Introduction The process of planning is an integral part of effective management. In this respect, consideration of revenue and collection cycles is used in different areas of business related to healthcare services and manufacturing. The focus of the present paper is the analysis of revenue and collection cycles as suggested...
Introduction International accounting standards refer to internationally accepted guidelines that set a certain standard of practice on all accounting-related matters. The global body that is responsible for selecting and settings this accounting standard is referred to as International Accounting Standards Board (IASB). IASB is a financial body that is given...
Chapter 1 Public accountants in America play particular roles and among these are two types of services offered by these accountants; assurance and non-assurance services. The financial statements that have been audited are required to be in line with GAAP guidelines. Among the audits conducted by these auditors are financial...
Abstract A budget is a tool that helps managers to ensure that the required resources are obtained and used effectively and efficiently as the organization moves towards the achievement of its objectives. A budget is stated in terms of money and is usually made for one year depending either on...
Job-Order Costing Job-order costing is a traditional costing method where the quantity of each production material used in manufacturing a product determines the amount of overhead, labor and material costs that are charged to that particular product. Different products require different quantities of materials and labor; some products may require...
Introduction Financial reporting is one of the legal requirements in accounting since it enables the effective creation of information for the general public. In addition to financial reporting, auditing enhances the reliability and credibility of the financial information by various parties such as investors, creditors and other relevant stakeholders. Auditors...
Introduction Auditing is one of the major and important parts in accounting and it refers to the evaluation of a company or business entity to check on different functions whether they are working appropriately. Auditing plays an important role in evaluation of business entities as well as other institutions in...
Generally Accepted Accounting Principles GAAP entails laid down as well customarily settled or accepted accounting principles. There is no standard set of policies and procedures related to GAAP. Each nation has its own developed generally accepted accounting principles. Because there are wide varieties of pronouncements that are issued providing information...
Introduction Accounting is the process of managing the resources of a company in an effective manner such that profits as well as other objectives of the company are attained. Each and every business enterprise despite their size must employ accounting procedures in its system if at all it wants to...
Introduction Accounting may be described as a practice that aims at providing essential information to the managers and other senior officials within the organization. The managerial accountants are in this case required to compile regular reports which show the performance of the respective departments within the organization. The overall aim...
Introduction An innovation can be defined as an idea or practice considered as new by an individual or organisation. It might either be an entirely different approach in handling issues or an improvement of the present case. Zaltman, Duncan & Holbeck (1973) expounded innovation to not only include new ideas,...
Introduction Akroyd, (2008) defines Management Accounting Innovation as an idea considered as new by the organization that adopts it. Such an idea serves as a basic principle for information systems that assist managers in making decisions aimed at achieving the organization’s goals. Management Accounting Innovation is therefore the basis of...
Introduction Budgeting is an important management tool that is applicable in all organisations despite their size, location, type or any other differing factor. The main aim of budgeting is to help in planning and decision making of whatever kind in the organisation. Budgeting generally entails preparation of forecasts on the...
Abstract There is a general agreement that the prevailing system of taxation is a total failure which has led to a decline in the national growth while at the same time permitting the political class of people, who are well-connected to stage-manage the system so as to obtain special breaks...
Introduction Accounting information is of great essentiality to any form of business organisation. This is because it is primarily used by the management to evaluate the progress and success of the organisation. Accounting information has to have four basic qualitative characteristics which include; reliability, comparability, relevancy and consistency (Eisen, 1999,...
Introduction Analyzing accounting as a science, a question might arise in whether to consider it as an objective subject. Taking examples of other sciences, it can be seen that their objectivity is derived from the way a theory is derived from the facts. For example, the inductivists argue that the...
Introduction Lease is a significant question in the accounting as from the type the lease, which is obtained, a lot of factors depend, both the costs of the company and the incomes of it. The changes in the lease policies have occurred recently, and the new codifications, which are implemented...
Introduction, Definition, History and Importance Accounting standards are founded on the institutional theory of governance that de-emphasizes the self-interests of individuals in favor of institutional interests. The theory holds that organizations operate within established norms, values, and assumptions that determine what is acceptable and what is not (Carpenter et al.,...
Abstract The management accounting profession has quickly evolved in recent years as managers seek ways of improving a company’s competitiveness. Traditional accounting methods may no longer serve in the same capacity in modern-day businesses. Companies have recognized the need for investing in product improvements, efficiency in operations, and competitive advantages....
Accounting principles board issued ‘accounting for stock compensation to employees’ opinion number 25 which required that compensation in form of stocks be recognized using intrinsic value and this gives an option not recording in the books if stocks have an option of getting money in future. In the year 2004...
Introduction This paper intends to prepare trend analysis and financial ratios from a minimum of four years for the Woolworths Limited (or “Woolworths”) under the food distribution and convenience stores industry (Reuter.com, 2009). This will therefore assess the company’s profitability, assets efficiency, liquidity, and capital structure and market performance for...
Management accounting and financial accounting both play a role in the development of a robust environmental policy that will contribute to longer-term organizational success. Introduction Management accounting is defined as the “identification, collection, analysis, internal reporting and use of information on material; and energy flows, environment costs and other costs...
Introduction Since America got independence, the government has been constantly regulating business practices through accounting procedures. The importance of effective accounting regulation procedures is one of the primary reasons for the establishment of the federal government, but since then, the government has lagged behind in regulating business practices after there...
Introduction There is a connection between reporting accounting standards adopted by various accounting bodies and the listing of companies in stock exchanges. In the modern world, most companies are listed in more than one stock exchange and they operate in many countries. This calls for the use of uniform standards...
Introduction The chapter under consideration is called International Financial Statement Analysis and is written by Choi and Meek. In this chapter, the researchers investigate the difficulties in evaluating business strategy analysis as well as main approaches to data collection; they also describe six approaches to carrying out an accounting analysis,...
Introduction This paper seeks to study and follow the progress of the stock price of Marks & Spencer Group plc at the London Stock Exchange over a short period in relation to news development about the company. This paper will also study the external and internal environments of the company...
Corporate frauds have been occurring since centuries now and it has resulted in several economy collapses with the severity of fraud scandals increasing on a daily basis. United States and places other first world nations have been very strict with their legal policies etc. and have been refined over time....
Introduction Financial reporting is the preparation of financial statements to provide useful information to users for decision-making. The main objective of preparing statements is to provide the user with information showing the financial position of the enterprise, changes in the financial position of an enterprise, and the performance of the...
Introduction For any business that is willing to keep climbing the ladder of success in the marketplace, this particular business will have to ensure that they have a good accountant that is taking care of all their financial needs and maintaining clear records of the financial statement and financial position....
Introduction Over the history of the accounting practice, different theories have been developed to explain the ever-changing accounting practices. However, there has never been one generally accepted accounting theory, mainly due to the difference in assumptions, methodology, and users of the accounting information. Generally, accounting involves measurement and recording, and...
Introduction The following essay examines the accounting areas as the promulgation o the International Auditing Standards (ISAs), the convergence of GAAP and GAAS, the position of the U.S as far as the convergence is concerned, the challenges that are experienced in the convergence process, and the attitude of the current...
Introduction In coming 2012 the Olympic Games is going to be held in London. The Olympic Games is an ancient game and the worlds most prosperous and popular sports events combined various sports in one event. Spectators from all over the world would come eagerly to enjoy the events and...
This paper seeks to critically analyze the statement that rules-based accounting adds unnecessary complexity, encourages financial engineering and does not necessarily lead to a ‘true and fair view’ or a ‘fair presentation’. This paper takes the position that the International Accounting Standard (IAS) which basically adopts a principles-based approach in...
Executive Summary Globalization has generated new challenges in a vast of fields. Accounting practice has not been left behind. Integration of the world financial market is growing by the day. This has necessitated the need for more comparability of businesses across national borders. The International Financial Reporting Standards are developed...
Introduction Governmental organizations are sovereign entities operating under superior authority to all other formally and informally chartered companies. Non-profits, on the other hand, are entities operating in compliance with regulations stipulated by the government at both the local and state levels. Besides this difference, these organizations differ in the way...
Introduction Creative accounting is an accounting practice that has gained popularity among global firms. The practice will follow the internationally set rules and standards but slightly deviate from their spirit and norm for the firms’ benefits. Creative accounting will therefore seek to overstate or understate the firm’s value whenever the...
Introduction The ability to select one form of business from the others is a task that is difficult among many entrepreneurs as they venture into the business world. This is because of the mare reason that different organizations operate differently and each would require different levels of capabilities to operate....
Introduction To begin with, it should be stated that Fair Value Accounting is the matter of financial reporting, consequently, the impact of this approach on the accounting and financial reports is regarded to be essential. Originally, it is claimed that the fair value approach essentially threatens the very concept of...
Introduction International Accounting Standards (IASs) were established to govern and control the accounting practice. The guidelines were nevertheless used between 1973 and 2000. The rules were then controlled and regulated by a commission which was later replaced by a board, the International Accounting Standards Board (IASB) in the year 2001....
The governmental non-profit organization is the institution that does operate in a particular nation being run and managed by the sitting governing body as they undertake their responsibilities yet they are not profit-oriented or centered. Their resources are usually financed by the government though they do not give returns that...
Introduction Internal control is a specific procedure within the accounting system that ensures the realization of the objectives and goals of an organization. This procedure ensures reasonable assurance to the many procedures. The division into parts ensures transparency in the organization. It is worth noting that there sometimes can be...
Introduction The current trend in the accounting practice has indicated drastic changes in the level of reporting requirements from the regulating accounting bodies. This trend has been facilitated by the need of the international and national corporations to embrace the aspect of transparency and responsibility to the users of the...
Introduction The balance sheet is one of the most important sections found in companies’ annual reports because it provides significant financial data that are helpful to conclude regarding an organization’s position in the industry. In order to understand the specifics of the financial health of Ford Motor Company in 2012,...
Abstract In the world, today investment decisions play an important role in determining the level at which the business is operating. A company is planning to expand its product base by introducing a new model into the market. To successfully the company carried research and development on two models, the...
Introduction Some might consider accounting as a boring profession, dealing only with numbers. Nevertheless, the importance of accounting should not be underestimated, where their provision of information can be considered as an important aspect of the job. Such aspect is essential, specifically when this information could be used to determine...
In recent decades, technology has advanced substantially, enabling quick, efficient, and secure long-distance transmission of large volumes of data. As a result, many services and jobs, particularly those that deal with information, are being outsourced to remote companies. Doing so is often more cost-efficient than hiring a dedicated worker or...
Introduction Accounting process is one of the most complex one in organizational practice. Internal control is more than the act of regulation or governing the particular organization, It involves accounting intelligence as a fundamental to the development of effective controls, since they attempt to assure the leadership of a business...
Introduction Budgeting can be seen as one of the main instruments of planning (Hand et al., 2004). Following such statement, it should be stated that planning, in turn, represents the assessment of the organization’s established goals, in terms of the resources required, and their availability, when necessary. In that regard,...
Abercombie & Fitch Co, a specialty retailer is a company incorporated in Delaware in 1996. The Company operates stores and websites for selling different brands of knit and woven shirts including sportswear and other apparels. The Company’s fiscal year closes on the Saturday closest to January 31st every year. At...
Like any other profession accounting has also been criticized for not allowing enough opportunities for women to work and seek out better positions within organizations. Women have struggled not only to make their way into the profession but also to survive the peer-pressures and gender discrimination they faced while working...
ACT Contact Manager Integration The modern world of business is characterized by the high competition and the fast pace at which the techno logy develops leaving those companies that did not manage to catch up with it behind in their technological development. Accordingly, technology and software determine the market position...
Demerits of Fair Value Accounting Financial Accounting Standard’s Boards (FASB) proposed amendments to be made on accounting standards which are expected to be adopted once the draft is approved by my committee members. The new standard requires financial institutions to account for their assets and liabilities at current market values...
Introduction Generally accepted accounting principles are a set of rules that are followed by accountants in preparing the accounts to ensure uniformity. Assembled information is always relied upon by various stakeholders on the assumption that the accounts prepared are good and free from bias and are consistent. The principles of...
Introduction The two internet articles given here are related to Statement 123(R) of FASB regarding share-based payment or stock compensation plans for employees. The standard issued by FASB required companies to record the cost of stock options offered to employees and replaces Opinion 25 which did not require recognition of...
The current short term project which can be carried out in an organization is a website that people can log in to check the services available and pay for them online in any place they are. This website should also be able to be understood in different languages. It should...
Introduction For organizations to always ensure there is controlled management of its resources there is need for continuous recording of any transaction or business deals that the management engages in. In addition, considering the diversity of business transactions in organizations, sometimes it hard or impossible for managements to remember all...
Introduction Background HK Corporation is a manufacturing company specialized in producing a variety of plastic products. The budgeting process in the company has been a lot of difficulties, where the process starts from the managing director was constructing the budget through setting targets for total pound sales and net income...
Executive Summary Clive Peeters is one of the largest chains of retail stores with 49 stores operating in different regions of Australia including Melbourne, Sydney, Brisbane, Queensland, and regional Victoria. The company came into existence in 1993 with its head office in Melbourne and later expanded in Brisbane in 2001....
Abstract The following is a research paper that focuses on the subject of why the non profit organizations and the government based entities are subjected or required to get audited. The research paper highlights the importance of the GAAP audit alongside its specific objectives. Certain common problems and issues that...
An income statement is one of the key financial statements, including a balance sheet and a cash-flow statement, that are reviewed by stockholders in order to understand the financial position of a selected company. Therefore, income statements include such sections as sales or revenues, costs, expenses, and net income. These...
Abstract Nortel is engaged in the supply of telecommunications equipment for Canada’s telephone systems. It engaged in an infamous accounting scandal. Top executives of Nortel Networks Corporation rather supplied cooked-up figures to the Board and the audit committee and based on the representation’s made b the Nortel top management, they...
Introduction Lease transactions have become popular over the years due to the reason that businesses have been transforming and in the process, they have been seeking new ways of financing long-term assets. For a long time, leasing has offered an attractive advantage of 100 percent financing that has included off-the-books...
The emissions of greenhouse gases called carbon that is directly or indirectly attributed to human activities alter the global atmosphere and may lead to climate changes (Australian Bureau of Statistics 2005). This is why greenhouse gas emissions together with urban air quality became the most concerning issues of the past...
KingJewel is a good case to study ethical practice in corporate and dilemmas that an ethical practice can lead to. It is also a good case to study how leadership and corporate structure can work to promote or inhibit unethical practices. The ethical issue in this company entails a discovery...
Introduction The current economic downturn has led more countries to give way to foreign investment. Countries especially Australia are recognizing the need for the adoption of globally accepted accounting and auditing standards like the International Financial Reporting Standards (IFRS). The adoption of the accounting standard will enable its country to...
Abstract The issue of executive compensation has been one that is being subjected to continued debates. Based on the nature of businesses and the extent of the control and expertise required of the CEOs and other top executives a number of compensation packages are evolved by corporations. These compensation plans...
Introduction Today, the auditing and consulting industries are growing steadily. Even the COVID-19 pandemic had a minor effect on the growth of these two industries. In particular, the auditing industry was estimated at $217.7 billion in the summer of 2020 (Business Wire, 2020). The market is expected to reach $287.2...
Introduction Many scandals have occurred in companies based in the U.S originating from employment accounting practices. Companies have often taken advantage of capricious regulations to cunningly configure business transactions producing favourable and untruthful accounting reports. The main reasons are to evade taxation and impress financiers in order to access credit....
Abstract This literature looks into the different concepts of accounting and it emphasizes the activity-based cost accounting model that has been put into effect in the management of organizations. The study begins by defining the three terms that are closely related to each other, that is, accounting, cost accounting, and...
Introduction Accounting practice in international arena is not common worldwide. Although the basic concepts are the same and which are accepted internationally some practices especially in the area of investigations, reporting and entry have major differences. The differences in these accounting practices have its origin on some factors. Some factors...
Introduction The world advanced in technology demands high-standard employability skills to increase productivity in the sphere of accountancy and finance. Typically, the universities try to implement different initiatives and teaching approaches towards embedding demandable skills into the degree programs. Employers tend to focus on educational background and previous experiences. Meanwhile,...
Introduction The primary motive behind a merger is the creation of synergy which means creating a value much larger than the value of two companies combined. If a company is worth 100 million and another company is worth 50 million there combined value would be 150 million and if they...
International Financial Reporting Standards (IFRS) are accounting standards that aim at establishing a common financial approach towards the operations of organizations around the world. The standards have been adopted by most of the nations while others have their own domestic standards that replace the IFRS. Australia is among the most...
Introduction As time elapses and new days come the world encounters new ideas of improving the past events. Therefore, the business world is not an exception and the past methods of evaluating business finances become inefficient. This is the reason of coming up with new techniques that can be fixed...
Meaning of IFRS International Financial Reporting Standards (IFRS) constitutes the standards, interpretations and accounting framework accepted by the International Accounting Standards Board (IASB). Most of these standards formed the International Financial Reporting Standards (IFRS). The International Financial Reporting Standards were previously known as International Accounting Standards (IAS). These standards were...
The objective of this essay is to assess the basics of financial accounting, its significance, and how this information is relevant to understanding the performance of the business. The focus is to recognize how management at its discretion, identifies and classifies assets and liabilities and to discuss the implications of...
Introduction The mankind is a rather diverse phenomenon in relation to such factors as racial belonging, religious and cultural customs and traditions. In this respect, cultural differences are paramount because they, being the reflections of the racial belonging of a certain nation or ethic group, determine the ways in which...
Threads Limited Key Financial Ratios for Threads Limited THREADS LIMITED 2007 2008 Return on capital Employed (ROCE) (%) 24.50% 15.42% Operating Profit Margin (%) 19.83% 13.92% Gross Profit Margin (%) 42.37% 37.50% Current Ratio 1.27 1.66 Acid Test Ratio 0.53 0.67 Settlement period for Trade Receivables (Days) 32 47 Settlement...
Introduction Foreign exchange (FX) risk, also known as currency risk, can be defined as the losses associated with an international financial transaction due to the volatility and fluctuations of the foreign currency. Apart from that, investors may find themselves facing jurisdiction risk in the form of FX risk. Foreign exchange...
Introduction At the outset I may state that undoubtedly implementation of ABC, does posses certain advantages which I will narrate here, though it may be costlier than traditional costing systems due to need for additional data bases and information requirements: The foremost and most important advantage is the accuracy in...
Introduction The International Accounting Board was formed in April 1st 2001. It is based in London and charged with the responsibility of formulating the International Financial Reporting Standards and advocating for the use of these standards. Its’ parent entity, The International Accounting Standard Committee was founded in 1973 as an...
Transfer Pricing Influence Speaking about the various aspects that can affect accounting, it is worth mentioning economic factors. These include different economic policies and methods, such as, for example, transfer pricing. It is the sale of services or any goods by interdependent parties at prices established within the company. Such...
Introduction Every profession in the world has a way of streamlining integrity and conduct within its members. This is evidenced by the presence of rules of conduct for each. Equally, the accounting profession has had several bodies whose role has been the streamlining of the profession so that accountants can...
Introduction The Australian Accounting Standards Board (AASB) can be described as the government agency which has the mandate for development, issuing as well as maintaining the compulsory standards which are applicable to any company that operates in the country (Clarke, p. 12).To begin with the first AASB rule outlines the...
Introduction The audit committee is a vital force in any established company, especially the publicly Traded Company. The historical perspective in the establishment of the audit committees of the companies dates back to the year 1939 when the New York stock exchange started to establish the audit committee idea. In...
Introduction Management accounting deals with using accounting information to perform the managerial functions of the organization. It provides managers with the basis to make proper decisions and hence be able to achieve the desired objectives. The organization professionals are involved in formulating and evaluating business operations, making budgets and forecasts,...
Introduction Producing accurate financial statements is a crucial part of conducting business. Financial reports such as cash flows, income statements, and balance sheets are very useful to different parties with interest in the firm’s performance. Business managers require accurate reports on which to base their decisions. The owners of the...
History The basic history of accounting backs with the advert of accounting start. Initially it was just a minute assessment and the same should have been treated similar to ordinary and normal books of the moment and examined and then vanished into chronological archives and vanished through minds. This was...
Introduction WorldCom used typical accounting fraud to show a profit of $ 1.4 billion in the year 2001 as against a real loss (USAToday, 2003). There were different items of costs that were classified by the company as long-term investments instead of deducting them from revenue. Apart from the accounting...
Accounting standard-setting and the adherence to these standards is a crucial foundation of the modern business world. These standards are required for the purpose of good quality financial reporting which is useful in communicating economic information regarding companies to the stakeholders involved which include the shareholders, the potential investors, government,...
Introduction Goodwill has long been a controversial subject for its accounting treatments. The controversies started right from its inception. Controversies occur as GAAP develops over time but regulations or accounting standards bring changes that are not easily and readily acceptable to users. Entrepreneurs are puzzled as to why goodwill can...
Introduction As we have experienced the modern global financial crisis, many challenges have emerged, particularly for those in the capital markets. These challenges alter major rules formulated by policy makers. According to Linn, the crisis has spread like plaque and has sparked confusion about personal finance (2008). Regulatory boards strive...
Introduction Borders Group Inc is an international Company registered in the United States with its headquarters based at Ann Arbor, Mic. It specializes in selling books, CDs, DVDs, and Magazines. The company was started in 1971 by two brothers Tom and Louis when they were still undertaking their undergraduate and...
Introduction Change in the business environment has called for increased care in managerial decisions. Managerial decisions play a major role in the success or failure of an organization. Managerial accounting is one of the most important elements in management decisions. Managerial accounting is sometimes mistaken for financial accounting, but the...
Introduction Management accounting and finance concepts play a very important role in the activities and operations of an organization. Under normal circumstances the performance of an organization can be analyzed in terms of the practices of accounting and finance it employs. As a result the type of management accounting practices...
Brief Description of the Company The bank of America was formed in 1904 and was first known as the ‘bank of Italy’ in 1904 and ‘National bank’ in 1874. The bank’s headquarters is in charlotte USA. It has branches in major cities of the world and offers various products. Walter...
Introduction A lot has been said about the change in many spheres of modern society. Be it academia, business, or even evolution, the common denominator in all these scenarios is that human nature is to change, as well as to resist it. The study of change, its causes, effects, and...
Introduction Before making any capital decision a capital must choose various projects because of limited capital. This is because the company needs are many but has scarce resources at a given time. Capital budgeting ensures that we do not always get the things we desire, but instead we work and...
Introduction Auditing refers to the process where an administrator or someone else keeps track of the activities of the organization so that the users and groups can use the financial statements. It is also a means of ensuring that the financial statements are kept in an orderly, accurate and correct...
