...Table of Contents Topic Page 1. Introduction……………………………………………………………………………………………………... 3 a) Company Description……………………………………………………………………………………… 3 b) Summary of Company Approach to Financial Reporting……………………………………………… 3 2. Body………………………………………………………………………………………………………….. 3, 4 a) Auditing and Legal Practices…………………………………………………………………………... 3, 4 b) Balance Sheet Analysis……………………………………………………………………………..…. 4, 5 c) Stock Analysis……………………………………………………………………………………………… 5 d) Income Statement Analysis…………………………………………………….................................. 5, 6 1. Income Reporting Methods…………………………………………………………………………… 5 2. Income Reporting Trends…………………………………………………………………………...… 6 b) Cash Flow Statement Analysis…………………………………………………................................ 8, 9 1. Cash Reporting Methods……………………………………………………………………………… 8 2. Cash Reporting Trends………………………………………………………………………..…. 9, 10 3. Conclusion…………………………………………………………………………………………………..... 10 4. Bibliography…………………………………………………………….…………………………………….. 11 Introduction Coca-Cola Company was established in 1892 in North America, and has since expanded successfully into the international market, now doing business in over 200 countries around the world (Coca-cola.co.uk. 2013). Coca-Cola sells a wide variety of beverages from water to soft drinks, sports drinks, and teas...
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...J. Huefner University at Buffalo, The State University of New York James A. Largay III Lehigh University Cambridge BUSINESS PUBLISHERS Cambridge Business Publishers ADVANCED ACCOUNTING, Third Edition, by Susan S. Hamlen, Ronald J. Huefner, and James A. Largay III. COPYRIGHT © 2016 by Cambridge Business Publishers, LLC. Published by Cambridge Business Publishers, LLC. Exclusive rights by Cambridge Business Publishers, LLC for manufacture and export. ALL RIGHTS RESERVED. No part of this publication may be reproduced, distributed, or stored in a database or retrieval system in any form or by any means, without prior written consent of Cambridge Business Publishers, LLC, including, but not limited to, in any network or other electronic storage or transmission, or broadcast for distance learning. STUDENT EDITION ISBN: 978-1-61853-151-3 Bookstores & Faculty: to order this book, call 800-619-6473 or email customerservice@cambridgepub.com. Students: to order this book, please visit the book’s Website and order directly online. Printed in Canada. 10 9 8 7 6 5 4 3 2 1 PREFACE W elcome to Advanced Accounting. We wrote this book with two major objectives in mind. First, we seek to reflect the changing topical emphases and content in the advanced accounting course; coverage is completely updated for new developments concerning applicable reporting issues and requirements, including the newest FASB and GASB pronouncements and proposals. We extensively...
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...Chapter 16 The statement of comprehensive income and statement of changes in equity Review questions 16.2 There is a general requirement that unless a specific accounting standard requires an item of income or expense to be recorded directly in equity, the expense or income amount is to be included in profit or loss. Specifically, paragraph 88 of AASB 101 states: An entity shall recognise all items of income and expense in a period in profit or loss unless an Australian Accounting Standard requires or permits otherwise. As an example of one class of items that does not go to profit or loss we can consider the situation where an error from a prior period is discovered (perhaps the assets recorded last year were valued in excess of their recoverable value). In such a case the error is to be corrected retrospectively, as required by AASB 108 Accounting Policies, Changes in Accounting Estimates, and Errors. This would require a reduction in assets and a reduction in retained earnings to recognise the asset write-down expense. Although this is an expense that is recognised, it is a case of an expense being recognised directly in equity (retained earnings is an equity account). A number of other accounting standards also require certain income and expense items to be recorded directly in particular equity accounts rather than including them in a period’s profit or loss. These items form part of what is now referred to as ‘other comprehensive income for the year’—which when added...
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...Accounting Policies for Reporting Income Strayer University Intermediate Accounting 1 – ACC 303 February 6, 2012 Professor Elizabeth Hewitt Accounting Policies for Reporting Income Examining accounting standards and policies information from various sources such as FASB Accounting Standards Codification (Financial Accounting Standards Board), AICPA (American Institute of CPA’s) and FASAB (Federal Accounting Standards Advisory Board) I can give a overview of how these items are defined in various resources. The FASB Accounting Standards Codification is the single source of authoritative nongovernmental U.S. generally accepted accounting principles. Looking at the online FASB site it offers the most GAAP generally accepted accounting principles. The site is set up so that you can access the topics you’re looking for in a sort of drill down menu type of search. The site is somewhat user friendly in that it offers a tutorial on how to use the site. It also offers several useful functions such as cross-referencing and join-sections. The AICPA sets ethical standards for the accounting profession and U.S. auditing standards for audits of private companies, non-profit organizations and federal, state and local governments. This resource offers tabs with drop down menus; one of which is marked Research under this tab you can find Standards that will take you to the Standard page offering a list of topics on Professional Accountant Standards such as ‘Audit and Attest Standards’...
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...6, 2009, 25-45 READING AND UNDERSTANDING ACADEMIC RESEARCH IN ACCOUNTING: A GUIDE FOR STUDENTS Teresa P. Gordon College of Business and Economics University of Idaho Moscow, Idaho USA Jason C. Porter College of Business and Economics University of Idaho Moscow, Idaho USA ABSTRACT The ability to read and understand academic research can be an important tool for practitioners in an increasingly complex accounting and business environment. This guide was developed to introduce students to the world of academic research. It is not intended for PhD students or others who wish to perform academic research. Instead, the guide should make published academic research more accessible and less intimidating so that future practitioners will be able to read empirical research and profitably apply the relevant findings. The guide begins by examining the importance of academic research for practitioners in accounting and next reviews the basics of the research process. With that background in place, we then give some guidelines and helpful hints for reading and evaluating academic papers. This guide has been used for several years to introduce master’s degree students to academic literature in an accounting theory class. After reading this guide and seeing a demonstration presentation by the professor, students have been able to successfully read and discuss research findings. Key words: Understanding empirical research, supplemental readings, importance of academic research, incorporating...
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...adjustments to reflect results in accordance with US GAAP have already been correctly recorded. As of January 31, 2011, the statement of financial position, the statement of comprehensive income and some related footnotes have been drafted as part of the year-end financial reporting process, but they are still incomplete. The cash flow statement, the statement of changes in equity and certain footnotes are still being prepared by the accounting staff. The details of accumulated other comprehensive income will be reported on the statement of comprehensive income. Current plans are to issue the first set of externally reported financial statements for the year ended December 31, 2010, by March 15, 2011. The owners of BWC have just met with their tax advisors. Due to adverse changes in the income tax laws in the US, BWC’s effective income tax rate for 2010 is 50%. The owners are considering reincorporating BWC in a European country with more favorable income tax laws, resulting in a 30% effective income tax rate. Required Based on the above consideration, as the controller of BWC, the owners of BWC have asked you to perform the following: ► Redraft the 2010 statement of financial position, the statement of comprehensive income and the select footnotes (these are shown following and, additionally, other relevant financial information is provided as well) in accordance with IFRS. You may record your adjusting journal entries for the financial statements in the attached Excel...
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...Knowledge Checks: Multiple Choice Questions and Solutions FINANCIAL REPORTING Version 15b KNOWLEDGE CHECKS: MULTIPLE CHOICE QUESTIONS AND SOLUTIONS | i Contents Questions 1 Module 1 Question 1.1 Question 1.2 Question 1.3 Question 1.4 Question 1.5 Question 1.6 Question 1.7 Question 1.8 Question 1.9 Question 1.10 Question 1.11 Question 1.12 Question 1.13 Question 1.14 Question 1.15 Question 1.16 Question 1.17 Module 2 Question 2.1 Question 2.2 Question 2.3 Question 2.4 Question 2.5 Question 2.6 Question 2.7 Question 2.8 Question 2.9 Question 2.10 Question 2.11 Question 2.12 Question 2.13 Question 2.14 Question 2.15 Module 3 Question 3.1 Question 3.2 Question 3.3 Question 3.4 Question 3.5 Question 3.6 Question 3.7 Question 3.8 Question 3.9 Question 3.10 Question 3.11 Question 3.12 R:\Workgroups\CPA-Production\CPA Digitisation\2nd Semester 2015\FR\FR-Knowledge-check-MCQ_15b.docx 1 1 1 1 1 2 2 2 2 3 3 3 4 4 4 5 5 6 6 6 7 7 7 8 8 8 9 9 9 10 10 10 11 11 11 11 12 12 12 12 13 13 13 13 14 14 14 DTP: Jen, Leigh, Mira 2nd set 15b 22-07-15 ii | FINANCIAL REPORTING Module 4 Question 4.1 Question 4.2 Question 4.3 Question 4.4 Question 4.5 Question 4.6 Question 4.7 Question 4.8 Question 4.9 Question 4.10 Question 4.11 Question 4.12 Question 4.13 Question 4.14 Question 4.15 Question 4.16 Question 4.17 Question 4.18 Module 5 Question...
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...Seminar # 16 2 5 17 18 19 & 20 3 11 & 12 13, 14 & 15 6 21 21, 22 & 23 23 3 4 Assessment Components Components 1 2 3 4 Seminar participation Group project presentation Term quiz Final exam Total Weighs 15 15 20 50 100 Individual Group (contents: 50%) & individual (presentation 50%) Individual Individual Basis Seminar Participation: Expectations (Project Discovery) Pedagogy • Students take active responsibility for their learning • Instructor plays a facilitating role A. Pre-seminar 1. Complete ALL assigned readings in seminar outline 2. Attempt ALL assigned questions in seminar outline B. During seminar 1. Clicker questions 2. Voluntary participation 3. Cold calls C. Post-seminar 1. Review seminar slides & discussions 2. Review/complete assigned questions (attempt past year exam...
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...Comprehensive Case United States Surgical Corporation 1 Running head: COMPREHENSIVE CASE U.S. SURGICAL CORPORATION Comprehensive Case United States Surgical Corporation Scott P. McHone Liberty University Comprehensive Case United States Surgical Corporation 2 Abstract During the past thirty years we have seen an increase in the number of companies that have committed some form of financial shenanigans. Some of these companies have manipulated Generally Accepted Accounting Principles to present themselves as financially sound. Others have committed fraud to achieve the same objective. With this type of corporate behavior there is an increasing need for better auditing and more reliable audited financial statements. The purpose of this paper is to read and study a comprehensive case as presented in the textbook Contemporary Auditing: Real Issues and Cases and answer the questions as listed at the end of the case study. I decided to select case 1.10 United States Surgical Corporation. Comprehensive Case United States Surgical Corporation 3 Comprehensive Case United States Surgical Corporation To fully appreciate this paper it is recommended that the case study along with the associated questions be read prior to reading this paper. Question one from the case study focuses on what audit procedures should have been performed by the auditing firm for the 1981 audit period that would help increase the possibility of detecting the overstatement of the leased and loaned assets due...
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...Review of Financial Statements University of Phoenix FIN324 Financial Analysis for Managers Joseph Brennan Introduction It is said that companies will come and go, and those that survive and left standing will teach other companies, how their survived. We will take two companies; UPS and Ebay, Inc break them down and show you how they got their start. In our paper, it will also be discussed and show a review of their financial statements from each one. The point is to get a better picture of where a company started, the competition it endured, and the money that was possibility projected for the start. This paper will also show how auditors are essential to the running of any company. Review of Financial Statements Brief overview UPS, a delivery service, has been around for about 100 years. James E. Casey started the company on $100 borrowed from a friend of his. Casey, who was 19 years old when he started UPS, had worked for delivery services before and wanted to start a better delivery system of his own. The American Messenger company, what UPS was previously called, started in Seattle, Washington and had many competitors in the beginning. His business not only survived among them, but thrived (UPS, n.d.). Today the company serves over 200 countries delivering “goods, funds, and information” (UPS, n.d., ¶ 1). UPS has several stores located in these countries, including the United States, where people can not only have their packages sent, but they can also buy...
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...Review Of Financial Statements Category: Miscellaneous Autor: anton 26 June 2011 Words: 1546 | Pages: 7 Introduction It is said that companies will come and go, and those that survive and left standing will teach other companies, how their survived. We will take two companies; UPS and Ebay, Inc break them down and show you how they got their start. In our paper, it will also be discussed and show a review of their financial statements from each one. The point is to get a better picture of where a company started, the competition it endured, and the money that was possibility projected for the start. This paper will also show how auditors are essential to the running of any company. Review of Financial Statements Brief overview UPS, a delivery service, has been around for about 100 years. James E. Casey started the company on $100 borrowed from a friend of his. Casey, who was 19 years old when he started UPS, had worked for delivery services before and wanted to start a better delivery system of his own. The American Messenger company, what UPS was previously called, started in Seattle, Washington and had many competitors in the beginning. His business not only survived among them, but thrived (UPS, n.d.). Today the company serves over 200 countries delivering “goods, funds, and information” (UPS, n.d., ¶ 1). UPS has several stores located in these countries, including the United States, where people can not only have their packages sent, but they can also...
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...Midterm review 1. Main sources of regulation of financial reporting 1. Government Regulation (true and fair; corporation act 2001) 2. ASX Listing Rules (firms on exchange) 3. Accounting standards (prepared by AASB) 2. International convergence: develop new or revise International harmonization: Australia accounting standards apply the international standard-setting bodies Adoption by Australia of international accounting standards by 1 January 2005 3. Aust standards are set for all reporting entities, but IFRS are primarily designed for large corporations 4. Objective of financial reporting Provide information to users that is useful for making and evaluating decisions about the allocation of scarce resources 5. Measurement of comprehensive income Income Less: Expenses = Profit or loss for the period +/- Items of other comprehensive income =Total comprehensive income for the period 6. Other comprehensive income Changes in asset revaluation surplus, actuarial gains and losses on defined benefit superannuation plans, gains and losses arising from translating the financial statements of a foreign operation, gains and losses on remeasuring available-for-sale financial assets, effective portion of gains and losses on hedging instruments in a cash flow hedge 7. The face of the statement of comprehensive income must include amounts for: -Revenue -Finance costs -Equity accounted share of profit or loss of associates [covered in ACCT6010] -Tax expense -Profit or...
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...October 2008 Discussion Paper Snapshot: Preliminary Views on Financial Statement Presentation This snapshot is a quick introduction to the discussion paper Preliminary Views on Financial Statement Presentation. Its purpose is to provide a first insight into the major ideas presented in the discussion paper. The snapshot has been prepared by staff and is not an official technical document of the IASB or the FASB. Project objective: The objective is to create a standard that requires entities to organise financial statements in a manner that clearly communicates an integrated financial picture of the entity. The International Accounting Standards Board (IASB) and the US Financial Accounting Standards Board (FASB) are undertaking this project jointly. The discussion paper (DP) is the first step towards the creation of a standard. In the DP the boards explain the issue and present their initial ideas on the topic. The objective is to receive feedback from interested parties early in the process. Process stage: Comment deadline: The DP is open for public comment until 14 April 2009. Next step: The boards will consider responses to the DP and then develop an exposure draft (ED) that sets out a specific proposal in the form of a proposed standard. The boards expect to publish an ED in 2010. Why are we doing the project? Financial statements are important. The boards believe that a common format for financial statement presentation will improve communication between...
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...Becker CPA Review, PassMaster Questions Lecture: Financial 1 CPA PassMaster Questions-Financial 1 Export Date: 10/30/08 1 © 2009 DeVry/Becker Educational Development Corp. All rights reserved. Becker CPA Review, PassMaster Questions Lecture: Financial 1 Sources of GAAP CPA-00001 Type1 M/C A-D Corr Ans: D PM#1 F 1-01 1. CPA-00001 FARE Nov 95 #1, Released 2006 Page 6 According to the FASB conceptual framework, the objectives of financial reporting for business enterprises are based on: a. Generally accepted accounting principles. b. Reporting on management's stewardship. c. The need for conservatism. d. The needs of the users of the information. CPA-00001 Explanation Choice "d" is correct. The FASB conceptual framework states that the objectives of financial reporting stem from the informational needs of the external users of the information. SFAC 1 para. 28 ...
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...Directors’ Report Auditor’s Independence Declaration Independent Auditor’s Review Report Directors’ Declaration Condensed Consolidated Statement of Profit and Loss Condensed Consolidated Statement of Comprehensive Income Condensed Consolidated Statement of Financial Position Condensed Consolidated Statement of Changes in Equity Condensed Consolidated Statement of Cash Flows Notes to the Condensed Consolidated Financial Statements 3 4 5 7 8 9 10 11 12 13 COVER – Richard Henfrey, Chief Operating Officer, with Blackmores’ new easier to open, sustainable, improved shelf-life, stronger bulk pack which won a WorldStar Packaging Award, the most prestigious prize in the global packaging industry. Blackmores’ innovative design also won gold, silver and bronze medals across three categories at the Australian Packaging Design Awards (APDA). The Directors of Blackmores Limited submit herewith the Financial Report of Blackmores Limited and its subsidiaries (the Group) for the half-year ended 31 December 2014. In order to comply with the provisions of the Corporations Act 2001, the Directors’ Report is as follows: The names of the Directors of the Company during and since the end of the half-year are: Marcus C. Blackmore Stephen J. Chapman Verilyn C. Fitzgerald (Retired 23 October 2014) Christine W. Holgate Brent W. Wallace Helen E. Nash David G. Ansell REVIEW OF OPERATIONS The Directors report that sales for the six months to 31 December...
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