business A FDD review may not only look at the historical financial performance of a business but will generally consider the forecast financial performance also The objective is to ensure that prospective investors make an informed investment decision Its a fact gathering exercise with a focused analysis of information. The main sources of information for a FDD review include: Historical financial data including statutory accounts, g y , management accounts and reports and income tax returns Current
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economic indicators such as nominal GDP, GDP per capita, unemployment, budget deficit (% of GDP), balance of payments accounts (% of GDP), and inflation. II. Brief description of the behavior of various economic indicators at the last 20 years III. Brief description of the behavior of various economic indicators for at the last 20 years IV. The relationship between the accounts in the balance of payments, average interest rate, and the government budget balance. Is there any relationship
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GUIDELINES TO DETERMINE ASSET IMPAIRMENT AND REPORTING OF INSURANCE RECOVERIES ASSET IMPAIRMENT STEP 1: Identify “Potential” Impairments to Capital Assets The first step in the process is to identify “potential” impairments to capital assets. Identifying “potential” impairments to capital assets may not necessarily lead to recording an impairment loss. Refer to Step 1 of Exhibit 1 for a detailed decision tree. How is asset impairment defined? As stated above, GASB Statement No. 42, paragraphs
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Contribution made by the methods of generating income 4 2.1. Elements of cost 5 Instructions for gross profit margin 6 3. Just In Time 7 4. Economic Order Quantity 7 2.2 The Best Methods for Controlling the Cash Flow 7 3.1 Sources of trial Balance 8 The main sources of trial balance are- 8 Journal entries 8 Ledger 8 Closing entries 8 Adjusting entries 8 3.1 Structure of a Trial Balance 9 3.2 Accounts: 10 Adjustments 10 Notes 10 Credit note 10 3.3.4 Budgetary
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valuation options are fair market value and historical cost (net depreciation). Depreciation is an adjustment to the net income of an entity for wear and tear of fixed assets. The adjustment for depreciation is (in theory) to expense assets over the term of their useful lives. Amortization is an adjustment to the net income of an entity to expense costs of intangible assets over the estimated useful life of the asset (example: writing off the costs of a noncompete agreement over the life of
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collected (160,000) Ending accounts receivable $ 10,000 Year 2: Beginning accounts receivable $ 10,000 Plus: Amounts billed to customers 220,000 $230,000 Less: Cash collected (190,000) Ending accounts receivable $ 40,000 Exercise 1–7 List A List B o 1. Predictive value a. Decreases in equity resulting from transfers to owners. h 2. Relevance b. Requires consideration of the costs and value of information
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that can provide historical analysis. But the future has a lot more to offer. Imagine an automotive plant with fluctuating marketing demand , supply chain constraint and increasing production costs. In such a scenario, we can only expect something beyond human intelligence to give smart solution that approximately optimizes every aspect. Now let us think of a system that is integrated with the production system and marketing technical system. This system has a historical account of all orders over
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Case 1 In this case, students are introduced to the difference in accounting for R&D costs between IFRS and U.S. GAAP and asked to comment on whether one method is better than the other, as well as whether any part of R&D should be capitalized. Case 2 (prepared by Peter Secord, Saint Mary’s University) In this real life case, students are asked to discuss the merits of historical costs vs. replacement costs. Actual note disclosure from a company’s financial statements is provided as background
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Chapter1: Financial Accting Standards Board (FASB), Supported by the Financial Accounting Foundation, Five full-time, independent voting members, Answerable only to the Financial Accounting Foundation, Members not required to be CPAs -- The FASB undertakes a series of elaborate information gathering steps before issuing an accounting standards update to determine consensus as to the preferred method of accounting, as well as to anticipate adverse economic consequences. //(Internal Revenue Service
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Part of Nike's strategy to revitalize the company was aimed at addressing their revenues which had been fixed for four years and their net income which had fallen to almost $220M. Additionally, Nike had been losing overall market share and the strong dollar had adversely affected revenue. To address those issues, management was planning to; (1) raise revenue by developing increased levels of athletic-shoe products in the mid-priced segment. (2) Push its well performing apparel line, and (3), control
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