...Change in Accounting AC114/Accounting 1 Change in Accounting With everything, there is a time when changes are proposed to try to better a situation and make it more comprehensive for everyone. Saying this, there is a proposed change to the way the United States does accounting and financial preparations. Should we shift from U.S. GAAP to IFRS? I do not think that we should shift from U.S. GAAP to IFRS. I am attending Kaplan University at this moment to complete my Bachelor’s of Science in Accounting. Saying this, I do not want to have to go back to school to learn a new method of accounting and way of reporting financial statements. The second reason to not change to IFRS is that the United States has been using it’s own method for reporting financial statements for this long. Not to mention the fact that everyone is used to using this method. I do not think that it would be worth the time and money to get people trained on this either, especially if they are not interested in the new method. Saying this, if it’s not broke, don’t fix it. The differences of earnings between U.S. GAAP and IFRS have been studied. “We find that US GAAP and IFRS earnings perform equally well on value relevance, timelines and accruals quality” (Van der Meulen, Gaeremynck, & Willekens, 2006, p. 2). Although they perform equally in these categories, U.S. GAAP performs better in predictive ability (Van der Meulen, Gaeremynck, & Willekens, 2006). I...
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...Climate Change and its Effects on Accounting Practices William Conder Accounting 5233 November 26, 2013 Abstract in Climate change is a subject that invokes many different opinions and reactions from different people in different regions. Although there is a general consensus in the scientific and environmental advocate communities as to that the worldwide climate is changing, specifically warming, and that the activities of man are the primary cause, as for the degree of change and the possible effects, there is anything but a consensus. There is a fairly new concept that is taught in many businesses, colleges, and universities called the triple bottom line. This is referring to the three things that businesses should concern themselves with and strive to achieve excellence in if they wish to be sustainable; they are “profit, people, and the planet” (Elkington, 1995). The purpose of this research is to find out and explore some different ways that businesses today are utilizing good sustainability practices, and dive into some other areas like accounting for carbon emissions, and also seeing how accounting for predicted outcomes might work in the business environment. The environment affects us all and any sort of change, contingency, or preparation has to be accounted for, so this work is designed to find out how it is being done, and things that could be done to improve business. The triple bottom line The age old practice of businesses being concerned strictly with...
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...Changes in technology have led to new and improved digital information systems, and therefore changing the various aspects of the accounting profession. These changes include but are not limited to things like online banking, online bill pay, and plug-ins like the neat desk organizer. While some may not appear to directly affect the accounting profession, I will provide clear evidence that links them to the various changes in jobs like Forensic Accountant, IRS Criminal Investigation Special Agent, and Chief Financial Officer. First of all, online bill pay allows customers of companies such as Verizon to pay their bill with a credit or debit card without ever swiping their card. You may ask how this is even remotely related, but companies store the information you put in on the payment page in an electronic file for each customer and the technology used to pay the bill also records the payment on the company’s end. This cuts out a lot of the paper trail and allows companies to store payment records with your personal information, and their financial records in one place without having to input the information multiple times in multiple locations. Having the information put in by the customer decreases the chances of transposed numbers and misspelled names when the information is input in the next system, and having all the information in the same database allows information sharing among the different systems. For the CFO, or Chief Financial Officer, having everything at the...
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...The recent release of the Statement of Accounting Standards No. 112 regulation made it necessary to communicate the standard and its impacts to the accountants within the firm. It was also imperative to make our key clients aware of the regulation and how it might affect their business. Finally, to ensure seamless compliance with the regulation, we are educating our clients’ bookkeepers of the regulation and its ramifications on their duties. When accounting standards are updated, the changes often must be communicated to several different audiences, as demonstrated by this change. Communicating this information to different audiences presents several challenges that need to be carefully navigated. One challenge that exists when communicating to different audiences is that they have a need of different levels of information. In the example here, our client’s senior leaders need to possess a high level understanding of the change so that they can properly manage the new expectations that their staff will need to follow. The bookkeepers will need to understand the implications to their job functions. The firm’s accountants, however, will need to understand the full breadth of the regulation to ensure compliance to the new standard. A second challenge is the need to understand the knowledge base of audiences that are being addressed. Not every audience will possess the same understanding of accounting. As a result, the materials delivered to different groups must be tailored...
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...Accounting for Financial Decision Making Discuss the changes that occurred in financial accounting over the last 2 years. Table of Contents ______ 1 Basics of financial accounting 3 2 Changes in financial accounting over the last two years 4 2.1 IAS 1 Presentation of Items of Other Comprehensive Income (OCI) — Amendments to IAS 1………. … 5 2.2 IAS 12 Income Taxes (Amendment) — Deferred Taxes: Recovery of Underlying Assets.. 6 2.3 IAS 24 Related Party Disclosures (Revised).. 7 2.4 Annual improvements adopted by the IASB 8 2.5 IAS 27 Consolidated and Separate Financial Statements . 8 4 References 10 Basics of financial accounting Financial accounting can be defined as: The process of preparing financial statements for a business. The three key financial statements are: 1. Income statement. 2. Balance sheet. 3. Statement of cash flows. They serve two main purposes: a. To report on the current financial position of the company. b. To show how well a company performs over a period of time. Financial statements are used by shareholders. These are investors, creditors and other interested parties who rely on such information to find out whether a business is making or losing money, and they depend on financial accountants to ensure that these statements are materially correct and understandable. Financial accounting is a specialised branch of accounting that keeps tract of a company’s financial transactions. Using standardises...
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...ACC 700 How Technology Will Change the Accounting Profession Charles Duell, the director of the U.S Patent Office at the beginning of the twentieth century, prophesied that "everything that can be invented has been invented." Looking back, one can only laugh at the irony of this statement and the sheer amount that has actually changed since then. However, amidst the laughter, a question is raised: is it possible that today’s businesses believe what Duells said, that there is nothing more to come? Today, companies have access to some of the most groundbreaking technology, but are they truly taking advantage of it? One field that has changed dramatically over the past few years is the accounting profession, especially Certified Public Accountants (CPAs). Are CPAs staying on top of the latest technology that can greatly assist them in doing their job? For a better understanding of how technology directly affects the CPA profession one can simply look at the changes that have occurred over the past few decades, what a current office should be using, along with checking out the technological advances and how they will affect the career of CPAs in the next ten to twenty years. Not only is the accounting world changing, but the courses that an individual must study on the road to becoming a CPA, are also rapidly changing. The objective is to better prepare new graduates with a better understanding of the technology that will soon be such an integrated part of their lives. Courses...
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...The effect of voluntary changes in accounting procedures on earning is also used to test the implications of the theory. Reported changes in accounting procedures are available from two sources: the sample of depreciation switches used by Holthausen and changes reported by accounting trends and techniques. Accounting changes are collected from these sources for the sample companies. Procedure changes are decomposed according to the type of change. This table presents for the full sample 342 changes. There were 242 changes disclosed in the footnotes about changes on effect on earning , but the other 100 cases described the effect of the change as immaterial or not disclosed. These are coded to indicate whether the effect is positive or negative. We had 2 tests to certify the theory, the first one is contingency tests. The contingency tests are replicated using the effect of changes in accounting procedures on earnings available for bonuses as a proxy for discretionary accounting decisions. If the effect of the accounting change on this variable is positive, the change is classified as income-increasing. According to analysis, the results don't support the theory. However, there are several potential explanations of this findings: 1. It is more costly for managers to transfer earnings between periods by changing accounting procedures than by changing accruals, and 2. Changes in accounting procedures affect earnings and the bonus plan lower bound in the current and future years...
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...INTEROFFICE MEMORANDUM TO: ALL ACCOUNTING STAFF FROM: SONIA VENTO – CHIEF FINANCIAL OFFICER MARK JONES - ACCOUNTING MANAGER SUBJECT: TELECOMMUTING POLICY CHANGE AND CHANGE IN MANAGEMENT DATE: DECEMBER 20, 2015 CC: HUMAN RESOURCES Recently there have been some major changes in the current management structure and also a change in company telecommuting policies. Changes can sometimes be daunting and make us feel uneasy. Please know that management has taking great care to insure that the recent changes will affect its’ employees in a positive manner. We see some great things coming the next year and want to gear up to make sure we are better equipped to handle them with ease. As of January 1st, 2016 I will no longer be holding the position of accounting manager as I have been promoted to Chief Financial Officer. This is an exciting time for me. My hope is that all of you realize that your hard work has contributed to my success and for that I am eternally grateful. You are an amazing team and I have no doubt that my replacement will also benefit from the solid team environment we have created. I would like to remind you all that I am but an open door or phone call away to assist you in any way possible. I am happy to have worked so closely with you all and look forward to continuing to support each other in the future. Please help me in welcoming your new manager Mr. Mark Jones. Mark comes to us with a strong background in accounting working for a certified public...
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...Accounting Memo Summary BCOM/230 Accounting Memo Summary The time of an Executive is extremely valuable, thus the information you’re going to present must be equally as valuable. The information must be presented to them in a manner that is easy to understand and comprehend. This will be what they use to base they their decision on, or at least explore the possible benefits further. This summary should be started off with the same change that has greatly benefited a competitor recently. (i.e. the news about $9M in tax refunds for Macy’s) This would be enough to spark this person’s interest for sure. Then, data and figures should be provided regarding how this change would directly affect our company, not just “because someone else did it.” Be sure to list the advantages and disadvantages, to show that this has been looked at in an objective manner. Is the overall and ongoing benefit worth the cost of changing the way we account for inventory on our P&L’s? (i.e. IT work, reporting changes, legal fees for case vs. U.S., etc.) Making a change like this will have an impact on more than one department. Information like this would be most easily communicated with the use of Powerpoint slides and graphs for quick and easy analysis. This isn’t just an interoffice memo and shouldn’t have that look. It should be presented in a more formal manner. The information should be concise. If it’s too wordy, the actual point of the intended message may not get across, especially...
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...MODULE 1 STUDENT INTRODUCTION HOMEWORK Directions: • Open up the word document on your computer and complete the assignment. You need to distinguish your answers from my questions. • If you are a Office 2007 user you will need to select “REVIEW”/“TRACK CHANGES”/“TRACKING OPTIONS”. • In the “MARK UP BOX” Select “INSERTIONS”. • Change to “COLOR ONLY”. Move across and select a color. Select “OK” at the bottom of the page. • If the color does not change go back and select tract changes in the “TRACK CHANGES” box. • When you are finished and use spell check (F7) it may change the color of this page. It can be changed back by selecting “VIEW” at the Tool Bar and selecting “WEB LAYOUT”. • If you have difficulty, select the ‘HELP” button and type in “TRACK CHANGES WHILE YOU EDIT”. 50 POINTS POSSIBLE 1. Name My name is Lien Bui. 2. Why are you taking this class? I am taking this class because my AA degree requires it. 3. What was the most important reason for you to take an online class? I don’t have enough time to attend campus class, so I need to study at home. 4. How long have you attended college? Approximate number of units and/or semesters. I have attended college for 2 years. I have taken about 36 units. 5. Major or Career goal. My major is Medical Assistant. 6. How did you find out about...
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...Re: SAS 112- Statement of Accounting Standards In May of 2006, the AICPA Auditing Stands Board published the SAS-112 in previous years there where changes made to the auditing standards that had an effect on the auditing procedures performed on financial statements. The new standards of changes are described in SAS-112. This memo will clarify the requirements of the new standards and how it will affect your business. The terms below are defined in SAS-112 and explain how they affect the auditing standards: * A control deficiency exists when the design or procedure of a control does not allow management or employees, in the normal course of performing their assigned functions, to prevent or detect misstatements on a timely basis. * A deficiency in design exists when a control necessary to meet the control objective is missing, or the control is not properly designed so that even if it operates as designed, the control objective is not always met. * A deficiency in operation exists when a properly designed control does not operate as designed or the person performing the control does not possess the necessary authority or qualifications to perform the control effectively. * A significant deficiency is a control shortage or a combination of control shortages that adversely affects the entity’s ability to initiate, authorize, record, process or report financial data reliably in accordance with generally accepted accounting principles such that there...
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...Factors why BSBA Management Accounting/BS Accountancy shift to Financial Management Course? If you have decided to change course on the basis that '"you aren't doing well academically"' in your current course you probably ought to reconsider your decision, be honest with yourself, how much of the problem will be solved by changing course, how much of the problem is due to your mismanagement of your studies. If you are genuinely having problems with the course don't jump straight into a course switch, speak to your tutor about your problems and there may be a means to sort them out without such drastic (and potentially not very effective) measures. It is also possible that if your achievement level is low that you may not be allowed onto the new course. If you have decided to change because '"you don’t enjoy your current course"' then you should be absolutely certain that you will enjoy the course you are moving to. You should also be aware that changing course has significant negative consequences, you have to be certain that the change is worth it. If you have decided to change course because you feel that it would be better for career reasons you need to do your research, is it actually a better career move? Remember that changing course normally (except between certain very similar courses or during the first couple of weeks of the course) means that you will be at university for more time, amounting more debt and putting off getting your dream job. Even if a different course...
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...profit or Tom O’Reilly may cut costs in the marketing communications department. Eric starts off great. There are a few customers that are angry, like Andrea Torres, who called to ask why she received a bill for $75,000? And another complaint came from Amanda Black, whose client is Walston Scientific, a competitor of Pandemix. Pandemix received help from Eric on some marketing materials. Walston Scientific wasn’t too pleased. However, Eric is starting to make money, so Tom is pleased and feels like he is mentoring Eric. Everyone was angry about Eric’s approach except Tom. No one could understand why Tom couldn’t see that this idea just wasn’t working. A meeting came up and that’s when Tom finally saw some things he didn’t like. The accounting department gave Tom some numbers and it showed that Eric had undercharged a customer. Numerous complaints had reached Tom by that time so this was the last straw. He decided to have a meeting with Eric to discuss some of these issues. In the meeting Tom brought up some of his reservations. Eric seemed to brush over them and tell him what a great job he was doing. He didn’t understand why Tom wasn’t pleased with him. Eric was making money and exceeding what he thought was required of him. The meeting ended and Tom had to make a decision. If I were Eric I would concentrate on my internal customers and colleagues. Customers are very important but if employees can’t even trust their coworkers then divisions will start and people...
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...major reason for payroll expansion at Miami valley system? * Expansion of facility (Miami valley south) * Reduction of overtime * Changes in taxes * Other (please specify)________________ * If there is changes in system that can help you complete this task faster, which functions of payroll need to be eliminated? * Does Miami Valley have multiple ways to manage, administer, and report vacation time? If so, which one is faster? * Do you think Miami Valley need to change the procedure in which currently track employee deductions? If so, which steps do you propose? * How do you think current issue related to calculation of overtime be fixed? Please explain any changes in reporting process? * How is information regarding benefits disseminated to employees? ____________________________________________________________ * Would you want this information as part of new payroll editor? * Yes No * How does Miami Valley currently gather employee PTO accruals? * Excel system * Paper-based * Time PC * Other (please specify)________________ * Which is your least preferred source of information about current payroll system? * 14 days approval time frame. * Paper documentation. * Accounting integration for each pay period. * Other (please specify)________________ * What kinds of features do you think would...
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...Change Management Memo Breakfast is the most important meal of the day, which is why we are pleased to announce this major change to our corporation. Taco Bell will now be open for breakfast! Our breakfast is going to be launched started in mostly the western states and a select few states in the south that will be on a trial run. Breakfast is going to start around 9:00 o’clock a.m. and we are going to stop serving at 11:00 a.m. The main breakfast item on the menu will be breakfast burritos. Burritos will be filled with eggs, cheese, and the customer’s choice of bacon, sausage, or steak. We will be teaming up with different partners such as Cinnabon©, Seattle’s Best Coffee©, and Johnsonville©. Type of Change Involved The idea is to bring breakfast to the daily menu. Millions of customer visits different fast food restaurants to get breakfast in the mornings and with millions of dollars in profits back in 2014, the purpose is to create a new market and extend our possibilities of growing financially and create a different image that will attract a targeted number of new customers. Ever since the establishment of the company, the growth on popularity was attracted a great percentage of Male customer leaving a great number of possibilities to grow on different demographics. Not only did the menu introduce completely new tastes to the brand, but it’s also helping tap into previously hard-to-reach demographics—women in particular. “People who … may not have been attracted to Taco...
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