information about the past and present that is useful in predicting future financial performance and condition. The three most frequently encountered and most widely used financial statements are the Balance Sheet, the Income Statement, and the Statement of Cash Flows. These three generalpurpose financial statements are intended to provide information to shareholders, creditors, and other stakeholders about the financial position, operating results, and investing/financing activities of an organization. Financial
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The BIGGER Picture (Ch. 1) Why do we need financial reporting? What is its purpose? Who are some of the key players in financial reporting? PROVIDER EXTERNAL USERS REGULATORS Your textbook (as most out there) evaluates accounting issues from a FASB perspective. We will discuss issues from the FASB’s conceptual framework, but also will try to think about others’ perspectives as well. Before we talk about the conceptual framework, we will discuss the structure of the ultimate product of the
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Industry Valuation Analysis The Procter & Gamble Company and Unilever Group 5 Date: 03/18/2016 Project #: FINC 5300-WINTER 2016 Prepared for: Joan Miao Prepared by: Zhang, Leizi; Zhang, Lingfei; Zhu, Senglin; Zhang, Suyuan Date: 03/18/2016 Project #: FINC 5300-WINTER 2016 Prepared for: Joan Miao Prepared by: Zhang, Leizi; Zhang, Lingfei; Zhu, Senglin; Zhang, Suyuan STRATEGY ANALYSIS Macroeconomic Environment Overview U.S. growth has been recovering since
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1 Assets - Effects of Capitalizing vs.Expensing EFFECTS OF CAPITALIZING VS. EXPENSING Expenses can be expensed as they are incurred, or they can be capitalized. A company is able to capitalize the cost of acquiring a resource only if the resource provides the company with a tangible benefit for more than one operating cycle. In this regard, these expenses represent an asset for the company and are recorded on the balance sheet. Effects of Capitalization on Key Figures The decision to capitalize
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Volume 3 Number 1 2004 Accounts Manipulation: A Literature Review and Proposed Conceptual Framework by Hervé Stolowy, HEC School of Management (Groupe HEC), Department of Accounting and Management Control, 1, rue de la Libération, 78351 - Jouy en Josas Cedex, France and Gaétan Breton, Université du Québec à Montreal, Department of Accounting Sciences, P.O.B. 8888, Succursale Centre-Ville, Montréal (Québec), H3C 3P8 - Canada Abstract Accounts manipulation has been the subject of research, discussion
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Running Head: Pension Plans Abstract The goal of pension plans is to provide a fixed income for individuals during retirement. In practice, this means either paying employees a fixed income when they reach a predetermined retirement age or can no longer work due to disability (Dessler, 2005, p. 492). However, since the 1980’s the number of employers offering pension plans has declined. Once considered a common benefit in the workplace and motivator for senior employees to remain with the
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the underlying business reality of the company. The significant decrease of the net debt during the 2009/10 financial year, as emphasized in the Chairman’s report, was largely driven by the reduction of short-term cash advances (Super Cheap Auto Group Limited, 2010, p.3). To the group, cash advances have been drawn as a source of short-term financing on a needs basis. Therefore, they are likely to be part of the working capital of the group which must be recognized as current liability under AASB101
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will be addressed in the following memo. Deferred Tax Method Financial reporting and tax reporting create temporary differences between the amounts reported for income taxes and on the financial statements because an accrual basis is used for financial reporting and a modified cash basis is used for tax reporting. Deferred taxes reported contain a temporary difference between the tax basis of a liability or asset and its reported amount in the financial statements that will result in taxable or deductible
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those expenses with the revenues that would have emerged as a consequence of such expenses. AOL was using the "Matching Principle" thus under the accrual basis of accounting. 3. What do you think is meant by the term the “quality of earnings” (see page two of article, top paragraph). What
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CHAPTER 4 Engagement Planning LEARNING OBJECTIVES | Review Checkpoints | Exercises, Problems and Simulations | 1. List and describe the activities auditors undertake before beginning an engagement. | 1, 2, 3, 4 | 53, 54, 55, 62, 66 | 2. Identify the procedures and sources of information auditors can use to obtain knowledge of a client’s business and industry. | 5, 6, 7, 8, 9 | 52, 56, 59, 65 | 3. Perform analytical procedures to
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