked to hear the bitterness and resentment in her voice as she describe her brother as a nasty and careless force which...
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...The International Accounting Standards Committee was formed in 1973. This committee was the first international standard-setting body. In early 2001, this Committee was reorganized and became the the International Accounting Standards Board (IASB) to independently develop and establish a single set of accounting procedures for international business. Since the reorganization of the IASB, the use of these international financial reporting standards (IFRSs) have been required or permitted in over 100 countries, including the European Union ("What Have IASB And FASB Convergence Efforts Achieved?", 2013). The IASB aims to make the entire world follow guidelines for financial reporting to make use and comparability of financial reports more consistent across all geographical areas. The Financial Accounting Standards Board (FASB) is the independent body that is responsible for the creation of GAAP. The board is the standard setting body in charge of standards for nongovernmental companies operating in the United States. Since 2002, the IASB and FASB have been working together to improve and converge U.S. GAAP and IFRS. The United States is not the only country working toward convergence, as of 2009, Japan and China were both working toward convergence of IFRS as well as their accounting standards. In February 2010 the Securities Exchange Commission (SEC) issued statements of support of the convergence in IFRS and U.S. GAAP. The FASB intends to analyze each of the differences within...
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...Case 8-4 discusses uncollectible accounts. It talks about the Anth Company. Read the case and answer the following. a. What are the deficiencies of the direct write-off method? b. What are the two basic allowance methods used to estimate bad debts? A. Under direct write-off method, a company does not anticipate bad debt expense. It waits until an account is written off as uncollectible before recording the bad debt. Because of this, accounts receivable will be reported on the balance sheet at their full amounts, which shows the notion that all of the accounts receivable will turn into cash. This causes a company’s assets and profits to be overstated. B. Estimating Bad Debts on Sales – This consists of estimating bad debts as a percentage of sales, consistent with the matching concept in the bad debt expense recorded in the same time period as the associated revenue (Net credit sales X Bad debt percentage = Bad debt expense). Estimating Bad Debts Based on Receivables – This estimate is based on receivables that could use an aging or a single calculation depending on total receivables (Accounts receivables balance X Estimated percent of uncollectible = Desired ending balance of Allowance for Doubtful Accounts). Reference: Accounting Coach (2014) Why isn’t the direct write off method of uncollectible accounts receivable the preferred method? Retrieved from http://www.accountingcoach.com/blog/direct-write-off-accounts-receivables What is the current practice...
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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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...As a newly hired Staff I, you are responsible for analyzing the work papers for one of the clients of your organization. Your client is not clear about why you are asking for information on the following topics: * Adjusting lower cost of market inventory on valuation * Capitalizing interest on building construction * Recording gain or loss on asset disposal * Adjusting goodwill for impairment Recording Gain or Loss on disposal of Assets Any asset, such as land, a factory or equipment purchased by Evenbetternow, LLC for business purposes is called a capital asset. When a company disposes of capital assets, it is required by the Financial Accounting Standards Board (FASB) that the financial records account for any gain or loss incurred during the disposal. As capital asset items are used, they will lose value and depreciate. Evenbetternow, LLC recently disposed of two assets. In order to be in compliance with the Financial Accounting Standards Board Statement No. 121 (Accounting for the Impairment or Disposal of Long-Lived Assets) we need assess the disposal of these two items and account for the gain and or loss received. We will first need to determine the original value of the asset and minus the accumulated depreciation to date to discover the book value for each item. By comparing the book value to the amount received for each item, we can determine if Evenbetternow, LLC incurred a gain or loss on each asset (Luecke, 2002). Recording a gain or loss on the...
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...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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... ACC 307,Course,Complete,All,Entire,final,Week,1,2,3,4,5,6, ACC 307,dq,discussion,question,assignment,midterm, ,exam,quiz,Strayer,Latest,New,Project,Keller,Homework,Phoenix,Ashford, ACC 344,Course,Complete,All,Entire,final,Week,1,2,3,4,5,6, ACC 344,dq,discussion,question,assignment,midterm, ,exam,quiz,Strayer,Latest,New,Project,Keller,Homework,Phoenix,Ashford, ACC 346,Course,Complete,All,Entire,final,Week,1,2,3,4,5,6, ACC 346,dq,discussion,question,assignment,midterm, ,exam,quiz,Strayer,Latest,New,Project,Keller,Homework,Phoenix,Ashford, ACC 403,Course,Complete,All,Entire,final,Week,1,2,3,4,5,6, ACC 403,dq,discussion,question,assignment,midterm, ,exam,quiz,Strayer,Latest,New,Project,Keller,Homework,Phoenix,Ashford, ACC 504,Course,Complete,All,Entire,final,Week,1,2,3,4,5,6, ACC 504,dq,discussion,question,assignment,midterm, ,exam,quiz,Strayer,Latest,New,Project,Keller,Homework,Phoenix,Ashford, ACC 560,Course,Complete,All,Entire,final,Week,1,2,3,4,5,6, ACC 560,dq,discussion,question,assignment,midterm, ,exam,quiz,Strayer,Latest,New,Project,Keller,Homework,Phoenix,Ashford, ACC 561,Course,Complete,All,Entire,final,Week,1,2,3,4,5,6, ACC 561,dq,discussion,question,assignment,midterm, ,exam,quiz,Strayer,Latest,New,Project,Keller,Homework,Phoenix,Ashford, ACC 565,Course,Complete,All,Entire,final,Week,1,2,3,4,5,6, ACC 565,dq,discussion,question,assignment,midterm, ,exam,quiz,Strayer,Latest,New,Project,Keller,Homework,Phoenix,Ashford, ACC 571...
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...Accounting Standards Board Accounting Standards Boards Paper Elena Thomas ACC/541 January 10, 2011 Accounting Standards Boards Paper In the 1930’s, the financial community was realizing a need for a uniform accounting standard especially for its publicly traded companies. The SEC was given the authority by the Securities Act of 1933 to create accounting standards and determine the accounting disclosures (M.E. Sharpe, 2006). The SEC deferred to the accounting profession the task of creating auditing standards. The New York Stock exchange and the now American Institute of Certified Public Accountants (AICPA) together published guidelines for audits. In 1971, the AICPA created a committee which was chaired by Francis M. Wheat and comprised of seven members to make recommendations on how to better the accounting principles ("US Financial Accounting Standards Board FASB; IASB and US FASB Complete First Stage of Conceptual Framework," 2010). This committee recommended that a full time board be developed to create set accounting standards. This led to the development of the Financial Accounting Standards Board (FASB) in 1973 within the Financial Accounting Foundation ("US Financial Accounting Standards Board FASB; IASB and US FASB Complete First Stage of Conceptual Framework," 2010). The function of the FASB is to establish and publish the accounting principles. The FASB issues three major types of pronouncements: 1) Standards, Interpretations, and...
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...Accounting Standards Boards Paper Lymarie Robles University of Phoenix ACC/541 27 de marzo de 2012 Prof. Brenda Figueroa Sotomayor “Accounting Standards Boards” La contabilidad es parte esencial de cualquier negocio. Es la herramienta que se utiliza para definir la salud financiera de cualquier institución ya sea una empresa multinacional o simplemente su propio hogar. Es la guía que establece si la dirección de una empresa y sus estrategias van encaminadas en la dirección correcta a través de informes y estados financieros que sirven como indicadores. Esto resulta de extrema importancia para la economía en general ya que la ejecución de las empresas tiene un impacto directo sobre la misma. Se puede dar el caso que la ejecución de una o varias empresas puedan impactar la economía de un país completo. Un ejemplo lo vimos con la industria automotriz en los Estados Unidos. La mala ejecución y la poca acción ante indicadores financieros poco alentadores llevó al borde del fracaso a una industria completa que pudo haber tenido un impacto devastador para el país. Al punto que el mismo gobierno tuvo que intervenir para evitar que sucediera. Algo que no se ve frecuentemente. En estos casos son los informes financieros que levantan bandera sobre la situación de una empresa. Por la relevancia que tienen, es importante que los informes financieros estén bien hechos. Esto crea la necesidad de regirse por estrictos controles y guías...
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...Accounting Standards Boards Sharon Little ACC 541 Marina Layvand May 27, 2013 The FASB, Financial Accounting Standards Board was created in 1973 when the APB, Accounting Principles Board, was abolished. The FASB focuses on accounting standards in the United States. The board established the Generally Accepted Accounting Principles, or GAAP, emplyed by financial accountants in the United States. It also establishes rules and standards for individual certified public accountants practicing in the United States. The IASB, International Accounting Standards Board, focuses on global standards of accounting. It was established in 2001. The IASB has sixteen members on board, and each one has a vote. Members are selected based on their professional competence and practical experience. The IASB deals with the development of International Financial Reporting Standards and promotes the application of the standards. The IASB’s standards are used as national requirements, as the basis for some or all national requirements, as an international benchmark for those countries that develop their own requirements, by regulatory authorieties for domestic and foreign companies, and by companies themselves. (Schroeder, Clark, & Cathey, 2011, Ch. 3, p. 90-91). The FASB and the IASB work together to bring together a variety of accounting and financial reporting requirements that have been developed...
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