Gaap Essays (Examples)

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Generally Accepted Accounting Principles in Health Care

Words: 962 Length: 3 Pages Document Type: Essay Paper #: 9750913


Generally Accepted Accounting Principles in Health Care

GAAP (generally accepted accounting principles) in health care

Within the United States, all businesses that keep financial records must adhere to GAAP or generally accepted accounting principles, including both for-profit and not-for-profit healthcare entities. "GAAP is not a single accounting rule, but rather the aggregate of many rules on how to account for various transactions" (Kramer & Applebaum 2013). The first two principles of GAAP are that "financial records must be separately maintained for each economic entity" in a separate fashion and that "an economic entity's accounting records include only quantifiable transactions. Certain economic events that affect a company, such as hiring a new chief executive officer or introducing a new product, cannot be easily quantified in monetary units and, therefore, do not appear in the company's accounting records" (GAAP, 2013, Houghton Mifflin Harcourt). These details may be included as qualitative data…… [Read More]


GAAP. (2013). Houghton Mifflin Harcourt. Retrieved:

Kramer, J & Applebaum, S. (2013). Accounts receivable from third-party payors: A GAAP

refresher. South Florida Hospital News. Retrieved from:
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Recognizing Revenue and Expenses in Legal Service Business

Words: 2711 Length: 10 Pages Document Type: Essay Paper #: 18033946

GAAP is a set of specific common guidelines, provided by the institutions such as the Financial Accounting Standards oard, the American Institute of Certified Public Accountants and the Securities and Exchange Commission, about "acceptable accounting practices"

These acceptable practices should not necessarily be regarded as a set of ground rules. In fact, it is a common denominator, useful when foreign firms, especially auditing companies, proceed to financial verifications. The GAAP provide for an easier task from the auditing companies and anybody else who interprets the financial statements.

In the case of Legal Plan Services, the GAAP guidelines will provide the necessary information that will permit a common evaluation, a common ground on which revenue and expenses can be considered. esides being interpretable by more than one side, the GAAP guidelines are, in this case, rules which allow for the company's accounting methods to be understood by others and would permit,…… [Read More]


1. What are Generally Accepted Accounting Principles?. On the Internet at

2. Issues Related To The Recognition pf Revenues and Liabilities. The Financial Accounting Standards Board. March 2002. Page 1. On the Internet at /proposals/recognitionrev& liab.pdf

3. Statement of Financial Accounting Standards No. 48 - Revenue Recognition When Right of Return Exists. Financial Accounting Standards Board. June 1981. Page 4. On the Internet at
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Organizations Establish Rules for the Creation or

Words: 1762 Length: 4 Pages Document Type: Essay Paper #: 92181078

Organizations Establish ules for the Creation or Use of Accounting Information:

- Securities and Exchange Commission

- New York Stock Exchange

Internal evenue Service

Describe what kind of rules each makes, why they make them, and how they enforce them. Which organizations make laws, and which publish guidelines? What is the difference? What are the different consequences for those who bend various sets of rules? (Causey Enron case) How might Causey's defense be stronger or weaker under IFS guidelines rather than GAAP?

The rules that govern the three organizations may not be specifically made by that organization, but they are enforced by it. The Securities and Exchange Commission (SEC) is not a law or even rule making body, but the members do suggest legislation and, as one of its main functions, enforces the laws that have been passed by congress (SEC, 2012). The New York Stock Exchange (NYSE) is a…… [Read More]


Atwood, T.J., Drake, M.S., Myers, J.N., & Myers, L.A. (2011). Do earnings reported under IFRS tell us more about future earnings and cash flows? Journal of Accounting & Public Policy, 30(4).

Crovitz, L.G. (2008). Closing the information GAAP. Wall Street Journal. Retrieved from today

Ernst & Young. (2010). U.S. GAAP vs. IFRS. Retrieved from 2010/$FILE/IFRS_vs_US_GAAP_Basics_March_2010.pdf

Fowler, T., & Roper, J.C. (2005, Dec 28). Causey pleads guilty leaving just Skilling, Lay. Houston Chronicle. Retrieved from Skilling-Lay-1943273.php#page-2
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Accounting Several Terms and Definitions Are Valuable

Words: 895 Length: 3 Pages Document Type: Essay Paper #: 53038561


Several terms and definitions are valuable to understand financial statements. In the United States, financial statements of public corporations are produced in accordance with the U.S. Generally Accepted Accounting Principles. These principles govern how the information for financial statements is compiled and presented. The purpose of these principles is so that all stakeholders can easily understand the statements and make comparisons across both time and across different companies, because the statements are produced and presented in a consistent manner. The International Financial eporting Standards (IFS) are the international equivalent of GAAP. While several countries utilize a national version of GAAP (U.S., Canada, UK, etc.), more than 100 countries use IFS, making this set of standards the most widely-adopted in the world. There is a move to converge national GAAP standards with IFS, including a multi-year project to converge U.S. GAAP with IFS. For now, however, IFS represents a different…… [Read More]


No author. (2012). Generally accepted accounting principles (GAAP). Investopedia. Retrieved August 18, 2012 from #axzz23vrKSd9Q (2012) PCAOB oversees: The auditors of companies to protect investors. Public Company Accounting Oversight Board. Retrieved August 18, 2012 from (2012). The investor's advocate. Securities Exchange Commission. Retrieved August 18, 2012
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Turning a Hobby Into a Business

Words: 2618 Length: 8 Pages Document Type: Essay Paper #: 48896447

Turning a Hobby into a Business: This is Where the Cowboy ides Away with a Profit

I was fortunate to spend part of my childhood on a working cattle ranch. I learned how to ride horses, rope, work cattle, shoot, and hunt. Though my uncle, who owned the cattle ranch, sold it when I was still relatively young, I have always considered "cowboying" to be one of my hobbies. I have not pursued the professional rodeo route of my hobby. While I have respect for those men and women that earn their livings in the rodeo, to me, being a cowboy or cowgirl is about having the practical skills one needs to live on a ranch. I have kept in contact with my uncle's old ranch acquaintances, and I have worked part-time on their ranches, keeping up my skills. For a long time, I thought that the skills I acquired…… [Read More]


Accounting Coach, LLC. (2012). Income statement. Retrieved November 22, 2012 from Accounting Coach website:

Boer, G. (2001, July 24). A note on the preparation of pro forma financial statements.

Retrieved November 22, 2012 from Owen Graduate School of Management at Vanderbilt University website: / entrepreneur/Proforma%20Financials/proforma.html

Forgeas, R. (2008, June 16). Is IFRS that different from U.S. GAAP? Retrieved November 22,
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Accounting the Role of Financial Statements in

Words: 906 Length: 3 Pages Document Type: Essay Paper #: 39784246


The role of financial statements in investing is that they provide a consistent format that can be used by potential investors and other stakeholders to evaluate a company. There are several components that facilitate this happening. For publicly-traded firms, Generally Accepted Accounting Principles (GAAP) play a key role in the creation of financial statements. GAAP is a common set of accounting principles and procedures that companies use to compile their financial statements (Investopedia, 2012). ith companies having to produce their statements according to a common set of criteria, the information is easier to compare not only between different years at the same company, but also against other firms in the industry and all other publicly-traded firms.

The IFRS is essentially the international version of GAAP. Financial statements in many countries, especially those in Europe, are produced according to IFRS. There are a many areas where GAAP and IFRS diverge,…… [Read More]

Works Cited:

AICPA. (2011). International financial reporting standards (IFRS): An AICPA backgrounder. AICPA. Retrieved March 22, 2012 from 

Beiersdorf 2011 Annual Report. Retrieved March 22, 2012 from 

Investopedia (2012). Generally Accepted Accounting Principles (GAAP). Investopedia. Retrieved March 22, 2012 from #axzz1pmKm2c8C 

Revlon Fiscal Year 2011 Form 10-K. Retrieved March 22, 2012 from
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Business Plan Business Financial Plan for Sweet

Words: 1625 Length: 6 Pages Document Type: Essay Paper #: 44251310

Business Plan

Business Financial Plan for Sweet Tooth Treats

Baking has always been a major part of my family life, and for generations there has been infamous cookie recipes past down from one cook to the next. Every holiday season, my cookies are notorious for being the best any gift receivers have ever had. Finally, I believe it is time to make my baking hobby and actual money making enterprise. I know I have the recipe, the potential customers, and options for both retail space and an online presence. The only thing missing is the initial push to make this hobby an actual business -- Sweet Tooth Treats.

Business Start Up Plan


The essentially product here is the various cookies, of different flavors and ingredients. I have several recipes for cookies, both permanent and seasonal variations. These products will be sold in both individual sales at a retail location,…… [Read More]


Colorado Small Business Association. (2012). The beginning balance sheet. Documents. Web.

Damrauer, Virginia Hire. (2010). One Good Cookie. National University. Web. 

Hub Pages. (2012). How to start your own cookie business from home. Small Business and Entrepreneurs. Web.

Office of Financial Management. (2012). Generally Accepted Accounting Principles (GAAP). Accounting Principles. Web.
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Worldcom Prior to the Corporate Financial Scandal

Words: 1713 Length: 5 Pages Document Type: Essay Paper #: 1694636


Prior to the corporate financial scandal, WorldCom was one of the largest long distance telephone companies (euters, 2003). Initially headquartered in Mississippi it later moved to Virginia. The company grew fast by acquiring other companies such as MCI Communications in 1998 and UUNET technology in 1996. Other companies acquired included, Metromedia in 1992, esurgens Communications Group in 1993. In the course of this acquisition spree, WorldCom undertook two complex takeovers. The first was the 1998 acquisition of CompuServe from H& Block where it retained the network division, sold off the online service to American Online (AOL) and the second, the acquisition of Digex in 2001, and disposed of all Digex assets to Allegiance Telecom (Kaplan & Kiron, 2004). With these acquisitions, it gained a favorable reputation in the market as a company with a solid foundation.

Facts of the WorldCom Case

The WorldCom fraud case is one of the…… [Read More]


Kaplan, R.S., & Kiron, D. (2004). Accounting Fraud at WorldCom. HBS Premier Case Collection .

Reuters. (2003, April 14). WorldCom to emerge from collapse. Retrieved from

Ryerson, F. (2009). Improper Capitalization and The Management of Earnings. Las Vegas: Macon State College.

The Securities and Exchange Commission, 02 Civ. 3288 (United States District Court For the Southern District of New York June 26, 2002).
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Cost Aspects of Project Management

Words: 744 Length: 2 Pages Document Type: Essay Paper #: 97445889

Controlling Costs

The question does offer some good ideas and thoughts to keep in mind when it comes to controlling costs. Indeed, having internal employees as opposed to external employees like contractors and the like that cannot be directly controlled in all aspects by the project management team is usually advantageous. However, these exterior employees and their associated costs can be controlled via an agreed price in advance that will not vary based on the acumen (or lack thereof) of the people working on the project unless something unforeseeable changes or is revealed. In that case, the costs are going to go up regardless of whether the costs are internal or external.

As it relates to electricity being a "hidden cost," it has to be expected that a construction project that uses any electricity from the site/client itself is going to cost money. As such, there should be an expected…… [Read More]


PMI. (2013). A Guide to the Project Management Body of Knowledge: PMBOK (R) Guide (5th

ed., pp. 1-589). New York: Project Management Institute.

Rodriguez, F. (2010). Impact of revenue recognition methods in project cost control through earned value. PMI Virtual Library. Retrieved from

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Johnson Sarah 2008 April 4

Words: 909 Length: 3 Pages Document Type: Essay Paper #: 58451241

hese preferences aside, American multinationals like PepsiCo and Procter & Gamble, are examining how a possible shift away from GAAP would affect their revenue recognition, taxation, and hedge accounting in the near and far future. In many cases, the overall, self-interested impression is positive as IFRS tend to make a company's returns look higher. But for smaller U.S. companies without an outreach abroad, the advantages of a switch to IFRS are less clear, as they have not been keeping two books all along like multinationals. More time-consuming (an estimated 18-24 months) headaches and paperwork as companies switch to IFRS seem likely -- and a tremendous financial drain is almost certain upon all organization's revenues during the period of transition. "Procter & Gamble hasn't pinned down an exact number, but expects a conversion project would cost tens of millions of dollars" (Johnson 2008, p. 2). European companies who have already switched…… [Read More]

These preferences aside, American multinationals like PepsiCo and Procter & Gamble, are examining how a possible shift away from GAAP would affect their revenue recognition, taxation, and hedge accounting in the near and far future. In many cases, the overall, self-interested impression is positive as IFRS tend to make a company's returns look higher. But for smaller U.S. companies without an outreach abroad, the advantages of a switch to IFRS are less clear, as they have not been keeping two books all along like multinationals. More time-consuming (an estimated 18-24 months) headaches and paperwork as companies switch to IFRS seem likely -- and a tremendous financial drain is almost certain upon all organization's revenues during the period of transition. "Procter & Gamble hasn't pinned down an exact number, but expects a conversion project would cost tens of millions of dollars" (Johnson 2008, p. 2). European companies who have already switched from their local systems to IFRS estimated that they spent an average 0.05% of their revenue in their first year of switching from their local standards to IFRS (Johnson 2008, p. 2).

Additionally, not all U.S. firms will show higher profits if there is a total transition to IFRS. International standards bar the use of LIFO (last in, first out) accounting, which confers sizable tax benefits to some companies in many industries. However, like it or not, a shift away from GAAP seems to be the trend of the future: even smaller European companies which chafed at the retreat from their homegrown GAAP were forced to comply eventually. "The EU's smaller companies, with less exposure to IFRS, took longer to respond to the mandate. Many didn't get serious until the year before filings were due…there's something to be said for taking a wait-and-see approach and letting the standard-setters continue to work on convergence" (Johnson 2008, p.2). Methods of revenue recognition, accounting for pensions and leases, and financial-statement presentation are all points of controversy between the two systems at present within the U.S.

Yet the difficulties of the transition, particularly for U.S. firms, may be overstated: "it is apparently much easier to transition from a more prescriptive set of standards to one that allows more judgment" (Johnson 2008, p.3). Because America's GAAP is so rigorous in nature, U.S. companies may experience less heartache than their European counterparts who transitioned from less scrupulous local standards to international standards. The benefits of a homogeneous international standard will likely be enjoyed by all in the very long run in this global economy, but the transition may be painful for some firms -- and more financially gut-wrenching for smaller U.S. institutions than large ones.
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Business Plan Description of the Business the

Words: 2458 Length: 8 Pages Document Type: Essay Paper #: 59203893

Business Plan

Description of the Business

The business is a gourmet candy shop. The shop will sell gourmet candy that has been sourced from all over the world. The shop will operate with one storefront location, and there will be an Internet/mail order component as well.

The rationale for the business is simply. There is a growing trend towards hedonistic approaches to dining. We have seen in the past few years the rise of the bacon fetish, high end craft beer and coffee, cupcakes, the move of fine dining to the mass market and a full embrace by Americans of better quality indulgent goods. Much of this trend can be credited to the aging of the population, as people seek to maximize pleasure. They have the financial means to treat themselves, and seek to balance this hedonism with a desire to be healthy. The intersection of these ideals is where…… [Read More]


Bailey, E. (2013). Pros and cons of incorporation. Retrieved November 14, 2013 from

FASB. (2013). International convergence of accounting standards. Financial Accounting Standards Board. Retrieved November 14, 2013 from /jsp/FASB/Page/SectionPage&cid=1176156245663 (2013). Publication 946. Internal Revenue Service. Retrieved November 14, 2013 from

NCA. (2013). Profile of the U.S. candy industry. National Confectioners' Association. Retrieved November 14, 2013 from
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International Accounting Standards Adoption and

Words: 4564 Length: 13 Pages Document Type: Essay Paper #: 56968427

" (Camfferman & Zeff, 2) Indeed, the purpose which seems to stand above many others as specific Standards are examined is the improvement of financial reports as informative documents inbuilt with the capacity to educate users as to the financial disposition and outlook of reporting entities.

The declared purpose of the IFRS is to improve the comparability, clarity, relevance and reliability of accounting processes and the resultant financial reporting across a global scale. (IASC Foundation, Framework) This purpose is directly correlated to the apparent direction in which the global economy has thrust itself across the last few decades, with the deconstruction of trade barriers and the forging of encompassing exchange agreements producing a circumstance where proponents view a categorical necessity in standardizing accounting practices. Therefore, in a discussion on the global applications of the IFRS, which is conducted by a consideration of the adoption challenges, procedures and experiences of some…… [Read More]

Works Cited:

Bentley, L. (2009). IFRS Move Will Cost More in U.S. Than It Did in Europe, Study Says. IT Business Edge. Online at

Camfferman, N. & Zeff, A. (2007). Financial Reporting and Global Capital Markets. A History of the IASC 1973-2000. Oxford University Press.

Daske, H. (2006). Economic Benefits of Adopting IFRS or USGAAP - Has the Expected Cost of Equity Capital Really Decreased? Journal of Business Finance & Accounting, 33(3-4), 329-373.

Deloitte Touche Tohmatsu (DTT). (2007). Accounting Standards Updates by Jurisdiction: Financial Reporting Framework in Bulgaria. Online at
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International Accounting Standards There Is

Words: 1969 Length: 5 Pages Document Type: Essay Paper #: 12953224

Apart from this FASB has decided that capitalization of IP&D will only apply to business combinations. When assets are purchased, and they are not viewed as businesses under GAAP in U.S., would continue to have IP&D as expenses. One of the results could be to have businesses which are now following GAAP to find out new methods so that they could avoid capitalizing IP&D. The importance of this issue can be seen in the following statement by David Mosso, the FASB chairperson "ule 203 status adds that weight by strengthening the link between Federal financial accountants and the rest of the profession."


To conclude, it could be said that getting information regarding accounting changes is not so difficult today. There are many issues on accounting and auditing that can be resolved through the search of sites that exist for the purpose of providing accounting and auditing related information.

End…… [Read More]


Brackney, Kennard S; Witmer, Philip. R. The European Union's Role in International Standards

Setting: Will bumps in the Road to Convergence Affect the SEC's Plans? The CPA Journal. November, 2005. Retrieved at Accessed 14 November, 2005

De Bell, Tony; D'Arecca, James. Sweeping Changes Coming in Worldwide M&A Accounting. 20

October 2005. Retrieved at 14 November, 2005
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Financial Standards and Reporting Process of Germany and Its Effects on Deutsche Bank

Words: 2690 Length: 10 Pages Document Type: Essay Paper #: 92236307

Financial Standards

eporting standards for financial transactions have been varied with regard to countries and companies across the globe for many years. This fact has made it difficult for transactions to be reported with any great degree of accuracy. This was especially true in Germany where there was no true German GAAP. What the rest of the world has considered the German GAAP, the GoB, was actually comprised of here say and opinion gleaned from many different sources. With the advent of the IASB that the European Union adopted in 2007, Germany has finally decided on a single standard with which to govern financial reporting. Large companies within the country, such as Deutsche Bank, have had to make adjustments to the new standards, but this does not seem to have caused a problem. Since the country has loosely used international standards for many years, the new IASB is not new…… [Read More]


Bonthrone, R. (2000). German financial accounting and reporting. Translation Journal, 4(3). Retrieved from 

Deutsche Bank. (2011). Company. Deutsche Bank. Retrieved from

Feige, P. (1997). How "uniform" is financial accounting in Germany? European Accounting Review, 6(1), 109-122.

Gornik-Tomaszewski, S., & McCarthy, I.N. (2003). Cooperation between FASB and IASB to achieve convergence of accounting standards. Review of Business, 24(2), 52-61.
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Alternative Methods of Accounting

Words: 1118 Length: 4 Pages Document Type: Essay Paper #: 78397802

alternative accounting methods that have become increasingly popular. There are various merits and demerits of obtaining each of the accounting method for a firm however a company must choose the accounting method carefully as it proves to be a vital decision for the success of a company.

Accounting Methods are the guidelines and the basic rules based on which the businesses prepare and maintain their financial records. There have been a vast development in the accounting methods and practices over the years; however the two main accounting methods remain the same which are a) IFS (International Financial eporting Standards) b) U.S. GAAP (Generally Accepted Accounting Principle)

IFS (International Financial eporting Standards) were deigned to cater to the globalization of the businesses by providing an accounting method which is comparable and understandable beyond the regional boundaries. It was initiated to standardize the accounting methods for European nations by the European Council,…… [Read More]


Ball R. (2006). International Financial Reporting Standards (IFRS): pros and cons for investors. Accounting and Business Research

Crovitz, L. Gordon (2008-09-08). "Closing the Information GAAP." The Wall Street Journal.

International Accounting Standards Board (2007): International Financial Reporting Standards 2007, LexisNexis,

Jeffers, Agatha; Mengyu Wei, Sidney Askew (2010). "The Switch from U.S. GAAP to IFRS." Proceedings of the Northeast Business & Economics Association
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Convergence Since 2002 the Financial

Words: 1792 Length: 6 Pages Document Type: Essay Paper #: 46506729

1-6 Summary

The accounting convergence project of the FASB and IASB has proceeded slowly, despite a new deadline of 2014 from the SEC. There remain several key issues that are bogging down the conversion process. This dissertation will outline where American public companies stand on this issue. It will attempt to ascertain how much they understand about the convergence process and how prepared they are for full conversion to international financial reporting standards.

orks Cited:

AICPA. (2010). IFRS primer for audit committees. AICPA. In possession of the author.

American Bar Association (2010) Program: International financial reporting standards: Implications of accounting convergence for business lawyers. American Bar Association. Retrieved November 2, 2011 from

Barth, M., Landsman, ., Lang, M. & illiams, C. (2011). Are IFRS-based and U.S. GAAP-based accounting amounts comparable? Stanford University orking Paper No. 78.

Bratton, . (2011). Heedless globalism: The SEC's roadmap to accounting convergence. University of…… [Read More]

Works Cited:

AICPA. (2010). IFRS primer for audit committees. AICPA. In possession of the author.

American Bar Association (2010) Program: International financial reporting standards: Implications of accounting convergence for business lawyers. American Bar Association. Retrieved November 2, 2011 from

Barth, M., Landsman, W., Lang, M. & Williams, C. (2011). Are IFRS-based and U.S. GAAP-based accounting amounts comparable? Stanford University Working Paper No. 78.

Bratton, W. (2011). Heedless globalism: The SEC's roadmap to accounting convergence. University of Cincinnati Law Review. Vol. 79 (2) 470-498.
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Business Plan the Business That I Am

Words: 1738 Length: 5 Pages Document Type: Essay Paper #: 73838016

Business Plan

The business that I am going to start is a small coffee microroastery and shop. The company will perform two basic functions. The first is a product function, the roasting of coffee beans. Green beans will be received by the company, roasted, and then both used in the shop and made available for a variety of retail channels. The second function will be a service function, based on the production and serving of beverages and light snacks. The staffing plan will be simple. The owner/manager/roaster will perform most of the management tasks associated with the shop. There will be an assistant manager who doubles with barista duties, as well as 4-6 part-time staff members, filling 3 FTEs in the barista/service function. This plan is based on experiences at other, similar operations, in addition to meeting a few other needs. One is the need to keep costs down, and…… [Read More]

Works Cited:

Inc. (2000). Cash vs. accrual accounting. Inc. Magazine. Retrieved November 13, 2012 from (2012). Limited liability company (LLC). Internal Revenue Service. Retrieved November 13, 2012 from

KPMG. (1999). Internal control: A practical guide. KPMG. Retrieved November 13, 2012 from

Perez, W. (2012). Types of business organization. Retrieved November 13, 2012 from
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Business Plan for a Market

Words: 1665 Length: 6 Pages Document Type: Essay Paper #: 83134472

This can be defined at the system level of the consultancy's network architecture. Finally the firewall of the systems will be defined also through the definition of system parameters throughout the network operating system running the entire firm (Malecki, 2012). There will be little resistance to change for each of these implementations as they are designed to protect and streamline the work being completed in the firm. There will also be a clearer sense of accountability over data security once the Practice Leaders and senior consultants realize that if they accidentally lose their iPhone, iPad or laptop all data will be erased immediately, which forces them to be more vigilant how they uses these systems and also how they are backed up.

Impact of the egulatory Environment

As the proposed research and advisory firm is a private corporation, it does not need to comply with the Sarbanes-Oxley (SOX) Act as…… [Read More]


Cox, J. (2009). iPhone winning over it security skeptics. Network World, 26(34), 1-1,12.

Hamblen, M. (2012). iPhone 5: Pros and cons in the enterprise. Computerworld, 46(17), 6-6.

Henry, E., Lin, S., & Ya-wen Yang. (2009). The European-U.S. "GAAP gap": IFRS to U.S. GAAP form 20-F reconciliations. Accounting Horizons, 23(2), 121-150.

Malecki, F. (2012). Next-generation firewalls: Security with performance. Network Security, 2012(12), 19-20.
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Reporting of Capital and Operating Leases and

Words: 1730 Length: 6 Pages Document Type: Essay Paper #: 59747766

reporting of capital and operating leases and their impact on fair value measurements. The essay surveys lease accounting standards from 1976 thru the present.

The basic principle of lease accounting is that some leases are merely rentals, while others are in effect purchases. U.S. regulations that specify lease accounting rules are issued by the Financial Accounting Standards Board (FASB). The primary FASB statement on leases was Number 13, issued in 1976, and is also known as FAS 13, SFAS 13 and FASB 13. Over the years it has been amended several times by additional FAS, including FAS 22, FAS 23, FAS 27, FAS 28, FAS 29, FAS 98, and FAS 121. In addition to financial accounting standards, various interpretations and technical bulletins have also been issued to provide additional guidance. Lease accounting rules were previously labeled as section L10 in the FASB Current Text, while the new FASB Codification uses…… [Read More]

Works Cited

Epstein, Barry J. "Accounting for Leases IFRS vs. GAAP. " IFRS Accounting. 2011. 16 September 2011. .

"History of Lease Accounting (Agenda Paper 2)." Joint International Working Group on Leasing. International Accounting Standards Board and Financial Accounting Standards Board. London. 15 February 2007.

"Leases (Topic 840)." Financial Accounting Standards Board. August 17, 2010: 1. Financial Accounting Foundation. 2011. 16 September 2011. .

"Lease Accounting Rules." Financial Computer Systems, Inc. 2007. 16 September 2011. .
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Bhp the Company I Am Studying Is

Words: 510 Length: 2 Pages Document Type: Essay Paper #: 36485137


The company I am studying is BHP Billiton, the Australian mining company whose ADs trade on the New York Stock Exchange under the symbol BHP. The following is an analysis of how its GAAP balance sheet would correspond to an economic balance sheet.

Cash, STI, Cash equivalents

Core Operations


Core Operations


Core Operations

Other Current Assets

Non-operating net assets

Net property, plant and equipment

Core Operations

Goodwill and other intangible

Non-operating net assets

Investments and advances

Non-operating net assets

Accounts receivable, non-current

Core operations

Deferred non-current accounts

Non-operating net assets

Other non-current accounts

Non-operating net assets


Debt claims

Long-term debt and capital leases

Debt claims

Deferred liabilities, non-current

Debt claims

Minority interest

Other capital claims

Provisions, long-term

Debt claims

Provisions, current

Debt claims

Current debt

Debt claims

Deferred liabilities, current

Debt claims

Current portion of LTD

Debt claims

Other current liabilities

Debt claims

Capital stock

Equity…… [Read More]


MSN Moneycentral: BHP Billiton. (2013). Retrieved October 27, 2013 from

BHP Billiton 2013 Annual Report. Retrieved October 27, 2013 from
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Accounting Profession One Thing That

Words: 795 Length: 3 Pages Document Type: Essay Paper #: 85945746

This will of course change the methods in which companies in the U.S. do their accounting and report financial information, but a change in accounting methods should not lead to a major change in the way these companies actually perform their business.

If the transition to IFRS rather than GAAP is expected to change a company's business practices, it is only a sign that the transition needs to be made that much sooner. If a company makes business decisions based on the way it will be able to report that decision's financial effects, rather than on the real value of that decision, there is clearly something wrong with the accounting methods the company is using. The recent financial meltdown largely caused by questionable accounting practices (and tangentially exacerbated by a lack of international standardization in these practices) is definitely evidence that such practices need to be changed, and with an…… [Read More]

"AmEx profit triples, beating expectations." 

This article describes the unexpected profit gains that New York-based credit card company American Express made in the fourth quarter of 2009. Though revenue remained flat when compared to the same quarter in 2008, near the height of the global recession, the six-and-a-half billion dollars that the company saw was nearly half-a-billion more than expected. This led to a profit of seven hundred and sixteen million, or sixty cents per share, in the three-month period. Much of this is due to a rise in consumer spending with the use of their AmEx cards, which rose for the first time in over a year during the fourth quarter of 2009. The percentage of credit card payments defaulting or failing to be made also dropped significantly in the quarter, boosting the company's earnings.

Though this is considered a significant improvement in the company's situation, analysts warn that the company could still see hard times as record unemployment levels continue to hurt many consumers, in both their willingness to spend and their ability to make their credit card payments. Although American Express is showing greater profits and revenue, it actually posted a larger revenue in the fourth quarter of 2008, with significantly higher earnings per share than the profits of the past quarter brought to investors.
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Governmental Accounting What Are the

Words: 2146 Length: 6 Pages Document Type: Essay Paper #: 8458792

The report reflects the actual figures. Variance columns are presented in comparing the actual with the revised budget. There is reconciliation between the budgetary basis and GAAP are presented on the comparison schedule. The major differences are in how they are reported. There are budgetary comparison schedules provided for reserve funds. All special reserves are included. ("Comprehensive Annual Financial eport," 2012)

3C. Look at the note that describes the basis of budgeting (usually in the Summary of Significant Accounting Policies). Is the budget prepared on the GAAP basis or some other basis? Are the differences, if any, between the budgetary basis and GAAP clearly explained? Does the note indicate that encumbrance accounting is used?

The budget is prepared on a GAAP basis. The differences between the two are clearly explained in the approaches. It is indicating that encumbrance accounting is not used. ("Comprehensive Annual Financial eport," 2012)

4A. Look at…… [Read More]

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Economic Globalization Over the Past Twenty Years

Words: 681 Length: 2 Pages Document Type: Essay Paper #: 51226549

economic globalization over the past twenty years sparked demand for a single, worldwide set of high-quality accounting standards" (Benjamin 2012). The SEC's allowance for American companies with international holdings to use IFS supports convergence to some extent by providing an incentive for filers to use IFS. Companies that use IFS can be compliant with both U.S. And international filing requirements, without having to keep 'double books.' All firms with an international scope are now likely to consider using IFS because of its compatibility with U.S. And worldwide standards. Given the globalization of the economy, even small and mid-sized U.S. organizations may begin using IFS, which will make firms which use GAAP more isolated. Convergence will be facilitated, with a likely bias in the new, universal standards towards using IFS with minor (or no) modifications.

Q2. The EU is one of the most powerful trading blocks in the world. The wholesale…… [Read More]


Benjamin, Michael. (2012). IFRS convergence: What it means and where it stands. BPM.


Schneider, Bob. (2013). Accounting basics. Investopedia. Retrieved:
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Irac Riordan Any Company That Is a

Words: 2995 Length: 10 Pages Document Type: Essay Paper #: 67901343

IAC (iordan)

Any company that is a leader in an industry knows that what they sell had better be both quality and innovative in order to compete within their designated industry. iordan Manufacturing is no different. iordan has long been a company that offers both quality and innovative products in the plastic molding and parts industry. It also has a strong internal structure that works harmoniously with the objectives of the company. Despite iordan's position as a leader in their industry, the company does face some internal challenges, which work against their company objectives. This paper will look at these areas that require improvement, including finance and accounting, training budget, shipping and receiving, human resources, and the new pyramid bottle cap design for The Taylor Group. The paper will utilize the Issue, ule, Analysis and Conclusion (IAC) method in each distinct area.

Finance and Accounting

Issue: One of the chief…… [Read More]


Association for Automatic Identification and Mobility: Technologies: RFID / What is RFID?.


Retrieved on 19 April 2011:
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Multinational Acquisition

Words: 1528 Length: 5 Pages Document Type: Essay Paper #: 54479977

Acquisition that I am studying is the Google acquisition of Motorola's mobile business, Motorola Mobility, for $40 per share, or a total of $12.4 billion (Google, 2012). Both companies are active in the mobile communication space, Motorola Mobile in the handset space and Google with its operating system. By acquiring the technology and patents of Motorola Mobile, the latter of which Google valued at $5.5 billion (Reisinger, 2012). The acquisition was made entirely with cash, of which Google has no shortage. There were also significant tax benefits associated with the deal, including the ability to reduce taxes as the result of the ongoing losses at the Motorola Mobility division, which will continue to be run independently. This paper will outline a number of issues pertaining to the accounting elements of this deal. Although both firms are American, they are multinational companies and there will be some theoretical explanation of how…… [Read More]

Works Cited:

Dignan, L. (2013). Google's Motorola purchase: Was it worth it? ZDNet. Retrieved March 2, 2013 from

Google. (2012). Fact's about Google's acquisition of Motorola. Retrieved March 2, 2013 from 

PWC. (2010). Accounting for business combinations. Price Waterhouse Coopers. Retrieved March 2, 2013 from

Reisinger, D. (2012). Google: Motorola's patents, tech are worth $5.5 billion. C/Net. Retrieved March 2, 2013 from$5.5-billion/
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Absorption Costing Is a Costing Method Which

Words: 632 Length: 2 Pages Document Type: Essay Paper #: 73760823

Absorption costing is a costing method which treats all costs of production as product costs without considering whether these costs are variable or fixed (AccountingforManagement, 2013). Under the absorption costing method the cost of a unit product comprises direct materials, direct labor, and both variable and fixed overhead. This costing method allocates a portion of fixed manufacturing cost to each unit of a product along with the variable manufacturing cost (AccountingforManagement, 2013). It includes all costs of production as product cost. That is why it is often called a full costing method.

Under variable costing costs of production varying with output are treated as product costs. Product costs under this costing method therefore include costs of direct material, direct labor, and variable portion of manufacturing overhead. Fixed manufacturing cost does not therefore fall under product costs (AccountingforManagement, 2013). It is nevertheless, treated as period cost and just like selling and…… [Read More]

References List

AccountingforManagement. (2013). Variable Costing vs. Absorption Costing. Retrieved from

Daphne, A. (2013). Why Variable Costing is not allowed with GAAP. Retrieved from 

Johnston, K. (2013). GAAP & Absorption vs. Variable Costing and Tax Implications. The Houston Chronicle.
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Accounting for a Loss Contingency for a Verdict Overturned on Appeal

Words: 665 Length: 2 Pages Document Type: Essay Paper #: 69908622

Loss Contingency

A transaction between Company M. And Company W. has caused some serious accounting problems and a complex legal scheme and law set is necessary to figure out how to resolve this issue. Company M. And Company W. have been tied up in a long and drawn out legal battle over some copyright and patent infringement argument. In May 2007, W filed a claim against M. And a verdict was reached in September of 2009. This jury found that M. must pay W $18.5 for their mistakes. M did not like this and called for an appeal in November of 2009. More than one year later, the appeals court ruled in favor of M. And the jury's verdict was overturned. W was still upset and filed a petition for a rehearing the next month. That request for appeal was denied and the matter was over according to all legal…… [Read More]


Financial Accounting Standards Board. "Accounting Standards Codification." Viewed 17 Sep 2013. Retrieved from &nav_type=subtopic_page

Nilsen, K. (2011). Renewed Focus on Loss Contingency Disclosures. Journal of Accountancy April 2011. Retrieved from
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Accounting Finance Repo 105 and Lehman

Words: 1057 Length: 3 Pages Document Type: Essay Paper #: 87109356

By re-characterizing the epo 105 dealing as a sale, Lehman detached the account from its balance sheet (Durden, 2010).

Lehman frequently augmented its utilization of epo 105 transactions in the time previous to reporting interludes to decrease its openly reported net leverage and balance sheet. Lehman's intermittent reports did not reveal the money borrowing from the epo 105 transaction, even though Lehman had in reality borrowed tens of billions of dollars in these dealings, Lehman did not reveal the acknowledged responsibility to pay back the liabilities. Lehman utilized the money from the epo 105 dealings to pay off other dangers, thus dropping both the entire debts and the entire assets accounted for on its balance sheet and decreasing its power percentages. Therefore, Lehman's epo 105 dealing was made up of a two-fold procedure: performing epo 105 dealings followed by the utilization of epo 105 cash borrowings to pay down debts,…… [Read More]


Durden, Tyler. (2010). The "Repo 105" Scam: How Lehman Fooled Everyone (Including

Allegedly Dick Fuld) and How Other Banks Are Likely Doing This Right Now. Retreived

April 10, 2011, from Web site:

Goldstein, Jacob. (2011). Repo 105: Lehman's 'Accounting Gimmick' Explained. Retreived April
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Eitf as Relates to the FASB the

Words: 1715 Length: 6 Pages Document Type: Essay Paper #: 80366834

EITF as relates to the FASB

The Emerging Issues Task Force, abbreviated as the EITF, was formed in the year 1984. The EITF works to assist the FASB (Financial Accounting Standards Board) to improve financial reporting by providing timely identification, identification, discussion and resolution of issues in accounting which are within the FASB framework known as the Accounting Standards Codification. The framework represents the source of authoritative standards of accounting in general and reporting and is to be applied to nongovernmental entities. They are issued side by side to those of the SEC (Securities Exchange Commission) Beresford, 1998()

The EITF promulgates the guidance of implementation of financial and reporting procedures within the FASB framework in order to reduce the diversity in practice on a basis that is timely. The EITF was also created to minimize the need of the FASB to spend crucial effort and time to address narrow issues…… [Read More]


Beresford, D.R. (1998). THE FASB'S ACCOMPLISHMENTS TO DATE: ONE PARTICIPANT'S VIEWS. The Accounting Historians Journal, 25(2), 151-166.

Emerging Issues Task Force. (2012). Description and Status of Current Issues Retrieved May 20th, 2012, from /jsp/FASB/Page/SectionPage&cid=1218220137528

Financial Accounting Standards Board. (2012). Statement of Cash Flows (Topic 230): Not-for-Profit Entities: Classification of the Sale of Donated Securities in the Statement of Cash Flows a consensus of the FASB Emerging Issues Task Force. Connecticut: Financial Accounting Standards Board.

May, J., Paul, R., & Uhl, B. (2009). EITF Snapshot. Greenville: Deloitte & Touche LLP.
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Jim & Judy Choi's Bed & Breakfast

Words: 1325 Length: 4 Pages Document Type: Essay Paper #: 6309528

Jim & Judy Choi's Bed & Breakfast

As Jim & Judy Choi's banker, no, they should not be congratulated on their "profit." Since they have not done anything related to their actual business activities and have not actually made any money from their business, there is no profit to address. Profit comes from making money in a business, not from saving money that would otherwise be used to prepare for that business. Many people do not understand the difference, however, and that gets them into trouble when they attempt to create balance sheets and keep their accounting books in order for their company. The Choi's, for example, have managed not to spend every dime they were loaned and that they previously had in the bank, but that is not the same thing as making a profit once their business has been opened. They can only make a profit once they…… [Read More]


Elliot, B. & Elliot, J. (2004). Financial accounting and reporting, London: Prentice Hall.

International Accounting Standards Board. (2007). The framework for the preparation and presentation of financial statements.
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Tale of Stable Mable's Unstable Investment John

Words: 911 Length: 3 Pages Document Type: Essay Paper #: 96155188

Tale of Stable Mable's Unstable Investment

John Smith

Accounting 101

Stable Mable is a privately held company with a fiscal year ending on September 30th. Because of its private status, the only external reporting requirement on the company is that they must provide audited annual financial statements to shareholders and other financial leaders.

In order to seek additional levels of income, Stable Mable invested $20 million into a mutual bond fund in October of 1997. By the end of the following fiscal year, the investment went south and had an unrealized holding loss of $1.3 million. Stable Mable had to classify and establish just how to adjust their financial statements for the investment's losses. Their options were to account for the losses as realized losses or to exclude the losses from earnings as a separate component of shareholders' equity.

In addition, decisions made now could effect future financial statements because…… [Read More]

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Conservatism in Accounting Valuation Accounting

Words: 6022 Length: 18 Pages Document Type: Essay Paper #: 1894474

That was the year that significant changes were made in the Securities Act and the rules for bringing class action lawsuits were adjusted and modified. Because of those changes, it became more important from a litigation standpoint to ensure that conservatism was used in accounting valuation. Because there are empirical differences between the contracting and litigation perspectives, there have been many discussions regarding them in the past and that will likely continue well into the future. Each accounting firm must do what it feels is in the best interest of both itself and its clients, but the avoidance of lawsuits is a highly significant issue to consider when a company is planning to focus on a particular accountancy option.

C. Income Tax Perspective

Because income taxes are so closely tied to earnings, it only stands to reason that there would be an accounting valuation issue as it relates to conservatism…… [Read More]


Ahmed, A.S., B. Billings, M.S. Harris and R.M. Morton. 2001. Accounting conservatism and cost of debt: An empirical test of efficient contracting. Working paper, Syracuse University.

Ahmed, A.S., R.M. Morton and T.F. Schaefer. 2000. Accounting conservatism and the valuation of accounting numbers: Evidence on the Feltham-Ohlson (1996) model. Journal of Accounting, Auditing & Finance 15 (Summer): 271-292.

American Institute of Certified Public Accountants, Committee on Accounting Procedures (AICPA). 1939. Accounting Research Bulletin 2.

Antle, R. And R. Lambert. 1988. Accountants' loss functions and induced incentives for conservatism. In Economic Analysis of Information and Contracts: Essays in Honor of John Butterworth, edited by G. Feltham, A. Amershi, and W. Ziemba. Boston, MA: Kluwer Academic Publishers.
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Accounting Questions While the Rest Centers on

Words: 1266 Length: 5 Pages Document Type: Essay Paper #: 70636679

accounting questions while the rest centers on the characteristics of two certain companies, those being Apple and Philips.

Accounting Questions & Answers

The first accounting question is why revenue recognition is a significant issue. ecognizing when revenue comes in, what specific revenue stems from and the exact amount of all of the above is a very vital part of the accounting process because it has a direct correlation and effect on the profit/loss of a company, the income statement, the cash flow statement and, to a lesser extent, the balance sheet. evenues are used to defray the costs of the goods/services that were disseminated and they need to be properly measured and accounted for, and in the time period to which they apply, so as to ensure that all of the affected and relevant financial statements reflect what is truly going on and when precisely it happens (McQuaig & Bille,…… [Read More]


Apple. (2012, December 6). Apple Inc. - Overview. Apple Inc. - Overview. Retrieved December 6, 2012, from

McQuaig, D.J., & Bille, P.A. (2008). College accounting (9th ed.). Boston: Houghton Mifflin.

Philips. (2012, December 6). Philips Investor Info. Philips Electronics. Retrieved December 6, 2012, from

Yahoo Finance. (2012, December 6). Yahoo! Finance - Business Finance, Stock Market, Quotes, News. Yahoo! Finance - Business Finance, Stock Market, Quotes, News. Retrieved December 6, 2012, from
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Dell's Inc Accounting Fraud

Words: 1401 Length: 5 Pages Document Type: Essay Paper #: 57091795


Business practices came under fire when America's seventh largest firm Enron collapsed due to unethical accounting strategies. This case triggered a series of unwelcome events where one after the other, large organizations in the U.S. collapsed or run for bankruptcy cover with one case even implicated the infamous Martha Stewart for insider trading. The various deceitful activities of some larger companies resulted in widespread public mistrust of business practices and values. Companies as big as Adelphia, ENON, Global Crossing, Kmart, Qwest communications, WorldCom and Xerox are all under thorough investigation by one of the few reliable authorities, Securities and Exchange Commission (oyal Bank of Scotland). All the aforementioned names were business of international repute that were charged with the unethical act of projecting inflated profits to trick stakeholders and earn higher profits and generate greater revenue from expensive stocks (oyal Bank of Scotland). WorldCom ran for insolvency…… [Read More]


Hess, E. Stark Lessons From The Dell Fraud Case. Forbes. Oct 2010

Goldman, D. Dell settles fraud charges for $100 million. CNNMoney 2010

SEC Administrative proceedings. 2010. Retrieved online from
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Cost Flow Methodology These Are

Words: 766 Length: 3 Pages Document Type: Essay Paper #: 43473669

Thus, if the asset's usefulness will decline consistently after the first year of usage, it is best to use one of the accelerated depreciation methodologies, which will calculate a higher depreciation rate in the first year of usage (when the asset is producing most for the company) and a lower one in the subsequent years, when the asset is less useful for the company. Accelerated methods include the declining balance method and the sum-of-the-years-digits methods.

3. Answering this question first requires a differentiation between accounting (and accounting related activities) and physical reality. For example, cost flow assumption may not always reflect physical flow. In accounting, inventory errors generally correct themselves in the following years, mainly because the accounting methodologies can regulate the values in the following years. But physically, of course, is something different.

4. Basically, GAAP allows various methods of inventory valuation because it seems appropriate for the company…… [Read More]

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Financial Structure of Financial Environment Financial Structure

Words: 1561 Length: 5 Pages Document Type: Essay Paper #: 83868905

Financial Structure of Financial Environment

Financial structure is the mixture of financial instruments, financial markets and other financial institutions operating within the economy. ( Fase & Abma, 2003). Financial structure consists of a company's assets, capital and liabilities. Financial structure is also specific equity and long-term debts that firms employ to finance its business operations. Typically, financial structure of a company generally affects the business operations and value of a business. On the other hand, financial structure could also be described as the amount of organization's cash flow that goes to shareholders and creditor. Organizations use their financial structure to finance their short-term and long-term obligations and financial structure is different from capital structure since capital structure only focuses on the long-term source of funds, which include long-term debt, debentures, and equity capital shares.

On the other hand, financial environment constitutes the financial market that includes foreign exchange market, bond…… [Read More]


Fase, M.M.G & Abma, R.C.N. (2003). Financial environment and economic growth in selected Asian countries. Journal of Asian Economics 14: 11 -- 21.

Konzelmann, S. Wilkinson, F. Fovargue-Davies, M. et al. (2009).Governance, regulation and financial market instability: the implications for policy. Cambridge Journal Economics. 34 (5): 929-954.

Lee, R. (2010). The Governance of Financial Market Infrastructure. Oxford Finance Group. Princeton University Press. USA.

Levine, R. (1991). Stock Markets, Growth, Tax Policy. The Journal of Finance. XLVI (4): 1444-1465.
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International Accounting

Words: 749 Length: 2 Pages Document Type: Essay Paper #: 93503078

Hedging may be used to reduce risk. The three predominant types of hedging activities are fair value hedges, cash flow hedges, and foreign currency hedges. In this assignment, you will examine how hedging activities are reported.

Download (attached file) and complete the computational problem, which illustrates hedge computations. how or explain the calculations.

The current price of his bushel slightly decreased in July at $9.98 and then increased in December at $10.09.

In July, he sold 100,000 bushels at $9.99 with spot price being $10.00. He lost nothing.

In December the spot price was $9.98; the price decreased. He sold at $9.95 per bushel and actually made a profit of $4,000.

In December, however, the spot price for soybeans ($10.09) was higher than his future offset price making it non-profitable for him, $10,000

He won $4,000, he lost $1,000. His liability was $6,000

Compare and contrast the requirements for investments…… [Read More]


Deloitte IAS 39 -- Financial Instruments: Recognition and Measurement

FASB Summary of Statement No. 133. Accounting for Derivative Instruments and Hedging Activities (Issued 6/98) /summary/stsum133.shtml

NY Times, (2012) Derivatives
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General Accounting Principles and the U S Government

Words: 944 Length: 3 Pages Document Type: Essay Paper #: 21138347


Persons who use governmental financial reports have different needs than those who use business financial reports. These different needs are shown in the way the framework of the accounting and reporting standards are set up. The GASB framework is geared towards being user-friendly to citizens and their elected representatives in government. These users are not the primary readers and/or targets of business reports. Thus, while some businesses might use mark-to-market accounting principles, like those employed by Enron prior to its collapse in the early days of the 21st century, GASB puts accountability and transparency at the top of its principles. The purpose of its accounting, in other words, is to show constituents what their government is doing with taxpayer dollars (eck, 2015).

One significant example of how GASB standards address differences between governmental and business financial reporting is the Congressional Budget Office, which shows the use of fund accounting…… [Read More]


BubbaLouis. (2006). 9/10/2001: Rumsfeld says $2.3 TRILLION Missing from Pentagon. YouTube. Retrieved from

National Association of State Retirement Aministrators. (2013). NASRA. Retrieved


Reck, J. (2015). Accounting for Governmental and Nonprofit Entities. NY:
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Sony Incorporated as Explained by

Words: 1022 Length: 3 Pages Document Type: Essay Paper #: 94061444

it's difficult to imagine how the disparate business units would come together to create synergies and drive innovation if one considers a quote by the CEO of Sony Pictures Entertainment, Michael Lynton,

"I'm a guy who doesn't see anything good having come from the Internet...(the Internet) created this notion that anyone can have whatever they want at any given time. it's as if the stores on Madison Avenue were open 24 hours a day. They feel entitled. They say, 'Give it to me now,' and if you don't give it to them for free, they'll steal it." (cited in Rosenberg, 2009).

After posting a loss of $1 billion dollars for the year ended March 31, 2009, Sony has not put the bad news behind the company (Kelly, 2009). In fact, the company expects to lose another $1.2 billion for its current fiscal year (Kelly, 2009). The company's primary response has…… [Read More]


Documents submitted to the SEC (EDGAR) Form 20F and others. 

Harris, R. (2008, October 28). Blu-ray is dead -- heckuva job, Sony!

Kelly, T. (2009, May 14). Stringer sticks knife deeper into Sony. Forbes. 

King, D. (2008, June 26). Sony shoots for $10 billion in Blu-ray sales by 2011. Video Business.
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Amazon's Cash Cycle'so Much Shorter Than

Words: 818 Length: 2 Pages Document Type: Essay Paper #: 37655552

Amazon's cash cycle so much shorter than that of competitor Barnes & Noble? How does this comparison affect financial management decisions of other retailers?

There are several reasons which explain why the Amazon Company has a shorter cash cycle than its competitor Barnes & Noble. First and foremost, Amazon is a much bigger company than Barnes & Noble both in terms of income and in the number of products that it sells. hile Barnes & Noble sells some things besides book and ebooks, this is their primary product. Amazon sells everything including books, although this is a very small portion of their income. Another reason for this is that Amazon is doing better financially than Barnes & Noble. The ebook trend has bitten into Barnes & Noble's income, which they tried to combat by creating their own ereader, the Nook but this was far less successful than the Amazon ereader,…… [Read More]

Works Cited

Ross, S., Westerfield, R. & Jordan, B. (2012). Fundamentals of Corporate Finance. 10th ed.

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Gasb Statement 34

Words: 806 Length: 3 Pages Document Type: Essay Paper #: 91280411

GASB Statement 34, Basic Financial Statements and Management Decisions

Select a local government in your state and review the financial statements and audit report for the county or municipality. The financial statements of the government selected should have at least three funds.

Located in Muscogee County, the city of Columbus, Georgia is the state's third-largest city with over 194,000 residents. The Consolidated Government of Columbus, Georgia recently released its latest Comprehensive Annual Financial eport (CAF) for the 2011 fiscal year. Among the various funds for which this report records accounting practices are the city's General Fund, Special evenue Funds, Debt Service Funds, and Capital Projects Funds.

Analyze the method of accounting used for the general fund and all other funds in existence by the government. Evaluate the reasoning for the use of the method of accounting for each of the funds as required by GASB.

According to Figure A-1, Major…… [Read More]


Hodge, P.J. Columbus Consolidated Government, Finance Department. (2012). Comprehensive annual financial report . Retrieved from website: 

GASB. (1999). Summary of statement no. 34 basic financial statements -- and management's discussion and analysis -- for state and local governments.Governmental Accounting

Standards Board, Retrieved from
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Southwest Airlines What Types of Budgets Would

Words: 1551 Length: 5 Pages Document Type: Essay Paper #: 13772629

Southwest Airlines. What types of budgets would you recommend for the company? Why?

Currently, the type of accounting standard that is being utilized by Southwest Airlines is Generally Accepted Accounting Principals (GAAP). This is the basic benchmark that has been implemented by many U.S. companies to more accurately account for: their budgets, expenses, assets and liabilities. Over the years, it has become common for most corporations to follow these different standards. ("2010 Annual Report," 2010) ("Generally Accepted Accounting Principles," 2011)

However, Southwest takes this process one step further by also including Pro Forma accounting standards as an alternate way of evaluating the company. This is when you are anticipating that certain events have occurred in the future and are listing them as revenues in the current quarter (such as: future earnings on a large contract that was signed). The idea with using this approach is to see how these revenues…… [Read More]


2010 Annual Report. (2010). Southwest Airlines. Retrieved from;

Generally Accepted Accounting Principles. (2011). Investopedia. Retrieved from: 

Pro-Forma. (2011). Business Dictionary. Retrieved from: 

US GAAP vs. IFRS. (2009). Ernest and Young. Retrieved from:$file/IFRS_v_GAAP_basics_Jan09.pdf
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Studied Appeared a Business Accounting Publications A

Words: 948 Length: 3 Pages Document Type: Essay Paper #: 72879217

studied appeared a business accounting publications. A partial list publications article selected: The Accounting eview, Barrons, Wall Street Journal, Business Week, Fortune, Barrons, and Wall Street Journal.

GAAP article review:

Crovitz, Gordon L. (2008, September 8).Closing the information GAAP. The Wall Street

Journal. etrieved November 22, 2010 at

GAAP article review:

Crovitz, Gordon L. (2008, September 8).Closing the information GAAP. The Wall Street

Journal. etrieved November 22, 2010 at

The Wall Street Journal is famous for its pro-business, conservative editorials. So perhaps it is no surprise that in 2008, Journal editorial writer Gordon L. Crovitz praised the Securities and Exchange Commission (SEC)'s decision to mandate a shift to international accounting standards, in a phasing out of GAAP (Generally Accepted Accounting Principles) by 2016 for all U.S. firms. The Journal writer said that this was reflective of the "remarkably quickening pace of acceptance of a true lingua franca for…… [Read More]


Crovitz, Gordon L. (2008, September 8).Closing the information GAAP. The Wall Street

Journal. Retrieved November 22, 2010 at

Gibson, Scott. (2008, October). LIFO vs. FIFO: A return to the basics. RMA Journal. Retrieved November 22, 2010 at
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International Accounting - Evaluate Research Theories and

Words: 3122 Length: 8 Pages Document Type: Essay Paper #: 70475976

International accounting - Evaluate research theories and methodologies to classify accounting systems internationally

The necessity of accounting standards is given by the fact that financial statements should describe financial performance in a fair and consistent manner. Lacking standards, users of financial statements would be required to master the accounting rules of each company, and any comparison between companies' performances would be almost impossible.

Accounting standards are essential to the healthy development of an international financial reporting structure. Around the world several accounting traditions have been developed as a response to the needs of users who are in need of the financial information. Some countries, for instance, chose to build the structure of accounting standards around the needs of private creditors, while other countries were more concerned with the needs of tax authorities or central planners. As a characteristic of the United States, the needs of participants in the capital markets…… [Read More]


1. SEC Concept Release: International Accounting Standards


17 CFR PARTS 230 and 240

RELEASE NOS. 33-7801, 34-42430; INTERNATIONAL SERIES NO. 1215]
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International Financial Reporting Standards

Words: 951 Length: 3 Pages Document Type: Essay Paper #: 79010483

International Financial eporting Standards

IFS and Canada

Canada was one of the first prominent nations involved in the North American Free Trade Agreement to consider switching their financial reporting to the International Financial eporting Standards. For years, Canada had been under the pressure of the United States to adopt a system aligned with the GAAP. Still, growing opportunities across the globe made the adoption of the IFS in Canada a better option. It was announced in early 2008 that the move was going to be made in Canada. Canada officially adopted the IFS standards in January of 2011 (PWC, 2014). Actually, the IFS standards were quite similar to the already existing Canadian GAAP standards. Thus the transition, for most businesses, was not extremely different than what they had encountered in the past.

The country made the official decision to adopt the IFS over their own GAAP system came in a…… [Read More]


Canadian Institute of Chartered Accountants. (2011). The CICA's Guide to IFRS in Canada. Web. 

Canadian Institute of Chartered Accountants. (2012). IFRS Adoption in Canada: An Empirical Analysis of the Impact on Financial Statements. Web. 

IFRS. (2013). Canada. IFRS Application Around the World. Web. 

PWC. (2013). IFRS Adoption by Country. Web.
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Accounting Profession Towards a More

Words: 3151 Length: 10 Pages Document Type: Essay Paper #: 57289159

However, when a shock happens that changes that pattern, the information is no longer relevant. In periods of turmoil, only the most up-to-date information is relevant. The usefulness of the information wanes quickly as the behavior of the company becomes more erratic. After a period of erratic behavior and change, the company may be forced to make internal changes that affect the way they do business. They may make changes that affect their inventory management, sales cycle, stock levels, supply chain, distribution network or other fundamental business functions. New patterns may emerge and the old information no longer applies.

The term "relevancy" can have many different meanings depending on what is happening with the company. A new accounting regime may need to be instituted when a change takes place. Looking at the most recent historical information is one way to determine the relevancy of the accounting information. The analyst needs…… [Read More]


Cadwalader, Wickersham, & Tact LLP. 1999. Application of the Safe Harbor for Forward-

Looking Statements. Findlaw. Accessed April 23, 2009


Giroux, G. (n.d.). American Big Business and Cost Accounting. In a Short History of Accounting and Business. Accessed April 23, 2009
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Accounting by Its Nature Requires a Set

Words: 656 Length: 2 Pages Document Type: Essay Paper #: 66882179

Accounting, by its nature, requires a set of standards that are exactly the same industry-wide. If there were not established rules for determining revenues, profits, expenses, and other influences on a company's bottom line, there would be no way to evaluate a corporation's effectivity, production, or potential. A lack of established standards would also mean that no two companies could be honestly compared, since their accounting methods could be so significantly different that their financial statements showed vastly different accounting methods.

In light of these potential discrepancies in reporting methods, the bodies that govern accounting have established Generally Accepted Auditing Standards, or GAAS. Generally These principles are required to be applied in all accounting situations, and they are extensive enough so that almost every possible scenario has a standard response. Interest owed in Houston is reflected on a financial statement in the exact same way that interest owed in New…… [Read More]

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Globalization Has Been Pushing Many Countries to

Words: 792 Length: 2 Pages Document Type: Essay Paper #: 16596636

globalization has been pushing many countries to create standards for accounting procedures that can be used around the globe. This is designed to improve transparency and the accuracy of financial information that is being provided (IFRS guidelines). To fully understand how this is taking place we will examine the differences between IFRS and GAAP standards. This will be accomplished by carefully examining the accounting procedures used by Apple and Philips. Once this occurs, is when we will have the greatest insights as to underlying differences between both procedures.

Is there a difference in approach to valuation by U.S. GAAP and IFRS?

To fully understand the dissimilarities between the two standards we will examine several different factors to include: the way an expense / asset are accounted for, how current / long-term assets are calculated and the way current / long-term liabilities are determined. Once this takes place is when we…… [Read More]


2010 Annual Report. (2011), Philips. Retrieved from:

Apple 2011 Earnings. (2011). Apple. Retrieved from:

Capitalization. (2011). Business Dictionary. Retrieved from: 

Comparing the Differences between IFRS and U.S. GAAP. (2011). McGladrey. Retrieved from:
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Should Countries Adopt an International Reporting System

Words: 2057 Length: 7 Pages Document Type: Essay Paper #: 61439875

International Financial Reporting Standards or IFRS

This refers to a set of accounting standards created and introduced by the International Accounting Standard oard or IAS (Centroid 2013). The objective is establish a single global standard for producing financial statements for all public enterprises (Centroid).

Positive and Negative Consequences of International Accounting Harmonization

The harmonization of international accounting is envisioned to enhance business decisions and to assert influence over the economic milieu (eke 2010). When it proves workable and effective, harmonization will produce new types of analysis and data and integrate indicators, which characterize how businesses in certain countries are managed. As it is, subsidiaries of multinational companies utilize national accounting rules in converting and consolidating frameworks of unified financial statements in reporting them. The application of a precise or suitable international accounting system will be helpful to such multinational businesses in the conduct of their managerial functions globally (eke).

Interpreting…… [Read More]


Beke, J. 2010. 'International accounting harmonization: evidence from Europe,' International

Business and Management [Online] Available at

Centroid, 2013. 'What is IFRS and what does it mean to you', Centroid {Online] Available at

EC, 2012. 'International Financial Reporting Standards 1.' European Commission [Online]
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Case Analysis of an Accounting Company

Words: 2705 Length: 8 Pages Document Type: Essay Paper #: 19072080

conception that is laid behind write-down of inventory is that the amount value of the inventory being considered can still appear in the financial statements only if the inventory still has some worth or value. This particular amount value is attained by getting the difference between the original costs of the inventory as the prevailing market replacement value. In accordance to IAS 2, if the loss on write-down of inventory is minimal or trivial, it can be reported on the financial statements as a part of the cost of goods sold. On the other hand, if the loss amount is high then it is imperative to report it in the income statement in a separate line. More so, these kinds of aspects typically develop into a violation. Examples of these instances include the case of Enron Company and also the case of WorldCom. On the other hand, IAS1 encompasses the…… [Read More]


Rittenberg, Larry., Johnstone, Karla., Gramling, Audrey. Auditing: A Business Risk Approach. Ohio: South Western Cengage, 2010.

GAO. Financial Statement Restatements: Trends, Market Impacts, Regulatory Responses, and Remaining Challenges. Retrieved from: 

Jarry, Kimberly. The Progression of Financial Restatements: Causes and Market Reaction. University of New Hampshire, 2013. Retrieved from:

Bickley, James. Employee Stock Options: Tax Treatment and Tax Issues. Congressional Research Service, 2012. Retrieved from:
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Words: 942 Length: 3 Pages Document Type: Essay Paper #: 30813091

Under GAAP, reversal of an inventory writedown is not permitted. Under IFRS, reversal of an inventory writedown is permitted. If the writedown has been recognized in previous years, the reversal can be conducted through the income statement of the year in which the reversal occurs, not the year in which the initial writedown occurred (Lajara, 2008).

There are significant differences between cash accounting and accrual accounting. Cash accounting has transactions recorded in accordance with the timing of the cash flows. By contrast, the accrual method has transactions recorded in accordance with the timing of the transaction itself. The cash method is simple and easy to understand. However, it also can lead to significant distortions and that makes it unsuitable for financing reporting. For example, a massive sale at the end of the year would not be recorded if the payment for the sale was not received until the following year.…… [Read More]

Works Cited:

IASB website, various pages. (2010). Retrieved June 15, 2010 from

FASB website, various pages. (2010). Retrieved June 15, 2010 from 

Hughes, S. & Sander, J. (2007). AU.S. manager's guide to differences between IFRS and U.S. GAAP. Management Accounting Quarterly. Retrieved June 15, 2010 from

Lajara, M. (2008). U.S. GAAP v. IFRS: Conference details the differences. E-Zine. Retrieved June 15, 2010 from
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Financial Statements Generally Accepted Accounting

Words: 1696 Length: 5 Pages Document Type: Essay Paper #: 69151827

MICOSOFT: No terrorist is going to try to blow up Microsoft; no oil products are needed to run computer hardware and software; computers run the world of commerce; and Bill Gates owns a huge percentage of all things computer software-related, so the Microsoft steamroller is a great investment and not as vulnerable to world conditions as are the first two companies reviewed in this section.

One final conclusion: for EXXONMOBIL, albeit their fortunes can change because of the war and oil's vulnerability to war, their earnings for the 4th quarter of 2004 were their highest ever ($8,420 million), and they have friends in the White House in Bush and Cheney, so their financial picture remains very bright; for FOD, they experienced a $5 billion pre-tax profit from their "financial services" (auto loans) division, which is very impressive; moreover, car sales are booming and Ford will, in the near future, realize…… [Read More]


AllBusiness (2005). What Are Generally Accepted Accounting Principles? Retrieved February 8, 2005, at

Anderson, Curt. (2005). Microsoft Reports Record Revenue and Earnings. Retrieved February 9, 2005 from Microsoft Investor Relations Web site:

Bruebaker, Gary H. (1999). A Question of Value. Government Finance Review, 15(3),

Ensman, Richard G. (1999). Accrual Basis vs. Cash Basis Accounting. Doors and Hardware, 63(10), 20-22.
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Gasb Up Until the Early 1980s State

Words: 940 Length: 3 Pages Document Type: Essay Paper #: 67705449


Up until the early 1980s, state and local governments followed disparate financial policies and systems. The problem began receiving attention in the late 1970s because of New York City's financial crisis. As a result, many began calling for the creation of an oversight body for state and local governments similar to the private sector's Financial Accounting Standards oard (FAS) ran under the Financial Accounting Foundation (FAF). In 1984, the FAF added the Government Accounting Standards oard (GAS).

ecause both boards have the authority to establish generally-accepted accounting principles (GAAP), there has been a lot of historical conflict caused by different answers to the same questions. This paper discusses these problems and the need to integrate the oards into a single organization with a separate accounting staff for commercial and government entities.

The "Agreement Concerning the Structure for a Governmental Accounting Standards oard (GAS)" (the Structural Agreement) defined authority and…… [Read More]


Garner, Martha and Grossman, Woodrin. "Consistency Endangered by FASB-GASB Dispute - Financial Accounting Standards Board, Government Accounting Standards Board - Includes Chronology." Healthcare Financial Management. Feb. 1991. (Available 5 Nov. 2005).

Hardiman, Patrick F., "Government Accounting: Who's in Charge." The CPA Journal May 1989 (Available 5, Nov. 2005)

Poteau, Raymond R., "Accounting Rule Making -- a Two Headed Monster?" The CPA Journal Jun 1994 (Available 5 Nov. 2005)

Schleier, George C., "GASB and FASB View of Pensions: the Two Contrasted." The CPA Journal. 1990 May. (Available 5 Nov. 2005).
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Barriers and Challenges to Institution

Words: 6571 Length: 24 Pages Document Type: Essay Paper #: 20299865

Preparers, auditors, and users of financial statements must encourage and support compliance with the substance and form of the international standards; (3) the adoption and implementation of the international standards require action at both the national and international levels. At the national level, it is important that governments, regulators, and national standard setters place international convergence as a priority on their agendas. At the international level, it is important that the international standard setters establish processes and procedures that facilitate national input and lead to the development of high quality standards that are globally accepted; (4) Finally, it is clear that to achieve international convergence, action is necessary at all points along the information supply chain that delivers financial reporting. Boards of directors and management, who have the primary responsibility for financial reporting, as well as auditors, standard setters, regulators, and other participants in the financial reporting process, such as…… [Read More]


ACCA Chief Executive Calls for Revamp of IFRS Standards (2007) Association of Chartered Certified Accountants. 2007. Online available at

Diaconu, Paul and Coman, Nicoleta (2007) Accounting Research from the Globalization Perspective. International Journal of Social Sciences Vol. 1 No. 2, 2007. Online available at

FASB and IASB Agree to Work Together toward Convergence of Global Accounting Standards (2002) Business Wire 29 October 2002. Online available at

Hegarty, John; Gielen, Frederic; and Barros, Ana Christina Hirata (2004) Implementation of International Accounting and Auditing Standards: Lessons Learned from the World Bank's Accounting and Auditing ROSC Program. September 2004. Online available at .
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Financial Management Content Find Articles Address Financial

Words: 1275 Length: 4 Pages Document Type: Essay Paper #: 86568101

Financial Management

Content Find articles address financial reporting practices ethics standards health care finance, including * generally accepted accounting principles * corporate compliance, ethics, and fraud abuse

Financial management: Literature review

Healthcare institutions, like all organizations, are continually confronted with the four basic elements of financial management: deciding what to invest in or produce; how to finance those investments or products; how to manage assets, and how to report those assets in a manner that is useful and also complies with all necessary regulations. This paper will provide an overview of two recent articles, one on the necessity of uniform accounting procedures to ensure ethical and legal compliance amongst healthcare institutions and the other on the financial consequences of failing to do so for the institution itself.

Article 1: Maintaining the strength of your convictions

According to Larry Tyler's 2004 article "Maintaining the strength of your convictions" "Most financial executives…… [Read More]


Adam. (2007). Dot. Boston. Retrieved August 12, 2011 at

Fong, Gary R., Randy Wiitala & Frederick Stodolak. (2011). Uncovering pharmacy department risks and opportunities. Healthcare Financial Management Association Journal. Retrieved August 12, 2011 at

Rode, Dan. (1990). Uniform accounting standards enable accurate comparisons.

Healthcare Financial Management. Retrieved August 12, 2011 at
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Value of Accounting Standards

Words: 3077 Length: 9 Pages Document Type: Essay Paper #: 22374555

Value of Accounting Standards

Accounting rules are designed to serve the capital markets and make these markets work efficiently. Accounting rules are essential to the efficient functioning of the economy because decisions about the allocation of resources rely heavily on credible, concise, transparent and understandable financial information. Without standard measures of the worth of a company, lenders and investors would have no way in which to evaluate the worth of the business, so these rules are essential to the capital markets. With the rise of multinational businesses, it is essential that these rules be uniform throughout the world. Generally accepted accounting principles (GAAP) are the accounting rules used to prepare financial statements for publicly traded companies and many private companies in the United States. In the United States, as well as other countries practicing English common law system, the government does not set accounting standards, in the belief that the…… [Read More]


Hunt, Isaac C. "Speech by SEC Staff: Financial Reporting and the Global Capital Markets." March 23, 2000. June 7, 2005. .

Leisenring, James J. "FASB Perspectives on the Development of International Accounting Standards." March 9, 1998. Financial Accounting Standards Board. June 6, 2005. .

Murray, John C. "Cross-Border Real Estate Transactions: The Development and Implementation of International Accounting Standards." 2000. June 6, 2005. .

"Seeking International Collaboration on Accounting Standards." October 21, 2003. Japan Business Federation. June 7, 2005. .
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School Budget Is Designed the

Words: 1488 Length: 5 Pages Document Type: Essay Paper #: 23005154

"Failure of any district to budget funds to meet statutory requirements is a very serious matter and will result in the executive county superintendent rejection of the budget. The district will be advised of any lack of budget approval with specific recommendations on necessary corrective revisions." (New Jersey Department of Education 2013, P 14).

3. Key Budget Terminology

There are numerous terminologies with regard to the school district budget. The most important budget terminologies are


The revenue is the money received by the school district within an accounting year. A fund is part of the revenue and there are four sources of revenue for the school district and this include:

Local source,

Intermediate source, state, and Federal sources.


Expenditures are the expenses that the school district must fulfill within an accounting year. Part of the school district expenditures are the payment of teachers' salary, and travel expenses for…… [Read More]


Ernest & Young (2012).U.S. GAAP vs. IFRS the basics. Ernst&Young LLP.

State of New Jersey (2008).The Uniform Minimum Chart of Accounts for New Jersey Public Schools. Department of Education, Division of Finance.

New Jersey Department of Education (2013).Budget Guidelines Fiscal Year 2013-2014.Office of School Finance.
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Sunbeam Corporation's Fraudulent Accounting for Its Financial

Words: 3583 Length: 11 Pages Document Type: Essay Paper #: 84529109

unbeam Corporation's fraudulent accounting for its financial years 1996, 1997 and early 1998. The essay also reviews the historic audit failure that occurred, and discusses factors that contributed to the scandal and ways in which it might have been prevented.

unbeam, the consumer brand name that was to become well-known among generations of Americans, had its beginnings in 1893 when founders John K. tewart and Thomas J. Clark began manufacturing and selling a commercial horse clipping machine in Chicago. In 1897 the company was incorporated as the Chicago Flexible haft Company. When the company began manufacturing an electric iron named "The Princess," its first electric appliance, the product's introduction marked the beginning of the Electrical Appliance Division of today's Jarden Corporation (Jarden, 2011).

In the early years, the company's products, ranging from toasters to irons to mixers, were so successful that the company changed its name to the unbeam Corporation…… [Read More]

Securities and Exchange Commission. (1999). SEC Staff Accounting Bulletin: No. 99 -- Materiality. [online] Available at: [Accessed 23 December 2011].

Stanwick, S. And Stanwick, P. (2003). Sunbeam Corporation: "Chainsaw Al" and the Quest for a Turnaround. Auburn University. [online] Available at: [Accessed 23 December 2011].

Zabel, R.B. And Benjamin, J.J. (2002). Reviewing Materiality in Accounting Fraud. New York Law Journal. [online] Available at: [Accessed 23 December 2011].
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Ethics and Regulatory Issues Related Party Transactions

Words: 1867 Length: 7 Pages Document Type: Essay Paper #: 88648210

Ethics and egulatory Issues

elated party transactions reported on by Arthur Andersen & Co.

Flaw in the accounting firm's logic

Checklist for special projects performed by external auditors


Proposed rules or laws to prevent similar occurrences

Enron was one of the Wall Street's favorite blue chip stocks before an accounting scandal of the firm surfaced in 2000. The revelation that company has been misreporting its profits and losses during 1990s crashed the company's stock. The earnings and debt statements were not representative of the actual accounting transactions. Thus, a serious issue of bankruptcy ensued after this revelation. There were several ethical aspects of this issue as well. Following the details of accounting malpractices that the company through its accounting firm Arthur Andersen (Benston, 2003).

elated party transactions reported on by Arthur Andersen & Co.

Chewco Investments, L.P. ("Chewco"): Chewco was also a related party of Enron and it was…… [Read More]


Benston, G.J. (2003). Following the money: The Enron failure and the state of corporate disclosure. Brookings Inst Press.

Carcello, J.V., & Nagy, A.L. (2004). Client size, auditor specialization and fraudulent financial reporting. Managerial Auditing Journal, 19(5), 651-668.

International Federation of Accountants. (2009). Overall Objectives of the Independent Auditor and the Conduct of an Audit in Accordance with International Standards on Auditing. International Standard on Auditing 200. New York, NY: IFAC.

Powers, W.C., Troubh, R.S., & Winokur, H.S. (2002). Report of investigation by the special investigative committee of the board of directors of Enron Corp.
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Buyer Want to See One of the

Words: 722 Length: 2 Pages Document Type: Essay Paper #: 87916528

buyer want to see. One of the most important things about financial statements is that they are only useful if you know what the inputs are. Thus, financial statements must be completed according to a specific format in order to be understood. In the U.S., that format is the generally accepted accounting principles (GAAP), which are the basis for the construction of financial statements (AICPA, 2013). So while Sly is telling the truth, this is not relevant. For the income statement to be useful, it needs to be produced according to GAAP. This allows the reader to understand the information contained within. The buyer can decide what information is relevant and what is not. The income statement Sly provided is more of an attempted Statement of Cash Flows, whereas under GAAP both would have been produced to a common standard. Gwen needs to ignore this income statement and has the…… [Read More]

Works Cited:

AICPA. (2013). Consistency of application of generally accepted accounting principles. AICPA. Retrieved November 23, 2013 from 

Zwilling, M. (2009). How to value a young company. Forbes. Retrieved November 23, 2013 from
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Financial Statements Part I A the

Words: 911 Length: 3 Pages Document Type: Essay Paper #: 84038945

orking capital reduction is not always a bad thing -- tightening receivables and inventory turns is often considered to be good financial policy.

In the case of Unilever, it is important to synthesize the two statements. e can see, for example, that "unusual expense" is the category most responsible for the change in working capital. At this point, it would be advisable to delve deeper into the comments in the annual report to discern the precise nature of these unusual items, as they will reveal the cause for the steady decrease in "unusual items" that has fueled the widening gulf between net income and cash flow from operations in the past five years.

I would predict that Kraft will work in the next few years to reduce costs. Their revenues have experienced steady increase, but their net income has not. They will focus their efforts on reducing the selling/general/administrative expenses.…… [Read More]

Works Cited:

No author. (no author). Generally Accepted Accounting Principles. Federal Accounting Standards Advisory Board. Retrieved April 26, 2009 from

No author. (2009). Liquidity Ratios. Investopedia. Retrieved April 26, 2009 from 

Kraft financials from MSN Moneycentral. Retrieved April 26, 2009 from

Unilever financials from MSN Moneycentral. Retrieved April 26, 2009 from
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Accounting Has Been Nothing if Not a

Words: 937 Length: 3 Pages Document Type: Essay Paper #: 89936224

Accounting has been nothing if not a dynamic, global discipline over the last two decades. The role of the accountant has changed dramatically during that time and will continue to do so -- as will the nature of the challenges that the accounting profession faces"

Over the past twenty years, the modern business community has been faced with the challenges of globalization, the new predominance of technology in business affairs, and the creation of a service-based 'knowledge economy' versus a manufacturing-based one. The profession of accounting has had to adapt to this new environment. "Business internationalization and globalization has facilitated the transfer of capital and information across national borders, with economic power residing in holders of particular knowledge sets. Business and management location is becoming increasingly irrelevant and management and accounting work is becoming multidisciplinary" (Parker 2002).

Globalization has lead to more uniform regulations in accounting. Until recently, U.S. accountants…… [Read More]


GAAP'S Last Stand IFRS is no rumor -- welcome to the next phase of financial reporting.

2011. Periso. Accessed: / [June 23, 2011]

Parker, Lee D. 2002. Reinventing the managerial accountant. Glasgow University.
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Accounting Method and Coca Cola

Words: 594 Length: 2 Pages Document Type: Essay Paper #: 71293075

Does Coca-Cola have the ability to influence CCE's debt levels?

The debt to equity ratio of Coca Cola is: .92 for 2009 and 1.33 for 2010. While CCE has a debt to equity ratio of: 1.51 for 2009 and 1.3 for 2010. Coca Cola does have the ability to influence the debt levels of CCE. The way that this can take place is to use Coca Cola's credit line to help the firm raise additional working capital in the public markets. This would cause the debt levels of CCE to increase. Another option is that Coca Cola can purchase CCE and assume a percentage of their debt. A good example of this can be seen with Coca Cola's acquisition of CCE North America. In exchange for increasing their ownership in this segment, there was also an agreement for Coca Cola to take on CCE North America's debt of $7.9 billion.…… [Read More]


2010 Annual Report. (2011). The Coca Cola Company. Retrieved from:

Kothari, S. (2010). Implications for GAAP. Journal of Accounting and Economics, 2 (3), 246 -- 286.
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Accounting Case Study Legal Plan Services What

Words: 1115 Length: 4 Pages Document Type: Essay Paper #: 37990038

Accounting Case Study

Legal Plan Services

What type of product is Legal Plan Services selling? Tangible or intangible? What type of benefits does the client receive for his membership?

The kind of products that Legal Plan Services is selling is legal representation for civil litigation. The way the company's approach works is to provide customers with access to some of the top law firms for purchasing a membership. The services are considered to be intangible because this is not something that can be physically held. The benefits that the client receives are the ability to consult with any one of the attorneys from affiliate firms for free. This involves select cases including: personal injury, tax, criminal and civil related issues. If the client goes beyond a certain amount of hours is when the membership will provide a 25% discount on the firm's hourly rate. ("Intangible")

What accounting concepts, objectives, and…… [Read More]


"Generally Accepted Accounting Principles." CPA Needed, 2011. Web. 3 Feb. 2012.

"Intangible." The Free Dictionary, 2012. Web. 3 Feb. 2012

"Pro Forma." Investopedia, 2012. Web. 3 Feb. 2012

Briner, Russell. "Revenue Recognition." CPA Journal, 2001. Web. 3 Feb. 2012.
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International Accounting

Words: 810 Length: 3 Pages Document Type: Essay Paper #: 80639058

Translation Adjustment

Accounting Statement Translation Adjustments for Foreign Subsidiaries

As demonstrated on the attached spreadsheet, when preparing financial statements from a foreign subsidiary of a U.S.-owned company, which will typically conduct business in a foreign currency (the domestic currency of the subsidiary's country of operation), there is a somewhat complex series of adjustments that must take place to account for currency exchange rates during the period covered by the statements. In order to meet current U.S. GAAP standards, the historic rate of exchange -- i.e. The actual rate of exchange at the time of a specific transaction -- must be used, while for other items the current rate of exchange -- i.e. The rate of exchange at the time the statements are being prepared/translated -- is preferred. To complicate things further, at times the average exchange rate for the period as a whole should be used to reflect the value…… [Read More]

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Nortel Case Study

Words: 2701 Length: 8 Pages Document Type: Essay Paper #: 96793567

Nortel Case Study

Nortel Networks Corporation, more commonly referred to as Nortel, was a global company of Canadian origin that at its peak in the early 2000's had comprised of one-third of the total valuation of the companies listed on the Toronto Stock Exchange (TSX). Nortel was founded in 1895 in Montreal, Quebec, with its manufacturing headquarters currently located in Mississauga, Ontario. The company manufactured data networking equipment along with offering telecommunication services. It employed over 94,500 employees worldwide.

Nortel's troubles began in the 1990's when under CEO John Roth, the company expanded into the internet technology market. Roth used media to alter public perception of the company. The sale of the optic fibre networking gear by the company from then on was hyped up by the speculators in the market, driving the share price of the company up, even though the company failed to produce overall annual profits. This…… [Read More]

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Sarbanes Oxley Act of 2001

Words: 7885 Length: 29 Pages Document Type: Essay Paper #: 95753298


The political pressure of the past several years following the bubble and the collapse of several major companies created a need for new securities legislation, which culminated last year in the Sarbanes-Oxley Investor Protection Act, which establishes new guidelines for the securities industry. Initially a Democratic brainchild, the act became favored by epublicans in the House when it was realized that such adjustments would be of great benefit to shareholder value in that they enhanced general financial stability. This is the most prominent piece of financial legislation since the establishment of the Securities and Exchange Commission in the early 1930's. The most widely recognized feature of the new legislation, which was introduced in 1992, is that board members are held personally and criminally liable for the accounting practices that the company employees. This act also establishes guidelines as to the coverage of securities by sell-side analysts who face…… [Read More]

Resources and Authority

Studies and Reports

Corporate and Criminal Fraud Accountability

White Collar Crime Penalty Enhancements

Corporate Tax Returns
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Solutions to the Present Value Problems

Words: 925 Length: 3 Pages Document Type: Essay Paper #: 99846328

Solutions to the Present Value Problems

The study uses the formula below to solve the problems.


Original Equation: FV = PV * (1+ i) n

Manipulation: Divide both sides by (1 +i) n

Final Equation: PV = FV / (1+ i) n or PV = FV * (1+i) -n


PV = Present Value

FV =Future Value

i= interest rates n = Number of years.

Using the formula presented above, the paper calculates the PV of the $10,000 bond with the 6% of annual coupon at the end of the five-year. Using the Excel Software 2007 for the calculation, the answers to the problems are as follows:

At 6% interest rates, the PV is as follows:

PV = $10,000 / (1 + 0.06)

PV= $7,472.58

Using the excel formula, the solution is as follows:

Excel Formula

=B1 / (1+B2)^





Interest Rates


Number of Years…… [Read More]

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The Ethics of Accounting Fraud

Words: 1655 Length: 5 Pages Document Type: Essay Paper #: 11577183


There are basically two choices that Chris has. The first is that Chris can increase the allowance for bad debts to account for the possibility that Ender will not be able to pay its obligations. The second choice is that Chris can choose not to make any adjustments for this possibility. The receivable is material, so there are going to be meaningful consequences to the construction company if Ender is unable to pay this debt. Chris has an obligation to ensure that the financial statements for the construction company accurately reflect its financial condition. However, there is the mitigating factor that Chris does not actually have factual evidence of Ender's financial condition, just hearsay ("word on the street").

There are a number of different stakeholders here. The first is Chris; the second is Laurent. They are stakeholders on a person al level, having discussed this situation. The construction company…… [Read More]


FASB Topic 310. Retrieved September 29, 2015 from /cs/BlobServer?blobcol=urldata&blobtable=MungoBlobs&blobkey=id&blobwhere=1175821014426&blobheader=application/pdf

Mackey, J. (2005). Rethinking the social responsibility of business. Reason. Retrieved September 29, 2015 from

McConnell, T. (2014) Moral dilemmas. Stanford Encyclopedia of Philosophy. Retrieved September 29, 2015 from