Introduction Accounting is a valuable tool not only in businesses but also in day-to-day processes. It is crucial in financial decision-making. Virtually all businesses and financial institutions, as well as non-financial firms, have a functional department of accounting that is crucial to the organisation. The question of who benefits from...
Introduction Disclosure has been defined as the provision of quantitative or qualitative information relating to a business entity in the annual reports. Non-financial disclosure is thus the provision of information other than financial information. These include customer issues, corporate social responsibility issues, and environmental issues. Non-financial disclosure can be in...
Introduction According to Buchman (2005), professional ethics are norms that guide decision making in a given field. The decisions include those touching on transactions and maintaining an appropriate relationship with the public as well as within the professional field itself. The professionals have an obligation not to harm their clients....
In today’s tumultuous and multifarious economic environment, the level of fraud has drastically increased in many organizations. Globalization and technological advance have further made the situation to become complex, as auditors have to compete with knowledgeable and well equipped fraudsters. The annual report of the Association of Certified Fraud Examiners...
Introduction The corporate world is changing as a result of the expansion and social deepening of processes of globalization. To be successful, companies must be knowledgeable about international markets, a diverse range of stakeholders, and comply with ever-increasing regulations on the need for non-financial disclosures. Organizations should also review how...
In the above figure, it is assumed that Sonya Causer invested the funds immediately after he misappropriated them. The annual financial audit that revealed that there was a variation in the creditor ledgers and their subsidiary accounts indicated a discrepancy of $ 2 million while in an actual sense more...
Introduction In the past decade, we have witnessed an increasingly higher number of companies embracing the concept of non-financial reporting. For example, Alesina and Weder (2002) report that in 2000, very few organizations (only about 44) were reportedly implementing the concept of sustainability reporting as popularized by the Global Reporting...
In the auditing of construction companies, clear understanding and distinction need to be made between revenue, income and capital. In distinguishing income and revenue, IAS 16 specifies that assets which should be recognised as revenue are those which were held for rental and later transferred to inventory at their own...
Executive Summary This research paper entails an evaluation of how organizations can analyse and interpret financial statements. Some of the users of financial statements include “managers, customers, investors, creditors, and regulatory agencies” (Drake & Fabozzi, 2012, p.43). These users have diverse information needs. Consequently, it is imperative for organizations to...
Introduction International Accounting Standards (IAS) are a set of accounting standards adopted by various countries around the world, with the aim of harmonising and internationalising accounting standards and practices. This study aims to explore the benefits of achieving compatibility between Saudi Accounting Standards and IAS. This will be achieved by...
Introduction Due to changes in technology, the nature of work done by most accountants and auditors has changed significantly (Gelinas, Dull, and Wheeler 2011). This is partly because computer systems can be used to automate transactions and provide information to be used by accountants and auditors. With the aid of...
Introduction In the recent past, numerous debates have focused on the relevance of Generally Acceptable Accounting principles to non-public companies has raised much attention with critics arguing that these principles have failed to address the unique cases that underpin the privately held companies (Kreischer, 2011). Throughout history small and micro...
Introduction Enron entered into long-term contracts with gas suppliers. The company was to buy oil reserves at a fixed price, then sell to potential customers. It was to benefit from the difference since it had capability to control the supply in the market and not worry about the movement of...
The comprehension of a fundamental bookkeeping process is critical to both charitable organizations and profit organizations. Even though most charitable firms use automated accounting programs for bookkeeping, it is still significant to comprehend the system of bookkeeping. The improvement of bookkeeping expertise within an organization makes it possible for the...
Public Accountants’ Perceptions by McEnroe (2010) is a highly instructive article that aims to determine the perceptions of auditors with regard to earnings management practices. In particular, the author determines these perceptions through the application of Generally Accepted Accounting Principles (GAAP) in the post-Sox period. Results of previous studies conducted...
Introduction In this unit, my course task was that of examining how activity based management and activity based costing (ABC) can benefit a company. Activity based costing is generally a costing technique integrated in the early 1990s with a view of helping a big manufacturing company enhance its product costing...
Introduction Contemporary managers have come to establish the viability of cost accounting. As such, it is through it that one can be able to understand the costs associated with running an entity. According to many researchers, cost accounting is identified as having arisen out of the industrial revolution. During this...
Introduction Oman Agriculture Development Company SAOG is a member of OMZEST Group and is based in Oman. The company is located at Sohar, where it has an eight hundred hectare farm. The company mainly deals in the production of dairy products. Other products of the company are vegetables, juices, and...
Abstract This paper will critically examine the meaning and importance of audit quality as well as the implications of audit report in respect of the compliance with the audit standards. Drawing from the academic, professional and relevant literature as well as the expert analysis the paper will first explore the...
Introduction Managerial accounting provides accounting information to managers of an organization to enable them perform planning and control functions within the firm. Managerial accountants are responsible for various reports in an organization. The reports address how a business unit has actually performed in comparison to the budgeted or planned activity...
Introduction Accounting for the internally generated intangible asset has become a crucial area in the field of accounting and business as described in the discussion paper. The nature and size of intangible assets in an organization show how important it is especially from an external financial reporting standpoint. Intangible assets...
Introduction Ethics is a field in philosophy that deals with concepts of morality such as virtue, vice, fairness, crime, right and wrong. It entails people’s perceptions of what is good or bad. Ethics is mostly used in decision-making and companies should always ensure that their business operations are handled ethically...
There are four basic financial statements for any modern business enterprise. A Balance sheet, statement of returned earnings or income statement, statement of cash flows, and the statement of shareholders equity are the major financial statements in a modern business setting. The financial statements represent the financial position of the...
Introduction Managerial accounting is an important concept in running an organization; the concept assists managers to make appropriate decisions for their companies. The concept involves two things: studying a company’s revenues to establish the most effective ways to increase them, and critically investigating its expenses to find how to minimize...
Introduction Information qualities like neutrality, representational faithfulness, and reliability are significant qualities of accounting that both the International Accounting Standards Board (IASB) and the Financial Accounting Standards Board (FASB) employ when setting standards (Kaminski & Carpenter 2011). Standard setters bear in mind that although past Conceptual Frameworks (CF) are being...
Introduction Individuals and businesses are expected to give a full disclosure in the financial statements of total income earned during a financial period. However, this happens not to be the case. Most individuals and businesses fail to report total income so as avoid tax. Unreported revenue comprises of certain income...
Limitations of an internal control system The core purpose of an internal accounting system (ICS) is to preventing tampering of accounting data. The ICS guarantees that the financial data is accurate, reliable and timely. Therefore, an ICS denotes procedures utilized to ensure that no misrepresentation occurs in the financial records....
A history of Malaysia Malaysia is one of the countries in south East Asia that lies in Malay, Peninsula. The country’s head of state is Tuanku Mizan Zainal Abidin ibni al-Marhum Sultan Mahmud. The prime minister is Datuk Seri Najib Razak. It has an estimated population of over 26 million...
Risk factors the company may consider for raising capital There are several risk factors that may be considered in choosing an over-seas market for listing or raising capital however, there relevancy is always chosen by their nature and location on the market. Some factors may include; The government policy concerning...
Introduction A bad debt occurs when one party owes another party some money that the latter might not be able to collect. The debts exist in two kinds namely business and non-business debts (Thomsett 63). A business bad debt is that which occurs from operating a business or trade and...
At full capacity the firm uses 600,000 machine hours, of which 80% is for the products made internally and 20% is for those products that may be produced externally. Thus, if the firm is only using 80% of the machine hours this implies that it is not operating at full...
Reason for restatement Entities restate their statements due to diverse reasons. The reasons entail alteration of standards, material misstatements or changes in ownership (Federal authorities, 2010). The preferred organization is Poynt Corporation. This corporation holds a sizeable market proportion in the mobile advertising market. Fundamentally, the organization enhances the clientele’s...
Introduction The Tallahassee Bean Counters (TBC) is a minor league baseball team that is based in Tallahassee, Florida. It is an organization that was never audited until an anonymous whistleblower’s letter reported fraudulent activities within the company to Franklin Kennedy, the organization’s owner. Furthermore, the audit of the company’s accounts...
Introduction The aim of any business is to make profit and remain solvent. This will make a business to be in a position to pay its creditors, employees and to be able to perform its daily activities. Accounting, in this regard helps in preparation of financial statements that will aid...
Introduction Management accounting involves the mechanisms for generating beneficial financial information about a company for use in the growth and development of its business. This information is assembled from the company’s undertakings on operative, tactical, and strategic levels. The key reason to collect such data is to help managers in...
Audit Issue Sarbanes-Oxley stands for Senator Paul Sarbanes and Representative Michael Oxley. These are the people who made the draft of Sarbanes-Oxley act of 2002. They intended to protect the investors through improving reliability and accuracy of company disclosures. The laws were made in pursuant of security concerns and other...
Perpetuity in real estate valuation In real estate valuations, perpetuities do not have future values. Perpetuities are streams of cash payments that extend forever. One advantage of using perpetuities in real estate valuation is that there is no calculation of the present value of the principle amount. Thus, the present...
An overview of financial statement analysis Financial statement analysis is an important role that a business entity has to conduct in order to determine its strengths and weaknesses (Jago, 2002). To achieve this, a business entity has to prepare a number of financial statements from which the analysis can be...
Introduction Billabong Limited has always endeavored to improve its financial and operational performances. This company has constantly been seen to be in line with its mission of increasing its operational mobility and financial reliability. During the fiscal 2010 and 2011, Billabong financial statements namely income statements, cash flow, and statement...
The AUASB released the amended Australian Auditing Standards in October 2009. The standards relate to auditing of financial statements and financial reports starting from 1st January 2010 (Gay 2007). The standards also relate to companies that are required by law to have put in place internal control systems for their...
Introduction For financial information to satisfy the objectives stated it must possess attributes of a qualitative nature (Carmichael, Whittington, and Graham 2007). These characteristics ensure that financial reports present right and fair business performance view. International Accounting Standard Board developed a framework to guide businesses on reporting standards. The framework...
Introduction Fraud and abuse have been defined by Wells (2011) as the use of one’s job for the purposes of individual gains through intended misappropriation or misuse of the employer’s resources or assets in reference to ACFE. Further, he observes that fraud involves the use of deception to make what...
Chief Executive Officer’s Report to Stockholders Financial Statement Analysis Financial statement analysis of Tesco Plc helps investors or stockholders understand how their investments were used. The financial statement analysis also shows the dividend income that each stockholder earns. Austin Murphy (2000) emphasized, “A large number of different assets exist into...
JetBlue is an airline that operates at a low cost while providing high-quality service to its passengers. The focus of this airline is to serve markets that have not been properly served as well as a number of metropolitan areas that charge customers high fares. The airline intends to pursue...
Introduction Significance of the study Accounting and Reporting of Post-retirement Benefits is an important area of study since the end-users, who include the prospective employees as well as the prospective investors, will be able to make worthwhile decisions concerning a particular company. Introduction to Accounting and Reporting of Post-retirement Benefits...
The financial accounts of Kyle’s Lawns Inc, using the multiple step formats appear as below. For the Year ended November 30, 2005. Calculations The EPS of a company is calculated as below; EPS = Retained Earnings No. Of outstanding ordinary shares = 378,000/150,000 = 2.47 The EPS of a company...
Introduction Nowadays, the organizations and businesses tend to use the unified accounting system to ease the principles of reporting standards and determine the rationale for the results. In this instance, International Financial Reporting Standards (IFRS) is the accounting transactions and reporting criteria, which were introduced by International Accounting Standard Board...
After the manufacture of products or provision of services, business leaders should ensure that the price quoted for the product covers costs related to the product/service. The financial gain or revenue or the contribution that a company get is determined by the pricing policy that the company adopts. On the...
A lease is a contractual arrangement calling for the lessee (user) to pay the lessor (owner) for use of an asset for a certain time. Leasing is a common activity and agreement, which appears on the company’s financial statement all the time, no matter fortune 500 companies or startup firms....
Accounting principles serve as a guide in the preparation of financial statements. The principles include the operational rules, fundamental assumptions, and essential characteristics used in the preparation of the financial statements. Consequently, the original guides confused the different users of the financial reports. The accountants implement the accounting principles during...
Introduction “Cost accounting measures and reports financial and nonfinancial information related to the organization’s acquisition or consumption of its resources” (Pavlatos & Paggios, 2009, p. 513). The reports include the financial accounting as well as the managerial ones. Traditionally, managerial accounting is regarded as the principal method of costing both...
The above-mentioned cycle approach ensures consistency in the manner in which the recording of transactions within journals along with ledgers is undertaken. The standard approach of considering control internally along with substantive testing aims at dividing the transactions of the auditee, balances as well as identical control procedures into related...
Horizontal Analysis The analysis of the financial reports of an organization is vital for existing stakeholders of any given firm. Horizontal analysis is one of the forms of analyzing the reports of the firm and it emphasizes the changes in the trends of the financial reports of the firm in...
Who uses the financial data produced by state and local government units Like financial data produced by for-profit institutions, financial data by state and local government units have many users. These users use the data for a variety of uses, which includes decision-making. The following are the three main users:...
China’s accounting practices have continued to employ traditional standards of the past. With the consideration of international standards, there has been a need to reform the accounting framework. Some of the main needs of the reforms include enhancement of information quality and standardization of the local and international practices. Under...
Definition Every business organization has the procedures that it follows when preparing financial statements. The procedures are distinct and designed to fit the general objectives of the company. The term accounting principles refer to the policies and procedures that guide a company in preparing its financial statements (Kieso, Weygandt, &...
Executive Summary In the last decade, national setters of accounting standards have become aware of the emerging need for efficient standards that can be used to regulate financial institutions. Countries within the Middle East such as Bahrain, Jordan, Kuwait, Lebanon, Oman, Qatar, and the UAE have acknowledged the need to...
Introduction This is also known as profit and loss account, an income statement is a financial document which shows the conclusive summary of an organizations revenues (what the entity earned from sales of products and services ) and expenses (what was deducted to earn this revenue ) to earn this...
Journal entries are used in accounting to enter business transactions into records. (Albrecht, Stice and Stice 72). Adjusting the journal entries at the year end is done in order to reflect all the transactions that relate to the just concluded financial year so that the final accounts comply with the...
International Financial Reporting Standards are standards based on the general accounting principles for purposes of international financial reporting for uniformity. They are generally for conversion purposes of issues that relate to the elements of the financial statements. IFRS also poses a very strict and well-defined structure and framework; this is...
Introduction Activity-Based Costing is a method to measure the performance and cost of activities in a system. This costing methodology integrates the contributory relationship between activities of a system and its cost drivers. Unlike any traditional costing system, ABC allocates cost to activities depending upon the utilization of resources and...
Executive summary Halliburton is one of the global leaders in the provision of oilfield services. Its core activities involve management of geological information, drilling, and structural assessment, shaft development and conclusion, and production optimization. The purpose of this study is to carry out an in-depth analysis of Halliburton’s 2015 annual...
Introduction David Jones Limited and Premier Investments Limited are Australian companies. Both companies are listed on the Australian Securities Exchange (ASX). Premier Investment has been listed on the Australian Securities Exchange since 1987. Premier Investment Limited mission was to “maximize growth in capital returns to shareholders through the acquisition of...
Introduction Accounting information is prepared to aid decisions about economic resource allocation. Decisions on how to allocate these scarce resources are made daily by different parties. This information enables them to predict the uncertainty and timing of cash flows associated with business entities or projects. There are several reports that...
Executive Summary Enron’s top corporate leaders discovered a way to bolster the company’s earnings by manipulating the firm’s financial data. As a result, they were able to create the illusion that the company was raking in a great deal of profit. Expenses were listed as earnings, and as a consequence...
Introduction This is a financial analysis report of three competitors; Hyatt, Shangri-la, and Starwood from different countries. In the process of studying the ratios and performance of these three companies, calculation and comparative analysis for the years 2010 and 2009 has been done to evaluate which company performs better than...
This article tries to focus on management roles in contrast with traditional management practices. Accounting managers need to get out of the office and focus on other features of the organization. This includes the manufacturing plant, products and services, supply and purchasing techniques and the distribution and consumption strategies. I...
Cost and Revenue Assumptions In order to create an excellent pitch that would attract the interest of the target investors, thorough market research for a new product should be conducted. Through market research, the potential target market can be identified, preferences established, and competing products identified; hence, a customized product...
Gearing ratios Gearing ratios are important in examining the ability of a firm to meet both short-term and long-term debt obligations (Peterson & Fabozzi, 199: 124). Gearing ratios namely, debt to equity= long-term debts/ Shareholders funds) *100 Debt-to-capital employed = (long-term debts/ Capital Employed)*100 Ratio formula calculation 2008 2009 2010...
Introduction Organizations world over are increasingly perfecting the quality of their products and services. This has been occasioned by increased competition among firms and an increasing rate of globalization, which has increased the scope of competition among firms. To have a competitive edge over other firms, organizations must ensure that...
The survey was conducted among 50 individuals. The research focused on the respondents’ age in relation to whether they performed bank reconciliation. The research focused on the respondents’ gender in relation to whether they performed bank reconciliation. The research focused on the respondents’ work. The survey proves that accounting information...
Introduction According to Weygandt et al. (1996), ratio analysis involves the selection, evaluation, and interpretation of financial information and data to help the management, creditors, shareholders, and taxation authorities in investment and financial decision-making. Ratio analysis is a tool that is utilized internally to evaluate issues such as credit policies,...
Introduction Increased technological advancements and the growing importance of large organizations have increased the importance of understanding firm-owner relationships. Proprietary and entity theories have played a pivotal role in defining firm-owner relationships. The proprietary theory sees no distinction between a firm and its owners but the entity theory recognizes this...
Introduction Accounting standards like the IFRS aim to offer a global structure of how public companies are supposed to release their financial statements apart from setting rules for business reporting specific standards. According to AICPA (2010), IFRS signifies a major transformation in the way most organizations produce their monetary results....
Executive Summary The primary goal of the paper is to evaluate the efficiency of the accounting system components in my organization XXX. In this instance, the issues of the maintenance of supply chain were identified due to lack of the variety of suppliers, long-term contracts, and necessity of the Purchase...
Executive Summary The supplier’s appraisal is a complex procedure that is based on collecting the data regarding the potential supplier that are retrieved from different sources, the analysis of the company’s position according to the set criteria, and the determination of the maximum contract value. The prioritized data selected for...
Introduction Toyota Motors Company The company is based in Japan. The company was incorporated on August 28, 1937, in Toyota, Aichi, Japan. The company is listed in the Tokyo Stock Exchange, London Stock Exchange, and New York Stock Exchange. The company has numerous outlets worldwide and it deals with the...
The difference between Gross Profit and Net ProfitThe difference between the total sales of goods and services and the related costs incurred during the production and selling of goods and services is the gross profit. Gross profit may also refer to gross income or margin. It is imperative to comprehend...
Introduction A qualitative system of health care is one of the primary attributes of a developed country. While the USA healthcare was ranked as eleventh in terms of overall quality, it is the most expensive in the world. It is common knowledge that healthcare costs are the most common reason...
Executive Summary The objective of this paper is to undertake a costing of a product which is yet to be introduced in the market. The service is a robotic taxi which offers customers with the opportunity to drive them without drivers from different point of Abu Dhabi to their destination....
Introduction The hotel industry is a major economic player especially in boosting tourism in any country. This industry is, however, affected by different economic challenges which can threaten its existence. The hotel has experienced a decline in its major performance indicators such as occupancy, Gross operating profits and the average...
Introduction Before carrying out an audit an auditor should plan effectively so that he/she can seal any loopholes that can allow misstatement in the financial statements. The auditors should ensure sufficient understanding of the internal controls of the firm under investigation (Ramos 3). An audit risk approach indicates that the...
The BRP panel was reviewing issues regarding the setting of accounting standards within the private sector. The panel recommended introducing enhancements that would be aimed at establishing an accounting standard-setting mechanism seeking to maintain a higher level of financial reporting for business entities irrespective of their capital structure. However, the...
International Standards of Accounting (ISA) and International Financial Reporting Standards (IFRS) have documented internationally acceptable accounting standards that explain how certain accounting transactions should be treated in financial statements. In Australia, the Australian Accounting Standards Board (AASB) has the mandate of overseeing the implementation of the standards and making such...
Introduction The fundamental function of cost management, according to available literature, is to assist financial and management accountants to generate more customer value at a lower cost (Weil & Maher 24). From the case study, it is evident that the president of Kranbrack Corporation is attempting to create stakeholder value...
Background Information Brief Overview of the Company Tesla Founded in 2003 in Silicon Valley by a group of engineers, Tesla Motors is focused on designing, developing, manufacturing, and selling high-performance fully electric cars that are more efficient relative to gasoline-powered cars (Tesla Motors, Inc, About Tesla, 1). Tesla is recognized...
Introduction The Cheesecake Factory is a restaurant company headquartered in California, the United States (“The Cheesecake Factory Annual Reports” par. 1). In order to analyze the company’s ratios and efficiency in terms of planning operations, using assets, and leveraging the equity, it is necessary to apply the DuPont analysis. This...
Introduction International Accounting Standards are a set of accounting standards adopted by various countries around the world, to harmonize and internationalize accounting standards and practices. This study aims at looking at the benefits of achieving compatibility between Saudi Accounting Standards and International Accounting Standards. This will be achieved by highlighting...
Introduction The persistent increase in healthcare expenditures in the last five decades and beyond has resulted in constant reviews and repeated debates on the need for green accounting as a part of healthcare expenditure reforms. Within the last decade, a series of green accounting reforms have been rolled out by...
The International Financial Reporting Standards (IFRS) and the US Generally Accepted Accounting Standards (GAAP) are the main accounting standards applied in the United States. The two approaches to accounting are different in their application of accounting standards. Fr instance, IFRS is viewed as a standard based on principles while the...
Differences between the United Kingdom’s GAAP and IFRS In the United Kingdom, companies have the option of either preparing their accounts in accordance with the International Financial Reporting Standards (IFRS) or the local Generally Accepted Accounting Principles (GAAP). The two methods however have some provisions that differ significantly. Some of...
Introduction The article under analysis discusses the benefits of the efficiency based absorption costing (EBAC) approach. Thus, Benjamin, Muthaiyah, and Marathamuthu point out the advantages of this approach opposite to such models as Activity Based Costing (ABC) and Traditional Costing System (TCS). First and foremost, the authors elucidate the background...
Introduction Revenue is one of the most important variables that investors typically consider in order to evaluate a company’s prospects. The revenue recognition is of high significance for a consistent accounting analysis as it provides the vision of the real gain a particular company can account for (Sondhi and Taub...
Ethical decision making The auditor’s failure to report going concern problems injures the members of the public more since most of the decisions they make are based on the auditor’s report and majorly on the going concern aspect. When the auditor fails to shed light on the going concern aspect....
Enron Case Review Of all the cases of fraud within the business sphere, the Enron case seems the most notorious. Considered the greatest grossing company in the United States, it was delightfully prosperous ad insultingly successful, which could not but raise some concerns about the credibility of the information concerning...
Introduction The presentation of income statements differs depending on the method used as well as the purpose of the financial statement. From this perspective, income statements can be organized according to two specific principles that are known as variable costing and absorption costing (Marshall, McManus & Viele 2011). Moreover, statements...
Introduction Telstra and Vodafone are public limited companies in Australia. Both companies generate most of their income from the telecommunication industry in Australia. Both companies provide mobile and data communications services in Australia. Moreover, they own shares in subsidiaries across their respective geographical segment. Both companies pride themselves on their...
Introduction Based on the continued developments in the accounting field, accounting rules have been formulated in a manner that suits the needs of the ever-changing business environment. The reason behind this alignment is that most publicly listed companies operate in different countries. Hence, they usually have their shares listed on...
The memo seeks to provide you with information on the available expansion options and suitable investment opportunities for Middlehurst House daycare center. The aim is to give information on the most profitable and cost effective approaches of running the institution. Several calculations are carried out for the classes of the...
