...1 Financial Reporting Case: Comparing Financial Reports Using the Form 20F Reconciliation Annie has been hired as an analyst for a relatively small investment company and has had several discussions with her new employer who is interested in expanding its investment options to include more international firms. One issue that Annie has brought up with her boss in their discussions is many investors’ unfamiliarity with financial reports prepared based on accounting standards other than US GAAP. While Annie’s employer seems to appreciate her concerns, Annie has asked you to help her prepare a report for her boss to examine and to use when he needs to explain the issues to the company’s clients. Annie has already located a number of popular press items that she will use to gain a general sense of where US GAAP and IFRS differ. However, she is concerned that she will need more direct information to provide to her employer in order to help him understand the issues at hand. She has examined a number of companies that report using IFRS, but is not sure how to use those reports to help her illustrate her concerns. She has asked you to help her prepare some information that she might use to help her boss better understand the impact on financial reports of using IFRS versus US GAAP. Given the importance of various ratios in financial ratios, you have decided to calculate several commonly used financial ratios using values taken from a company that prepares it financial ...
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...Ford Annual Report 2013 Financial Accounting 1. Alan R. Mulally wrote to the stockholders from Ford. He is the President and Chief Executive Officer of the Company. 2. Ford is excepting 2014 to be another solid year. In 2014 Ford has a record number of new product launches. Ford is providing quality cars and trucks worldwide and is ready for the payoff to be higher in 2015 and the years to come after that. Fords sales will improve worldwide. Ford is projected to make anywhere between $7 billion to $8 billion pre-taxed profit. The ford plan is driving solid results and profitable growth for all, and we are confident it will continue to do so in the future. 3. During this past year Ford is showing some financial highlights. 4. Ford’s Eco Boost Engine was the reason for the Companies growth and was a major part of the financial highlights. Ford vehicles had an average contribution margin of about 130% total average contribution margin across all vehicles. 5. The highlighted items show the company in a growing positive light. Ford is building more fuel efficient vehicles and that’s a strong selling point. 6. Ford’s Fiscal year extends from January 1, 2013- December 31, 2013. This information can be found on their balance sheet. 7. The reason that Ford chose this as their fiscal year is because Ford files its 10-ks for the end of December every year. 8. Ford reports dates on its balance sheet for March 31, 2013, June 30, 2013, September 30, 2013, and December 31, 2013...
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...ACC 410 Assignment 1 Financial Statement / Audit Report Review Follow Below Link to Download Tutorial https://homeworklance.com/downloads/acc-410-assignment-1-financial-statement-audit-report-review/ For More Information Visit Our Website ( https://homeworklance.com/ ) Email us At: Support@homeworklance.com or lancehomework@gmail.com Assignment 1: Financial Statement / Audit Report Review Due Week 4 and worth 240 points Select one (1) local government in your state or area and review the financial statements and audit report for the county or municipality. The financial statements of the government you selected should have at least three (3) funds. Refer to the continuing problem homework for Weeks 1 through 3 for this assignment. Write a three to five (3-5) page paper in which you: 1.Compare and contrast the comprehensive annual financial report (CAFR) of the selected local government entity with the city of Austin report from Week 1 homework. In your comparison, include: a.Publication method of the CAFR b.Audit and budget information in the CAFR c.The type of audit report issued d.Existence or non-existence of an internal audit function within the government entity 2.Prepare the analysis for the selected local government entity, including information on the introduction, financial section, and statistical section prepared in the city of Austin’s CAFR from chapter 2. 3.Analyze the methods used by the selected local government entity in comparing...
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...Comprehensive Annual Financial Report Briefing: Each year the Los Angeles County Office of Education issues a Comprehensive Annual Financial Report (CAFR). The most recent report as the 2012 that was created by Alexander Cherniss, Ed.D., Chief Business Officer, fiscal year ending June 30, 2012. Presently no boundary changes during the fiscal year. The purpose of this paper is to provide an overview of government accounting and reporting. Governmental Accounting and Reporting Budgeting and accounting are predominantly vital for a government body. Any person with the competence to make decisions relating to the prevailing body should possess the essential understanding of budgeting and accounting. “The Governmental Accounting Standards Board (GASB) sets the accounting and financial reporting standards for state and local governments, whereas the Financial Accounting Standards Board (FASB) sets these standards in for-profit business” (Granof &Wardlow, 2011). Governmental purpose and missions differ from those of a for-profit business. For-profit business is vastly measured by increasing profits and shareholder worth. Economic metrics are based exclusively on revenue and net income margins, where there may not be as measurable for governmental financial reporting. Government financial report cannot be always measured in monetary trends but more on a service oriented and focus cannot always be measured in dollars and cents and tends to be based more so on service...
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...CHAPTER 1: INTRODUCTION TO ACCOUNTING AND FINANCIAL REPORTING FOR GOVERNMENTAL AND NOT-FOR-PROFIT ENTITIES OUTLINE |Number |Topic |Type/Task |Status | | | | |(re: 15/e) | |Questions: | | | | |1-1 |Unique characteristics of governments and NFPs that create demand for |Identify/Explain |New | | |accountability | | | |1-2 |Distinguishing between general purpose and special purpose governments|Identify |New | |1-3 |Standards-setting bodies |Contrast |Same | |1-4 |Determining which standard-setting body sets standards for a |Identify/Explain |New | | |nongovernmental NFP | | ...
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...Discuss the financial controls within governmental agencies, communication of the budgetary process as well as maintaining budget compliance? Local government implements budgets with the common purpose of any financially sound business; to plan and forecast how revenues will be managed. However, local government budget standards are fundamentally different from the common public business enterprises in several important ways. They have different purposes, processes of generating revenues, stakeholders, budgetary obligations, and propensity for longevity. These differences require more stringent audit and financial reporting in order to provide information to meet the same legal and political compliance requirements used to assess government accountability and to make political, social, and economic decisions. Being subject to the constant scrutiny of the public eye is a difficult objective as both, the accomplishments and the mistakes are visible in order to reflect a transparent posture. Nowadays, with the internet, dissemination is a very effective and effortless task. Releasable documents, as more are, become available almost as soon as they are generated. That said, keep in mind that human error, natural disasters, terrorism and other inevitable events may happen and a local government’s efforts and goals to remain in compliance can be destroyed overnight. To mitigate these probabilities of derailment, budgets are implemented with financial controls. Financial...
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...businesses have profit as their main motive whereas the others have service. A primary purpose of financial reporting is to report on an entity’s accomplishments — how well it achieved its objectives. Accordingly, the financial statements of businesses measure profitability, their key objective. Financial reports of governments and other not-for-profits should not focus on profitability, since it is not a relevant objective. Ideally, therefore, they should focus on other performance objectives, such as how well the organizations met their service goals. In reality, however, the goal of reporting on how well they have achieved such goals has proven difficult to attain and the financial reports have focused mainly on financially-related data. 2. Governments and not-for-profits are “governed” by the budget, whereas businesses are governed by the marketplace. The budget is the key political and fiscal document of governments and not-for-profits. It determines how an entity obtains its resources and how it allocates them. It encapsulates most key decisions of consequence made by the organization. In a government the budget is not merely a managerial document; it is the law. 3. Owing to the significance of the budget, constituents want assurance that the entity achieves its revenue estimates and complies with its spending mandates. They expect the financial statements to report on how the budget was administered. 4. Interperiod equity is the concept that taxpayers of today...
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...elements of financial management are planning, controlling, organizing and directing, then decision making. Planning allows the financial manager to identify the steps needed to become successful towards accomplishing an organization’s goals. The manager must identify objectives and steps to accomplish the goals. The financial manager then controls each department of the organization. One way to oversee a departments’ progress is by comparing past and current departmental reports. Organizing and directing go hand in hand, but before directing the financial manager must organize and research an organization’s resources. The purpose of evaluating resources, determines how effectively objectives are accomplished. Directing ensures the effective use of resources and providing supervision. Decision making allows the manager to make intelligent choices about accomplishing the goals of an organization. The generally accepted accounting principles or G.A.A.P. are accepted ways of reporting and recording organizations financial information .They are the rules used to arrange and regulate financial account reporting. G.A.A.P. includes recognition of revenue, balance sheets, and outstanding share amounts. Organizations are required to follow the principles when reporting their financial statements. Professional accountants must abide by ethical standards that standarize the way they conduct business.The Financial Accounting Standards Board, professional accounting and finance...
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...CAFR BUDGET ANALYSIS 2 CAFR Budget Analysis The Governmental Accounting Standards Board (GASB) and the Financial Accounting Standards Board (FASB) serve similar functions for different accounting entities. The GASB maintains accountability over state and local governments, while the FASB maintains adherence to standards for not-for-profit entities. Both governments and not-for-profit organizations use an expenditure approach to accounting where budgetary needs are the first priority over financial statements. Governments however, have additional reporting items that fall within the purview of the power to summon resources. Governments and not-for-profit entities have a different business model than that of for-profit organizations, because governments and not-for-profit entities primary business goal is something other than profit. Governments differentiate themselves from not-for-profit entities by the ability to use taxes, licenses, and legislature as a means to levy revenue to pay for expenses. Not-for-profit organizations primarily use grants, investments, and contracts to earn revenue (Copley & Engstrom, 2007). Modified Accrual Method Since governments and not-for-profit organizations use a different business model than traditional businesses, a modified accrual method is used to account for assets, liabilities, and capital. The GASB and FASB allow for the creation of individual accounting entities called funds that track the funding and expenses for that entity. Each...
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...Paulding County, GA Financial Statement / Audit Report Review Government and Not-For-Profit Accounting, ACC 410 November 2, 2014 Financial Statement /Audit Report Review This is the Audit Report Review of the evaluation of the Government-wide Financial Statement and the Fund Financial Statement of Paulding County, Georgia. Under compliance of the Governmental auditing standards, GASB Statement No. 34, Paulding County’s report includes Government-wide financial statements, which include the Statement of Net Assets and the Statement of Activities. Also released by Paulding County is the required second set of statements, the Fund financial statements, that include the Balance Sheet-Governmental Funds, Reconciliation of the Governmental Funds Balance Sheet to the Statement of Net Assets, the Statement of Revenues, Expenditures, and Changes in Fund Balances-Governmental Funds, and the statements associated with the other governmental fund categories, general, propriety and fiduciary. The county’s fiscal year ended June 30, 2013 and the reports were released on December 16, 2013 (Paulding County, GA 2013). Mauldin & Jenkins CPA, LLC of Atlanta, Georgia, independently audited the county’s basic financial statements. They audited the business-type activities, the comprehensive discretely presented component units, each major fund, and the aggregate remaining fund information of Paulding County. The component units are either 1) legally separate entities for which the...
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...ACC 410 Assignment 1 Financial Statement / Audit Report Review Follow Below Link to Download Tutorial https://homeworklance.com/downloads/acc-410-assignment-1-financial-statement-audit-report-review/ For More Information Visit Our Website ( https://homeworklance.com/ ) Email us At: Support@homeworklance.com or lancehomework@gmail.com Assignment 1: Financial Statement / Audit Report Review Due Week 4 and worth 240 points Select one (1) local government in your state or area and review the financial statements and audit report for the county or municipality. The financial statements of the government you selected should have at least three (3) funds. Refer to the continuing problem homework for Weeks 1 through 3 for this assignment. Write a three to five (3-5) page paper in which you: 1.Compare and contrast the comprehensive annual financial report (CAFR) of the selected local government entity with the city of Austin report from Week 1 homework. In your comparison, include: a.Publication method of the CAFR b.Audit and budget information in the CAFR c.The type of audit report issued d.Existence or non-existence of an internal audit function within the government entity 2.Prepare the analysis for the selected local government entity, including information on the introduction, financial section, and statistical section prepared in the city of Austin’s CAFR from chapter 2. 3.Analyze the methods used by the selected local government entity in comparing...
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...Week 3 Questions 1. There are three main sections of this report which are titles the introductory, financial, and statistical sections. 2. A) Their annual report for 2007 was awarded a “certificate of achievement for excellence in financial reporting by the Government Finance Officers Association. This certificate is awarded when the reports meet in the standards of accounting and reporting of the Government Finance Officers Association. B) The key issues addressed in the letter of transmittal are; -The overview of City’s government and economic condition and economic outlook. -Major initiatives; Waller creek Tunnel Project, Zero Waste Initiative Redevelopment of Green Water Treatment Plan & Austin Climate Protection Plan. -Others; Financial Policies, Internal Controls, Budgetary Control, Cash Management, Risk Management and Pensions. -Certificate of Achievement for Excellence in Financial Reporting. -Acknowledgements 3. A) Yes, the city received an unqualified audit opinion. B) Yes, the report contains management’s discussion and analysis. The key issues are: Financial Highlights, Overview of the Financial Statements, Financial Analysis of the Government-Wide Statements, Financial Analysis of the Government’s Fund Level Statements, and Other Information. C) The report does provide reconciliation between total governmental net assets per the government-wide statement of net assets and total governmental fund balances per the governmental fun balance...
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...businesses have profit as their main motive whereas the others have service. A primary purpose of financial reporting is to report on an entity’s accomplishments — how well it achieved its objectives. Accordingly, the financial statements of businesses measure profitability, their key objective. Financial reports of governments and other not-for-profits should not focus on profitability, since it is not a relevant objective. Ideally, therefore, they should focus on other performance objectives, such as how well the organizations met their service goals. In reality, however, the goal of reporting on how well they have achieved such goals has proven difficult to attain and the financial reports have focused mainly on financially-related data. 2. Governments and not-for-profits are “governed” by the budget, whereas businesses are governed by the marketplace. The budget is the key political and fiscal document of governments and not-for-profits. It determines how an entity obtains its resources and how it allocates them. It encapsulates most key decisions of consequence made by the organization. In a government the budget is not merely a managerial document; it is the law. 3. Owing to the significance of the budget, constituents want assurance that the entity achieves its revenue estimates and complies with its spending mandates. They expect the financial statements to report on how the budget was administered. 4. Interperiod equity is the concept that taxpayers of today...
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...The County of San Diego CAFR Analysis Introduction The first recorded history of San Diego started when San Diego Bay was first discovered by the Europeans in the present state of California. Native Americans tribe which is named “Kumeyaay” had been living in San Diego area for as long as 12,000 years before the Portuguese explorers discovered this area in 1542. After about 200 years, Father Junipero Serra established the first permanent European settlements in California, so that San Diego is also considered the “birthplace” of California. In 1848, San Diego became a part of the U.S. and was named San Diego County on February 18, 1850. San Diego remained a small town for decades, due to the development and establishment of Military bases, it expanded quickly after 1880. During and after World War II, the economy of San Diego grew rapidly based on the military, defense industries, tourism, international trade, and manufacturing. San Diego County is the most southwestern county in the United State, which located in the southwestern corner of the States of California. Its county seat and largest city is San Diego and it is now the 8th largest city in the United States. According to the estimation by U.S. Census Bureau, San Diego County's estimated population for January 1, 2014 was 3,194,362 people and household population is 1,076,483 (State & County Quick Facts, 2014). An increase of approximately 1.4 % comparing with the estimated 3,150,178 people in January...
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...Funding Allocation and Accountability Rena Godfrey Capella University ED7822 Funding of Educational Institutions Quarter & Year: Winter 2013 Email: renag1934@gmail.com Instructor: Lee Moore, Ed.D. Funding Education and Accountability Financial reporting ensures that school district budgetary and financial information are available, comparable and audited, and that school districts are meeting their legislated and government policy based financial responsibilities. Background of Emergency Financial Manager An interview was not conducted with the school business manager of Detroit Public Schools. Therefore, I researched the school district plan to demonstrate accountability (Detroit Public Schools, 2011). Roy S. Roberts was appointed by Governor Rick Snyder of Michigan in May 2011. Mr. Roberts, former Managing Director at Reliant Equity Investors, has decades of managerial, financial and organizational experience, having served as the highest ranking African American executive in the United States automobile industry as Group Vice President for North American Vehicle Sales, Service and Marketing of General Motors Corporation (GMC). He served as Vice President and General Manager of the Pontiac-GMC Division, presiding over the merger of Pontiac-GMC, which was the first at GM to lead such a merger. Prior to his 23 year career with General Motors, Mr. Roberts spent 17 years with the Aerospace division of Lear Siegler Corporation. Mr. Roberts earned a degree in Business...
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