...Accounting Periods When preparing a statement of income and expenses (generally your income tax return), you must use your books and records for a specific interval of time called an accounting period. The annual accounting period for your income tax return is called a tax year. You can use one of the following tax years. A calendar tax year. A fiscal tax year. Unless you have a required tax year, you adopt a tax year by filing your first income tax return using that tax year. A required tax year is a tax year required under the Internal Revenue Code or the Income Tax Regulations. Calendar tax year. A calendar tax year is 12 consecutive months beginning January 1 and ending December 31. You must adopt the calendar tax year if any of the following apply. You do not keep books. You have no annual accounting period. Your present tax year does not qualify as a fiscal year. Your use of the calendar tax year is required under the Internal Revenue Code or the Income Tax Regulations. If you filed your first income tax return using the calendar tax year and you later begin business as a sole proprietor, you must continue to use the calendar tax year unless you get IRS approval to change it or are otherwise allowed to change it without IRS approval. For more information, see Change in tax year, later. If you adopt the calendar tax year, you must maintain your books and records and report your income and expenses for the period from January 1 through...
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...Management Accounting Assignment Activity-Based Costing (ABC) is a theory for cost management controlling. Activity based on the management aims to describe a company as a series of activities which are related to customers’ desires and costs. Activity-Based Costing is a process for calculating the cost of the activities of an organization. Activities within an organization are identified and an average cost is related to each activity. The total cost of a product is the sum of the total costs of activities required to produce the product. The cost of every activity for products is identified as (the average cost of the activity) * (the number of times the activity, which is required for that product). Cooper and Kaplan (1992) explained how Activity-Based Costing allows the very important distinction between resource usage and resource purchase. The difference is the unused capacity. Removal of this unused capacity allows costs to be decreased. Turney (1992) thought that the important non-temporal links between cost and company quality. He also explained how it is important between assets, resource drivers, activities, activity drivers, processes, company performance, cost drivers, and cost. Turney (1989) claimed that underlying Activity-Based Costing is type of an assumption that activities cost resources and products consume activities. Activities contain the establishing vendor relations, spending, paying out, setting up a machine, running the equipment, reorganizing...
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...Licensed to: iChapters User Research Method and Methodology in Finance and Accounting Second Edition Bob Ryan Robert W. Scapens Michael Theobold Australia . Canada . Mexico . Singapore . Spain . United Kingdom . United States Licensed to: iChapters User Research Method and Methodology in Finance and Accounting Copyright © Bob Ryan, Robert W. Scapens and Michael Theobold 2002 _______________________________________________________________________ The text of this publication, or any part thereof, may not be reproduced or transmitted in any form or by any means, electronic or mechanical, including photocopying, recording, storage in an information retrieval system, or otherwise, without prior permission of the publisher. While the publisher has taken all reasonable care in the preparation of this book the publisher makes no representation, express or implied, with regard to the accuracy of the information contained in this book and cannot accept any legal responsibility or liability for any errors or omissions from the book or the consequences thereof. Products and services that are referred to in this book may be either trademarks and/or registered trademarks of their respective owners. The publisher and author/s make no claim to these trademarks. British Library Cataloguing-in-Publication Data A catalogue record for this book is available from the British Library _______________________________________________________________________ ISBN: 978-1-86152-881-0...
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...Chapter 1: The Equity Method of Accounting for Investments 1. There are three ways that a company may account for its investments in other companies. The method of accounting is determined by the degree of influence or control that the investor has over the investee: Criterion Ownership Level Accounting Method Inability to significantly influence Less than 20% Fair value or cost Ability to significantly influence 20% - 50% Equity method or fair value Control (through voting power) More than 50% Consolidated financial statements Control (through variable interests) Primary beneficiary status (no ownership required) Consolidated financial statements 2. The Fair-Value method is used for all equity investments in which the investor does not have the ability to significantly influence the investee. These investments are recorded at cost and periodically adjusted to fair value (i.e., market values). The basic principles are: 1) initial investments in equities are recorded at cost and subsequently adjusted to fair value if fair value is readily determinable; otherwise, the investment remains at cost. 2) equity securities held for sale in the short term are classified as trading securities and reported at fair value, with unrealized gains and losses included in earnings. 3) equity securities not classified as trading securities are classified as available for sale securities and reported at fair value, with unrealized gains and losses excluded from earnings and reported...
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...The choice of inventory accounting methods, specifically for the case of FIFO and LIFO, has developed into a decision, which includes varying consequences and comes with specific implications and benefits, such as communicating private information with FIFO (Hughes, and Schwartz, 1988, p.42) or tax benefits for the choice of LIFO (Morse and Richardson, 1983, p.125). Every firm and manager has to face the decision of which accounting method to choose, and has to include several aspects into their decision making process and weigh the pros and cons in general. However, the empirical evidence (Frankel and Hsu, 2015, p.48) shows some controversies as to what inventory accounting methods firms decided to use in the past, even though the theory would...
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...PRESS Journal of Accounting and Economics 39 (2005) 509–533 www.elsevier.com/locate/jae To blame or not to blame: Analysts’ reactions to external explanations for poor financial performance$ Jan Barton, Molly Mercerà Goizueta Business School, Emory University, Atlanta, GA 30322, USA Received 3 March 2003; received in revised form 17 March 2005; accepted 4 April 2005 Abstract Managers often provide self-serving disclosures that blame poor financial performance on temporary external factors. Results of an experiment conducted with 124 financial analysts suggest that when analysts perceive such disclosures as plausible, they provide higher earnings forecasts and stock valuations than if the explanation had not been provided. However, we also show that these disclosures can backfire if analysts find them implausible. Specifically, implausible explanations that blame poor performance on temporary external factors lead We appreciate the helpful comments of Holly Ashbaugh, Charlie Bailey, Sudipta Basu, Robert Bloomfield (the referee), Jennifer Joe, Jay Koehler, Mark Kohlbeck, Lisa Koonce, Bob Lipe, Stan Markov, Ella Mae Matsumura, Brian Mayhew, Jeff Miller, Pam Murphy, Lisa Sedor, Siew Hong Teoh, Kristy Towry, Terry Warfield, Greg Waymire, Jerry Zimmerman (the editor), and seminar participants at University of Georgia, Harvard University, University of Notre Dame, Ohio State University, Rice University, University of Wisconsin—Madison, the 2003 AAA Financial Accounting and Reporting...
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...ANALYSIS OF BIOLOGICAL ASSETS VALUATION WITH FAIR VALUE ACCOUNTING AND HISTORICAL COST ACCOUNTING METHOD IN PLANTATION SUBSECTOR OF INDONESIAN AGRICULTURAL INDUSTRY IN THE PERIOD OF 2007-2012 Karina Putri Ramadhani1 and Indra Pratama2 1 Thesis Writer, Swiss German University 2 Thesis Advisor, Swiss German University Abstract The analysis of biological assets valuation with fair value accounting and historical cost accounting method in plantation subsector of Indonesian agricultural industry, in the period of 2007-2012, tries to evaluate the relevance of historical cost towards the fair value of biological assets. It also tries to look for empirical evidence on the differences in calculations on biological assets between FVA and HCA toward company’s EBIT, net income, and potential tax liabilities. The research tests 5 companies within the plantation subsector in agricultural industry listed in Bursa Efek Indonesia (BEI). This study shows that there is a strong correlation between all variables tested. Among all statistical tests conducted, all hypotheses are rejected. This study concludes that the historical value of biological assets does not represent its real fair market value, or irrelevant. Also, the change in biological assets valuation from historical cost to fair value accounting would significantly affect the company’s EBIT, tax expense, and net income. Keywords: Fair Value, Historical Cost, Agricultural Industry, Plantation, Fair Market, EBIT, Tax Expenses, Net Income...
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...MacDonald’s Corporation Analysis FIN 284 ASSET MANAGEMENT Summer 2005 Submitted by: Anne Orji Chunlei Bao Angelo Zino Efstratios Philippis 1 Table of Contents I. II. III. IV. V. VI. VII. VIII. IX. X. XI. XII. XIII. Executive Summary (includes Asset Allocation to Portfolio) Company Overview Business Description SWOT Analysis (Key Strategies and Risk Factors) Management Operations Analysis Industry and Market Analysis Overview of fiscal year 2004 Outlook for 2005 Financial Results for Q1 of 2005 Trend Analysis Correlation with current portfolio Financial Statement Analysis 3-4 4 4-6 6-9 9-11 11-14 14-15 15-18 19-21 21-22 22-24 24-25 25-34 35-46 47-50 XIV. Valuation XV. Technical Analysis XVI. Analyst Covering and Insiders Transactions XVII. Current News XVIII. Conclusion XIX. Appendix XX. References 50-53 53-54 54-55 55-59 60 2 Summary Page MCDONALDS CP (NYSE:MCD) Delayed quote data Last Trade: Trade Time: Change: Prev Close: Open: Bid: Ask: 1y Target Est: 27.94 Jul 1 0.00 (0.00%) 27.94 N/A N/A N/A 35.58 Day's Range: 52wk Range: Volume: Avg Vol (3m): Market Cap: P/E (ttm): EPS (ttm): Div Yield (ttm): N/A - N/A 25.64 - 34.56 0 5,562,320 35.41B 1d 5d 3m 6m 1y 2y 5y max 14.30 1.95 0.55 (1.97%) http://finance.yahoo.com I. Executive Summary This paper will look at the development of the McDonalds Corporation and the obstacles that it has overcome. It will also look at the McDonalds Corporation in relation to its major competitors...
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...DETERMINANTS OF DIFFERENT ACCOUNTING METHODS CHOICE IN TANZANIA : A POSITIVE ACCOUNTING THEORY APPROACH Objectives: • The purpose of this study is to investigate the factors that influence the choice of accounting policies by managers of companies in Tanzania. • These studies also examine the number of factors that influence the managers’ incentives for accounting choice. Population/ sample size: The study investigates managers’ decisions to choose accounting methods in a positive accounting theory perspective using panel data covering 60 years from 15 companies listed on the Dar es Salaam Stock Exchange. Research Methods: • Sample and data source: used quantitative methods to examine the relationship between independent variables and dependent variables. The data are drawn from annual reports of 15 companies listed on DSE for four years which resulted in 60 firm years. • Income strategy measurement: consider a company’s set of accounting choices that are disclosed in the company’s annual report as a single comprehensive decision. • Model specification: INCOME STRATEGY = α0 + α1 LEVER + α2 SIZE + α3 LABFORCE – α4 ODILUTION + α5 INTERFIN + α6 PROPNED + ε Findings: The results show that the significant factors are company size, internal financing, proportion of non-executive directors and labor force. Different with the outcome of prior studies, the authors found that the company size and internal financing are positively related with income strategy. So the research...
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...cannot use traditional method to benefit it’s organization. The ability to manage cost require financial data in a relevant form. Strategies Super Bakery Inc is a virtual corporation. This means that the company is composed of several different businesses. There is a central organization that outsources, production, selling, and shipping. The actual Super Bakery Inc core structure strategize and utilize outsourcing which minimize long-term cost of building, machinery, employees. This strategy minimize cost, but require commitment to the business for product. The disadvantage of this strategy is control inside the outsourced building. The issue with traditional cost methods. The use of activity based cost accounting (ABC) allows for control necessary to manage the organization cost and determine different outsourcing and customer strategies. ABC separates cost by drivers activity cost pools and product (Kimmel & Kieso, 2007). This method was necessary due to multiple venues, and allowed for better accounting practices. Though cost of this method is higher it allows for appropriate research. The organization chose to not invest into bakeries and this strategy is less cost in manufacturing, but is costly in accounting. Based on the data this is the best method of choice in their business strategy. The company chose to not produce the product which has many advantages of cost, but disadvantages in control. The company invested in ABC accounting to measure profitability...
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...A&F AND H&M 1 A Comparison in the Financial Accounting Methods Used by Abercrombie & Fitch and H&M January 2012 COMPARING FINANCIAL REPORTS BETWEEN A&F AND H&M 2 Abstract Financial accounting encompasses compiling operating figures that any business or organization uses to account for their operations. For business strict guidelines must be followed to be in compliance with Security and Exchange Commission (SEC) rules when filing annual reports. This paper will examine, compare and contrast the differences in accounting styles and profitability of two clothing retail giants. Abercrombie & Fitch (A&F) is a domestic retailer based out of Ohio with over 300 outlets in the United States and Hennes & Mauritz AB (H&M) a Swedish outfit that is by sales the world’s second largest clothing retailer. The income statement, balance sheet and cash flow statement from each company’s annual report will be compared and contrasted to examine differences in style and methodology. COMPARING FINANCIAL REPORTS BETWEEN A&F AND H&M 3 A Comparison in the Financial Accounting Methods Used by Abercrombie & Fitch and H&M The scope of this paper is to examine, compare and contrast the differences in accounting styles and profitability of two clothing retail giants. Abercrombie...
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...Riki Shafier Professor Kimberlee Hoftiezer SOS-110 24 January 2016 Music Education: A Personal Journey For the past few years I have been taking different courses, learning many things and preparing myself for the life ahead of me. As a soon-to-be college graduate, the future beckons, bright and inviting. There are endless career opportunities that await those who have put forth the effort to receive an education. The career goals toward which I am currently preparing are to become a highly sought-after piano teacher and piano-teacher trainer with a full roster of students, complete with a waiting list for those who wish to join my studio. I plan to build a fully- developed business model for my piano studio. This plan will include curricula for various ages and skill levels, as well as plans for accommodating specific needs of individual students. The plan will also have processes for the acceptance and rejection of potential students, registration and payment options, and online booking opportunities. This will be optimized through the use of technology. Technology, in all its many forms, has transformed the world we live in, and I anticipate that it will prove to be of great use to me in the development of my career goals. In the short-term, I will be able to train under experienced piano educators and teacher-trainers via Skype lessons and workshops, and use various training software programs to improve my technical and teaching skills. Additionally, I plan to...
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...Blue Pelican Java by Charles E. Cook Version 3.0.5h Copyright © 2004 - 2008 by Charles E. Cook; Refugio, Tx (All rights reserved) 1-1 “Blue Pelican Java,” by Charles E. Cook. ISBN 1-58939-758-4. Published 2005 by Virtualbookworm.com Publishing Inc., P.O. Box 9949, College Station, Tx 77842, US. ©2005, Charles E. Cook. All rights reserved. No part of this publication may be reproduced, stored in a retrieval system, or transmitted in any form or by any means, electronic, mechanical, recording or otherwise, without the prior written permission of Charles E. Cook. Manufactured in the United States of America. Preface You will find this book to be somewhat unusual. Most computer science texts will begin with a section on the history of computers and then with a flurry of definitions that are just “so many words” to the average student. My approach with Blue Pelican Java is to first give the student some experience upon which to hang the definitions that come later, and consequently, make them more meaningful. This book does have a history section in Appendix S and plenty of definitions later when the student is ready for them. If you will look at Lesson 1, you will see that we go right to work and write a program the very first day. The student will not understand several things about that first program, yet he can immediately make the computer do something useful. This work ethic is typical of the remainder of the book. Rest assured that full understanding...
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...Researching Variable Naming Rules Visual Basic You must use a letter as the first character. You can't use a space, period (.), exclamation mark (!), or the characters @, &, $, # in the name. Name can't exceed 255 characters in length. Generally, you shouldn't use any names that are the same as the functions, statements, and methods in Visual Basic. You end up shadowing the same keywords in the language. To use an intrinsic language function, statement, or method that conflicts with an assigned name, you must explicitly identify it. Precede the intrinsic function, statement, or method name with the name of the associated type library. For example, if you have a variable called Left, you can only invoke the Left function using VBA.Left. You can't repeat names within the same level of scope. For example, you can't declare two variables named age within the same procedure. However, you can declare a private variable named age and a procedure-level variable named age within the same module. Python Must begin with a letter (a - z, A - B) or underscore (_) Other characters can be letters, numbers or _ Case Sensitive Can be any (reasonable) length There are some reserved words which you cannot use as a variable name because Python uses them for other things.- See more at: http://www.w3resource.com/python/python-variable.php#sthash.5AXuVlWN.dpuf Java Variable names are case-sensitive. A variable's name can be any legal identifier — an unlimited-length...
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...SD2720 Module 3 Working with Methods Click Link Below To Buy: http://hwcampus.com/shop/sd2720-module-3-working-with-methods/ SD2720 Module 3 Working with Methods and Encapsulation Lab 3.1 Creating a Method In this lab, you will complete two tasks related to Java methods. The tasks performed in this lab will help you use method overloading and understand ambiguous overloading. Task 1 Write a program for swapping two numbers. In the program: • Create a method by passing primitive values as parameters for checking the result. • Create another method by passing object references as parameters for checking the result. • Identify the difference between two outputs. Task 2 Write a Java program that accepts 10 numbers from the user and finds the greatest and smallest numbers among them. Create two methods, findGreatest() and findSmallest(), to find the greatest and smallest numbers, respectively. Task 3 Write a Java program that implements the following methods: • getNumbers()to accept two numbers from the user. • calculateHCD()to calculate the highest common divisor (HCD) of the two numbers. Please note that it should be a recursive function. • calculateLCM()to calculate the least common multiple (LCM) of the two numbers. Display()to display HCD and LCM. Submission Requirements: Compress your Java project folder and responses in a Microsoft Word document into one zipped folder and submit it to the instructor. Evaluation Criteria:...
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