Accounting Analysis Essay

Topics 1. 2. 3. 4. 5. 6. Conceptual framework– general. Objectives of financial reporting. Qualitative characteristics of accounting. Elements of financial statements. Basic assumptions. Basic principles: a. Measurement. b. Revenue recognition. c. Expense recognition. d. Full disclosure. Accounting principles– comprehensive. Constraints. Assumptions, principles, and constraints. 28, 29, 30 10 11 Questions 1, 7 2 3, 4, 5, 6, 8 9, 10, 11 12, 13, 14 15, 16, 17, 18 19, 20, 21, 22, 23 24 25, 26, 27 1, 2, 3, 4 6, 11, 13 5, 7 8, 9, 12 8 8, 12, 8, 12 1, 2 2, 3, 4 5 6, 7 6, 7 7 6, 7 6, 7, 8 9, 10 3, 6, 7 6, 7 12 5, 6 5, 6 5, 6, 7, 8, 9, 11 11 Brief

Furthermore, the Key Audit Matter (KAM) of goodwill and intangible assets disclosed in Telstra Corporation Ltd annual report are recognised as core assets. In note 2.4.2, it can be seen that intangible assets has the highest deferred tax liabilities after non-current assets. This is to be expected since it is a telecommunication and technology company so the cost incurred is significant for intangible assets such as research and development, capital costs and obtained intangible assets. Therefore, this is considered highly material as the events or transactions would impact Telstra as a whole such as the industry competitiveness and not just the financial statement alone. Moreover, it is complex to evaluate the impairment of the goodwill and

f';fa;d'a;f',af;ag';sdagl.;gdlal,g;adl,g,gal;am,dblv .cv z,vz mld;,ag,a;es'g.;'gad;a';ldg;gd;sal;,ger'fa,s.a;l,gdlag,dla,g;ewlwetp;lq4pewql,e;et,q;g,al,gal;g,dla;ew,tqleg,algm,eksgtmaq;,;'.E'S.AFD;Af?D/A>;T',;L,EL;On January 1, 2010, Ameen Company purchased a building for $36 million. Ameen uses straight-line depreciation for financial statement reporting and MACRS for income tax reporting. At December 31, 2012, the carrying value of the building was $30 million and its tax basis was $20 million. At December 31, 2013, the carrying value of the building was $28 million and its tax basis was $13 million. There were no other temporary differences and no permanent differences. Pretax accounting income for 2013 was $45 million.On January 1,

The following report is presented in order to show that there is a specific stimulus for the selection of a particular accounting policy or method from a range of its alternatives. In the report, one of the most successful companies of Australia, i.e. Woolworths Limited (Woolworthslimited.com.au, 2015) is chosen and all the requirements of the report are fulfilled keeping this company in mind. The particular area with which the accounting policies relate is tangible fixed asset, and its valuation. For clarity and understanding point of view, the actual examples from the financial statements in the published annual reports of the company in the past

I appreciate the opportunity to advise you regarding the information provided in the work papers. I would like to make the effort to clear up any uncertainties or concerns you may have regarding adjusted lower cost of market inventory on valuation, recording gain or loss on asset disposal capitalizing interest on building construction, and adjusting goodwill for impairment. It is our responsibility to obtain sufficient information to ensure compliance with generally accepted accounting principles (GAAP) and information presented is free from biases and inconsistency. The need for this information is due to the nature of business of SUPER CO. These topics will be explained in thorough detail to provide a greater understanding of why this information is essential for financial reporting. The presentation of information is structured to relate to SUPER CO.’s individual business operations.

The impairment-only accounting model for goodwill was initially brought to the table in 2004, to replace the previous amortization-based model. Over the years, research supported the idea that impairment charges improved the fundamental economic attributes of goodwill than systematic amortization charges. Research also revealed that such annual changes had minor information value to users. According to KPMG (2014), this was the key reason why the US Financial Accounting Standards Board (FASB) “replaced straight-line amortization of goodwill with this model that was based exclusively on impairment testing” (p. 4). The FASB argued that this approach provides

The process of critically examining the financial information given in books of accounts is called the Financial Statement analysis. Financial Statements are reports prepared to be used by the stakeholders whose rationales differ. Analysis of such statements is vital for an investor/ creditor to learn about the profitability of the business.

Accounting Accounting is the practice of “…maintaining, auditing and processing financial information…” (http://en.wikipedia.org/wiki/Accounting) for the purpose of a company, persons or organisation. There are some fundamental parts of accounting which are; “Identifying, measuring and communicating” (Black, 2000). You need to identify the important financial sections of a company, person or organisation which will include the companies assets, liabilities, capital, income and of course expenditure. You will also need to measure “… monetary values of the key financial components in a way which represents a true and fair view of the organisation” (Black, 2000).

The straight-line method has always used by the company, but recently the company decided to change its method of depreciating long term assets to be consistent with major competitors, which use a declining-balance method. However, this change will cause past expenses to be higher and income to be lower. It is important to remember that net income from continuing operations will decrease at the time of recognition; meaning in the future depreciation expense will decrease, but in a long run it will increase when

Do corporate social responsibility (CSR) reports provide shareholders and stakeholders with useful information on corporate social and environmental performance or are they merely a public relations vehicle? Answer this question by reference to a variety of accounting theories.

The three main types of financial statements¬—balance sheets, income statements, and statements of cash flows—provide essential information about a firm when tracking a company’s performance. These financial statements are provided and distributed by firms in the form of an annual report. As noted by Ciuhureanu, Baltes, & Gorski (2009), financial statements are essential to business management because “they are the fundamental information means of communication towards users” (p. 166). At a high level, company performance is best monitored through profit and loss values on each financial statement. Closer examination of these three types of financial statements reveals firm-specific details about company performance.

growth is expected over the next ten years. Salary and status, increase with time and

Managers within a firm, including the owners and lenders, need to track the firm’s performance in order to be successful. Those individuals are able to review performance through analysis of the company’s financial statements. A firm’s financial statement consists of a firm’s income statement, balance sheet, and cash flow (In/Out). Businesses use these reports to understand the financial position of the firm. The reports can also serve as a tool when making decisions on how the firm will operate in the future and where it will go (Boundless, 2015).

Chapter 17 covers the financial statement analysis and ratios. Financial statement analysis is the process of examining financial statements that will depict the financial position of the company allowing them to make better financial decisions. A typical financial statement consist of a balance sheet, income statement, cash flow statement and notes to account. The most common being the balance sheet and the income statement. The balance sheet, also referred to as a statement of financial positon, is usually made up of assets and liabilities and provides information about the financial position of the company. It is a two sided report, assets on one side, and liabilities on the other. Liabilities typically include accounts payable, accrues expenses, income tax owed, stockholders’ equity (net worth), and loans. The income statement, also referred to the earning and loss statement, depicts the profitability of the company. It shows to total sales revenue for one year. The expenses the company incurs in producing finished good to sell is subtracted from the sales revenue. Also deducted is the operating cost expenses and the deprecation. When analyzing the income statement, it is important to note that the profitability isn’t just the total profit. It is important to look at the ratio of expenses as a percentage of profit. A company with high profits and high expenses could easily be mismanaged.

In this paper I am going to discuss about what are the definition of both operating lease and finance lease, and mainly focus on operating lease due to the majority of companies using this standard. Then find out what makes companies tend to choose the certain leasing standard and also to discover the relationship between them. After that I will discuss how this could affect the investors’ decision, also to discover the benefit that the lessee and lessor might have from the leasing standard. After find out the problem and why it occurred, I will discuss how this issue could be solved and try to find out the solution through the International Accounting Standards Board (IASB).