...on adequate mixture of legislation, accounting standards and specific requirements such as stock exchange rules. Those requirements often give different reporting obligation to entities according to their characteristics such as scope and social or economic substance, and business sector. Therefore, Accounting regulators have required different form of reporting and disclosures depending on entities. That is to say, many regulators broadly enforce different reporting obligations to entities in the private and public sectors, while reporting requirements for entities which operate in not for profit sector are less developed. Such different reporting obligation might have brought related issues to entities and furthermore regulators. Because entities have concerned about significant costs relating considerable reporting and compliance. In additions, as getting into step with globalization, the international harmonization of reporting has been increasingly focused on though; regulators still have a tendency to develop different approaches to reporting requirements for entities with different aspects. With recognition of such complication, some accounting regulators have started to re-define and re-examine regarding differential reporting in order to overcome the difficulties so that can help entities provide more relevant, useful and reliable information to stakeholders. One of example is ‘The IASB’s project on small to medium-sized entities. From this point, several arguments...
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...high-profile corporate accounting debacles, authorities have started to take action, and new international accounting standards (IAS) defined rules on boards¡¦ responsibilities and imposed penalties (the Sarbanes-Oxley Act) have come into effect. IAS rules will cause a greater need for comparability across various accounting and reporting principles. The European Union has decided that listed companies, a company which has any of its shares listed on a recognized stock market, should use international accounting standards (IAS) for accounting periods beginning since January 2005. Therefore, all EU listed companies that are required to publish consolidated accounts will be required to prepare their accounts in accordance with adopted International Financial Reporting Standards (IFRS). That will cause a greater need for comparability across various accounting and reporting principles. 1. Change in Financial Reporting Following recent decisions by various jurisdictions to adopt International Financial Reporting Standards (IFRSs), more than 90 countries will either require or permit the use of IFRSs during the next five years. Thousands of companies throughout the world will be making a transaction in financial reporting by breaking away from national practices and changing to accounting standards set by the International Accounting Standards Board (IASB). IASB issued IRS 1 First-time Adoption of International Financial Reporting Standards, which requires an entity to comply with...
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...Small Business Idea Paper ACC/561 Anne Holland University of Phoenix Michael De Marco July 16, 2012 Small Business Idea Paper When having the excitement of starting a business, there are several factors and steps to go through before getting the plan started. In the fallowing paper bravely describe our business plan for our new company. We will mention some of the factors that go alone with the process of starting a business. Therefore, summarizing in a substantial way the different types of business structures that are suitable for small and medium sized business, along with describe the legal, tax, accounting, and other implications when of each form of business structure. Business Plan According to Abrams, R. (2003), “ The business plan process entails five fundamental steps: (1) Laying out your basic business concept, (2) Gathering data on the feasibility and specifics of your concept, (3) Focusing and refining the concept based on the data you compile, (4) Outlining the specifics of your business, and (5) Putting your plan in compelling form”. New Business Project Business Name: Universal ATM Service Product or Service: Retailed of Automated Teller Machines, Automated Teller Machines Products, Transactions Processing, Automated Teller Machines Placement, and Automated Teller Machines Services and Repairs. Business Structure: Limited Liability Company (LLC) Rationale for choosing this form of business organization: the founders of Universal ATM Service...
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...Public Finance Monitoring Center Baku Political Research and Advocacy Center With support of Center for International Private Enterprise (Washington D.C., USA) National Endowment for Democracy NATIONAL bUSINESS AGENDA for the improvement of the business climate in Azerbaijan in 2009 (1st edition, September 2008) CONTENTS |Introduction ……………………………………………………………………………. |3 | |1. Institutional reform …………………………………………………………….. |4 | |2. The introduction of European definitions of small businesses ……………………………………………………………………………... | | | |5 | |3. Regulatory reform ………………………………………………………………... |6 | |4. The improvement of the tax regime …………………………………….. |7 | |5. Reform of the licensing system ……………………………………………. |10 | |6. Improvement of property registration system …………………….. ...
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...Advances in Accounting, incorporating Advances in International Accounting 29 (2013) 124–133 Contents lists available at SciVerse ScienceDirect Advances in Accounting, incorporating Advances in International Accounting journal homepage: www.elsevier.com/locate/adiac Continental European accounting model and accounting modernization in Germany Andreas Hellmann ⁎, Hector Perera 1, Chris Patel 2 Department of Accounting and Corporate Governance, Faculty of Business and Economics, Macquarie University, Sydney, NSW 2109, Australia a r t i c l e i n f o Keywords: Convergence German Commercial Code (Handelsgesetzbuch) International Financial Reporting Standards Act to Modernize Accounting Law (Bilanzrechtsmodernisierungsgesetz) Classification of accounting systems a b s t r a c t Classification techniques based on one or few dimensions are widely used in research studies and textbooks to explain and predict the development of accounting systems internationally. However, their usefulness in international accounting has been limited in today's globalized world. For example, in the context of the EU, IFRS are required for consolidated accounting, while national accounting systems continue to be the dominant system for unconsolidated accounting in many countries. Using Germany as a case study, the objective of this paper is to examine whether Germany can still be classified within the Continental European model of accounting following the Act to Modernize...
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...Guidance Accounting and Reporting Financial Reporting Council June 2014 Guidance on the Strategic Report The FRC is responsible for promoting high quality corporate governance and reporting to foster investment. We set the UK Corporate Governance and Stewardship Codes as well as UK standards for accounting, auditing and actuarial work. We represent UK interests in international standard-setting. We also monitor and take action to promote the quality of corporate reporting and auditing. We operate independent disciplinary arrangements for accountants and actuaries; and oversee the regulatory activities of the accountancy and actuarial professional bodies. The FRC does not accept any liability to any party for any loss, damage or costs howsoever arising, whether directly or indirectly, whether in contract, tort or otherwise from any action or decision taken (or not taken) as a result of any person relying on or otherwise using this document or arising from any omission from it. © The Financial Reporting Council Limited 2014 The Financial Reporting Council Limited is a company limited by guarantee. Registered in England number 2486368. Registered Office: 8th Floor, 125 London Wall, London EC2Y 5AS Financial Reporting Council June 2014 Guidance on the Strategic Report Contents Page Guidance on the Strategic Report Summary 1 2 3 4 5 6 7 8 Objectives and how to use this guidance Scope The annual report The strategic report: purpose The strategic report:...
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...Reporting and the adoption of International Financial Reporting Standards (IFRS).Nigeria has embraced IFRS in order to participate in the benefits it offers, including attracting foreign direct investment, reduction of the cost of doing business, and cross border listing. In implementing IFRS Nigeria will face challenges including the development of a legal and regulatory framework, awareness campaign, and training of personnel. Recommendations were made to forestall such challenges which include strengthening education and training, establishment of an independent body to monitor and enforce accounting and auditing standards. Keywords: Financial reporting, Adoption, Accounting standard and Developing countries 1. Introduction Globalization of capital markets is an irreversible process, and there are many potential benefits to be gained from mutually recognized and respected international accounting standards. The adoption of uniform standards cut the costs of doing business across borders by reducing the need for supplementary information. They make information more comparable, thereby enhancing evaluation and analysis by users of financial statements (Adekoye,...
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...CHAPTER 2: REGULATION IN FINANCIAL ACCOUNTING Chapter 2 regulation in Financial accounting LEARNING OUTCOMES Upon completion of this chapter you should be able to understand: • The difference between management and financial accounting. • Why accounting regulations are important and required. • The need for and the structure of professional regulation, company law, stock exchange legislation and EU Directives. • How the different aspects of regulation work together and complement each other. • The process through which an accounting standard comes into being. REVISION RESOURCES EXAM QUESTIONS: Sample and Past papers are available from the website of Accounting Technicians Ireland and are essential aids when studying Advanced Financial Accounting topics. 7 Chapter 2 : Regulation in Financial Accounting 2.1 Advanced Financial Accounting the FunCtion oF FinanCial aCCounting and reporting The International Accounting Standards Board (IASB) in their Conceptual Framework for Financial Reporting state that ‘the objective of general purpose financial reporting is to provide financial information about the reporting entity that is useful to existing and potential investors, lenders and other creditors in making decisions about providing resources to the entity. Those decisions involve buying, selling or holding equity and debt instruments, and providing or settling loans and other forms of credit’. This Conceptual Framework...
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...then first change the policy and make new strategy and immediately implement on the business to get the good results in less time. If the organization keeps going on the old policies and with the weaknesses then it will lead a failure or may be shutdown of operations in future. Internal control means different things to different people. This causes confusion among businesspeople, legislators, regulators and others. Resulting miscommunication and different expectations cause problems within an enterprise. Problems are compounded when the term, if not clearly defined, is written into law, regulation or rule. This report deals with the needs and expectations of management and others. It defines and describes internal control to: 1. Establish a common definition serving the needs of different parties. 2. Provide a standard against which business and other entities--large or small, in the public or private sector, for profit or not can assess their control systems and determine how to improve them. Internal control is broadly defined as a process, affected by an entity's board of directors, management and other personnel, designed to provide reasonable assurance regarding the achievement of objectives in the...
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...Share Capital It is the amount of money contributed by the shareholders for the furtherance of objectives of the company for which it was created. * Equity / Preference Share * Par value * Number of Shares in each category * Total amount TYPES OF SHARE CAPITAL * AUTHORISED CAPITAL * ISSUED CAPITAL * SUBSCRIBED CAPITAL * CALLED UP CAPITAL * PAID-UP CAPITAL AUTHORISED CAPITAL * MAXIMUM amount of share capital that the company is authorised by its constitutional documents to issue to shareholders. * Part of the authorised capital can (and frequently does) remain unissued. * EXAMPLE: AS PER THE CONSTITUTIONAL DOCUMENT OF A NEW COMPANY ‘XYZ.LTD’ IT CAN ISSUE A TOTAL OF 10 LAKH SHARES OF RS 10 EACH FACE VALUE/PAR VALUE: IT IS THE FIXED DENOMINATION AT WHICH A COMPANY ISSUES ITS SHARES. THE FACE VALUE IS MENTIONED ON THE SHARE CERTIFICATE. ISSUED CAPITAL * THE PART OF AUTHORISED CAPITAL WHICH IS OFFERED TO THE PUBLIC FOR SUBSCRITION * EXAMPLE : * OUT OF 10 LAKH SHARES, COMPANY ‘XYZ LTD.’ ISSUES 7 LAKH SHARES OF RS 10 EACH SUBSCRIBED CAPITAL * PART OF ISSUED CAPITAL THAT IS APPLIED FOR BY PROSPECTIVE SHARE HOLDERS & ALLOTED BY THE COMPANY * UNSUBSCRIBED CAPITAL :BALANCE OF ISSUED CAPITAL NOT SUBSCRIBED BY THE PUBLIC * EXAMPLE : SITUATION 1: UNDERSUBSCRIPTION ‘XYZ LTD.’ GETS PROSPECTS FOR 6 LAKH SHARES SITUATION 2: OVERSUBSCRIPTION ‘XYZ LTD’ GETS PROSPECTS FOR 8 LAKH SHARES ...
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...Financial Statement: It is a formal record of the financial activities of a business, person, or other entity. In British English—including United Kingdom company law—a financial statement is often referred to as an account, although the term financial statement is also used, particularly by accountants. For a business enterprise, all the relevant financial information, presented in a structured manner and in a form easy to understand, are called the financial statements. They typically include four basic financial statements, accompanied by a management discussion and analysis: 1. Statement of Financial Position: also referred to as a balance sheet, reports on a company's assets, liabilities, and ownership equity at a given point in time. 2. Statement of Comprehensive Income: also referred to as Profit and Loss statement, reports on a company's income, expenses, and profits over a period of time. A Profit & Loss statement provides information on the operation of the enterprise. These include sale and the various expenses incurred during the processing state. 3. Statement of Changes in Equity: explains the changes of the company's equity throughout the reporting period 4. Statement of cash flows: reports on a company's cash flow activities, particularly its operating, investing and financing activities. Different countries have developed their own accounting principles over time, making international comparisons of companies difficult. To ensure uniformity...
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...Abstract Financial planning and budgeting has become a powerful tool of any company’s financial management. Planning and budgeting is an issue that should be solved in a complex. Therefore, this final English research paper highlights three main approaches absorbed: theoretical, practical, and analytical. Theoretical knowledge cannot be applied to practice without clear understanding of business, a feeling about the actual circumstances. Practical knowledge cannot be applied to professional tasks without analytical approach. This skills and approaches are presented and proven in this research. Having faced planning and budgeting process of middle-sized company, it has been noted that some issues of this important activity absence clarity, confidence, and flexibility. In order to optimize planning and budgeting process a thorough examination has been prepared in this research paper. The Company where experience has taken place is Levi’s XX that stands for Levi’s Vintage Clothing. Therefore, the industry examined is apparel, and as a market is taken the whole Globe. Table of Contents Abstract 2 Introduction 4 • The purpose of the study 4 • The main conceptual problem 5 Methodology 6 1. Essence and role of financial planning and budgeting 7 1.1 Planning and budgeting role in company’s structure 7 1.2 Purpose of budgeting 7 2. Company profile, industry and market description 10 2.1 Levi’s XX story 10 2.2 Company’s structure 10 3. Principles and objectives...
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...grouping of characters into a word, a group of words, or a complete number (such as a person’s name or age) is called a field Ex: employee Last name, Customer Account number * A group of related fields, such as the student’s name, the course taken, the date, and the grade, comprises a record; Ex: There will be one record for every one * A group of records of the same type is called a file. Ex: Employee Benefits file, Employee payroll file * Database: A group of related files about a specific entity Ex: HR database PROBLEMS WITH THE TRADITIONAL FILE ENVIRONMENT In most organizations, systems tended to grow independently without a company-wide plan. Accounting, finance, manufacturing, human resources, and sales and marketing all developed their own systems and data files. Figure 6-2 illustrates the traditional approach to information processing * In the company as a whole, this process led to multiple master files created, maintained, and operated by separate divisions or departments. As this process goes on for 5 or 10 years, the organization is saddled with hundreds of programs and applications that are very difficult to maintain and manage. * The resulting problems are data redundancy and inconsistency, program-data dependence, inflexibility, poor data security, and an inability to share data among applications. Data Redundancy and Inconsistency Data redundancy is the presence of duplicate data in multiple data files so that the same...
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...2009 International Accounting Standards Board (IASB® ) IFRS for SMEs ® International Financial Reporting Standard (IFRS®) for Small and Medium-sized Entities (SMEs) International Financial Reporting Standard for Small and Medium-sized Entities (IFRS for SMEs) The International Financial Reporting Standard for Small and Medium-sized Entities (IFRS for SMEs) is issued by the International Accounting Standards Board (IASB), 30 Cannon Street, London EC4M 6XH, United Kingdom. Tel: +44 (0)20 7246 6410 Fax: +44 (0)20 7246 6411 Email: iasb@iasb.org Web: www.iasb.org The International Accounting Standards Committee Foundation (IASCF), the authors and the publishers do not accept responsibility for loss caused to any person who acts or refrains from acting in reliance on the material in this publication, whether such loss is caused by negligence or otherwise. The IFRS for SMEs and its accompanying documents are published in three parts: ISBN for this part: 978-1-907026-17-1 ISBN for complete publication (three parts): 978-1-907026-16-4 Copyright © 2009 IASCF All rights reserved. No part of this publication may be translated, reprinted or reproduced or utilised in any form either in whole or in part or by any electronic, mechanical or other means, now known or hereafter invented, including photocopying and recording, or in any information storage and retrieval system, without prior permission in writing from the IASCF. International Financial Reporting...
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...International Accounting Standards are not always implemented into companies around the globe. Most industrialized countries have their own organizations, such as the United States Financial Accounting Standards Board, that govern their accounting standards. This can cause major difficulties for multi-country corporations, as well as confusing for investors who are trying to compare company financials. To rectify this problem, the SEC has prepared a roadmap that proposes requiring all U. S. companies to implement an improved version of International Financial Reporting Standards as soon as 2014. What would be required to implement these changes? Are accountants today ready and able to implement these news standards or will continuing education be vital to prepare them? If the U. S. takes on these changes, are other countries willing and able to implement changes as well? What will be accomplished with the implementing of a more universal system? Implementing International Financial Reporting Standards As the countries of the world become increasingly interdependent, language barriers must be transcended in order to promote adequate communication. This is true not only of spoken language, but also of accounting, which is commonly known as the language of business (Spiceland, Sepe & Nelson, 2011, p. 4). Global commerce has sounded the call for financial entities worldwide to speak one common language. Historically, the standardization of accounting principles has...
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