Introduction Flexible budgeting can be defined as the use of budget that has capacity to adjust to changes occurring in the quantity of activities. A flexible budget is more complicated and important than a static budget which does not exhibit changes in amounts even when there are changes in activity...
The FASB is an institute that does not work for profit, and whose main purpose is to develop the codification standard; a set of rules that govern the presentation of financial statements. In the literature, the FASB accounting standards codification is identified as the basis of the GAAP, the Generally...
Introduction Cost management is a strategic management tool that looks into the best approaches to minimize costs and maximize profits within a business. It focuses on the impact of current or proposed decisions on the future of an organisation; cost management main aim is to assist organisations to make such...
Introduction A budget can be defined as a financial plan for the future. Budgets are therefore used as planning tools, and thus they are normally prepared before the budget period commences. This is done in order to be able to compare the budgeted activities/outputs with the actual activities/outputs at the...
Accounting information aids internal and external users in making sound financial decisions. Financial accounting provides information to external users such as shareholders, financial providers, regulators, and tax authorities, thus is available to the public. Managerial accounting provides information to internal users, for planning, budgeting, and controlling; it is confidential in...
Introduction The main aim of cost management is to reduce operational costs alongside improving customers’ satisfaction; to attain this objective, management accountant’s needs to come up with programs and policies that enhance the attainment of the two agendas. When coming up with the cost management strategies, they need to follow...
According to GAAPs Codification 360: 25-3, fixed assets should be recognised as part of a company’s property when they have been acquired for use in production of goods and services. GAAP defines fixed assets as business properties that last for more than one year and used to produce goods and...
Compare the pension plans of Coca-Cola and PepsiCo Pension schemes are legal contracts entered as part of an employment contract with the aim of providing income to an employee after retirement; there are government-operated schemes while others are private schemes operated by companies on behalf of their employees. Having an...
Introduction Accounting and accountability shares a lot of common properties even though in practice accounting is an activity with standard processes while accountability is one of the main values and principles that form the foundation of the conduct and custom of accountants, auditors and other professionals. Chambers (2006, p.234) asserts...
Introduction Audit risk refers to the possibility that an error will go unnoticed during the auditing process, hence an auditor will end up giving an inappropriate opinion of the financial records. An auditor is required to carefully plan his auditing so that the risk is reduced when giving a report...
Businesses require experts in different fields for their success; accounting and auditors are part of the larger team with a financial and operational role to play. Other than in audit firms and financial consultancy organizations, accountants and auditors are in the support service department providing expertise to other departments. Auditors...
Introduction For a long time, companies have consistently measured asset impairment in a subjective manner. This kind of reporting has been done in very shallow ways; meaning that the kind of accounting practices undertaken is more applicable in theory than in practice. However, there are many advantages attributed to the...
Introduction The following essay is concerned with the measurement of impairment of many types of assets in company reporting. It is considered that the measurement of the amount of impairment of many types of assets is so subjective as to be meaningless. This essay thus discusses the extent of this...
Introduction Non-accountants are likely to calculate profits using cash accounting system; under the system, profit is calculate as the difference between cash receipts and cash payments; however, International Financial reporting standards (IFRS) require firms to prepare financial reports using the accrual accounting method. Under accrual method of accounting, expenses and...
Introduction The decision to issue out dividends to the shareholders is usually a closely debated issue within the circles of company management. Usually, the decision to issue out dividends is not the only basic decision directors make but it is complimentary to the decision on whether to issue out dividends...
Mambourin Enterprises Incorporated was established in the year 1975 with an aim to provide support services including employment, education, and training to disabled individuals. It works closely with the Australian government and local bodies to offer services to individuals with disabilities and their parents or guardian to deal with the...
Introduction Accounting appears to be an imperative component of every business. In fact, any business is obliged to properly keep both the debit and credit balances in their respective books of accounts. This necessitates choosing the best business idea that either incorporates software, human beings or both. Since accounting is...
Introduction The accounting concept is a key concept in both measuring performances as well as a tool for decision-making (Epstein 2008, p. 5). In this work, we analyze how accounting has made it easy for HMV Group Plc to formulate policies key to bringing the company to its present state....
Introduction Management accounting aims at providing the management with information for decision-making. There are several decisions that are made in an organization and they all need different types of information. Among the information required for various decision-making are the costs of products or departments (Marthur, 2009). There are three main...
Getting a personal retirement plan will in most cases seem to be a hard nut to crack and very steep to maneuver. However, preparing for retirement will involve climbing only two steps. A retirement plan is very critical and plays a major role in achieving the very retirement. The two...
Introduction Statement of financial accounting standards is aimed at describing the appropriate accounting standards and rules for observing accounting policies that are set by FASB. It is expected that all the companies will follow the rules of these standards, while the aspect of corporate transparency is involved in this matter....
Every company makes adjustments to their entries at the end of each accounting period. This enables them to allocate expenses and revenue to their applicable periods. Adjusting of entries require principles, especially in accrual accounting. This cannot be achieved with the actual records with dates and transactions, it is therefore...
Introduction The following essay is concerned with the aspects of the regulatory framework for accounting and the conceptual framework. The essay also examines the functions of the International Financial Reporting Standards Foundation, the advantages of International Accounting Standards, and the challenges of adopting International Accounting Standards. The main aim of...
Introduction Objective of the Report This paper seeks to analyze Halfords for purposes of possibly investing with the company’s stocks based on its annual reports including the financial statements thereto. This would therefore examine the financial statements of the company consisting of the consolidated income statements, consolidate statement of financial...
Introduction The finance department is usually the most critical in any organization. Accountants are one of the major stakeholders in the finance department. They are usually endowed with the responsibility of recording and analysing all the financial transactions in an organization. Usually this includes all the financial transactions in all...
Capital investment decision Investment Evaluation criteria Project Beta Project Gamma Project Delta Accounting rate of return (IRR) 133% 104.3% 61.3% Non-discounted payback period 4.52 years 4.40 years 2.75 years Net present value (NPV) £ 24,937,000 16,046,000 11,537,000 Internal rate of return (IRR) 31.5% 34.5% 41.1% Investment appraisal using Accounting Rate...
Introduction This research paper analyzes Google Inc’s rating with regards to how analysts view the company’s stock and how it compares with other companies in the industry. Google is known to be a leader in search engine optimization and its headquarters is in Mountain View California, USA (Yahoo Inc, 2011)....
There has been an assertion by scholars that Accounting Information System (AIS) must be in congruent with strategic-type units for it to operate. Limited research has been conducted in this field making it hard to ascertain this assumption. This is a surprise as most of the studies have been conducted...
Introduction IFRS refers to accounting standards that are issued by the International Accounting Standards Board (IFRS). They are global standards that are adopted by several countries in the world. They are principle -based standards that guide the company on how to present items in the financial statements. GAAP on the...
Introduction Business investment in most cases depends on the financial position and performance of a company. In some situations, companies have carried out investment decisions with less evaluation and analysis reports and in the end, results have been negative and detrimental to the business. Therefore, any kind of investment, be...
When I was doing high school, my father has been a regular investor in the stocks of various companies. In this connection, he used to receive the annual reports from many companies. I used to scan the annual reports with the intent to understand the information presented therein and I...
Introduction According to Almeida, the balance sheet, income statement, and cash flow statements are the universally known financial statements used by most businesses and practitioners for financial reporting purposes. Although the same financial data is used while preparing the statements, the eventual computation will each be used to analyze different...
Introduction The global market has called for the adoption of similar accounting standards by all countries worldwide to enable ease in transactions. This is mostly for those countries whose products are meant for the global market; however, the other countries are also obliged to adopt the same since they import...
Introduction The following is an empirical review of the benefits of the use of debt and its implication to equity holders within a company’s capital structure. The study focuses on the factors that determine the capital structure of IT firms in China. The study analyzes the capital structure of 92...
Introduction Budgets are an expression of the plans of an organization. Budgets are prepared for a period of twelve months. This is an import of the traditional way of doing it. The objectives that a company plans to achieve during those months and the resources available for this purpose are...
Introduction The management of cash and accounts including the notes receivable is vital to maintaining sufficient liquidity. These assets can also include accounts payable and inventories. Thus in business, players must address five key issues when dealing with cash and receivables. These issues include; setting credit policies, managing cash needs,...
Introduction In any organization, accounting forms part of the main function. There is no standard way for firms to prepare their books of accounts: each firm has its own conceptual framework that is made under the guidelines of the International Accounting Standards (IAS), International Financial Reporting Standards (IFRS) and other...
Introduction A ghost employee is someone who belongs to an organization’s payroll but never works for that organization. The ghost employee can in essence be a real human being or a fictitious personality who either knowingly or unknowingly belongs to an organization’s payroll. Fictitious employees are normally fronted by dishonest...
Statement of the problem The advertising on the web is a really profitable affair, still, an inappropriate use of management accounting approaches leads to the failure if gaining profit. Having conducted an analysis of the companies’ financial situation from the point of view of the cost managerial accounting approaches, that...
Business Focus Since small businesses (SMEs) are fountainheads of job creations, my line of speciality would be the bookkeeping of financial statements within Bendigo town. My speciality will include employing special accounting packages such as quick books and MYOB in maintaining accounts of sales and purchases and income and payment...
Introduction For an effective operation, a business required adequate capital to finance its operations; there are different sources of business finance, it is the role of the finance manager to develop a strategy that combines available sources of finances to the benefit of a company and its stockholders. The trade-off...
The Inherent Weaknesses of Annual Budget Model A budget is a short-term plan of action articulated in quantitative terms for a given future period. Traditionally, most budgets cover a period of one year. Annual budgets bases facts on historical data. For example, incremental budget approach reviews the previous budget to...
Introduction The primary objective of auditing work is to enable an auditor to ascertain whether the financial statements give a true and fair view of the company’s performance at a particular date. However, auditors have an incidental objective of detection and prevention of errors and frauds. The auditor should perform...
The Financial Accounting Standard Board (FASB) is a body that is designated to establish and propose financial accounting standards that govern the preparation and reporting of financial statements by nongovernmental entities in the United States. FASB is charged with the responsibility of improving the standards of financial accounting and reporting...
Introduction Accounting is one of the oldest professions with subsequent developments that have led to what it is currently. The history of accounting begins with Luca Pacioli who has contributed so much to the evolution of accounting systems (Santis 1). He is the man behind the invention of the double...
Forensic accounting is one of the best careers that a person could ever have. It is a career that is completely different from the contemporary humdrum careers which have wasted a lot of great minds. It involves the active involvement of a person’s analytical skills and helps to substantially develop...
Introduction Accounting holds a crucial component in the performance of any organization or enterprise. It underlies the basic principle in measurement of output, progress and monitors the level of satisfaction of goals. The accountant thus holds a central role in maintaining and outlining the fiscal records of the enterprise (Hall...
Difference between cash basis and accrual basis accounting The general difference between accrual basis and cash basis accounting is the time of recording the revenues and expenses when accounting. In cash basis accounting, expenses are usually recorded when the actual payment is made regardless of when they were invoiced and...
Introduction We live in a dynamic society whereby everything changes with time. Globalization has taken full charge on the global society and has brought along loads of requirements. Globalization demands many of the aspects of all societies be synchronized so that the whole global society reads from the same script....
Introduction Many retirement benefits are enjoyed by the employees on retirement other than the pension distribution. For purposes of accounting, these benefits are referred to as other post-retirement benefits because they denote other benefits of retirees other than the pension income or benefits. Life insurance and medical plans are the...
Throughout the last century, it has expanded dramatically and become a multi-billion organization that works with numerous patients in several different areas. It aims to provide the highest quality of service while remaining profitable and satisfying its shareholders. This report will investigate its financial situation based on the 2018 financial...
There are certain contentious accounting issues and principles that are still very much in debate for a better solution for reporting of transaction in the financial statements of companies. Amongst these are accounting for leases, pensions, equity and multiple entities. Under the following headings the accounting treatments of these are...
Break-even point The break-even point, an accounting and planning tool, refers to the point where the revenues of a business organization or its sales are equal to the expenses that the business has incurred in generating the aforementioned sales/revenues. Essentially, it is the point where a business enterprise does not...
Introduction Every institution or organization depends on its financial viability. Financial position measures the strength of every government and separates the weakest from the strongest. The contemporary global world is defined by its financial muscles; those considered poor and thus third world have weak financial systems and vice versa. How...
The present research focuses on the impact of the Financial Accounting and Standards Board (FASB) on public corporations. The research has several objectives one of which is providing an overview of the history of FASB. Other objectives include: the identification of the requirements imposed on public corporations by FASB; assessing...
IFRS is the International Finance Regulation Standards as defined by the International Accounting Standards Board. On the other hand, US GAAP is defined as the Generally Accepted Accounting Principles. These are a collection of accounting guidelines and practices which are used in the accounting community. Accounting treatment As far as...
Introduction “Fail to plan, or plan to fail.” Every company, whether large, medium, or small, faces and shares the same time-consuming dilemmas associated with the budgeting process. Although a budget is a useful tool that is used to measure the expected financial results of a company’s future planned activities, it...
Introduction Accounting is the process of preparing and communicating financial information generally in monetary terms about a business entity to users both external who would include shareholders and internal like managers or employees both existing and potential. Accountancy is defined as a mathematical science that is useful in establishing the...
Introduction A real option is the right but not the obligation to buy or sell an underlying asset or contract a capital investment under agreed conditions. It is the option to undertake some business decision such as opportunity to invest in or sell shares of a company listed in the...
Introduction Cost accounting is a type of accounting whose main objective is to establish the cost of operations, products, raw materials, analysis variances, create budgets and assign costs to various cost centers and profits centers too. It is for this reason that managers depend on cost accounting in decision making...
Identifying situations where sampling is appropriate Any large quantitative or qualitative entity, body, aspect, issue, hypothesis, occurrence be it social, natural, economic, numeric or political can be analyzed using statistical sampling techniques. Statistical sampling entails a randomized or non-randomized selection of subsets of the whole and large population, testing the...
Introduction Hill & Smith Holdings PLC is a company that engages in the design, manufacture, and supply of infrastructure, building, and construction products as well as in the provision of galvanizing services. The company sells its products in the United Kingdom, China, the United States, Thailand, and France. The company...
Introduction It is important that all business enterprises analyse their financial statements at the end of every trading period (Helfert, 2001, p.78). Once the financial statements have been prepared, they have to be analysed to show the stability, liquidity, solvency and profitability of the organisation among other areas of concern....
As it was required, I analyzed the effects of the acquisition on the combined company’s financial statement, focusing on the company’s goodwill accounting. The main problem that must be considered is the King Company’s acquisition of a smaller company and how its goodwill impacts the company’s financial statements. The worse...
Introduction Regardless of the nature of an organization or the kind of business an organization is involved in, it is important for all organizations to maintain a set of financial records for not only accountability purposes but also as important records to show the progress of a business. In addition,...
Introduction This paper evaluates PepsiCo, Inc., and Coca Cola Company by performing ratio analysis, vertical analysis and horizontal analysis of both companies. Ratio Analysis Ratios can be divided into several categories as follows: (Block & Hirt, 2007). Profitability Ratios There are several ratios under this category. Profit Margin This is...
Introduction Auditing refers to processes of examination and verification of company financial records/documents for reasons of attracting investors or selling the company or obtaining loans by offering audited records and also to ensure compliance to regulations. The objective of this presentation is to relate to audit functions in Coca-Cola Company...
Financial statements provide information on the financial condition, operations results, and changes in its financial state. It should contain information about the enterprise’s assets and liabilities, the consequences of actions, events, and circumstances. This information is needed by a wide range of users when making economic decisions. In the United...
Introduction Each organization is exposed to various features that determine its action plans regarding all functions. This set of factors is termed as the environment and its influence on the decision-making process of every organization is real. As a result, it is imperative that an organization understands the features of...
Executive Summary In respect of leasing transactions of the entities, presently both IASB and FASB provide for different accounting standards. IAS 17 Leases and its equivalent requirements in US GAAP provide for financial and operating leases. The categorization of the leases into these two classes is based on several considerations....
The summary of the article The authors of this article, James Schmutte and James Duncan, discuss the adoption of the American Recovery and Reinvestment Act (ARRA), which increases expenditures on federal social programs. In particular, they focus on the challenges, arising in connection with auditing non-for-profit organizations, which receive federal...
Introduction ‘Management Accounting without Accountants’ by Pierce, B., (2002) has been represented an important dilemma of management accountants and management accounting. During the eighties, the development of management accounting has raised the question whether the management accountants would survive within their career field or their needs would be diminished in...
Introduction The basic question that should come in every economic oriented individual is to try and find out the essence of measuring performance. The primary role of any measurement taking place is to provide feedback. This feedback helps an organization analyze its current position and makes adjustments in order to...
Introduction Global warming, acid rain and smog are a few of the effects of atmospheric pollution brought about by the emission of greenhouse gases such as Sulphur Dioxide, carbon monoxide, carbon dioxide, and many more. To reduce this kind of pollution, nations such as the European Union member nations and...
Introduction In any business enterprise or organization, there are two broad categories of accounting information that are produced. That is financial and management accounts. Financial accounts are majorly produced for the external business environments who are mainly the shareholders, investors, creditors, and the general public. On the other hand, the...
Abstract The accounting theory is going to be considered with the reference to the historical perspective of the issue development. Moreover, the structure of the accounting theory is going to be considered with the aim to understand the place of the accounting objectives in this structure, theoretical knowledge and practical...
Introduction Managerial accounting is a branch of accounting that is of great importance to any business enterprise. Managerial accounting gives the managers and the internal personnel a summary of all the company’s activities that are of importance to them. Unlike financial accounting which provides the company’s financial data to the...
Introduction Categorizing accounting practices, it can be sstated that there a two recognized systems, which mainly differ in the way a company records revenues and expenses. The two systems are titled, accrual-basis accounting and cash-basis accounting. The main difference between the two systems can be seen through the time the...
Introduction The purpose of this study is to analyze Papa John’s current financial position and to use it to decide on whether to approve loans or to raise more equity capital. Overview Papa John’s is the third-largest firm in the Pizza industry in the United States, after Pizza Hut and...
Introduction International Standard on Auditing have defined audit documentation ISA 230 as ‘The record of audit procedures performed, relevant audit evidence obtained, and conclusions the auditors reached’ (Pine, 2009). This is a crucial element of an audit engagement and places great responsibilities on auditors to ensure that evidence collected during...
Introduction According to Martijn and Eelke (2009), a management accounting innovation refers to a new idea that is adopted by an organization and this idea is used for information systems and financial systems to help managers in decision making. Rogers (1995) observes that management accounting innovation is a vital aspect...
Introduction To develop the global harmonization of financial accounting rules the Financial Accounting Standards Board (FASB) and International Accounting Standards Board (IASB) are working hand in hand (Ketz, 2009). Since 1973, FASB has been working as a private organization for establishing the standards of financial accounting to administrate the preparation...
Introduction Management accounting can be defined as the process of preparing management accounts that are aimed at providing accurate and timely financial as well as statistical information needed by accounting management agents within a company such as; department managers and the chief executive officer for important decision making. The financial...
Introduction Analyzing leasing, there might be several definitions varying in terminology, but nevertheless, stemming from the same financial concept. In that regard, leasing can be defined as a contractual agreement, between two parties, in which the right to use specific property or asset is transferred for a specified duration and...
Introduction The partnership is easier to create and control when compared to a corporation. There are several influential reasons for entering a partnership agreement. The research focuses on learning the nuances of partnership accounting. One nuance is the admission of a new partner. The research focuses on the partnership members...
Introduction Managerial accounting is one of the concepts in accounting and it provides important information to help users to come up with better decisions concerning certain issues in business organizations. Managerial accounting provides the users with both financial as well as non financial information to organizations management team and decision...
It is an important facet of any professional body, irrespective of how large or small, to put in place mechanisms that will deliver an effective code of conduct. This is especially so because practically all aspects of work done by professionals have an ethical dimension. But while only a few...
Conflicting Accounting Principles As suggested by Buxbaum (1996), the accounting principles may be in conflict due to the great number of discrepancies such as “foreign currency translation” (p. 166). In this respect, it is necessary to analyze the accounting data from accounting statement with regard to possible occurrence of such...
Introduction The IASB and the FASB proposed a new accounting model that will enhance transparency and reduce complexity in the current accounting standards on lease contracts. In a Board meeting contacted in March 2009, members proposed significant changes to be made on how leases on assets and liabilities are to...
Y-Budget Ltd Monthly Production and Purchase Budgets September October November December Units 500 300 200 200 Opening Stock 125 75 50 50 Requirement for the Month 375 225 150 150 Closing Stock 75 50 50 – Production Budget 450 275 200 150 September October November December Raw Materials Budget Material...
The World Health Organization (WHO) is a corporation that controls the situation in the sphere of healthcare, medicine, and the quality of people’s lives all over the world. It is crucial to mention that it is not a private company; that is why its aim is not to become profitable....
In any business operation, cost is an integral aspect that affects the way activities are carried out. Costs in business are classified in to various categories depending on the cost center where they are incurred in the business and their behavior as various activities change. The behavior of costs in...
Financial modeling of the project is closely associated with the necessity to allocate the resources properly. The project is mainly aimed at creating additional workplaces, developing industrial sector, and engaging in partnership with private sector. The total area of the project (including roads and utilities) will total 750 000 sq.m....
Introduction International Finance Reporting Standards (IFRS) is a set of accounting regulations that have been developed and adopted by the International Accounting Standard Board. The standards have been developed from the International Accounting Standards (IAS). The Australian decision to adopt IFRS has caused significant changes in the accounting procedures and...
Introduction In every year, companies prepare financial statements such as the balance sheet, income statement and cash flow statement so as to determine its financial position. It also helps in ensuring that the operations of an organization are carried out effectively. Generally accepted accounting principles These are the rules, procedures...
Introduction to the Chapter The chapter under consideration is “Capital budgeting and cost analysis” considered in the book Cost accounting: A managerial emphasis by Horngren et al. the main idea of the chapter is to dwell upon the problem of accounting in the capital budgeting (or investment appraisal as it...
The three-year summaries of income statements and balance sheets in the following pages are about three quintessentially British icons. The first, Cadbury plc, is the second largest candy maker in the world after Mars of the USA; as well, Cadbury ranks right after global leader Wrigley’s in chewing gum (Hoover...
Introduction Information systems consist of an organized network of people and infrastructure that aid in decision making. The infrastructure includes both hardware and software. Scholars have classified information systems into five major categories. These categories may sometimes overlap in some businesses. They are office automation, transaction processing systems, knowledge management...
Accounting influences the decisions of the accounting report users. The essay focuses on the theoretical framework for accounting. The accounting theory writers continue to spend years learning the main purpose of accounting in its varied ways and forms. Contemporary debates in the essentially subjective field of accounting revolve around the...
