...June 29, 2015 SUBJECT: Shared-Based Payment Reporting and Special Purpose Entities (SPE) CC: Team members ______________________________________________________________________________ As an Accounting Firm it is very important that we follow the most recently changed or amended regulations and standards set by the Financial Accounting Standards Board (FASB). As of 2009 the Financial Accounting Standards Board (FASB) has made amendments to Shared-Based Payment Reporting and Special Purpose Entities. The amendments made were to Statements No. 123 and 95 which covers the Share-Based Payments and Statements No. 123 and 95; the FASB. Also revised, Statements No. 166 and 167 which pertains to Special Purpose Entities (SPE). Share-Based Payment Reporting In the process of an audit, it is important to review the accounting process in terms of how share-based payment is reported to Sensure the entity processes are in line with Generally Accepted Accounting Policies (GAAP). Share-based payment is a complex area to both report on and audit as almost every transaction is unique and referencing IFRS No.2 for the purpose of the audit is not always clearly defined. Defined, share-based payment is an arrangement in which an entity purchases goods or services in exchange for issuance of the entity’s equity instruments or cash payments based on the fair value of those equity instruments. IFRS No.2 has two defined two measurements for each possible share-based transaction; as it relates...
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...Nike, you asked us to make sure the company is correctly implementing share-based payment reporting and SPE reporting correctly under GAAP. Therefore, the team has done extensive research on two reporting styles, so we fully understand what you are looking for. We will discuss our research on the subjects in this memo for you to review before we make the final steps to start the audit on Nike. In 1993 FASB issue SFAS 123, which required companies to reflect stock based compensation in their operating results. Due to opposition from legislators and special interest groups, companies were only required do footnote disclosures for share-based payments. In 2004 the FASB revised SFAS 123 and issued SFAS 123 (R) which now requires companies to incur stock option compensation expenses. This means that the company must expense the estimated fair value. This new standard has had a significant effect on profits for many companies. The valuation methods required by the FASB are based on pricing models that are complicated and require companies to use a number of assumptions which could cause a material difference in the company’s operating results. Due to the number of estimates and assumptions, users of financial statements should pay close attention to the disclosures and the accounting estimates, particularly those found on Form 10-K and Form 10-Q. Shared-based payment reporting A share-based payment is when the...
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...Share-based Payment Reporting and Special Purpose Entities The current audit of a publicly traded company involves the evaluation of both share-based payment arrangements and special purpose entity reporting. This memo explains the reporting requirements for share-based payment transactions and special purpose entities and discusses how these requirements relate to the auditing process. Share-based payment reporting: Financial Accounting Standards Board (FASB) defines share-based payment arrangements as follows: “An arrangement under which either of the following conditions is met: a. One or more suppliers of goods or services (including employees) receive awards of equity shares, equity share options, or other equity instruments. b. The entity incurs liabilities to suppliers that meet either of the following conditions: 1. The amounts are based, at least in part, on the price of the entity’s shares or other equity instruments. (The phrase at least in part is used because an award may be indexed to both the price of the entity’s shares and something other than either the price of the entity’s shares or a market, performance, or service condition.) 2. The awards require or may require settlement by issuance of the entity’s shares” (FASB ASC 718-10-20). FASB 718-10-25 details specific guidelines for the recognition of share-based payment transactions (FASB ASC 718-10-25). FASB specifies when the services and costs related to the share-based payment transactions...
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... A responsibility can now access data in multiple organizations R12.1 was released in April 2009 How does this impact custom Responsibilities How will all these new features be “discovered” Quicker data entry for shared services organizations The user interface to the Oracle Diagnostics scripts was rewritten in OA Framework in R12.0.6 12.0 focused on Financials 12.1 focused on everything else including HR Utilizes role-based access control requiring role grants from the user management responsibility Setup reports in diagnostics can help you find missing setups 3 FINANCIALS - GL 4 Financials - GL Legal Entities have significant functionality in R12 Should reflect legal corporate structure Utilized by Accounting Functions, E-Business Tax, Intercompany, and Bank Account Balancing segment is associated with legal entity – not ledger Bank account is owned by legal entity Align your Ledger structure with your business plan Operating units are associated with ledgers in R12 – not LE Position your business to accommodate growth Design ledgers to satisfy non-GAAP accounting requirements Secondary Ledgers can be utilized for statutory, management, and/or consolidation reporting Mapping from Primary to Secondary Ledger(s) is defined in General Ledger and is assigned in the Accounting Setup Manager 5 Financials - GL Consider...
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...Real World Activities 1. There are two “traditionally” known methods of the use of Business Intelligence (BI), these are “mere” reporting and transformational. Initially, the goal of BI was in the reporting, taking raw data that the organization collected over a given period of time and converted it into a meaningful representation. This enables organization to see things such as statistics on sales happening in a specific region during a given timeframe. This is what we see in Hillman Group’s use of BI where they tracked information on customer orders, but didn’t use it to make any changes. Next the business requirements for organizations use of data changed to the push to streamline business processes which lead to Transformational BI. In the case study we saw the use of transformational BI through Avnet and Quaker Chemical as a way to generate sales and collect on overdue accounts. We see the differences between reporting and transformational BI being that reporting is concerned mostly concerned with providing information whereas transformational is focused on using the information that is provided. One example I found of the use of BI is a hotel franchise using data on room occupancy, room rates to determine revenues generated, this differs from the implementations of BI in the case study as it is focused on just reporting and not using the information in a transformational way. Another example is a bank that bridges a legacy database with departmental databases, giving...
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...ACCOUNTING 5336 Ch4 – Reading Questions – Spring 2012 Recognizing Revenues in Governmental Funds Ch 4a (pp 130-151) 1. The current model for governmental reporting requires two sets of financial statements. What are they? What key reporting objective does each meet? What basis of accounting does each use? (p131) Government-wide statements: full accrual and consolidate all funds. Indicating the extent to which the entity achieved interperiod equity (Demonstrates whether the entity’s current-year revenues were sufficient to pay for the current year’s services.) Fund statements: governmental funds on modified accrual basis. Demonstrating whether the entity obtained and used its resources in accordance with its legally adopted budget. 2. Why didn’t GASB just require governments to use their budgetary basis for financial reporting? (p132) Because retaining the modified accrual basis ensures that all governments report on the same basis and thereby facilitates comparisons among entities. Comparisons would have been difficult if each reported on its own particular budget basis. 3. Current financial resources (the measurement focus used with modified accrual) can be described as “expendable financial resources”. What does this mean? (132-3) This is cash and other items that can be expected to be transformed into cash in the normal course of operations (less current liabilities). Other items include investments and receivables but...
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...perspectives of the various stakeholders. Islamic industry of finance has obtained tremendous growth in last few years, both in number of assets that manage by industry and in the diversity of financial products. A global system that can rule the industry will become significantly important for the Islamic finance sector in order to meet the needs of continued growth (Vinnicombe, 2012). Harmonization of Shari’a accounting standards has continue to be made by the AAOIFI as it is also done by the International Accounting Standards Board (IASB) for conventional accounting harmonization. In its development, financial reporting in Islamic accounting adds some different additional reports than conventional accounting to accommodate the unique transactions of Islamic economics. In that regard, this paper have objective to explore the main important values of Shari’a accounting and reporting standards of Islamic Accounting and try to find the answers of Islamic accounting positions among the process of international accounting standards harmonization. 2. Introduction According to (Susela, 1999) said the development of accounting theories is are affected by several factors including political and economic interests of certain people or group in community. Therefore, it can be also called if the accounting is a significant tool to illustrate the interests and perspectives of the...
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...The easiest way to control this was to attack federally funded programs, and Medicare became a target. This was done so by the establishment of two major ACO programs: the Medicare Shared Savings Model and the Pioneer Model. Both models The Medicare Shared Savings Program (MSSP) is a three-year program under which ACOs accept financial responsibility for overall quality, cost, and care of a defined group of Medicare fee-for-service beneficiaries (Shortell). The program relies heavily on a primary care network base as a means to serve enrollees. The MSSP is designed to make providers financially responsible for the health of their patients by providing financial incentives when physicians successfully reduce and/or eliminate unnecessary examinations and procedures, resulting in overall reduced healthcare costs (Gold). The Shared Savings Program offers both providers and suppliers, such as hospitals, opportunities for ACOs to select arrangements that work best for their organization. For example, specific to the ACOs needs, they can promote accountability to their specific patient population and coordinate services for their Medicare beneficiaries (“About the Program-...
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...Irregular and miscellaneous category works are saved in the “Temp” folder in the “F” drive. All the photos are saved in “G” drive. Regular reports 1. Monthly progress reports – Regularly we send monthly progress report to the both kachcheries with copying the relevant part to the following AGAs & departments. The following reports were submitted up-to November 2011. For December, prepared and shared the Kachcheri & Divisional reports with Dhaanish. a. Karaichchi AGA, Kandavalai AGA, Pachchilaipalli AGA & Poonakary AGA b. Maritimepattu AGA, Manthai East AGA, Oddusuddan AGA & Thunukkai AGA c. Deputy Director of Agriculture –Extension – Kilinochchi & Mullaitivu d. Provincial director of Agriculture – need to provide on their request (both Kili & Mullai information) – npagri@yahoo.com e. All these reports have been prepared based on the ministry format except Pachchilaipalli, Maritimepattu, Manthai East & Thunukkai. These four DS offices have their own format. f. The Kachcheri reports are shared in both hard copies and soft copies (reports & relevant photos are written and shared in a CD). g. To Mullaitivu Kachcheri, the report to be sent via e-mail (gamullaitivu@gmail.com) too in the last week of the month or in the 1st week of next month; To Pachchilaipalli, it needs to be sent via e-mail (agapallai@gmail.com) before 5th of next month; to others it can sent through our staff members who visits there before 15th of next month. h. For the hard copy reports we used to get...
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...cost-reimbursement) is a key consideration in any decision-making because the type of contract may determine the financial impact of the decision. For example, the financial effect of schedule changes varies widely, depending on the type of contract. This article focuses on how the type and attributes of government contracts must be considered to support successful financial performance for both the government and the contractor. Such information will be helpful to new project managers and others responsible for contract performance, as well as to more experienced managers who may benefit from a review of the basics of government contracting. The Federal Acquisition Regulation (FAR) allows a wide variety of contract types, based on the financial arrangement. Broadly speaking, these include fixed-price, cost-reimbursement, time-and-materials (T&M), and letter contracts. The various forms of fixed-price contracts and cost-reimbursement contracts are shown in the sidebars on page 45. According to FAR 16.104, the federal government professes a preference for firm-fixed-price type contracts. Contracts also may be distinguished on the basis of their ordering or execution. Under a traditional contract, the contractor performs a specific statement of work for a specified price or cost. More common today are indefinite delivery types, which may be for definite or indefinite quantities or the requirements of the acquiring activity. Indefinite-delivery contracts...
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...customers in medical health care to determine the best qualities and solutions in the healthcare system. To implement value-based healthcare, transformation needs to become done by both health providers...
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...Instructor’s Manual Enterprise Resource Planning, 1/E CHAPTER 1: A FOUNDATION FOR UNDERSTANDING ENTERPRISE RESOURCE PLANNING SYSTEMS CHAPTER OBJECTIVES 1. Develop an understanding of how ERP systems can improve the effectiveness of information systems in organizations. 2. Understand the business benefits of enterprise resource planning (ERP) systems. 3. Understand the history and evolution of ERP. CHAPTER OUTLINE 1. A Foundation for Understanding Enterprise Resource Planning Systems a. The Emergence of Enterprise Resource Planning Systems 1. What is ERP? 2. The Evolution of ERP 3. The Integrated Systems Approach b. Business Benefits of ERP c. ERP Modules d. ERP Design Alternatives e. The Business Case for ERP 1. Cost-Benefit Analysis for ERP 2. Can ERP Provide a Competitive Advantage? f. The Challenge of Implementing an ERP System g. Summary ANSWERS TO END-OF-CHAPTER QUESTIONS Questions for Discussion: 1. Use on-line library databases to identify articles in trade publications which provide case studies of ERP implementations. These articles may provide some insight into each of these questions. a. How widespread is the use of ERP across certain industries? b. What are the benefits reported from implementing ERP? c. What are its limitations? 2. Research and learn about the implementation of ERP. Use trade publications and on-line library databases (e.g. ABI Inform, ProQuest, First Search, Wilson Select Plus, available through...
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...History THE call to serve the rural indigents echoed since the early '60s when the Philippine Medical Association introduced the MARIA Project which prioritized aid to communities in need of medical assistance. The Project would then be considered a valuable precursor to the Medicare program, from which a medical care plan for the entire Philippines was created. On August 4, 1969, Republic Act 6111 or the Philippine Medical Care Act of 1969 was signed by President Ferdinand E. Marcos which was eventually implemented in August 1971. The Philippine Medical Care Commission (PMCC) was tasked to oversee the implementation of the program which went for almost a quarter of a century. In the 1990s, a vision for a better, more responsive government health care program was prompted by the passage of several bills that had significant implications on health financing. The public's clamor for a health insurance that is more comprehensive in terms of covered population and benefits led to the development of House Bill 14225 and Senate Bill 01738 which became The National Health Insurance Act of 1995 or Republic Act 7875, signed by President Fidel V. Ramos on February 14, 1995. The law paved the way for the creation of the Philippine Health Insurance Corporation (PhilHealth), mandated to provide social health insurance coverage to all Filipinos in 15 years' time. PhilHealth assumed the responsibility of administering the former Medicare program for government and private sector employees from...
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...efficient patient care is something companies are focusing more on. The article I chose pertains to digital health. Digital health care consist of the use of information and communication technologies to aid in public health problems and challenges patients come into contact with. This article was chosen because I feel that the outcome from it will greatly assist people in so many different areas. Especially being that I feel digital health is very important to the receiving, viewing, and analytics of health information on a larger scale in order to better educate people about it. Health Care Exchanges (HIEs) play a big role in the communication between hospitals as well as ambulatory care centers. HIEs allow healthcare information to be shared electronically across organizations within a region, community or hospital system. The composures of (HIEs) add to Electronic Medical Records are helpful to public health establishments to aid in studying of the health of the population..Massachusetts has a system that allows interconnected participants to locate, request, and retrieve medical records from others. This can help eliminate drug- to-drug and allergic reactions, as well as duplicate testing and delayed diagnosis when patients need medical attention and are...
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...Management 4 b. Administrative tasks 4 IV. PROPOSED SOLUTION 4 a. Document Management/ Collaboration 4 Key Benefits 5 b. Workforce Management 5 Key Benefits 6 V. Conclusion 6 VI. References 6 I. EXECUTIVE SUMMARY Based upon the two major challenge detailed in the Simple Getaways’ RFP, both challenges appear to steam from the current decentralized structure of the organization. Each office is acting as its own entity, with its own document management and workforce management. By implementing Huddle for document management and Oracle’s workforce management solution it will be possible to centralize both document management and workforce management across the entire organization. Greatly improving the sharing/ collaboration of documents as well as improving controls around workforce management. II. BACKGROUND This document is in response to the RFP created by Simple Getaways, Inc., requesting solutions for a new information processing system. a. Current Issues There are a number of challenges with Simple Getaways’ current system: * Little to no version control of documents, multiple versions of documents exist in multiple locations. * Decentralized storage of files. * Administrative tasks are paper based and are handled at the office level, resulting in delays in processing. * Decentralized tracking of workforce management activities. b. Key Stakeholders Sponsorship/Champion Since the scope of this project will affect...
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