...OF EMPHASIS SALON SYSTEMS, INC. FINANCIAL ACCOUNTING POLICIES AND PROCEDURES STUDY PROBLEM AND GENERAL PURPOSES OF RESEARCH STUDY PROBLEM: Financial accounting procedures and policies in Emphasis Salon Systems, Inc. RESEARCH PURPOSE: Improvement and standardization of financial accounting policies and procedures. Different types of purposes include: Exploration Description Explanation Prediction/Control Solution The purpose of this study is to determine: 1. What were the implemented financial accounting policies and procedures? 2. How was it implemented? 3. What were the impacts to the employees and to the company? 4. Is there any need for revisions or improvement? 5. If certain policy or rule was violated, what were the solutions that the company did to solve it? 6. In terms of financial assistance to employees, what are the requirements needed to grant it and how far does it affect the flow of company’s operation ABSTRACT: Policies and procedures are designed to influence and determine all major decisions, actions, and all activities that take place within the boundaries set by them. Procedures are the specific methods employed to express policies in action in day-to-day operations of the organization. Policies and procedures ensure that a point of view held by the governing body of an organization is translated into steps that result in an outcome compatible with that view. A set of policies are principles, rules and guidelines formulated...
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...Overview Company was incorporated under the provisions of Companies Act, 1956 as a limited Company. 1. Significant accounting policies a) Basis of preparation of financial statements The financial statements have been prepared and presented under the historical cost convention on the accrual basis of accounting in accordance with the Generally Accepted Accounting Principles in India and comply with the Accounting Standards (AS) notified by the Central Government of India under Section 211 (3C) of the Companies Act, 1956, other pronouncements of Institute of Chartered Accountants of India and the relevant provisions of the Companies Act, 1956, to the extent applicable. The financial statements are presented in Indian rupees. b) Use of estimates The preparation of financial statements in conformity with Indian generally accepted accounting principles requires Management to make estimates and assumptions that affect the reported amounts of assets and liabilities and the disclosure of contingent liabilities on the date of the financial statements and reported amounts of revenue and expense for the year. Actual results could differ from those estimates. Any revision to accounting estimates is recognised prospectively in current and future periods. c) Revenue recognition * Revenue is recognised to the extent that it is probable that the economic benefits will flow to COMPANY and the revenue can be reliably measured. * Discounts, rebates...
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...Accounting Practice Legislations, Procedures and policy Report Introduction This report contains detail compliance analysis of the Accounting Practice, which undertakes Accounting and Bookkeeping services for Travel agent. The Agent provides Community services as well, along with day to day Travels and Tour services such as overseas workers sponsorship, Manage Payroll for overseas workers and provides Money transfer. This report outlines the regulations and the practice procedures and Manuals and also outlines the compliance with AUSTRAC regulations. Procedures Community services policies and procedures This Accounting firm has in place policies and procedures that govern and regulate privacy and confidentiality of client information. This concept not only applies to what you can disclose about your clients or your organisations outside of work, but also what can be shared in network meetings. What information can be shared with other organisations, who shares it and how this information is given out should be clearly defined in any effective, professional service. It is often incorporated into a worker’s duty statement or job description. This practice has developed and written policy and procedures, and staff training in the following areas: * a confidentiality policy * a clearly defined process for identifying and regularly updating a Community Resource Index so that all workers are aware of what other services are available to refer to * processes...
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...Accounting Policies for Reporting Income Accounting Policies for Reporting Income Dana Ferretti ACC 303 Dr. M. Austin Zekeri Intermediate Accounting 1 November 20, 2011 Accounting Policies for Reporting Income GAAP (Generally Accepted Accounting Principles) refers to a common set of standards and procedures that companies follow to present their income and expenses, assets and liabilities of their financial statements. The FASB (Financial Accounting Standards Board) is the major operating organization that establishes and improves the rules of GAAP reporting. GAAP demands companies to disclose their accounting policies in their financial reports. The authoritative literature provided by the FASB, determines the classifications of comprehensive income and net income. Accounting policies are a group of specific policies that consist of principles, rules, and procedures that a company must follow when preparing and reporting its’ financial statements. These policies should include measurement systems, methods, and procedures for presenting disclosures. Accounting policies also include matters such as; depreciation methods, consolidation of accounts, inventory pricing, goodwill, and research and development costs. When these disclosures are presented, it assists the financial users and readers a better interpretation of the company’s financial status. [FASB 235-10-50] The authoritative literature of the FASB Accounting Standards...
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...Executive summary: This report is aiming to disclose how the Annual report of Woolworths for 2012 apply the accounting standard related to estimation uncertainty and accounting policy judgments. Furthermore, the potential gap between Woolworths’ current practice and the accounting standard requirements will also be discussed. Paragraphs 122- 124 of AASB101 has explained the requirements of significant accounting policy judgments and paragraphs 125-133 has detailed what need to be done for estimation uncertainty. According to these standards, Woolworths disclosed how the company determined the carrying amounts of assets and liabilities and explained the company’s policies to response the uncertainty due to foreign currency in their notes to the consolidated financial statement. Judgments about leases assets and liabilities and judgments about subsidiaries were also can be found in the notes. However, it can be indicated that some potential gaps still exist between Woolworth’s report and the accounting standard. For example, there is no assumption for how to revalue the fair value of some tangible assets in specified circumstance. What’s more, the company did not mention the sensitivities of carrying amounts of inventories and how to face these sensitivities. Therefore, further improvements need to be done in the next year’s annual report of Woolworths. Introduction: This report is an evaluation of Woolworths’ Annual Report in 2012, it will judge whether...
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...Growth Plans Woolworths' current business growth plan is built on four key strategic priorities. 1. Extend leadership in food and liquor 2. Act on our portfolio to maximise shareholder value 3. Maintain our track record of building new growth businesses 4. Put in place the enablers for a new era of growth A Changing Business Retailing never stands still - that’s what makes it so exciting and dynamic. Right now we’re in a period of substantial change as customers seek greater value and have more choices at their fingertips than ever before. Customers are now firmly in the driving seat of our business and their decisions and shopping behaviour are changing the way we operate. Woolworths is responding to this new era by laying the foundations for a new phase of growth and opportunity. We put the customer at the heart of our business, listening to what they want and creating new and innovative ways for them to shop with us. The future of shopping Customers now have the ability to shop when, how and where they want and that ability is literally in the palm of their hand. Mobile technology is rapidly changing how we view our world and giving us access to products and prices from around the world. We’ve recognised we need to keep up and understand that customers want to move seamlessly and effortlessly between physical and virtual stores to shop in a way that suits them. Every Woolworths business is becoming multi-option by using websites, mobile apps, virtual stores...
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...process in the accounting world. The Financial Accounting Standards Board accomplishes this mission through a comprehensive and independent process that encourages broad participation, objectively considering all stakeholder views, and by being subjected to oversight by the Financial Accounting Foundation’s Board of Trustees. Through these few necessary requirements they help form a very effective and sound standard setting process. The first part of the standard setting process that plays a crucial role in this process is the Rules of Procedures. The Rules of Procedure of the standards setting process describes the FASB’s operating procedures, and includes the due process activities that are to be open to public participation or observation to provide transparency into the standards-setting process. These rules set forth procedures followed by the FASB in establishing and improving standards of financial accounting and reporting for nongovernmental entities, including procedures related to the issuance of such standards and other communications. They also describe briefly the relationship of the FASB to the Foundation and its two advisory councils, the Financial Accounting Standards Advisory Council and the Private Company Council. The FASB is an independent, private-sector body created to serve an important public interest. Since 1973, it has been the designated organization in the private sector for establishing and improving standards of financial accounting and reporting...
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...Accounting Theory Learning Objectives Definition of theory and accounting theory The needs, purposes & benefits of AT Inductive & deductive approach to construct theory Descriptive, decision usefulness & welfare approaches to the construction of AT Structure of AT Relationship between AT & AP 1 Accounting Theory Defined as: A set of broad principles that provides a general frame of reference by which accounting practice can be evaluated and guides development of new practices and procedures. (Hendrickson, 1982) or A cohesive set of conceptual, hypothetical and pragmatic propositions explaining and guiding the accountant’s action in identifying, measuring and communicating economic information. 2 Nature and Purpose of Theory Theory can be defined as a set of general propositions, used as principles of explanation of the apparent relationship among certain observed phenomena, events or things. Proposition – statements concerned with the relationship among concepts. Concepts – generalized idea or expression in words about events observed in the real world. Theory is used as basis of explanation with regard to how/why certain phenomena happens the way they do. Explanation as well as prediction offers by theory is important as it enhance our understanding of the phenomena that exist in reality Generally theory is sometimes said to deal with the creation of scheme of ideas which provide definition of the problem observed and the understanding of it. 3 Needs and Importance of...
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...of our manufacturing facilities are ISO-14001 and have been validated according to strict environmental regulations. GT Valvetrain continually practices manufacturing of its components with sustainable environmental practices. One thing that GT Valvetrain can do to help add to the company’s environmental responsibility policy would be adopt a hazardous material board. This board would consist of employees that analyze all new chemicals and substances to be used in future manufacturing processes. The board will review the chemicals and substances to evaluate how harmful they are to the environment and suggest alternatives that are more environmentally friendly and support the company’s environmental policy this is already in place. In addition, GT Valvetrain could invest in solar panels to offset some of the company’s carbon footprint. Large electricity consumption is inherent with manufacturing automotive components therefore GT Valvetrain could install solar panels on the rooftop of the plant to manufacturer some of its large amount of needed electricity. In making this investment into clean renewable energy, the company would support its environmental policy for years to come while reducing overhead cost by reducing its monthly energy bill and helping to ensure the organizations viability in the future. Ethical Leadership GT Valvetrain is continuing the social responsibility of its company and sees this as a prerequisite for lasting corporate success. GT Valvetrain’s...
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...Systems Administrator To: Manager Subj: Support Prioritization First, let me thank you for notifying me of any problems and/or complaints. This way we may implement a proper plan of action and I agree that a ticket escalation policy is the way to go to achieve this. I will start drafting a policy for how support requests will be prioritized in the immediate future according to what you have requested. Each end-user or department head may call me, email me or both stating what department they are with and the technical issue that is occurring and at what workstation it is occurring. Each technical issue will receive a work order number, each work order will contain all information that they have provided and the date and time received. I will assign each work order a level of urgency as they arrive 1-4, 1 being the most urgent and 4 being the least. These will be prioritized by department as requested as follows 1: Customer Service 2: Sales 3: Accounting 4: Marketing. Each department head will receive a copy of said work order as well. The new policy should be a great way to manage both business and end-user expectations. I believe we can better manage these requirements by not only each department but each employee receiving a copy of the policy as well once it is finalized. Thank you again and please let me know if there is anything you would like me to add to the...
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...Strategic investment: own more than an passive amount, not enough to control, has power to participate in financial and operational decision of investee IAS28. Classification require professional judgement. * Presentation of board of directors * Interco transaction and relationship * Who own the other shares * Any debt financing intermingled * Sharing technology and patent * Participation in policy making process Investor need to disclose share of investment income, * Also disc, opns * Error correction * Acct policy changes, * Capital transaction included amount in OCI Have influence or not : 20% Users and objectives 1. Public shareholder: a. investors are interested in the performance of the company b. owner: tony Antonio: the liquidation of the company, if its performing well and be able to generate profit. Ability to distribute dividend. 2. Government/CRA: due to the variety of the investment, if it records the investment recognize it properly. Prepare consolidated financial statement under necessary circumstance. Report the income tax and deferral properly. Constraints: 1. IFRS since it becomes public in 2005 Identify issues * Bach Burgers Inc: 80% which is more than passive amount, under IAS28, Teresa;Antonio’s wife has power to participate financial and operational decision. * One of the 12 board of directors * 20% of the shares is owned by other 11 directors...
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...Ethical Decision-Making Individual Project on Policy Development Bobbi Brien Colorado Technical University A two page summary on reporting and investigating measures The purpose of a code of ethics/conduct is to have a written set of guidelines for a company to follow with how it is to conduct its business. It is a tool that outlines the company’s procedure on its standards of professional conduct. Though the language should be written to outline the way it conducts business, this is only one element to a code of conduct. By putting policies into place, the code of ethics sets the standard and it also creates a path with how the company manages the way employees are to deal with problems and prejudices. There are many elements that need to be addressed within the structure of the policy, and one of those elements that must be addressed, in its creation, are the threat potential. The threat potentials, also known as risk managements, are issues like sexual harassment, etc., which is a major reporting concern of code violations (Accounting Web, 2009). Another detail that should be addressed is the point that there is really no specific wording or standard for the structure of the policy, only that the company has to write the context in simply terms that everyone can understand. Then its trial and error from there once the policy is put into place. This is why it is important to update the company’s policies every year, so it can make room for improvements...
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...Accounting Fraud at WorldCom Problems • Determining what led to the demise and bankruptcy of WorldCom. Facts/Arguments • Corporate Culture o There is a lack of leadership and structure from management that is causing doubt and ambiguity among the company. o There is not a comfortable working environment that allows an employee to feel safe or secure with their thoughts or concerns. o Management was demeaning and condescending; often making threats and harsh remarks to employees. • Rapid Expansion o There is a poor growth strategy, which had led to a hodgepodge of new companies along with their employees and different management customs. o The acquisition process has a weak integration process to incorporate the new companies. This has caused disorganization and inconsistencies in management. • Performance Pressure o Improper and unethical accounting procedures were made to help achieve targeted performance goals. o Employees in Finance and Accounting departments were bullied and into making corrupt entries and they were rewarded for their unlawful activity. • Internal Audit o The Internal Audit department had a limited scope of work and authority. o Reporting directly to CFO compromised Cooper’s ability adequately perform an audit without interference. Recommendations • Hire a strong Human Resources department to implement a proper code of conduct and company wide policies. • Establish implementation process to help streamline and coordinate efforts...
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...It is implied by the positive accounting theory that managers base decisions based on personal or organizational objectives such as higher compensation or increased implementation of corporate governance procedures (Mattessich 2007). The two standard setting bodies try to implement policies in order to ensure better reliability and transparency of financial statements relevant to specific managers applying these standards. The two bodies set standards to improve accounting practice in their respective regions so they act on improving areas of corporate governance. Decision usefulness deals with the process of decision making based on accounting theories, concepts and principles. This theory involves the development of procedures that can be applied to make decisions in a useful manner (Cyert and DeGroot 1987). The standards proposed by both standard setting bodies entail a thorough process and involve significant research to make standards more useful to accountants, investors, shareholders and other users of financial statements in the decision making process. The moral hazards in accounting are concerned with risks between two parties when one party is not willing to work honestly or in a trustworthy manner (Wessels 2006). If any of the standard setting bodies does not want to apply same techniques and strategies in issuing standards then the other board is subject to moral hazards or risks. Measurement approaches deal with measurement of several items based on hypothetical...
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...AIS Research Paper S1 Poly-Boats & Surfboards Inc. Wilmington University Table of Content List of Tables and Figures 3 Introduction 4 Benefits and Disadvantages 5-6 Holism vs. Reduction 7-8 System Development Life Cycle 8 Planning 9 Analysis 9 Design 10 Development 11 Testing 11 Implementation 11-12 Maintenance 12-13 Data Management – Data-back-up/Disaster Recovery 13-14 Impact of Implementation 14 Administrative procedures - human and process changes 15-18 Changes in organizational Policy 18-20 Training requirements 20 References 21-22 List of Figures Figure 1-A: Organizational Effectiveness 7 Figure 2-A: Design 9 Figure 3-A: Planning 9 Introduction The organization has been active for ten years and has five fulltime employees and is located in Rehoboth Beach, Delaware, near the outlet malls. They manufacture and sell lightweight boats, surfboards, and body boards in addition to a variety of accessory associated with the sports. The system used to manage the operation is three Dell OptiPlex computers on a wireless network. The Software used is Windows Office 10, specifically Microsoft Access, Excel and Word. The software provides an opportunity to maintain customer account data, address, as well as Suppliers...
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