... Full disclosure financial reporting Full disclosure financial reporting Mary Miller ACC/421 Intermediate Financial Accounting 1 University of Phoenix Cathy Reed October 8, 2012 Full disclosure principle in accounting The full disclosure principle in accounting is the action of revealing or reporting every detail of economic transactions, which can affect the financial position of the business and other people who use the financial statements, such as investor, creditors, etc. (What is the full disclosure principle? web -site). Why has disclosure increased substantially in the last ten years? During the last ten years, the full disclosure increase substantially because the FASB has issued several substantial disclosure provisions, such as Complexity of the Business Environment, Necessity for Timely Information, Accounting as a Control and Monitoring Device with the purpose to protect investors and the public security. Need for full disclosure in financial reporting Full disclosure in financial reporting is necessary because this report reflects the financial activities of the business, if this report is not accurate, and if information omitted or altered affects the decisions of the person using or reading the reports. The government created the SEC and FASB; these two organizations set guidelines to ensure that companies and business disclose the information required by the law. A full disclosure of a financial report...
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...Causal reasoning in financial reporting and voluntary disclosure This paper examines causal reasoning, applying the theories to financial reporting. Causal reasoning involves diagnosis (determining the cause of an effect) and prediction (vice versa). These are important and commonplace amongst analysts, investors and management regarding company earnings and share prices. However, there is very little recent research employing causal reasoning theories to this field. Attribution theory describes how causes are attributed to past events. This may be dispositional (attributed to a person) or situational. In a single instance of an outcome, correspondent inference theory suggests diagnosis is based on choice, expectations and intent. Expected, freely chosen behaviour is considered to be dispositional, whereas unexpected, forced behaviour is attributed to situation. Attributing intent is simplest when considering behaviour with only one positive effect. When an outcome occurs numerous times, covariation theory describes possible cause attribution. This involves looking at cases where the suspected cause is present/absent and matching them to instances where the outcome is present/absent, utilising information on consensus (how others behave), distinctiveness (how the individual behaves in different circumstances) and consistency (how the individual has behaved in similar circumstances). Consistency should be high to make a good attribution judgement. When consensus and distinctiveness...
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...Labor Relations and Legislation Labor relations are defined as the relationships between the employer and the employee, specifically the unionized employee. It is a set of activities and procedures used to clarify, manage, reduce, and resolve conflicts between an employer and union members (Fossum, 2005). Federal and state laws and regulations govern the conduct of employers and unions in the administration of employee representation and collective bargaining. Prior to the 1930s few laws were in place to protect workers who were unionized or seeking to join or create a unionized work force. Instead, employers had the liberty to spy on, question, punish, black list and fire union members or workers seeking to unionize. However, with the enactment of the Wagner Act, also known as the National Labor Relations Act (NLRA), in 1933 the tide of opposition began to turn in favor of the unionization of workers. United States labor law consists primarily of the Norris-LaGuardia, Wagner, Taft-Hartley, Landrum-Griffin Acts, and Public Law 93-360. These laws enable collective bargaining, regulate labor and management activities, and limit intervention by the federal courts in lawful union activities. Norris-LaGuardia Act In 1932, the Norris-LaGuardia Act was passed. This act had several provisions. It established the law that workers should be free to unionize without employer interference. It removed the federal courts jurisdiction to issue injunctions in nonviolent labor disputes...
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...relevance do they have to the MI situation? How did the Governor use them, if at all? (No more than 400 words). | Edwina Howard-Agu2-27-2014 | Taft Hartley and Landrum-Griffin Acts as legal precedent was relevant to the decision made by Governor Rick Snyder and his legislative body that supported his platform to make Right to Work a reality in Michigan in December 2012. The Legislature passed the bills and Governor Snyder signed them, he was within his legal authority to make such a decision based on the Taft Hartley and Landrum-Griffin Acts. The Labor-Management Reporting and Disclosure Act (LMRDA) also known as the Landrum-Griffin Act deals with the relationship between a union and its members. The LMRDA grants certain rights to union members and protects their interests by promoting democratic procedures within labor organizations. The Act establishes a Bill of Rights for union members; reporting requirements for labor organizations, union officers and employees, employers, labor-relations consultants, and surety companies; standards for the regular election of union officers; and safeguards for protecting labor organization funds and assets (www.nlrb.gov/who-we-are/our-history/1959-landrum-griffin-act). In the United States today there are 24 states that have passed Right to Work legislation. A Right to Work Law secures the right of employees to decide for themselves whether or not to join or support a union financially. Employees who work in the railway or airline...
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...THE ROLE OF SOCIAL AND ENVIRONMENTAL REPORTING IN THE ORGANIZATIONS Author: Mohamed Anas (2015) INTRODUCTION There has been an increase in demand for environmental and social reporting as well as other non-financial information by shareholders and users of financial statements. In early 2000’s the stakeholders and shareholders are only concerned with the financial performance but now the trend has changed as that the shareholders and stakeholders who believed that the organization should be responsible to the environment and society in which they operate the business, and therefore it needs to be good for the community. This has caused that many laws and regulations such as environmental and social laws, employment laws, anti-corruption laws and good governance laws developed by the states to protect the environment and social issues icons. The concept of social responsibility has been raised in the context of this because the organization must be committed to run the business ethically and contribute for the growth of the economy, and at the same time improving the standard of life of employees and their families as well as for the society they operate their business and future generation. REQUIREMNT OF THE CURRENT CONCEPTUAL FRAMEWORK Conceptual framework is a guideline issued by international accounting standard board (IASB) for the development of international accounting standards (IAS). It is a practical tool that assist IASB to develop standards and assist preparers...
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...one of a truly global perspective. There are few businesses left in this world that does not conduct business on an international basis. The need for a universal accounting system is a direct result of the magnitude of international business. Investors, managers, CEOs, and virtually all stakeholders need to understand the accounting information of the other businesses they interact with, regardless of the country or region of the world that business is located. “The effort to join the international financial community in a single set of standards has been in motion for over 40 years. The International Accounting standards Committee was formed in 1973. This committee evolved into the International accounting Standards Board (IASB) in 2001. International security regulators supported accounting regulators in the call for universal standards” (Thomas, 2009, p. 369). “The regulators in the U.S. have been slow to join the efforts for global convergence. In 2002, the Financial Accounting Standards Board (FASB), which issues U.S. GAAP, and the International Accounting Standards Board entered into the Norwalk Agreement. This agreement acknowledges their commitment to high quality accounting standards for use domestically and across borders. This agreement aims to remove the differences between U.S. GAAP and IFRS standards, keep standards in agreement after initial convergence, continue work on joint projects, and coordinate future activities” (Thomas, 2009, p. 370). In 2005, Donald...
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...Going Concern Group 4 ACCT 632, Advanced Financial Acct Theory Liberty University Aug 7, 2013 GOING CONCERN Summary of Going Concern current exposure draft Comparison and Contrast of current Going Concern theory and standards 1 Guidance provided by AU Section 341 2 Guidance provided by 17 U.S.C. §229.303 3 Proposed guidance of exposure draft Comparison and Contrast of U. S. GAAP and IFRS with respect to Going Concern 1 Current Going Concern variations between U. S. GAAP and IFRS 2 Variations between proposed changes to Going Concern issues The Benefits and Costs of a Going Concern Amendment 1 Providing preparer guidance 2 Making management responsible 3 Addressing investor concerns Provisions in light of the FASB’s Conceptual Framework 1 Understandability 2 Decision usefulness 3 Relevance 4 Comparability Response to Going Concern Exposure Draft 1 Proposed changes or corrections to the current exposure draft References Going Concern People go into business for many reasons, but no one goes into business with the expectation that they are not going to be successful. For that reason, acquisition is made for those assets that are needed to run the company with the understanding that there will be no need to arrange for early liquidation. Because there is no prediction to inform someone that their business may or may not make it, managers must rely...
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..._____________ We thank Wendy Hsu, Tasha Grieve, Dessalegn Mihret, Lalith Seelanatha and Anthony Vu for data collection assistance. We also acknowledge the financial support of the Accounting and Finance Association of Australia and New Zealand (AFAANZ), UWA Business School and the University of Southern Queensland. We thank Millicent Chang, John Holland, Izan and seminar participants at Monash University and the University of Queensland for their helpful comments. We particularly acknowledge the assistance of Philip Brown and John Preiato in the preparation of this paper. IFRS adoption and analysts’ earnings forecasts: Australian evidence Abstract We study 145 large listed Australian firms to explore the impact of IFRS adoption on the properties of analysts’ forecasts and the role of firm disclosure about IFRS impact. We find that analyst forecast accuracy improves and there is no significant change in dispersion in the adoption year, suggesting that analysts have benefited from IFRS adoption. We measure firms’ IFRS impact disclosures in their financial statements issued at the end of the transition and adoption years. Transition year disclosure was not associated with forecast error and dispersion in the adoption year. However, more disclosure by firms during the adoption year (proxied by their adoption year-end financial...
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...Testbank to accompany Company Accounting 10e by Ken Leo, Jeffrey Knapp, Sue McGowan & John Sweeting Prepared by Peter Baxter [pic] © John Wiley & Sons Australia, Ltd 2015 Chapter 1: Nature and regulation of companies Multiple-choice questions 1. The advantages of a company over a partnership and sole trader do not include which of the following? a. Members are able to sell their shares at any time to another person without having to obtain permission from the other members. b. Members are liable for only a limited amount of the company’s debts. c. A company has a legal existence distinct from its owners. *d. A company is only entitled to raise small amounts of cash by issuing shares. Correct answer: d Learning Objective 1.1 ~ summarise the nature and attributes of a company 2. In Australia, the Corporations Act 2001 is administered by the: a. Australian Securities Exchange. b. Australian Accounting Research Foundation. *c. Australian Securities and Investments Commission. d. Securities and Exchange Commission. Correct answer: c Learning Objective 1.1 ~ summarise the nature and attributes of a company 3. The two main types of companies permitted to be registered under the Corporations Act 2001 are a: a. private company, and a proprietary company. b. public company, and a trade union. *c. proprietary company, and a public company. d. proprietary company, and a partnership...
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...authorized. *Accounting estimate—An approximation of a monetary amount in the absence of a precise means of measurement. This term is used for an amount measured at fair value where there is estimation uncertainty, as well as for other amounts that require estimation. Where ISA 540 2 addresses only accounting estimates involving measurement at fair value, the term “fair value accounting estimates” is used. *Accounting records—The records of initial accounting entries and supporting records, such as checks and records of electronic fund transfers; invoices; contracts; the general and subsidiary ledgers, journal entries and other adjustments to the financial statements that are not reflected in formal journal entries; and records such as work sheets and spreadsheets supporting cost allocations, computations, reconciliations and disclosures. Agreed-upon procedures engagement—An engagement in which an auditor is engaged to carry out those procedures of an audit nature to which the auditor and the entity and any appropriate third parties have agreed and to report on factual findings. The recipients of...
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...testing effective? What are the difficulties? Do we need all of these disclosures? What are some of the alternatives? We have three unanswered questions A call to action Appendix 1: The interviewees Appendix 2: References and notes Acknowledgements © 2014 KPMG IFRG Limited, a UK company, limited by guarantee. All rights reserved. Who cares about goodwill impairment? | 1 TIME TO ENGAGE On 30 January 2014, the IASB launched the public phase of its post-implementation review of business combinations accounting when it released a Request for Information.1 We believe that a key aspect of the review is the impairment-only accounting model for goodwill, which was introduced in 2004. Comments are due to the IASB by 30 May 2014, so now is the time for all stakeholders to provide their feedback on this emotive topic. The Request for Information essentially asks three questions in relation to goodwill impairment testing. • How useful have you found the information obtained from annually assessing goodwill for impairment? • Do you think that improvements are needed regarding the information provided by the impairment test? • What are the main implementation, auditing or enforcement challenges in testing goodwill for impairment? With this in mind, we interviewed a sample of stakeholders to find out what they think about goodwill impairment testing – its relevance, its effectiveness, the difficulties and the disclosures. This report is not, and was not designed to be, a statistical survey...
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...Report on Disclosure of BASs & BFRSs By Golden Harvest Agro Industries Ltd. & Bangladesh Steel Re-Rolling Mills United International University QUEST FOR EXCELLENCE acade Report On: Golden Harvest Agro Industries Ltd. & Bangladesh Steel Re-Rolling Mills Limited Topic: Disclosure of BASs & BFRSs Course Title: Corporate Financial Reporting Course Code: AIS 4303 Submitted To: James Bakul Sarkar Assistant Professor & Deputy Director, BBA Program United International University Submitted By: Name | ID | Section | Fyaz Mahbub Rohan | 114 121 025 | A | Md. Ariful Islam | 114 121 045 | | Md. Hasan Alif | 114 121 091 | | Safayet Mustafa | 114 121 107 | | Ahmed Zubaier | 114 121 020 | | Anik Kumar Das | 114 121 064 | | Moniruzzaman Khan | 114 131 048 | | Date of Submission: 20th April 2016 Fyaz Mahbub Rohan (114 121 025): a. Front Page DesignContribution of Group Members b. Introduction c. Summary of BAS s & BFRSs d. Company Overview e. Disclosure of BAS s & BFRSs f. Conclusion g. Data Collection Md. Ariful Islam (114 121 045) a. Letter of Transmittal b. Executive Summary c. Introduction d. Summary of BAS s & BFRSs e. Disclosure of BAS s & BFRSs Md. Hasan Alif(114 121 091) a. Summary of BAS s & BFRSs b. Disclosure of BAS s & BFRSs c...
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...and trade. Investors can trade shares and securities worldwide. Entities are in a position to access the funds globally in the most advantageous markets. For this, investors from all over the world rely upon financial statements before taking decisions. They need to be convinced that the financial statements are true and fair and what they understand from the statements is what the person preparing them intends to convey. However, different countries adopt different accounting treatments and disclosure patterns with respect to the same economic event. This may create confusion among the users while interpreting the financial statements. Financial statements that are based on a single, universally accepted and used GAAP will enable the world to exchange financial information in a meaningful and trustworthy manner. This will accelerate the globalisation of finance. Adoption of IFRS worldwide and in India The use of International Financial Reporting Standards (IFRS) as a universal financial reporting language is gaining momentum across the globe. Several countries have implemented IFRS and converged their national GAAP to IFRS. More than 100 countries throughout the world, including the 27 European Union member states, require or permit the use of International Financial Reporting Standards (IFRSs), developed by the IASB. The number of countries adopting IFRS is expected to increase to 150 by the end of 2011. Countries such as China and Canada have announced their intention to adopt...
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...[pic] SOUND FINANCIAL REPORTING IS A GOOD THING FOR BRINGING CONFIDENCE BACK TO THE CORPORATE WORLD Submitted By: Ahmed Shafiul Huq 801414063 Principle of Accounting (EIB505) Section: B Executive Master of Business Administration Submitted To: Mr. Mohammad Rakib Uddin Bhuiyan Assistant Professor Department of International Business Faculty of Business Studies EXECUTIVE SUMMARY A company’s financial reporting amalgamates important documents to create an effective spreadsheet to simplify the financial data of an organization. It captures much of the information that organizations prepare, publish, and use. Financial reporting plays an integral role in the capital markets and economic stability and growth, and efforts to enhance its quality are vital. A Sound Financial Reporting provides us relevant, meaningful, reliable, accurate and comprehensive reporting of management stewardship whether in the form of numbers or other operating data. It is increasingly important for businesses to be financially transparent and for governments to establish a sound regulatory environment for corporate financial reporting. Sound financial reporting can benefit business by some ways just like valuing business, easy to identify...
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...the performance obligation is the lower of a) the costs that relate directly to satisfying the performance obligation by transferring the promised goods and services, and b) the amounts that the entity would be permitted to pay to exit the performance obligation. An entity should initially recognize an onerous performance obligation as a liability and update the measurement of the liability for this onerous performance obligation for changes in circumstances at each reporting date. The onerous test acts as an application of accounting conservatism in revenue recognition, which requires recognizing all probable losses as they are discovered and deferring revenue until it is verified. As providing users with important information by, in effect, remeasuring performance obligations to reflect significant adverse changes in circumstances on a timely basis, the onerous test increases the relevance because the estimated loss on performance obligation is recognized early on the financial statement. However, the financial statement information may not fully faithfully represent what it is intended to present, which implies that onerous test decreases reliability. Firstly, the early loss the onerous test...
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