is when a company merges with another company and becomes a partnership or when a partnership is no longer needed and changes to a corporation. Each change needs to make sure the right procedures are being done. The rationale behind establishing the subsidiary as a corporation is for legal and tax reasons. To have the subsidiary as a corporation the corporation would “maintain a Capital Stock account, Additional Paid-In Capital accounts, and a Retained Earnings account” (Bline, Fischer, &
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To: Libby Grimes Re: CPA Report This memo is in response to the request for information from the CPA firm examining our subsidiary. The memo addresses information regarding the methodology used to determine deferred taxes, the various procedures used for reporting accounting changes and error corrections, and the rationale for establishing the subsidiary as a corporation. In addition it provides information on the professional responsibilities of Certified Public Accountants (CPA’s). Finally
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well as what the differences between a review and an audit are. With the examination of a subsidiary that has been established as a corporation there are certain questions that arise such as: What is the methodology used in determining deferred taxes, What it t he procedures for reporting accounting changes and error corrections, and What is the rationale behind establishing the subsidiary as a corporation. The draft below outlines my response to the questions that have been provided. CPA Professional
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Report Below I have summarized an explanation to the questions that came about during your examination of a subsidiary that has been set up as a corporation. • The methodology used to determine deferred taxes. The deferred taxes reported are a temporary difference. The deferred taxes were calculated based on what needed to be reported versus what has been posted to the corporations’ books. The “temporary difference is the difference between the tax basis of an asset or liability and its
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To: Manager From: Hunter, CPA Re: Deferred Taxes, Accounting Errors and Changes, Subsidiary As of May 14, 2012, this memorandum will provide thorough explanations the following questions: the methodology used to determine deferred taxes, the procedures for reporting accounting changes and error corrections, and the rationale behind establishing the subsidiary as a corporation. We will also discuss the professional responsibilities of a CPA, and the difference between a review and an audit.
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CPA Report In response to your request for information, this memo will address the methodology used to determine deferred taxes, the various procedures used for reporting accounting changes and error corrections, and the rationale for establishing the subsidiary as a corporation. In addition it will address our professional responsibilities are as a Certified Public Accountants (CPA’s) and finally distinguish between a financial audit and a financial review. The Methodology used to Determine Deferred
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CPA Report Bambi Snyder ACC/545 December 16, 2013 Brooke Call CPA Report Memorandum To: Brooke Call, Management From: Bambi M. Snyder, CPA Date: 12/16/2013 ------------------------------------------------- Re: Professional Responsibilities of a CPA and the Difference between a Review and an Audit Professional Responsibilities of a CPA There are many professional responsibilities a CPA acquires when they accept the CPA license and a job position. As you may know, there have been many
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of joining the EU 8 - Disadvantages 9 - Multinational Corporations 9 - Financial Institutions and Credit 10 - Final choice and rationale 10 – Conclusion 12 - References Executive Summary As international markets are expanding and new opportunities are opening up abroad for businesses to grow within the international landscape, it is imperative that prospective companies gather a full working knowledge of how multinational corporations function and ways in which joining the European Union
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CC: CPA Report ACC/545 Date: April 16, 2012 A corporation is the most common type of organization, which is a charter of the state of legal entity and separate from owners. A corporation is a limited liability to the owners, which means that the owner’s personal property is legally separate from the corporation ("Corporation," 2012). The deferred tax primary intention is to present estimated actual tax to payable in current and future periods and is seen as the income tax liability
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The historical financial statements are prepared following the GAAP. But companies have to follow the guidelines of the Internal Revenue Service to prepare accounting for tax purposes. The different methods rules applied in following the GAAP and tax accounting guidelines would result in different amounts of tax expenses or taxable income reported to the IRS. Deferred taxes are arrived at by the calculation of the taxable income and taxes payable. Temporary difference is the difference between pretax
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