...of Contents Introduction Discussion 1.Research and report on the floors in Queensland 2 Discuss six items 2.1 Items of inventory destroyed or damaged 2.2 Collectability of accounts receivable 2.3 Unfulfilled contract to supply books 2.4 Replacement cost of damaged PP&E 2.5 Cleaning up costs in May 2011 2.6 Receiving Government Assistance Conclusions Recommendations References Appendices EXECUTIVE SUMMARY This research report provides an analysis and evaluation of the current state of Milley Ltd which is a book publisher located in Brisbane. The company's office and warehouse suffered damage during the recent floods and storms. The circumstance resulted accounting issues about the presentation of financial reports for the year ending 31 March 2011. Methods of analysis include background reflection of floods in Queensland to some board members and discussion about six aspects items: damaged inventory, collectability of accounts receivable, unfulfilled contract to supply books, replacement cost of damaged PP&E, cleaning up costs in May 2011 and receiving Government Assistance. By analysing above six items which supported by AASB standards and Framework, the Board of directors will...
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...realizable value. Cost of the certain finished goods that are purchased for resale in relation to semiconductor repair services cannot be determined using the LIFO because the IFRS does not permit the use of LIFO. b. Impairment. IFRS requires reversal of inventory impairments in the period in which an impairment condition reverses (with the reversal limited to the amount of the original write-down). 3. Property, Plant, and Equipment a. Cost. After initial recognition, IFRS permits two measurement alternatives: at cost less accumulated depreciation; or, if fair value can be measured reliably, at a revalued amount that equals its fair value at the date of the revaluation less any subsequent accumulated depreciation. An entity must make an accounting policy choice to use either the cost model (that would be consistent with U.S. GAAP) or the revaluation model to measure each class of PP&E. The accounting policy that is selected must be applied to the entire class of PP&E. b. Depreciation. IFRS requires that each part of an item of PP&E with a cost that is significant in relation to the total cost of the item shall be depreciated separately. c. Impairment. IFRS requires that an impairment loss is calculated as the excess of the asset’s carrying amount over its recoverable amount. The recoverable amount is the higher of the asset’s (1) fair value less costs to sell and (2) value in use. U.S. d. Impairment reversal. Under IFRS, long-lived assets (other than goodwill) must be...
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...Instruments in November 2009, which dealt with the classification of financial assets and aspects of their measurement (Anna-Maija Lantto, Petri Sahlstrom, 2009). Consequently, the AASB first issued AASB 9 Financial Instruments in December 2009. After that, the IASB re-issued IFRS 9 in October 2010, setting out requirements for the classification, and aspects of measurement, recognition and derecognition of both financial assets and financial liabilities. Most of the requirements for financial liabilities were carried forward unchanged from IAS 39. However, some changes were made to the fair value option for financial liabilities to address the issue of own credit risk. The AASB re-issued AASB 9 Financial Instruments, which incorporates IFRS 9 Financial Instruments, in December 2010.本文由优质文化有限责任公司整理提供。阅读更多原创的文章，请点击www.youzhiwenhua.com专业的毕业论文代写论文代写代写论文留学生论文代写代写留学生论文代写法语论文代写日语论文代写韩语论文文化网站QQ527510459 TEL15982106398 The requirements in AASB 9 (as issued in December 2010) arise from the completion of the first phase of the IASB’s project to replace IAS 39 Financial Instruments: Recognition and Measurement, which is incorporated in AASB 139 Financial Instruments: Recognition and Measurement (Houston, R.W. Peters, M.F. and Pratt, J.H., 1999).The objective of this whole project is to improve the usefulness for users of financial statements by simplifying the classification and measurement requirements for financial instruments. So, we will be wondering what is wrong with the IAS\AASB 139...
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...cells. You don’t need to give too much detail, just enough so your client can tell the difference. 2. In the “Needed to Convert?” column, very briefly describe the information you would need in order to convert the U.S. GAAP statements to comply with IFRS. If you were going to make a journal entry, what measurement or other information would you need? Please follow the bullet format I used below, if feasible. For an example – see “Inventory Flow assumption” below, which I completed for you. | Item | GAAP | IFRS | Needed to Convert to IFRS? | | Income Statement Items | 1 | Revenue | * Contingent amounts generally not being recorded as revenue until it’s resolved. * The residual method is precluded * The amount allocable to a delivered item is limited to the amount that is not contingent on the delivery of additional items. * Utilizing a multiple element account model or an incremental cost model to account for customer loyalty program. * When there is a loss on the first element but a profit on the second element, the company may defer the remaining costs until delivery of the second element. * The use of cost-to-cost revenue service revenue recognition is prohibited. * The completed-contract method is allowed which includes gross-profit approach. | * Contingent revenue would be included * The reverse residual method may be acceptable to allocate arrangement consideration. * No limitation on the amount allocated to the first item. * Reward, loyalty...
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...Conceptual Framework A conceptual framework establishes the concepts that underlie financial reporting. Conceptual framework includes objectives, qualitative characteristics, elements, measurement, and recognition concepts. The FASB Concepts Statements guide the board in developing accounting principles and provide understanding. These concept statements are non-authoritative and do not establish generally accepted accounting principles. Entities do not use the FASB Concept Statements in routine preparation of financial statements. (8,2) The IASB and the Interpretations Committee use conceptual framework when developing new or revised International Financial Reporting Standards (IFRS) and interpretations or when amending existing IFRSs. It is used as a point of reference to help preparers of financial statements in applying IFRSs or when no specific guidance is given. The IASB’s Conceptual Framework is not an International Financial Reporting Standard and does not override any specific IFRS. However, the Conceptual Framework is used in development of future standards and the IASB is reviewing IFRSs and the Conceptual Framework to eliminate all conflicts between them. (2,7) Basis of Accounting Both U.S. GAAP and IFRS use a modified historical cost basis with a growing emphasis on fair value when preparing financial statements. When non-U.S. entities operate in a highly inflationary environment and prepare GAAP financial statements; they have the choice to either report price-level...
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...Work Plan for the Consideration of Incorporating International Financial Reporting Standards into the Financial Reporting System for U.S. Issuers A Comparison of U.S. GAAP and IFRS A Securities and Exchange Commission Staff Paper November 16, 2011 OFFICE OF THE CHIEF ACCOUNTANT UNITED STATES SECURITIES AND EXCHANGE COMMISSION This is a paper by the Staff of the U.S. Securities and Exchange Commission. The Commission has expressed no view regarding the analysis, findings, or conclusions contained herein. TABLE OF CONTENTS I. II. Introduction..........................................................................................................................1 Methodology ........................................................................................................................2 A. Scope of the Analysis...............................................................................................2 B. MoU and Other Joint Projects..................................................................................3 C. SEC Rules and Regulations .....................................................................................8 D. General Observations and Clarifications .................................................................8 Comparison of Requirements ............................................................................................11 A. Accounting Changes and Error Corrections...
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...Property, Plant and Equipment Property, Plant and Equipment I- Nature of Accounting Issues Businesses purchase and use a variety of fixed assets, such as equipment, furniture, tools, machinery, buildings, and land. These fixed assets are long-term or relatively permanent assets. Also, they are tangible assets because they exist physically. They are owned and used by the business and are not offered for sale as part of normal operations. Perhaps the most descriptive titles these assets are known under are plant assets or property, plant and equipment. Depending on the industry, the plant assets of a business can be a significant part of its total assets. That is why the accounting for these long-term assets has important implications for a company’s reported results. In this paper, we discuss the proper accounting for the acquisition, use, and disposition of property, plant, and equipment. Before going over a brief overview of the nature of accounting issues, we ought to take a deeper look at what plant assets really are. The major characteristics of property, plant, and equipment are as follows: * They are acquired for use in operations and not for resale. Only assets used in normal business operations are classified as property, plant, and equipment. For example, an idle building is more appropriately classified separately as an investment. Also, land developers or sub dividers classify land as inventory. * They are long-term in nature and usually depreciated...
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...FINANCIAL ACCOUNTING INFORMATION AND THE RELEVANCE/IRRELEVANCE ISSUE (Global Business & Economics Review Volume 5 No.2 December 2003 pp:140-175) Stanley C. W. Salvary, Canisius College ABSTRACT Some current research conclude that the numbers in financial statements are not relevant for three basic reasons. The numbers: (1) are not isomorphic with capital market values, (2) do not have a future orientation, and (3) are un-interpretable since they are based upon five different measurement attributes. The lack of isomorphism argument is invalid since actual current performance is not identical with the capital market expectations of future performance. The lack of a future orientation argument is invalid since financial statements capture what has happened and not what is expected to happen. Since a single measurement attribute is required to produce meaningful measures, the un-interpretability argument holds. A unique measurement attribute is identified in this paper to address this problem I. INTRODUCTION In Statement of Financial Accounting Concepts No. 1: Objectives of Financial Reporting by Business Enterprises (SFAC1) [1978], the Financial Accounting Standards Board (FASB) maintains that the function of financial accounting is to generate information useful to a group of users (investors and creditors) for decision-making. The focus on that specific function (decision-making) leads to a concern for predictive value, as opposed to feedback value, in financial statements...
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...The Institute of Chartered Accountants in Australia GAAP-based financial reporting: measurement of business performance charteredaccountants.com.au Professor Stephen Taylor, The University of New South Wales, Sydney, Australia The Institute of Chartered Accountants in Australia The Institute of Chartered Accountants in Australia (the Institute) is the professional body representing Chartered Accountants in Australia. Our reach extends to more than 53,000 of today and tomorrow’s business leaders, representing some 43,000 Chartered Accountants and 10,000 of Australia’s best accounting graduates who are currently enrolled in our world-class post-graduate program. Our members work in diverse roles across commerce and industry, academia, government, and public practice throughout Australia and in 107 countries around the world. We aim to lead the profession by delivering visionary thought leadership projects, setting the benchmark for the highest ethical, professional and educational standards and enhancing and promoting the Chartered Accountant brand. We also represent the interests of members to government, industry, academia and the general public by actively engaging our membership and local and international bodies on public policy, government legislation and regulatory issues. The Institute can leverage advantages for its members as a founding member of the Global Accounting Alliance (GAA), an international accounting coalition formed by the world’s premier accounting...
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...A cross-national validation of the consumer-based brand equity scale Isabel Buil Department of Economy and Business Studies, University of Zaragoza, Zaragoza, Spain Leslie de Chernatony Birmingham Business School, The University of Birmingham, Birmingham, UK, and ´ Eva Martınez Department of Economy and Business Studies, University of Zaragoza, Zaragoza, Spain Abstract Purpose – This study seeks to investigate the measurement invariance of the consumer-based brand equity scale across two samples of UK and Spanish consumers. Design/methodology/approach – Brand equity was conceptualised as a multi-dimensional concept consisting of brand awareness, perceived quality, brand associations and brand loyalty. To test the brand equity scale cross-nationally a survey was undertaken in the UK and Spain. Measurement invariance was assessed using multi-group confirmatory factor analysis. Findings – The brand equity scale was invariant across the two countries. Results show that the consumer-based brand equity scale has similar dimensionality and factor structure across countries. In addition, consumers respond to the items of brand equity in the same way, which allows meaningful comparison of scores. Research limitations/implications – Future research could examine the cross-national generalisability of the brand equity scale using other countries’ products and services. Practical implications – Given that the brand equity scale is invariant across countries, researchers and international...
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...transfers of financial assets continues to change. The FASB is currently finalizing a project that would amend the accounting for repurchase-to-maturity transactions and repurchase financings and require new disclosures for certain transfers accounted for as sales and secured borrowings. In addition, the AICPA is updating its guidance on the use of legal interpretations as evidential matter to support management’s assertion that a transfer of financial assets has met the isolation criterion in ASC 860. This publication includes excerpts from and references to the FASB’s Accounting Standards Codification, interpretive guidance and examples. Practice continues to develop and additional authoritative guidance in this area could be issued subsequent to the issuance of this publication. While we will update this publication as additional authoritative guidance is issued, affected entities and interested parties should...
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...TQM Outcomes Advocates of TQM are not in complete agreement on the factors that reflect the adoption of a TQM orientation. However, customer satisfaction, continuous improvement, and teamwork frequently are cited as core factors for TQM (Dean & Bowen, 1994; Morrow, 1997). However, Reed and Lemak (1998) expanded this to include empowerment and statistical process control, at the same time recognizing continuous improvement as one of the central TQM doctrines. For employees, a significant aim of TQM is the broadening of work responsibilities. The adoption of TQM requires employees to reconceptualize the boundaries of their jobs, reshape their attitudes toward quality, and engage in new behaviors. In essence, TQM blurs the boundary between previously defined in-role and extra-role behavior such that what were considered discretionary functional activities now become part of an individual's job, which he or she is expected to fulfill in a TQM environment. Waldman (1994) argued that work responsibilities in a quality culture would include "accomplishing tasks and taking initiatives above and beyond the call of duty, and sharing information with and helping co-workers" (p. 515). In terms of the key principles of TQM, employees are required to have a customer-focused orientation and develop attitudes and behaviors that reflect a commitment to customer service; a pervasive emphasis on collaboration and cooperative efforts between individuals and groups within organizations (Stone--...
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...$120 a share 80 40 0 I II III IV 1999 I II III IV 2000 2000-IV close $2.13 Stock price $40 a share 30 20 10 0 I II III IV 1999 I II III IV 2000 2000-IV close $1.03 Source: Story and graphs adapted from Gretchen Morgenson, “How Did They Value Stocks? Count the Absurd Ways,” New York Times (March 18, 2001), section 3, p. 1. 34 Copyright ©2008 John Wiley & Sons, Inc. Preview of Chapter 2 As the opening story indicates, users of financial statements need relevant and reliable information. To help develop this type of financial information, financial accounting and reporting relies on a conceptual framework. In this chapter, we discuss the basic concepts underlying the conceptual framework, as follows. CONCEPTUAL FRAMEWORK U N D E R LY I N G F I N A N C I A L A C C O U N T I N...
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... BGL Group has grown to be one of the UK’s leading financial services, specialising mainly in vehicle and home insurance, as well as a range of supplementary products such as breakdown cover, legal protection and personal accident cover. It employs more than 3,000 people in several different locations. Despite the organisations continued success through increased profits, they remain focused on employee engagement and Corporate Social Responsibility (CSR). In 2010, BGL have introduced the ‘My Wellbeing’ programme, which consisted of four main pillars; My Health, My Fitness, My Happiness and My Relaxation and Energy. BGL states that the programme is of ‘central importance to their CSR focused strategy’. CSR is rapidly gaining recognition all over the world, where the organisations are expected not only fulfil their legal obligations but to voluntarily take further steps to improve the quality of life for the employees and their families as well as for the local community and society at large. WELLBEING AND STRESS The economic and health costs of stressful work environments may be much greater than many suspect. Cardiovascular illness has been strongly implicated as a potential health outcome for those exposed to stressful work conditions (Karasek, 1979). In Britain, heart disease accounts for a loss of 70...
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... BGL Group has grown to be one of the UK’s leading financial services, specialising mainly in vehicle and home insurance, as well as a range of supplementary products such as breakdown cover, legal protection and personal accident cover. It employs more than 3,000 people in several different locations. Despite the organisations continued success through increased profits, they remain focused on employee engagement and Corporate Social Responsibility (CSR). In 2010, BGL have introduced the ‘My Wellbeing’ programme, which consisted of four main pillars; My Health, My Fitness, My Happiness and My Relaxation and Energy. BGL states that the programme is of ‘central importance to their CSR focused strategy’. CSR is rapidly gaining recognition all over the world, where the organisations are expected not only fulfil their legal obligations but to voluntarily take further steps to improve the quality of life for the employees and their families as well as for the local community and society at large. WELLBEING AND STRESS The economic and health costs of stressful work environments may be much greater than many suspect. Cardiovascular illness has been strongly implicated as a potential health outcome for those exposed to stressful work conditions (Karasek, 1979). In Britain, heart disease accounts for a loss of 70...
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