...Wonder Amusements Limited Case Study (1) Fabio & Fox, CA Dear Partner, As per your request we have prepared a report regarding Wonder Amusements Limited (“WAL”) for your next meeting with its CEO Leo Titan. We have conducted a thorough analysis of the situation, and have identified a few issues. The issues we are discussing in this report are: appropriate GAAP for the company, the stakeholders and their needs, cost capitalization, revenue recognition, necessary disclosures, and risk factors pertaining to Leo's business proposals. The purpose of this report is to give feedback to Leo Titan regarding his accounting strategy and ensure that Wonder Amusement Limited is compliant with the necessary GAAP. We present our findings, focusing on individual points of our previous discussion with Leo. Background and Introduction WAL is a private corporation; all of the shareholders are family members of Howard Smith, the majority and controlling shareholder. None of the family is actively involved in operating the business, and are thus quite dependent on the financial statements. WAL uses ASPE, and there is no indication because of stakeholder needs or future plans that IFRS would be more appropriate. The standard accounting assumptions seem appropriate, including continuity;...
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...Income Tax Expenses 3 2.2.2 No deferred tax liability 4 2.2.3 Tax losses 5 2.3 Information utility to users of financial report of deferred tax liabilities 6 3.0 Conclusion 7 References 8 1.0 Introduction Accounting Standard AASB 112 (Income Taxes) prescribe the accounting treatment for income taxes. As stated by Leo, Hoggett, & Sweeting (2012), transactions undertaken by an entity and other events affecting the entity have two separate effects, which are current and future tax consequences. This is because accrual principal is applied on accounting treatment whereas income tax treatment uses the cash flow method. For accounting treatment, accounting profit is profit or loss for a period before deducting tax expense whereas for income tax treatment, taxable income described as gross income minus any allowable deduction. Difference between accounting and tax treatments lead to taxable temporary differences and deductible temporary differences. Discussion was carried out to determine how exploration and development cost create a deferred tax liability, analyse the argument presented by the directors in view of the AASB 112 and discuss the infromation ultility to readers of annual report of including or excluding deferred tax liability. 2.0 Discussion 2.1 Exploration and Development costs creates a Deferred Tax Liability As stated by Leo, Hoggett, & Sweeting (2012), deferred tax liability is the amounts of income taxes payable in future periods in respect...
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...with tax-effect method involves the occurrence of tax consequences due to different treatments are applied for transactions and other events happened inside an entity for accounting and taxation purposes, namely current tax consequences and future tax consequences. The purpose of this report was to identify and analyze the reasoning behind the responsibility of exploration and development costs (E&D) for the creation of a deferred tax liability (DTL) and its treatments for both accounting and taxation purposes. Moreover, the analysis was performed with reference to case study of Gravatt Ltd., a company operating in the mining industry where its directors arguing on the disadvantages of applying tax-effect accounting standards of AASB 112 and rather not to comply with one. This report was not discussing only on the rationale behind deferred tax liabilities according to AASB Framework for the Preparation and Presentation of Financial Statements and AASB 112 Income Taxes, but also the comparison of the impact on information utility captured by the users of financial statements of Gravatt in case of recognizing and unrecognizing deferred tax liabilities to be reported on its annual reports. 2. Discussion 2.1 Deferred Tax Liabilities Deferred tax liabilities (DTL) can be defined as “the amounts of income taxes payable in future periods in respect of taxable temporary differences”, as expressly stated in AASB 112 Income Taxes (Australian Accounting Standard Board, 2012,...
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...Lateral violence in the workplace Lona A Smeltzer Southern New Hampshire University Lateral violence in the workplace Abstract This paper explores five published articles as they relate to the concept of Lateral violence (LV) within the nursing profession and how it directly affects the work environment. The concept of LV is also known as abusive behavior, horizontal violence, bullying, aggression, horizontal hostility, verbal abuse or “nurses eating their young”. There are four main themes that appear throughout the five articles. The negative effects that LV has on nurses’ health, moral and sense of worth. The negative impact that LV has on patient care and outcome. The negative impact that LV has on the recruitment and retention of nurses by health care organizations. And who should be responsible for eliminating the phenomenon. Within the articles there is a shared belief that strong leadership is needed to create codes of conduct and enforce zero-tolerance policies. Employees should be provided education and training on effective communication skills as well as conflict resolution. Furthermore nurses should hold themselves accountable through adopting and modeling professional ethical behaviors so that LV can be eradicated from the professional workplace. Keywords: abusive behavior, lateral violence, horizontal violence, bullying, aggression, horizontal hostility, verbal abuse, nurse eating their young. Thesis Even though nursing is known as a caring...
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...to users who lack knowledge about information and the it also reflect an entity perspective focussing on the needs of all capital provides, not just equity investors. The financial statement must truly reflect the qualitative characteristics of information (Leo et al, 2009). However, IASB and FASB try to develop a new conceptual framework recently. The project's objective is tried to create a new sound foundation for future accounting standards that are principles-based, internally consistent and also internationally converged. This assignment is about if Australia accepted the financial reporting that proposed in ITC 17, will it affect AASB and is there any inconsistency with the AASB? Discussion As mentioned earlier, in accounting, the separate entity concept treats a business as separate from its owners. In other words, the business is separate with the owners as economic unit (Financial Accounting Series, 2008). It is important for business has separate transactions with the owner’s personal transactions. Under SAC 1 Definition of the reporting entity is ‘general purpose financial report" means a financial report intended to meet the information needs common to users who are unable to command the preparation of reports tailored so as to satisfy, specifically, all of their information needs (Board, 2008) .’ Both IASB and FASB published documents that seek public comment on two of the eight phases of their joint project to develop an improved conceptual framework (Financial...
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...EXECUTIVE SUMMARY The report aim’s to examine the annual reports of Australia’s two largest mining companies BHP Billiton and Rio Tinto and analyse their cash flow statements. The analysis requires evaluating the cash flow performance of these companies during the global financial crisis 2007- 2009.The global financial crises were originated in US because of the bloom/bubble in the housing prices. During global financial crisis many financial institutions failed to recoup their money from lenders and finally ended up declaring bankruptcy. The purpose of the cash flow statements is to provide information about the changes to an entity’s cash and cash equivalents over certain period of time. The cash flow from operating activities of the both companies shows both positive and negative signs as the companies were going through recession. Whereas both companies used external and equity source financing and thus made an efficient cost effective decisions from which BHP Billiton benefited the most. Finally it’s concluded that the both companies were successful in overcoming global financial crisis and alternative strategies affecting the profitability of the companies were presented. Introduction Last three years has faced the worst global financial crisis after the great depression of 1929-1933. The origin of global financial crisis was mainly in US starting from mid 2000’s and taking the whole world into account by the end of 2007. The main reason of the crisis...
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...AN ANALYSIS ON TAN SRI DATUK AMAR LEO MOGGIE: CAN CORPORATE GOVERNANCE BE THE ACCELERATOR? INTRODUCTION Tenaga Nasional Berhad (TNB) is the largest electricity utility in Malaysia and a leading utility company in Asia. Listed on the Main Board of Bursa Malaysia with almost RM87 billion in assets, the Company’s more than 33,500 employees serve an estimated 8.3 million customers in Peninsular Malaysia, Sabah and Labuan. TNB has been Keeping the Lights On in Malaysia ever since it was set up as the Central Electricity Board in 1949, powering national development via the provision of reliable and efficient electricity. TNB’s core businesses are in the generation, transmission and distribution of electricity. In Peninsular Malaysia, the Company supplies households and industry with electricity generated from six thermal stations and three major hydroelectric schemes. It also manages and operates the National Grid which links TNB power stations and IPPs to the distribution network. The grid is connected to Thailand’s transmission system in the north and Singapore’s transmission system in the south. In East Malaysia, TNB has an 80% equity in Sabah Electricity Sdn. Bhd. (SESB), which manages the Sabah Grid. Other than its core business, TNB has diversified into the manufacture of transformers, high voltage switchgears and cables; the provision of professional consultancy services; and architectural, civil, electrical engineering works and services, repair and maintenance....
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...Abstract The intent of this essay is to discuss financial reporting is both a reflection and creator of our perception of social reality and is consistently evolving. By means of research of these source collections, relevant evidence is selected, evaluated and organized into three key areas: the Carbon tax legislation represents a creation of a new social reality and the impact on sustainability in business. The carbon tax would be represented in the financial reports. To introduce the particular company and legislation impacts on that company. The Framework shows that the financial reporting is present relevant and reliable information. Some experts considered that the insufficient information on financial reporting impact on social reality. Thus, the Sustainability reporting occurs to fix up the fanatical reporting gaps. Introduction Financial reporting is both a reflection and creator of our perception of social reality and consistently evolving. Currently, accounting system is not only focus on the data of how much company earns, it also shift towards to social responsibility. As the dramatic of pollutions, especially that of the developing nations is extremely harmful not only to the surrounding environment, but also to the inhabitants of that country as well. Thus, financial reporting take concern on such problems and create out Sustainability reporting which help to reduce the pollutions. This essay is to discuss the both reflection and creator of financial reporting...
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...Name Impression Influence on Employment Opportunities Tracy M. Sysk Saint Leo University Introduction A person’s name has been found to have a significant influence on other’s perception of their characteristics. This may be due to the impact of first impression phenomenon that can occur such as in the case of seeing a name on a resume. An individual with a perceivably attractive name may be more apt to gain employment than one with a less desirable name (Gueguen & Pascual, 2011). Upon first impression, judgments are made about personality traits such as friendliness, attractiveness, intelligence, and honesty or even reliability (Mahrabian, 200I; Steel & Smithwick, 1989; Aura & Hess, 2008). So, what makes one name more desirable than another? Coleman, Hargreaves & Sluckin (1980) determined that one particular psychological aspect determining name likeableness is familiarity based on commonality (Karlin & Bell, 1995). Albert Mahrabian (1990) developed an approach he used to measure attractive versus unattractive name connotation (additional idea or emotion connected with a word): the Name Connotation Profile model. The four evaluation traits of the NCP model are: 1- “Successful” indicating competence, 2 – “Moral” indicating trustworthiness, 3 – “Popular/Warm/Cheerful” indicating likeableness, and 4 – “Masculine/Feminine” indicating culturally accepted norms for gender. Mahrabian (1997) also compared name attractiveness impressions between genders...
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...size of the items or error judged in the particular circumstances of its omission or misstatement (Wood & Sangster 2008). For example: in the multinational company, a mistake in recording the 100 box of staples may not be important, because the staples are not a material item. Materiality is means the items that is trivial for the business (Wood & Sangster 2008). Reliability “Accounting information is reliable to extent that users can depend on it to represent the economic conditions or events that it purports to represent (Gary & Curtis 2009)”. Reliability of information means that the information is free of error and bias. For example: * Faithful representation Faithful representation is very important to provide the transactions and others event in accounting information. It is also to disclosure the risk of error surrounding recognitions and measurement (John, etal 2006). For example: the Sear, Roebuck’s have the $60billion of the sales, then the Sear, Roebuck’s should reports the $60billion sales on the income statement. If not the income statement is not faithful representation (Weygandt, etal 2003). * Substance over form If the information is to faithfully represent transaction and other events, then it is...
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...Invasive Security: Does it Work Bruno Gerardo Introduction to Canadian Aviation (MOS 1022F) Dr. Suzanne Kearns 23 November, 2011 Abstract On September 11, 2001, the world watched in terror as America was under attack. As a result of these events, the aviation industry was restructured to improve reliability and security of commercial air travel. Although the new security changes have improved the overall safety of air travel, concerns have been raised that the changes introduced are invasive to privacy, and are an infringement of individual rights. Biometric and advanced imaging technology have been criticized for this reason, however, they have been effective at preventing further terrorist attacks. The purpose of this paper is to analyze the security measures that have been introduced as a result of September 11th 2001, and evaluate the effectiveness of the changes and how they impact both safety and privacy. Keywords: Biometrics, Advanced imaging technology, September 11 Invasive Security: Does it Work On September 11, 2001, the world watched in terror as America was under attack. Early that morning, four commercial airliners departed from Newark and Boston with arrivals at San Francisco and Los Angeles were taken over by nineteen hijackers (National Commission, 2004). Two of these aircrafts collided with the Twin Towers in New York City resulting in the destruction of both buildings. An additional aircraft flew into the Pentagon in Washington D.C, and...
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...Every entity at the end of the accounting period will make financial record in order to determine the profit or loss during the period. Any income of the entity must be subject to the tax even though they are having profit or suffering loss. The accounting treatment for income taxes is determined by Australian Accounting Standards Board (AASB) 112 which adopts the tax effect method that incorporates both current and future tax consequences of “transactions and other events of the current period that are recognised in an entity’s financial statements and the future recovery (settlement) of the carrying amount of assets (liabilities) that are recognised in an entity’s statement of financial position”. Through this essay, the author wants to explain how unused tax losses create deferred tax assets, discuss whether these deferred tax assets satisfy definition and recognition criteria for assets according to the AASB Framework for the Preparation and Presentation of Financial Statements and would the answer change if the asset definition in the IASB / FASB proposed Conceptual Framework was applied. As the author is more focus on tax loss, therefore future tax consequences is only focus deferred tax asset. Future tax consequences incurred because there is differences between the carrying amount and the tax base which is known as a temporary differences. The future tax consequences of a temporary difference that decrease taxable income relative to accounting profit which is called...
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...HP plans to ‘cut 30,000 jobs’ INTRODUCTION According to the news, many companies have and are still experiencing retrenchment in recent years. One of these companies is Hewlett-Packard, also known as HP. HP’s chief executive officer Meg Whitman, plans to cut approximately 30,000 jobs to save cost on employment. Her goal is to spend the money she saved on employment on increasing the efficiency of the company’s sales force and on creating new products. One of HP’s senior executive mentioned that Ms Whitman is ‘trying to build a new company’. Such measures have to be taken as the net earnings of HP has dropped by 44% during the first quarter of its fiscal year and the company has lost much of its share price. STRUCTURAL UNEMPLOYMENT Structural unemployment arises when changes in technology or international competition changes the skills needed to perform jobs or change the locations of jobs. In this case, structural unemployment is happening because HP needs more money to fund the research and production of new products. According to the news article, HP has been late or unsuccessful in many recent trends such as providing cloud computing services for big companies and smartphones and tablet computers. International competition refers to competing with other major computer brands like Apple, Acer, Dell, Toshiba, Asus, and many others. Ms. Whitman plans to put money into sales technology for things like fast product quotes, customer tracking and servicing, and bill...
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...of Salvadorans, Hondurans, Guatemalans, and other Central/South American immigrants – has ignited terror and havoc in communities throughout the United States by committing heinous crimes, such as drug distribution, murder, rape, home invasions, immigration offenses and many more. The notoriety of MS-13 and the level of violence that has ensured has captured the nation’s attention, as well as the president himself to which he has branded these gang members as “animals.” CNN and The New York Times have commented on the situation: CNN explaining Trump’s attempts to rid the nation of MS-13 members, while The New York Times described how Trump has exaggerated false claims regarding MS-13 deportation numbers. This current spectacle relates to Leo Chavez’s Latino Threat Narrative in the sense that the gang and criminal activity demonstrated by MS-13 is being associated with any person who crosses the border, and the immigration and deportation measures being taken is negatively affecting those entering the United States with good intentions....
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...extend to other cities with large minority populations, such as Baltimore, Maryland” (Keneally, 2010, pg. 946). Race should never be a deciding factor during jury deliberation. Jurors should follow the full extent of the law, and should not put their personal beliefs before there civic duty as a juror. When trying to decide whether or not ethnicity influences court room proceedings and judicial practices, the information was unable to provide definitive proof one way or the other. Some of the research that was found was still very interesting. “In a study of more than 5,000 male defendants across ten federal court districts, Albonetti et al. report that defendants with lower levels of education and income receive significantly more serious pretrial release decisions, controlling for community ties and dangerousness. Moreover, they report that white defendants benefited more from the (non-legal) effects of...
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