...| ACCOUNTING CHANGES | | | Sabrina Whitehead | Dr. M. Austin ZekenAccounting Undergraduate Capstone Acc 499 | 4/26/2012 | | Discuss the primary reason for the restatement and the impact to the financial results for the Company. Dell computers has delivered technology solutions for more than twenty-six years and has transformed countries, communities and the private sector to help achieve their goals at work, home and school. Michael Dell created PCs Limited but later changed the name to Dell Computer Corporation in 1984, as a freshman attending the University of Texas. The young entrepreneur purchased computer parts from wholesale distributors, installed them in his version of the IBM, and then began selling the custom-built person computers from his dorm room. After one year of successful business Michael Dell left college and incorporated his business and the Dell Company went public, selling stock market shares for $8.50 per share. After years of financial accomplishment in 2006 the Securities and Exchange Commission (SEC) made inquiries of Dell internal accounting and Dell Inc. was investigated after a review of past accounting and reporting practices and company eventually disclosed wrongful conduct for deferring revenue coming from software sales, errors and irregularities which took place from 2003 through 2007. The investigation concluded that a number of adjustment were improper, including the creation and release of accruals and reserves...
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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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...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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...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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...emergence of new research directions around the organizational and social aspects of accounting. During this time the accountancy profession was rapidly growing and moving into many new areas, there was a new standard-setting process, greater use of accounting controls in both private and public-sector enterprises, new forms of social accounting, intervention by government in the inflation accounting debate and calls on accounting to change in diverse directions. All of these rapid changes were forcing accounting academics to analysis the changing world of accounting more closely. (p454 30 years of historical accounting research) One of the changes in accounting analysis was a move towards accounting history. Hopwood (1976)called for historical studies in terms that would later be labelled as “traditional”, despite the label it would receive in the future, it still represented an awareness that historical studies would soon be an important source of understanding of the roles of accounting in organizations and society (reference 30 years of historical accounting research). Historical research was slow to emerge, as was highlighted in the Accounting, Organizations and Society journal where between 1976 and 1985 only 13 historical papers were published. Historical research came to the fore during the period from 1986 and 1990 where 22 historical papers were published in the journal Accounting, Organizations and Society, this period was also the time where there was the development...
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...Complexities of leasing, taxation, error correction and changes in accounting Phase 3 Group Project/Group A Paula Campbell Colorado Technical University Online Professor Monica Phillis ACC346-0902A-01: Intermediate Accounting II April 28, 2009 Recommendation The accounting team has thoroughly researched the defined contribution plan, defined benefit plan and simple plan that are under consideration to install at BC Corporation. The defined benefit plan is the most costly and complex plan. It also carries an excise tax if the minimum contribution requirement is not met. The simple plan is just what it implies simple with limited options. The defined contribution plan has many advantages for the employer as well as the employee. It is less costly than the defined benefit plan and is easier to administer. This plan is also tax advantaged due to the contributions and earnings being tax deferred money. The advantages for the employee are it’s portable, has strong growth potential and the contributions are pre-tax. (Sepe, J., Spiceland, D., & Tomassini, L., 2007) With these advantages we can predict greater participation in the plan. Our recommendation is the defined contribution plan. It is the most advantageous for the business and can grow as we grow. The accounting for the defined contribution plan will reflect on the income statement and balance sheet. For the income statement the amount of the contribution is recorded as an operating expense usually under...
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...Title: Role of accounting on business behaviors impacted by tax changes in Malaysia Justification There are many factors influence the changes of accounting importance where the role of accounting evolves along with the business changes affected by these factors. One of the factors that affect role of accounting in business field is tax. In Malaysia, Tax is generally divided into 2 types which are direct and indirect tax. Direct tax can be defined as tax which is imposed straight to the taxpayer. In short, the payment of tax is between taxpayer towards government. Examples of direct tax are income tax from employee salary, corporation tax, property tax, and etc. Meanwhile, indirect tax is a type of charge that can be transferred to the other person. A good example of indirect tax is restaurant that collect tax charge of the food’s sold from the customer (sales tax). Other examples of indirect tax are custom duty, central excise duty, and service tax). In brief, the history of Malaysia tax was started with more dependency towards indirect tax where establishment of direct tax has only started to take effect from 1 January 1948. This establishment has changed the trend of Malaysia tax which depends more and more on direct tax until today. In 2009 itself, government revenue has grown to 48.6% from direct tax. The urgency of understanding changes in accounting role due to tax, become important because of several reasons. Firstly, as the globalization of the economy develops...
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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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...This is a critique on the paper Stability and change: an institutional study of management accounting change written by Associate Prof. Dr. Siti Nabiha Abdul Khalid and Proffesor Robert W. Scapens Purpose The purpose of this paper, as stated on the first page, is to explore the relationship between stability and change within the process of accounting change. It focuses on the ceremonial implementation of value-based management and how key performance indicators can become decoupled from day-to-day activities which thereby creates a level of stability which can be ultimately contributed to the accounting change. Theoretical Framework This paper uses the framework set out by Burns and Scapens (2000) which is mainly based in Old Institutional Economics (OIE). In this paper institutions are defined as “The shared taken-for-granted assumptions which identify categories of human actors and their appropriate activities and relationships”. (Siti-Nabiha, A. and Scapens, R. (2005), Stability and change: an institutional study of management accounting change, Accounting, Auditing & Accountability Journal, Vol 18, No. 1, pg 46) Burns and Scapens argue that, when a particular management accounting practice is decided on, that over time this practice becomes accepted as “the way things are done”. The behaviour is disassociated from the original reason for the choice of this practice and comes to be applied in a rule-like manner and as a routine activity. The original...
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...The British Isles is an example of a Lithosere succession, in that it began as bare rock from glacial retreat. The plant succession started with the pioneer species which were algae and bacteria. Both began to broke down rock surface through weathering. Then lichens and mosses began growing in the area which helps with water retention and provides a base for soil. The next stage of primary succession is herbs/grasses/flowering plants/ferns. These add nutrients and organic matter to the ground which provided soil. Next, shrubs invaded and colonised the area. Shrubs dominate and shade out the sere below them. Small trees such as birch and willow were the following sere which invaded and colonised the area. They produced humus from leaf fall which provided nutrients for the soil through nutrient recycling and encouraged new growth of the sere. The last sere is the larger trees which are oak and ash which dominate the area and shade out smaller trees. This sere is the climax community in that it is stable and no further succession happens after. The climax community is the deciduous woodland biome we know today. The main characteristics include the location in which they are found, which is in temperate maritime climate such as the UK with four distinct seasons: spring, summer, autumn and winter. The average temperature in the British Isles is 10oC which is the optimum temperature for a temperate deciduous woodland and rainfall is between 30 and 60 inches. Deciduous trees are physically...
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...The British Isles, located in the northern hemisphere, is home to a temperate climate in which a large variety of plants including deciduous tees grow. Species within heathland, forest and lake biomes make up the ecosystem of the country. In the British Isles, physical and human factors are changing vegetation in these ecosystems. Physical factors can be things such as succession, changes in climate, natural disasters and diseases. Human factors include cultivation, development, exploitation, tourism and deforestation. In the past, Britain was largely covered in deciduous forest. About 5000 years ago, humans started to cut many of the trees down so they could build their homes and use the wood as fuel for cooking and the cleared areas for growing crops. The cleared land in the early Middle Ages would have been used for agriculture such as sheep grazing, which would have damaged the soil and allowed heather to grow and dominate any surviving plants. Many moorland areas, such as the Pennines, were originally thickly forested. Mesolothic hunting caps that existed many years ago could have resided on the moors, but there is little evidence for this. If these camps existed, they may have wished to use the nearby vegetation resources for firewood, which is also what the Anglo-Saxons and Vikings who came to the area did. These activities are significant because about 75% of Britain’s land is used for agricultural purposes. This is a type of human activity that has influenced...
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...Changes to Accounting Standards for Leases Who is likely to be affected? Businesses which are lessees or lessors of assets and account for lease transactions using a leasing accounting standard which changes on or after 1 January 2011. General description of the measure Current accounting standards are International Accounting Standards (IAS) and UK Generally Accepted Accounting Practice (UK GAAP). Changes to the IAS lease accounting standard are expected during 2011, and changes to UK GAAP might follow in 2013. Legislation will be introduced in Finance Bill 2011 to ensure continuity of tax treatment for lease transactions for businesses which begin to account for the transactions under new accounting standards, expected to be introduced from 2011. The measure will require tax profits and losses to continue to be calculated as if the changes to lease accounting standards had not taken place. Policy objective The measure will ensure that existing tax rules that rely on accounting classifications of leases as operating or finance leases, and the accounting treatment of lease transactions, continue to operate in the way they currently do. The objectives are to: • • ensure that lessors and lessees will be neither disadvantaged nor advantaged by the proposed accounting changes; remove uncertainty for businesses about the future tax treatment of leasing contracts, arising from uncertainty about future lease accounting standards and their interaction with current tax rules;...
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...22 Accounting Changes and Error Analysis ASSIGNMENT CLASSIFICATION TABLE (BY TOPIC) Topics 1. Differences between change in principle, change in estimate, change in entity, errors. Accounting changes: a. b. Comprehensive. Changes in estimate, changes in depreciation methods. Changes in accounting for long-term construction contracts. Change from FIFO to average cost. Change from FIFO to LIFO. Change from LIFO. Miscellaneous. 2, 11 8 1, 3, 4, 5, 8, 24 8, 14, 15, 17, 19 2, 18, 21 9, 16, 20 10 3 8, 9, 10 8, 9 4, 5, 9 3, 4, 6, 7, 8, 9, 10, 11, 12, 16, 17 1, 8, 13 3, 6, 7 1, 2, 4, 6, 7 1, 2, 4, 5 1, 2, 3, 4, 5, 6 Questions 2, 4, 6, 7, 8, 9, 12, 13, 15, 21, 22, 23 Brief Exercises Exercises 8 Concepts Problems for Analysis 3 1, 2, 3, 4 2. c. 2, 10 1, 2, 10 3 1, 2 d. e. f. g. 3. 2, 8, 14 9 2, 3, 5, 8, 14 2, 5 3 1, 2 1, 5 Correction of an error. a. Comprehensive. 8, 9, 10 8, 15, 16, 18, 19, 20, 21 9, 15, 17, 18 7, 17, 18 22, 23 3, 6, 7, 8, 9, 10 1, 6, 8 2, 10 11, 12 1, 2 2, 3, 4 b. c. *4. Depreciation. Inventory. 6, 7 10 11, 12 Changes between fair value and equity methods. *This material is dealt with in an Appendix to the chapter. Copyright © 2010 John Wiley & Sons, Inc. Kieso, Intermediate Accounting, 13/e, Solutions Manual (For Instructor Use Only) 22-1 ASSIGNMENT CLASSIFICATION TABLE (BY LEARNING OBJECTIVE) Learning Objectives 1. Identify the types of accounting changes. 2. Describe the accounting for changes in accounting...
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...(2011), everyone understands that accounting is the mode of communication in business. It is the channel through which investors and businessmen get to understand whether their investments are worth it or not. It helps in giving the value of an investment at any given time. The contemporary accounting practice and methods are quite diverse. However, they have not been so since the beginning. According to Waweru (2010), there are numerous changes that have marked the evolution of accounting. This research paper seeks to look into the accounting evolution process. Reese and Janes (2012) indicate that accounting has changes both in terms of accounting theories, as well as application of technology in accounting. Therefore, when looking at the history and evolution of accounting, it is imperative to look at the changes that have occurred. These changes are both in theory, and the application of technology in accounting. It is also worth looking at the various accounting theories that have come up. These have to be related to the changes in technology, higher literacy levels, and more complex business operations which call for the review of accounting practices. The need to protect the interest of the public is also a chief reason why changes in the accounting practice needed to occur. This essay looks at the changes both in practice and application of technology. Evolution in Theory and Practice According to Alexander (2002) observes that accounting in the ancient times was propagated...
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