...Financial Statements and There Importance in Outside Interests Jay Whittington ACC 205 Instructor Angela Sneed 4/23/12 Financial statements are used in accounting to give an accurate representation of the financial health of a given business or entity. These statements and their underlying importance of accuracy cannot be overlooked. It is of the utmost importance for a business to present accurate financial statements not only to meet reporting requirements internally, but also to satisfying outside reporting expectations. This is particularly crucial when it comes to outside business interests because potential investors and potential lenders need to access financial statements in order for them to make decisions based on the financial status and overall performance of the business. Accurate financial statements are also important for regulatory authorities as well as government bodies (Homgren, C. Harrison, W. & Oliver, M. 2012). The laws created around financial statements make it clear that companies should make submissions of all their financial statements on an annual basis. Tax authorities also must have access to financial statements in order to looks at profits and if the correct amount of taxes are being paid. When lenders or investors are evaluating a business they use the information from the financial statements to look at the profitability or lack thereof. By looking at this they are able make decisions based things such as the likely hood...
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...My interest in NYU is not something that just came about recently. Living in New York City most of my life, I grew up hearing all about the university. I've visited the Campus many times for college expos, graduations, visiting my cousin's dorm and many other events. Although moving to the suburbs was a great learning experience, I want to go back to the city. I enjoy having everything I need at a walking distance or a train ride away. I enjoy walking out and seeing many outside, even if they are all strangers. I do enjoy the peace and quiet of the suburbs but there is nothing like the concrete jungle. Lower Manhattan is where I envision myself in the near future. Being from a hispanic background I can offer the university diversity. I want...
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...My interest in science dates back to my years in high school, where I excelled in Biology, Chemistry, and Math. I grew up in a small town named Sibu, where this small town was lack of medical equipment and facilities. I personally felt that it is not right that some people have access to the best doctors and treatment while others have no medical care. I've seen people around me suffering from chornic diseases and because of this, I felt really inspired to become a doctor; this had sprouted my passion for medicine at a very tender age. I thoroughly enjoyed studying the current Medicine course in Shanghai Jiao Tong University. I love reading Medicine books. To me, they were my storybooks. My intellectual curiosity ensures I stay well ahead of the syllabus. For example, I was recently intrigued by an article development in medical surgery. The surgeons decided that rather than amputate, they salvage the man's hand by surgically tucking it into a soft-tissue pouch in his belly after his organ was badly damaged in a traffic accident. I realized that one of the important aspect that need to be...
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...From an early age I’ve always been deeply interested in computing, but it was very hard for me because there was no one to guide me in this domain. My first interest in computers domain came with my first computer when I discovered for the first time how much I may be interested in this area. At the age of 9 years, the Internet has become the best friend of mine, thanks to the Internet because I learned everything I know about computer programming and construction sites.My evolution in computing has seen over the years, like any beginner with many mistakes and many hours spent in front of computer to video tutorials. In 7th grade , our director noticed me that I passionate about computers and chose me to realize school blog. Even now the site...
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...“The main source of Jane Eyre’s interest is the story of immense human endurance” How far do you agree with this statement (Explore the methods which Charlotte Bronte uses to present the idea of human endurance) Jane as narrator certainly shares with the reader a story of immense human endurance. We see this throughout the whole novel. Early example of such are in the Gateshead section of the novel where Jane endures a lack /absence of love. She is forced to endure physical and verbal cruelty though the actions of the cousin John Reed. Who taunts her about her social class and lack of money, ‘You have no business to take our books; you are a dependent, mamma says; you have no money; your father left you none; you out to beg, and not to live here with gentlemen’s children like us..’ Jane endures physical cruelty when John flung the book at Jane, striking her on the head. Through the red room we are able to see the symbolism of Jane’s entrapment, isolation and desire to break free. There is also an element of foreshadowing and imagery emphasises on how isolated Jane is from the rest of her peers “dark and haunted chamber” Even at Lowood this is a recurring theme of the unjust and sufferable nature of her childhood. The endurance from the Red Room is a symbol of her isolation from compassion during her childhood. Through the repeated use of this symbol we see how Jane is imprisoned by her own treatment. Following Jane’s escape from the Red Room we see that she...
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...financial statements Revised November 2013 Noncontrolling interests, combined financial statements, parent company financial statements and consolidating financial statements To our clients and other friends This Financial reporting developments (FRD) publication is primarily designed to help you understand financial reporting issues related to the accounting for noncontrolling interests. This publication also includes interpretive guidance on consolidation procedure and on the presentation of combined, parentonly, and consolidating financial statements. The publication reflects our current understanding of the relevant guidance in these areas, based on our experience with financial statement preparers and related discussions with the FASB and SEC staffs. The accounting for noncontrolling interests is based on the economic entity concept of consolidated financial statements. Under the economic entity concept, all residual economic interest holders in an entity have an equity interest in the consolidated entity, even if the residual interest is relative to only a portion of the entity (that is, a residual interest in a subsidiary). Therefore, a noncontrolling interest is required to be displayed in the consolidated statement of financial position as a separate component of equity. Likewise, the consolidated net income or loss and comprehensive income or loss attributable to both controlling and noncontrolling interests is separately presented on the consolidated statement of...
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...Running Header: Week 1 FASB Assignment FASB Pre-codification standards Summary-Statement of Financial Accounting Standards No. 168 Statement of Financial Accounting Standards No. 168 was issued in June 2009. This statement became effective for financial statements issued for interim and annual periods ending after September 15, 2009. The statement replaces FASB Statement No. 162, The Hierarchy of Generally accepted Accounting Principles. FASB Accounting Standards Codification is the source of authoritative U.S.GAAP accounting and reporting standards for nongovernmental entities. Please note the guidance issued by the Securities and Exchange Commission (SEC) is also used by public entities. FASB Accounting Standards Codification considerably changed the way financial statement preparers, auditors and academics perform accounting research. In addition, the FASB no will no longer issue new standards as Statements, FASB Staff Positions or Emerging Issues Task Force Abstracts. FASB now issues Accounting Standard Updates also called ASU’s. FASB Accounting Standards Codification restructured the accounting and reporting standards in a way that simplifies all authoritative U.S. GAAP by formatting the standards in a topically organized structure. The FASB Codification reorganized the thousands of U.S. GAAP pronouncements into approximately 90 accounting topics and displays the topics using a consistent structure. It also includes relevant Securities and Exchange Commission guidance...
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...on a creditor for incorrectly naming a debtor entity on a financing statement. As you might expect, misidentifying a debtor on a financing statement can mean the difference between having a secured claim and an unsecured claim. However, what you might not expect is the degree of error necessary to render a financing statement “seriously misleading” under revised Uniform Commercial Code §9-506, thereby rendering it ineffective. The new legal standard, coupled with strict search logic standards being adopted by filing offices are making it much easier to challenge the perfection of a security interest on the basis of minor errors in the debtor’s name. So… "What's in a name? Well, when trying to perfect a security interest under Revised Article 9, “that which we call a rose by any other name definitely does not smell as sweet." INTRO: [PMSI] In today’s economy, selling unsecured on open account may carry significant risk for vendors. However, taking a security interest in the merchandise sold may reduce or eliminate such risk. This type of security interest, called a purchase money security interest or "PMSI", is the most common and important secured transaction under article 9. To obtain a valid PMSI, the debtor must first execute a security agreement giving the vendor a security interest in described merchandise. Then, the vendor perfects the security interest by filing a financing statement with the filing office (generally the Secretary of State). The vendor...
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...performance. a. True b. False (1.2) Social welfare and finance Answer: b Diff: E [iv]. The goal of maximizing stock price is a detriment to society in that few of the actions that result in maximization of stock price also benefit society. a. True b. False (1.2) Social welfare and finance Answer: a Diff: E [v]. If a firm's managers want to maximize stock price it is in their best interests to operate efficient, low-cost plants, develop new and safe products that consumers want, and maintain good relationships with customers, suppliers, creditors, and the communities in which they operate. a. True b. False (1.3) Agency Answer: b Diff: E [vi]. An agency relationship exists when one or more persons hire another person to perform some service but withhold decision-making authority from that person. a. True b. False (1.3) Agency Answer: b Diff: E [vii]. If a firm's stock price falls during the year, this indicates that the firm's managers are not acting in shareholders' best interests. a. True b. False (1.3) Agency Answer: a Diff: E [viii]. An agency problem exists...
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...ACCOUNTING CANADIAN GAAP – IFRS COMPARISON SERIES Issue 15: IAS 1 Presentation Of Financial Statements Both IFRS and Canadian GAAP are principle based frameworks, and from a conceptual standpoint, many of the general principles are the same. However, the application of those general principles in IFRS can be significantly different from Canadian GAAP. Therefore, to understand the magnitude of the differences between IFRS and Canadian GAAP, it is essential to look beyond the general principles and look at the detailed guidance provided in the standards. This is our fifteenth issue in a series of publications, which will provide detailed information on the key differences between IFRS and Canadian GAAP. This issue will focus on the significant differences between current Canadian GAAP requirements for financial statement presentation and the IFRS requirements. These differences relate mainly to: • • • • • Presentation of financial position and equity; Presentation of comprehensive income; Presentation of cash flows; Other Presentation Issues; and First Time Adoption Issues related to Presentation of Financial Statements. Be advised that this publication is a guide to the differences between Canadian GAAP and IFRS and is not meant to be a comprehensive manual. Please contact a BDO representative for specific details and information. Introduction The requirements of financial statement structure and content are more prescribed under IFRS than Canadian GAAP; however, fundamentally...
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...Case 06-4: Fast Car, Inc. In June 2008, the FASB issued FASB Statement 167, Amendments to FASB Interpretation No. 46(R) (Statement 167), which is effective as of the beginning of each reporting entity’s first annual reporting period that begins after November 15, 2009. Statement 167 amends Interpretation 46(R) to require an enterprise to perform a qualitative analysis (eliminates quantitative analysis) to determine whether the enterprise’s variable interest or interests give it a controlling financial interest in a variable interest entity. Under Statement 167, an enterprise that has both of the following characteristics is the primary beneficiary of the variable interest entity: • The power to direct the activities of a variable interest entity that most significantly impact the entity’s economic performance • The obligation to absorb losses of the entity that could potentially be significant to the variable interest entity or the right to receive benefits from the entity that could potentially be significant to the variable interest entity In addition to the new consolidation model described above, Statement 167 also amends: • Certain guidance for determining whether an entity is a variable interest entity • Guidance on when a service or management contract is a variable interest • When an enterprise is required to assess whether the enterprise is the primary beneficiary of the variable interest entity (requires ongoing reassessment) • When the related party guidance...
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...Orrstown Financial Analysis Report -----Pro forma forecasting Contents 1 Intoduction 1 2 Balance Sheet Pro Forma 2 2.1 Asset Forecasting 2 2.2 Liabilities Forecasting 4 2.3 Equity 5 3 Income Statement Pro Forma 6 4 Statement of Cash Flow Pro Forma 11 5 Financial Ratios Pro Forma 12 Abstract Based on the former two analysis reports, this assignment focuses on forecasting financial statements for 2013-2017. Every subject in Balance Sheet, Income Statement, and Statement of Cash Flow is predicted by using pro forma analysis. Before that, several assumptions are made for the convenience of forecasting. Furthermore, financial ratios for the upcoming five years are also calculated with the numbers provided in the three pro forma financial statements. Key words: Pro forma, financial statements forecasting 1 Intoduction The method that is using in this assignment is called pro forma financial analysis. Pro forma is the forecast financial statements based on either anticipated future events or potentially changing business performance in upcoming periods. This is in contrast to regular financial statements that are financial summaries on a business's past. Businesses use pro forma statements to assist in their planning activities, both short term and long term. Normally, a pro forma forecasting will cover three to five years into the future; and five-year pro forma can provide a fuller view into how a business might fare under various assumptions. The...
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...Contingencies, and the Time Value of Money OVERVIEW OF EXERCISES, PROBLEMS, AND CASES Estimated Time in Learning Objective Exercises Minutes Level 1. Identify the components of the current liability category of 1 10 Easy the balance sheet. 2 10 Easy 3 10 Easy 2. Examine how accruals affect the current liability category. 4 20 Mod 5 15 Mod 6 10 Mod 7 15 Mod 8 15 Mod 3. Demonstrate an understanding of how changes in current liabilities 9 5 Easy affect the statement of cash flows. 10 5 Mod 11 5 Mod 4. Determine when contingent liabilities should be presented on the 12 15 Mod balance sheet or disclosed in notes and how to calculate their amounts. 5. Explain the difference between simple and compound interest. 13 20 Mod 6. Calculate amounts using the future value and present value concepts. 14 5 Easy 15 5 Mod 16 10 Mod 17 10 Mod 24* 10 Diff 25* 10 Diff 7. Apply the compound interest concepts to some common 18 5 Mod accounting situations. 19 10 Mod 20 10 Diff 24* 10 Diff 25* 10 Diff 8. Demonstrate an understanding of the deductions 21 15 Mod and expenses for payroll accounting. (Appendix 9A) 22 20 Mod 9. Determine when compensated absences must be 23 10 Diff accrued as a liability. (Appendix 9A) *Exercise, problem, or case covers two or more learning objectives Level = Difficulty levels: Easy; Moderate (Mod); Difficult (Diff) Problems...
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...which option user wants to choose If statement to ensure a capital or lower case “A’ will work Insert a try statement in order to catch exceptions Insert a while loop in order to keep program going until user is finished. Call the write_int_rates function Call the customerNumber function Call the CalculateBonusInterest function Ask if user wants to continue Insert an except statement to print out any errors. If statement to ensure a capital or lower case “S” will work User is choosing the ‘search’ option Insert a try statement to catch exceptions Insert a while loop to keep program going until user enters “N” Set Boolean flag (found = False) Search = user inputs CID Open the Customer.txt file to read it Read the first line (CID) Insert a while loop to stop reading at the end of that customer’s details. Read the rest of the file for that customer Strip the newline characters If CID == search: Print all results of search Read the next CID Close the file Check if user wants to keep going Insert except statement If statement to ensure a capital or lower case “U” will work Insert a try statement While loop to check when user wants...
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...Statement No. 168; The FASB Accounting Standards Codification® and the Hierarchy of Generally Accepted Accounting Principles—a replacement of FASB Statement No. 162 This standard was issued in June 2009, and would be effective for financial statements recorded for fiscal periods ending after 15th Sept. 2009. The aim of the statement is the replacement of FASB Statement No. 162 as the authoritative source of U.S generally accepted accounting principles for nongovernmental entities. Securities and Exchange Commission rules and statement releases, however, remained the authoritative accounting standard for all SEC registrants. Accordingly, the statement superseded all pre-existing accounting non-SEC financial accounting and reporting practices. In essence, the Accounting Standards Codification became the GAAP. Some common sources of unauthorized accounting literature include FASB Concept Statements, IFRS of IASB, AICPA Issue Papers, Accounting textbooks, etc. The acceptance of nonauthoritative accounting literature would be determined on a case-to-case basis, depending on the appropriateness of the scenario and the credibility of the author of the accounting literature used. This standard also provides that the FASB board shall issue Accounting Standards Updates and abolish the issuance of Statements, FASB Staff Positions, or Emerging Issues Task Force Abstracts when need arises to address emerging accounting issues. However, these updates shall not be regarded independently...
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