avoid reflecting their worth in the organization’s total liabilities and assets. Consequently, for of external financial reporting, the classification of net assets may have to be categorized into different classes.
Assets Management
Assets in nonprofit organizations are managed in a going perspective which implies there are no limitations to the organization’s existence in the future. Therefore, the management must ensure there are sufficient liquid financial resources for current operations. The objective of this approach is to make sure… Continue Reading...
the external, the latter of which includes the macroeconomic environment. While in the past tools like budgets and financial reporting were the primary things that financial managers did, the role has evolved in recent years to incorporate more of a strategic function (Ilie, 2015). This paper will focus on the ways that the financial manager role and the macroeconomic environment intersect.
The Macroeconomic Environment
The macroeconomic environment has an impact on companies both directly and indirectly. Direct impacts revolve around changes in key macroeconomic measures, such as unemployment, inflation and the size of the economy (GDP), interest rates and exchange rates (Akers, 2017). Inflation affects the prices that… Continue Reading...
of further audit procedures" (AICPA, 2016).
Comparison of Responsibilities for Management and Auditor for Financial Reporting Continue Reading...
set of international accounting standards. This is through the convergence of the generally accepted accounting principles (GAAP) with the Internationally Financial Reporting Standards (IFRS). This convergence will influence Autodine Restaurant as a business in different ways (Sweetman, 2016). The main impact in which this convergence will impact the business is through… Continue Reading...
this particular violation is linked to Management's Report on Internal Control Over Financial Reporting Under Section 13(a) or 15(d) of the Securities Exchange Act of 1934. In accordance to this guideline, the SEC expects the company's management to be accountable for maintaining an internal control system over financial report. This is so as to offer sensible guarantee with respect to the reliability of preparing and reporting of financial statements for external users of such statements, comprising of the external auditors (SEC, 2007).
Failing to maintain accurate financial records
Management of a company is obligated to implement good governance and internal control with… Continue Reading...
Accepted Accounting Principles (GAAP) or others such as International Financial Reporting Standards (IFRS) are also a beneficial source of information for making decisions on investment. In this case, it can be perceived that Groupon undertook forceful accounting practices, such as Adjusted Consolidated Segmented Operating Income (ACSOI) and Consolidated Segmented Operating Income (CSOI), which are non-GAAP financial measures to mirror positive outcomes.
A second source that is useful for making investment decisions encompasses third party sources. These take into account evaluating SEC filings for investor information, various analysts and also third party audit reports. In this case, this is a… Continue Reading...
the company did not put an effective internal auditing mechanism in place because they outsourced the internal auditing system that allowed the company to perform the fraudulent and questionable financial reporting.
The poor role of the audit committee was also attributed to the downfall of Enron Corporation. Typically, the corporate audit committee had only a modest knowledge of accounting and finance. Thus, they only rely on information from the management, and internal and external auditors to make decisions. Thus, the audit committee would not be able to detect a fraud from the management based on their limited knowledge of accounting. The external auditor also contributed to the fall of Enron Corporation because Arthur Anderson was being accused of contributing… Continue Reading...
internal controls to ensure reliable and accurate financial reporting. Ideally, after financial transactions are obtained aptly, they must be scrutinized for precision (Young, 2013). The cash receipts, cash disbursements, and job cost reports all must be revised to ascertain the accuracy of the quantities that the paperwork provides. If incorrect figures are forwarded into the Accounting Information System, accounts reconciliation should be done to detect errors in the financial transactions.
While financial transactions may satisfy the accounting needs of validity, precision, and timeliness, some companies like Tesco engage in fraud deliberately to uphold a company’s economic health.… Continue Reading...
sets of accounting standards, the Generally Accepted Accounting Principles (GAAP) and International Financial Reporting Standards (IFRS). In particular, the GAAP are more often than not employed in the United States whereas IFRS are more often than not employed in Europe and international expanses. IFRS are regarded as being more principles-based and U.S. GAAP as being more rules-based. The establishments responsible for setting the IFRS and GAAP are the International Accounting Standards Board (IASB) and Financial Accounting Standards Board (FASB) respectively (Gaspar et al., 2016). The purpose of this paper is to discuss the difference between GAAP and IFRS.
Differences between IFRS and… Continue Reading...
regulations in place for publicly-traded organizations. The chief goal was regulation of corporate practices like financial reporting at such corporations.
The Consumer Financial Protection Bureau (CFPB), instituted as part of the 2010 Consumer Protection Act and the Dodd-Frank Wall Street Reform, is responsible for the oversight of federal financial regulations expressly protecting consumers (i.e., individuals who store the money they own in credit unions and banks, use credit cards for purchasing services and goods, and purchase homes on loan) (Mercer, 2003).
The 1977 FCPA (Foreign Corrupt Practices Act) was implemented to forbid specific classes of individuals and groups from paying foreign governmental authorities to facilitate business acquisition or retention (Martin, Aaron Klein,… Continue Reading...
financial reporting purposes. This is what is known as translation risk. Think of it this way – if Apple sells a computer in the UK for £1500, and that is worth $2000 today, what happens when the rate changes? Maybe that £1500 is only worth $1800 tomorrow. Apple just took a 10% haircut on its UK revenues, strictly because the exchange rate changed. It might have left that £1500 in the UK, but because it is reported in the US, Apple faces risk associated with translating that figure back to… Continue Reading...
stocks out of reach, many British and American retailers voiced their concerned about the problems of the Christmas shopping.
Similarly, out of the 12 biggest shipping companies, 11 of them have announced huge losses in their past quarterly financial reporting and several shipping companies are on the edge of bankruptcy. In Japan, NYK Line, Kawasaki Kisen Kaisha, and Mitsui OSK Lines look vulnerable. Some investors are recommending that these companies should merge to avoid the same problems similar to the South Korean Line. Even, France's CMA CGM, which is the third largest carrier records a net loss in September 2016. The Economist (2016) affirms that, the Maersk Line, the industry leader is forecasted to be in red at the end of the 2016 fiscal year having recorded a… Continue Reading...
that he would not recommend that the SEC should mandate, or even offer the choice, for US companies to use International Financial Reporting Standards (IFRS). This announcement was believed to be the "death knell" for the convergence between GAAP and IFRS, a project that had already stretched more than a decade with only moderate success (Katz, 2015).
The Merits of Convergence
When the convergence project was originally proposed, there were several benefits cited that made the case for regulators to pursue the project. The biggest argument was that capital markets are becoming increasingly global, therefore it was valuable to converge all major accounting standards. If every nation in every country used… Continue Reading...
