Sign Up Now
Get instant access to over 1 million+ study documents
OR
Already registered? click here to login
By creating your account, you agree to our terms of service, privacy policy and student honor code.
A third type is available-for-sale (AFS) securities. These securities are not actively managed like traded securities, along the lines of debt and equity types. However, they are available to sell, "given the right combination of market factors" and the cash situation of the company (Securities available for sale, 2012, McGraw-Hill.). Sales are dependent upon contingent market factors. From an accounting standpoint, "like trading securities, we report investments in AFS securities in the balance sheet at fair value. Unlike trading securities, though, unrealized holding gains and losses on AFS securities are not included in net income. Instead, they are reported in the statement of comprehensive income as other comprehensive income (OCI). Also, "if the intent is to sell the securities within the longer of one year or the normal operating cycle, the securities are classified as short-term investment. Otherwise, they are classified as long-term investments" (Chapter 15 PowerPoint, 2009: Slide 10).
In terms of predictability of the investment, HTM are thus the most predictable and stable of all security types, followed by AFS securities, depending upon the circumstances of the...
This is followed by debt, then equity securities, the latter of which is the most dependent upon volatile economic conditions and the whims of the holder. Each circumstance requires a slightly different accounting technique, thus proper classification is essential to ensure that an accurate portrayal of the organization is rendered.
References
Chapter 15: Investments and international operations. (2009). PowerPoint: McGraw Hill.
Retrieved: highered.mcgraw-hill.com/sites/dl/free/0073379549/627954/...
Debt security. (2012). Investopedia. Retrieved:
http://www.investopedia.com/terms/d/debtsecurity.asp#axzz20mr9UiRV
http://www.investopedia.com/terms/h/held-to-maturity-security.asp#ixzz20mv7hpRV
http://connect.mcgraw-hill.com/sites/0077328787/student_view0/ebook/chapter12/chbody1/securities_available-for-sale.htm
http://www.investorwords.com/1737/equity_security.html
Themido, I., A. Arantes, C. Fernandes & A.P. Guedes. (2000). Logistic costs case study: An ABC approach. The Journal of the Operational Research Society, 51 (10): 1148-1157 Stable URL: http://www.jstor.org/stable/253927 The use of Activity-Based Costing (ABC) reflects the fact that indirect costs and overhead costs are often more draining to modern organizations than direct costs. The article specifically discusses the use of ABC in terms of its use in costing logistics services. Traditional costing
An incorrect entry or inherent errors in the accounting procedures (for instance mistakes in contract cost allotment) can endanger the system. Organizations need to make sure that their employees are well versed with the latest cost accounting policies and have a backup plan for unfortunate mishaps. The presence of recruits who are unaware of the cost accounting process often destabilize the investments made on the accounting software (Tinsley, 2010). Time
Managerial Accounting for Sleepease Ltd. "Identify, discuss and critically evaluate the advantages and problems of using the following costing methods for internal reporting purposes": absorption costing; marginal costing. "Refer to the Sleepease case as and when necessary" absorption costing The absorption costing is the type of managerial costing where both the variable and fixed costs are charged to process or product. Thus, "absorption costing is a method for appraising or valuing a firm's total inventory
Accounting Responsibility Responsibility of managers in managing projects and creating budgets Managerial ethics is essential in managing projects and creating budgets. Ethical accounting ensures all financial information is reported to business owners, directors or managers. Managers who fail to report negative information or use a company's internal financial information for personal gain can create serious legal situations for businesses (Vitez, N.d.). Business owners and managers often require all information, whether good or
competing cost accounting approaches and explores best practices implemented in different countries. The essay examines traditional cost accounting (CA), activity-based costing (ABC), Grenzplankostenrechnung (GPK), throughput accounting (TA) and resource consumption accounting (RCA). Tradeoffs Between Cost Accounting Systems Comparing traditional costs systems and ABC shows that there are tradeoffs between cost and usability. The traditional cost system is typically both easy and inexpensive to implement; however, the information obtained from the system
ABC can identify high overhead costs per unit and find ways to reduce the costs, avoid decreases in head counts due to inaccurate allocation of costs, and measure profitability with higher accuracy than traditional costing that uses direct-labor hours as the only cost driver (Activity-based costing, n.d.). Bibliography Activity-based costing (ABC). (n.d.). Retrieved Apr 2, 2009, from Managers-Net: http://www.managers-net.com/activityBC.html Activity-based costing (ABC): What is it and how can reengineering teams use it?