consolidation perspective, the likely overall effect of adopting IFRS on the company’s financial statements would preserve and strengthen the company’s global financial competitiveness. Moreover, it will simplify the accounting and consolidation process significantly and reduce financial reporting costs. 2) What potential effect would arise if Klugen were to select the option under IFRS 3 to value non-controlling interest at the proportionate share of its subsidiaries’ net identifiable assets? For business
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Napoleon found the Italian system of accounting to be inefficient. 2.Venice’s commerce was driven by sea traffic. 3.The Genoese system was the first to imply that unlike items could be compared in terms of a common monetary unit. 4.Double entry bookkeeping quickly had world-wide acceptance, as the British accepted it in the 1400s. 5.When hyperinflation exists, alternative systems to historical cost become necessary. 6. The International Accounting Standards Board, an international organization
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CAPITAL BUDGETING: ADVANTAGES AND LIMITATIONS. SEPTEMBER 2012 CHAPTER ONE INTRODUCTION 1.0 Background Study Capital budgeting is the process by which firms determine how to invest their capital. Included in this process are the decisions to invest in new projects, reassess the amount of capital already invested in existing projects, allocate and ration capital
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basis The direct materials cost, direct labor cost and other variable costs per unit are assumed to remain constant at any level of activity to produce the finished good i.e. Instagrowth hair oil. The fixed cost for the business operation is also constant along with the selling price per unit including both variable and fixed costs of it. The units sold are assumed to be 125,000 on 12 month basis. Following are my assumptions for the finalization of per unit cost after a research on hair growth
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a part-time sales person, and bill collector, owns Tri-Cities. Transactions including sales, purchases, inventory, income, and payments are handled and documented by the bookkeeper, Alice Cook. Ray Silva operates the current IT system and is also a sales person. Tri-Cities’ current IT system consist of a small IBM computer, believed to be one of IBM’s earliest small systems, which is used to keep records of inventory of all stores and installment payments. Also, the computer is used to print furniture
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Managers typically prefer an approach known as participative budgeting. Discuss this form of budgeting and identify its advantages and disadvantages. Ans. Also called bottom-up budgeting or self-imposed budgets, where the initial flow of budget data moves from lower levels of responsibility to higher levels of responsibility. Each person with responsibility for cost control will prepare his or her own budget estimates and submit them to the next higher level of management. These estimates
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2012) Enterprise resource planning (ERP) is a business management software—usually a suite of integrated applications—that a company can use to collect, store, manage and interpret data from many business activities, including:- Product planning, cost and development Manufacturing or service delivery Marketing and sales Inventory management Shipping and payment ERP provides an integrated view of core business processes, often in real-time, using common databases maintained by a database management
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managers realize that information can be used to reduce inventory and human resource requirements. In particular, requirements planning using the most current information can reduce inventory by minimizing demand uncertainty. c) Information increases flexibility with regard to how, when, and where resources may be utilized to gain strategic advantage. d) Enhanced information transfer and exchange capability utilizing the Internet is changing relationships between buyers and redefining channel relationships
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Street, London W1T 3JH, UK Accounting and Business Research Publication details, including instructions for authors and subscription information: http://www.tandfonline.com/loi/rabr20 International Financial Reporting Standards (IFRS): pros and cons for investors Ray Ball a a University of Chicago Published online: 28 Feb 2012. To cite this article: Ray Ball (2006) International Financial Reporting Standards (IFRS): pros and cons for investors, Accounting and Business Research, 36:sup1
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The role of management accounting in the organisation has become so much more that the reporting of the score to managers (Hansen, Mouritsen 2006). In the wake of the decline of Western Manufacturing and the relevance crisis of management accounting to modern business as outlined by Kaplan and Johnson in ‘Relevance Lost’, the traditional cost accounting approach has been largely replaced by alternative methodologies (Kee, Schmidt 2000). The role of the management accounting in the modern firm is not
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