A Positive Theory Of Accounting

23 Mar 2015 25 Apr 2017

4 (1,358 )

In the nature of theory, a positive theory of accounting or Positive Accounting Theory is a descriptive theory, which describes particular aspects of financial accounting practice. It seeks to predict, observe, and explain which accounting methods accountants will or will not use in particular circumstances and why managers and/or accountants elect to adopt particular accounting methods in preference to others. While a normative theory of accounting is ...

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Reacquired Franchise Rights

23 Mar 2015 25 Apr 2017

4 (1,256 )

Worksheet 1: Summary of Reacquired Franchise Rights Verifying Mathematical Accuracy of Reacquired Franchise Rights Balance It has been assumed that the beginning balance of reacquired franchise rights was audited last year. Therefore, changes (if any) to this account are audited in the current year so that an auditor can give an opinion on the balance of this asset. Reductions to this asset are likely to be due ...

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Job Costing Method And Batch Costing Method

23 Mar 2015 25 Apr 2017

4 (1,521 )

There are various types of business in the world now. Each and every business has to choose a particular method to ascertaining the costs are available in the business. Simply costing methods is a method of collecting cost. As in the diagram 1.1 costing methods are drifting apart. Specific Order Costing is the basic costing method. This method is suitable to those businesses where the work consists ...

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The Relevance Reliability Comparability And Understandability

23 Mar 2015 25 Apr 2017

4 (1,571 )

The purpose of financial statements is to give financial statements information about the change in financial position, financial performance and financial position of the organization. These can provide data use in decision making such as investment, credit and economic decision making which are useful for various users. There are seven main groups of users which are public, investors, lenders, employees, customers, supplies, government and other agencies and ...

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Exploring the four stages of the audit process

23 Mar 2015 25 Apr 2017

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Internal Audit is an independent function that provides an objective assurance and consultancy activity to improve and add value on an organization's operation. The auditors aim to help the Merami Berhad accomplish its objectives by evaluating the effectiveness of its risk management, control, and governance processes by bringing a discipline, systematic approach. The audit process is divided into four stages which are Planning (Preliminary Review), Fieldwork, Audit ...

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Advantages and disadvantages of private limited companies

23 Mar 2015 24 Apr 2017

7 (2,635 )

Financial Accounting Is the information to make decisions related to the organizations, it begins with the principles, concepts, and applications of financial accounting. Financial Accounting follows a set of rules and legislation known as accounting concepts, accounting policies, and procedures like the entity and prepayments. Financial Accounting explains for us what are the financial statements, tells us what are the rules of legislation while they are getting ...

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Solving Business Problems Using Sensitivity Analysis

23 Mar 2015 24 Apr 2017

11 (4,379 )

For a given linear programming model, finding the optimal solution is of major importance. But it is not the only information available. There is a very good amount of sensitivity information. It is basically the information that accounts for what happens when data values are changed. Sensitivity analysis basically talks about how the uncertainity in the output of a model can be attributed to different sources of ...

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UBS accounting information system

23 Mar 2015 24 Apr 2017

9 (3,341 )

The purpose of this report is to discuss how effective the computerized accounting information system will benefit a business that is expanding in expenditure, revenue and other key areas of business. Introduction to Accounting Information System AIS is a system that collects and stores accounting data, after that process the data into useful information used by the decision makers (internal and external users). The information produced by ...

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Shareholders and managers: A principle-agent problem

23 Mar 2015 24 Apr 2017

8 (2,995 )

This essay identifies the principle-agent problem between shareholders and managers. It also overlooks UK's corporate governance compared to Germany and Japan. Furthermore effectiveness of UK's system will be analyzed amid recommendations to reduce the vulnerability. Economic theory speculates that a firm's goal is to capitalize on shareholders wealth; achievable with entrepreneurial firm since owners are managers. However, ownership nowadays is significantly diluted, with companies owned by large ...

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Do we need to regulate financial reporting?

23 Mar 2015 24 Apr 2017

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Acoording to Leuz and Verrecchia (2000) the accounting literature presents proof that the quality of accounting has economic consequences for e.g. costs of capital , efficiency of capital assignment (Bushman et al. 2006)etc. Land and Lang (2002) in their research mentioned that economic changes also have homogeneous consequences by stating that the quality of accounting has improved globally since 1990s. Land and Lang (2002) also say that ...

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Role And Significance Of Budgetary Control

23 Mar 2015 24 Apr 2017

6 (2,065 )

Introduction: Enterprise is a complex man-made running coupling system and a contractual association with body; it is very necessary to the business activities of its process and implements control. According to the modern management guru Robert • Simon's theory, management control achieve management objectives. Through the implementation of a series of management control lever, so it should increase the importance of budgetary control and devote energies to ...

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The main purpose and objectives of annual reports

23 Mar 2015 24 Apr 2017

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The literature review section talks about the background of research being undertaken. It provides an illustration about the importance of the different sections of the annual reports and the qualitative characteristics of information that make it useful for users of accounting information. Hence, it outlines on the previous research done on the study of annual reports and the importance of annual reports to users who have a ...

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The development of accounting system in China

23 Mar 2015 20 Apr 2017

9 (3,257 )

Abstract This report put the accounting development in China into perspective. Describe the history and changes in the accounting environment of China during the recent economic reforms by using the Grey's (1988) accounting value to analyzing the culture impact on accounting system's development in China, and then, illustrate the institutional and environmental factors which driven China's accounting system made changes, the reasons of those changes and then ...

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Reflective Statement Of Financial Accounting

23 Mar 2015 20 Apr 2017

4 (1,522 )

Accounting has always been an interest of mine. Since I was a child, I have always been good in calculation, which makes it clearer that accountancy would be a good choice. After years of studying it, I realised accounting is not only about numbers but theory that require various skills in order to perform a good accounting. The increase number of students in the accounting field has ...

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Financial and Managerial Accounting

24 Feb 2017 19 Apr 2017

5 (1,934 )

Keywords: Management accounting, financial accounting, cost Executive Summary Though, financial accounting and managerial accounting systems prepare and analyze the same financial data, they also differ in some aspects. For example the users of the information are different. Also the procedures for their preparations differ including the time frames. Cost accounting is another sphere of accounting that deals with the analysis of costs of products and activities in ...

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What is process costing? The methods used

23 Mar 2015 18 Apr 2017

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A process costing method is used for Indus trick producing chemical, petroleum, textile, and flour, pharmaceutical, shoos and coal. This type of costing is also used by firms manufacturing such things methods is the assembly type industry which manufactures such things as type writers, automobiles. Airplanes and house hold electric appliances. Finally certain service industries, such sagas, water, and heat, cost their products by using process costing ...

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How did the corporate culture of Enron contribute to its bankruptcy?

23 Mar 2015 18 Apr 2017

4 (1,368 )

According to Albert Camus "A man without ethics is a wild beast loosed upon this world" At first sight, Enron looks like a mega-size illustration of the bad apple among the ripes ones. It projected itself as financial of Business Ethics. On December 2.2001 Enron Corp. Filed the largest bankruptcy in U.S history due to many unethical issues. The 'Enron Scandal' shocked the world. Enron had an ...

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SWOT Analysis: The Football Association

23 Mar 2015 18 Apr 2017

7 (2,406 )

This paper looks to produce a report that seeks to analyse the work of the Football Association (FA) in the context of an evaluation of the impact of its strategy regarding the advancement of the national game and its legitimacy as an organisation in England. This report provides a background to what is the FA's general remit and how this fits with sports strategic management emanating from ...

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Preliminary analytical procedure: A definition and analysis

23 Mar 2015 13 Apr 2017

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Auditors are required to prepare the preliminary analytical procedure at the planning as a part of the risk-assessment procedures under ASA 315.6. The definition of preliminary analytical procedure is that 'comparison of client rations to industry or competitor benchmarks provides an indication of the company's performance'. The purpose of preliminary analytical procedure is to obtain understanding of the client's company and industry. (textbook) In common, two major ...

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The Concept of Accounting

23 Mar 2015 12 Apr 2017

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There are likely to be various user groups with an interest in a particular organisation, in the sense of needing e to make decisions about that organization. User group Competitors - they use for: to assess the threat to sales and profits posed by those businesses. To provide a benchmark against which the competitors' performance can be measured Employees (non-management) - to assess the ability of the ...

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Making effective business decisions through accounting

03 Oct 2016 11 Apr 2017

5 (1,797 )

“The process of identifying, measuring and communicating economic information to permit informed judgments and decisions by users of the information”. According to American Accounting Association Committee, 1966. This may be considered as a good definition because of its focus on accounting as an help to decision making. Writing an essay on this topic brings an attention on how accounting helps manager in taking effective business decision. ...

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Parmalat Accounting Scandal summary

13 Sep 2016 16 Mar 2017

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Keywords: parmalat accounting scandal, accounting fraud, parmalat scandal auditors The Parmalat Accounting Scandal 1. The events leading up to the Parmalat accounting scandal and ultimately the revelation of the accounting fraud and the reasons behind the scandal? Evolving from a small dairy shop into an international concern, Parmalat appeared to be a gigantic and stable dairy producer. At some point in time, it may well have ...

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The concept and practice of Fair Value

13 Sep 2016 09 Mar 2017

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The concept and practice of Fair Value. Introduction The issue of the use of fair value as a model for financial standards and reporting has been subjected to significant debate and argument since the IASB[1] Framework was first introduced in 1989. As can be seen from a number of accounting industry responses, such as that of Peter Willams (2005), the use of fair value is ...

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Industrial Development Bank of India

24 Feb 2017

10 (3,918 )

Keywords: Industrial Development Bank of India, Narasimam, United Western Bank The Banking Industry was once a simple and reliable business that took deposits from investors at a lower interest rate and loaned it out to borrowers at a higher rate. However deregulation and technology led to a revolution in the Banking Industry that saw it transformed. Banks have become global industrial powerhouses that have created ever more ...

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Modigliani Miller Proposition

23 Feb 2017

6 (2,173 )

Keywords: Modigliani-Miller Proposition, finance, investing 1. Introduction According to many research of corporation finance, the capital structure decision is one of the most fundamental issues facing to the executives and management level. The corporate finance is a specific area of finance dealing with the financial decisions corporations make and the tools as well as analysis used to make these decisions. The discipline as a whole may be ...

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Accounting Theory and Practice

23 Feb 2017

6 (2,016 )

Keywords: accounting, theory, history Abstract This paper discusses the statement: "there is no universally accepted accounting theory." In addition, it offers some basic and historical background regarding accounting and discusses the different approaches to develop an accounting theory, before describing three common accounting theories. Finally, the reality of the above statement and the factors that confront a universal accounting theory are debated. Introduction Accounting is a very ...

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Restaurant Business and Operations Plan

23 Feb 2017

7 (2,694 )

Keywords: delicias, restaurant, business, customers Executive Summary Delicias unlike other typical restaurants will provide a unique excellent food at value pricing within an entertaining atmosphere. Delicias will be setup due to an increasing demand in value for everything the food purchased; customers are not willing to accept anything that does not meettheir expectations and a need for entertaining while dining. Delicias will provide soups/salads, appetizers, desserts and ...

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WHAT ARE THE DIFFERENT APPRAISAL TECHNIQUES AVAILABLE TO FINANCE MANAGERS TO MAKE DECISIONS RELATING TO INVESTMENT PROJECTS? DISCUSS EACH OF THEM AND RECOMMEND, GIVING YOUR REASONS, WHICH OF THEM YOU CONSIDER AS THE BEST TECHNIQUE APPLICABLE TO YOUR COMPA

23 Feb 2017

10 (3,983 )

Keywords: appraisal, investment, finance manager, budget INTRODUCTION: “What are the different appraisal techniques available to finance managers to make decisions relating to investment projects? Discuss each of them and recommend, giving your reasons, which of them you consider as the best technique applicable to your company”. INVESTMENT APPRAISAL: Investment appraisal also known as capital budgeting. As finance manager one of the important areas of decision-making for the ...

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Benefits of using Cost Volume Profit analysis

03 Oct 2016 19 Dec 2016

8 (2,897 )

Keywords: cost volume profit analysis, cvp analysis Cost Volume Profit Analysis Table of Contents Introduction CVP analysis and decision making Relationship between revenues, costs, profits and volume Fixed vs. variable costs Break even analysis: Margin of safety 1.Non- Linear CVP analysis: 2.Linear CVP analysis: Operating Leverage Income Tax benefits: Future forecasting Preparation of Budgets: Cost Control: Price Determination: Profit Planning: Risk Assessment: Decision Making: Conclusion References ...

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Costing methods, variance analysis and continuous improvement

03 Oct 2016 19 Dec 2016

11 (4,265 )

Keywords: marginal costing, Absorption Costing, Costing Methods Assignment 1 – Cost Accounting DBSM703 – Business Financial Principles and Techniques 13 November 2014 Marginal Costing and Absorption Costing (Questions 1&2) Definition.Marginal Costing is a method for computing costs which takes into account only the varying costs involved in the manufacturing process. Absorption costing is a costing method which considers all costs involved in the production ...

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Creative Accounting

03 Oct 2016 14 Nov 2016

5 (1,892 )

Creative Accounting Introduction There exist no single definition for the term creative accounting. A few creators contend that, creative accounting is 'a gathering of methods, choices and opportunity room left by accounting regulation, without moving far from laws or accounting necessities, permitting to the directors to change the fiscal result or the monetary explanations' (Gillet, cited by Shabou and Boulika Taktak, 2002). An alternate meaning of ...

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management accounting assignment

03 Oct 2016 17 Oct 2016

4 (1,378 )

1. Activity: General ledger department reconciles and updates the general ledgers. Objective: The main purpose of having reconciliation in an organization is to ensure that the overall accuracy, completeness and consistency of account balance. Narrowly, it is to compare accounting information that exists in two systems or locations (‘Reconciliation of Balance Sheet Accounts’, n.d.). Jessica (n.d.) also found that reconciliation helped in identifying the misstatement in ...

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Importance and role of accounting

03 Oct 2016 17 Oct 2016

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Accounting 601 assignment Accounting is the management of money and money is an important part of that business. Accounting is mainly preparation of financial statement and involve with transaction, budgeting and Cost controlling. According to Cote(2007), it is process of measuring the amount of money, analysing results, understanding them and make decision better. A proper accounting system is an essential to any business in order to ...

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Corporation tax and tax avoidance essay

03 Oct 2016 17 Oct 2016

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After the financial crises, the public has started to raise their attentions to the tax avoidance of some of the Global firms, such as Starbucks, Google and Amazon. These companies have a huge business turnover in UK, but they just pay a few or even no corporation tax to the government. Since that, the public has labeled this tax avoidance action as “immoral”. Before discussing the ...

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Capital budgeting techniques: Sensitivity and Scenario analysis

03 Oct 2016 17 Oct 2016

5 (1,992 )

Graphically show and explain the following terms, how you could link them to capital budgeting techniques in your decision making (1000 words) Sensitivity analysis Scenario analysis Sensitivity Analysis Sensitivity analysis is a ‘what if’ tool that examines the effect of increase or decrease in a company’s net profit. Sensitivity analysis can help in answering question like ‘What would be the forecasted net income if ...

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A comparison between US GAAP and German HGB

03 Oct 2016 17 Oct 2016

7 (2,619 )

A comparison between US GAAP and German HGB ByJanuary 2014 Supervisor: PERMISSION TO STORE RESEARCH PAPER IN LIBRARY AND MAKE AVAILABLE FOR USE I, Claudiu Ghiuzan, do hereby irrevocably consent to and authorize the Library of University of Applied Management Studies, Mannheim, to file the attached Research Paper entitled: “A comparison between US GAAP and German HGB”, and make such paper available for use, circulation, and reproduction ...

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The Usefulness Of Financial Statements To Stakeholders

10 Jun 2016

7 (2,669 )

Introduction: Finance for managers is very important subject for businesses. All stakeholders must have to know about it. Because it helps their businesses to run properly and make profit. Finance for managers helps people to know about the purposes and requirements for keeping financial records, what are the techniques for recording financial information, what are the legal and organisational requirements of financial recording, the usefulness of financial ...

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Accounting Essays - Sarbanes Oxley Act

23 Mar 2015 08 Mar 2016

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Sarbanes Oxley Companies Abstract Sarbanes oxley act 2002 was passed on July 30, 2002 and only the public companies are now feeling its impact. This act frequently called the “most significant accounting or auditing legislation since the securities exchange Act of 1934”. After the implementation it has established its demands to the companies for proper management and disclosure of risk. Nortel networks is a giant corporate in ...

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Accounting Essays - Accounting Goodwill Treatment

23 Mar 2015 08 Mar 2016

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Accounting Goodwill Treatment Introduction Arnold, J., Egginton, D., Kirkham, L., Macve, R. and Peasnell, K., ‘Theoretical Considerations’, in Goodwill and Other Intangibles, The Research Board, London, pp3-18. According to the authors, financial reporting of goodwill has assumed importance just recently. In its earlier definition goodwill just meant customer loyalty. They attribute two main reasons for the increase in goodwill’s importance. First is the increase in merger and ...

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A study on Fraud prevention and Detection

23 Mar 2015

12 (4,587 )

The aim of this writing is to present how fraud is defined today, why fraud prevention and detection is global concern and introduce main means of detecting and preventing fraud. It can be seen that fraud can range from small employee theft, fruitless behaviour, embezzlement of company`s assets and fraudulent financial reporting. This kind of actions can have strong adverse effect on company`s market value, reputation and ...

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Auditing Is The Accumulation And Evaluation Of Evidence Accounting Essay

23 Mar 2015

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Auditing is the accumulation and evaluation of evidence about information to determine and report on the degree of correspondence between the information and established criteria. Auditing should be done by a competent, independent party and communicate the results to interested users. (Elder, and others, 2007, p .4) The purpose of audit is to enable the auditor to express an opinion whether the financial statements present a true ...

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Factors that influenced the change in management accounting

23 Mar 2015

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This chapter will review the relevant literature and the understanding of the traditional role of the management accountant. The chapter will begin with an understanding of the concept of management accounting. This provides a background for discussion of the traditional role of management accountant. Finally, a review of all the factors that may influence on the role and promoted the change of the role are explored. 2.1 ...

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Current Purchasing Power Accounting Accounting Essay

23 Mar 2015

7 (2,650 )

Accounting theory is a set of basic assumptions, definitions, principles, and concepts surrounding the accounting rule. It includes the reporting of accounting and financial information to relevant or interested parties. There are several approaches that are used in the development of accounting theory. The two main ones are normative theory approach and the positive theory approach. Normative theory approach is a theory that is not based on ...

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An analysis of the Depreciation Methods in GAAP in the UK

23 Mar 2015

4 (1,309 )

Depreciation is the allocation of the cost of a plant asset to expense over its useful (service) life in a rational and systematic manner" (Weygandt, Kieso and Kimmel, 2003:416). There are three factors affect the calculation of depreciation, which are asset cost, useful life and salvage value (Weygandt, Kieso and Kimmel, 2003). Accountant in different companies will use various methods to compute the depreciation. There are straight-line ...

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Definition of fixed cost and variable cost

23 Mar 2015

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Fixed cost (FC): is a cost that remains constant, in total, regardless of changes in the level of activity. Fixed costs are not affected by changes in activity. Consequently, as the activity level rises and falls, total fixed costs remain constant unless influenced by some outside force. But fixed cost per unit decreases as the activity level rises and increases as the activity level falls. (Garrison etal., ...

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Exploring the objectives of Borealis new budgeting system

23 Mar 2015

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Borealis abandoned its traditional budgeting system in 1995 and implemented a new system, which is set to achieve 4 objectives: Improve financial management and performance measurement. Decentralise authority and decisions. Simplify the budgeting process. Reduce the resources used in the process. In this report, we would examine failings in the current budgeting process and modifications that would make the existing system more useful. We would then provide ...

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In trinidad and tobago the spiraling crime situation

23 Mar 2015

5 (1,990 )

Introduction In Trinidad and Tobago the spiraling crime situation has been committed predominately by young males. This study focuses on the relationship between the violence in schools and the crime situation in the wider society in Trinidad. By curbing school violence it will greatly reduce the criminal activities occurring in society. Studies have shown that young minds are easier to mould rather than adult minds. This ...

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Differences between financial accounting and management accounting

23 Mar 2015

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It is not so easy to define accounting as this word had many broad applications in the business, but a very precise definition by American accounting association is "the process of measuring, communicating and identifying economic information to grant informed judgments and decisions of information made by the users!" In today's world everyone follow the discipline of accounting weather they are in job sectors or running their ...

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The Arguments For Regulation Accounting Essay

23 Mar 2015

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History is filled with examples where crisis and scandals paved the way for regulatory interventions in the financial markets. The UK introduced major changes in its regulatory practice after the fall of the Barings Bank as a result of the financial scandals during the 1990s. The Financial Services Authority was deregulated in order to develop more rigid and consolidated regulations that conformed to the practice that were ...

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The Achievements Or Successes Of Both Eu And Iasc Iasb Accounting Essay

23 Mar 2015

8 (3,094 )

Introduction Growth in international trade has been on the increase over the years necessitating several organisations to be involved in the efforts to harmonise accounting practices either regionally or internationally. Among those, leading in this effort were the European Union (EU) and International Accounting Standards Board (IASB) (formerly International Accounting Standards Committee, IASC). This essay will look at background and harmonisation process of the two organisations and ...

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Fundamental concepts of the IASB framework

23 Mar 2015

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The International Accounting Standard Board herein referred to as the IASB, sets forth standards that outlined in its Framework for the Preparation and Presentation of Financial Statements. The IASB framework applies to general-purpose financial statements. That is, the primary financial statements (income statement, balance sheet, etc.) and the accompanying notes but not additional financial or nonfinancial information, such as directors' reports, management discussion and analysis, etc. The ...

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Examining major problems caused by worldwide accounting diversity

23 Mar 2015

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Multinational corporations have been contributors to worldwide accounting problems as they have made or contributed to changes in which different countries have been using their accounting principles not only have they change the way accounting standards carried out but have contributed to the different problems that have been noted out in this answer. It basically looks into these issues and also coming up with ways in which ...

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What is conceptual framework of accounting

23 Mar 2015

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Financial Accounting Standard Board defines Conceptual Framework as 'a coherent system of interrelated objectives and fundamentals that is expected to lead to consistent standards. The rules are set in accounting standard that are formulated from the framework, but it takes preferences over the framework during the time of conflict of interpretation. Conceptual framework is a type of intermediate theory which attempts to connect all aspect of inquiries ...

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The process of budgeting and its uses

23 Mar 2015

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"Budgeting is an important control system in almost all organizations (Armstrong et al., 1996; Ekholm and Wallin, 2000; Merchant and Van der Stede, 2003 cited in Hansen and Van der Stede)". In an organisation all the activities are coordinated together by preparing plans for the future. These plans are called as Budgets. "A budget can be defined as the quantitative expression of a plan action and an ...

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Is Accrual Basis More Reliable than Cash Basis Accounting

23 Mar 2015

16 (6,045 )

Currently, accrual based accounting is the most widely accepted standard for accounting valuations. Nevertheless, it is often argued, on theoretical grounds, that a cash basis approach is much more reliable to users. Our study focuses on the question of whether the accrual basis of accounting more reliable than the cash basis of accounting, where we compare the theoretical rational of interviewed industry professionals with theory. In order ...

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The Benefits And Challanges Of Accrual Accounting Versus Cash Accounting Application Accounting Essay

23 Mar 2015

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ABSTRACT This paper propose a depth understanding and critical evaluation of the benefits and challanges of accrual accounting versus cash accounting aplication for budgeting and reporting in Municipal Council of Kota Kinabalu, a local government in Malaysia. Motivation of this paper is drawn on the potential benefits of accrual accounting in budgeting and financial reporting of a local government as empirically established in other countries. However, despite ...

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The Education In Reduce Audit Expectation Gap

23 Mar 2015

19 (7,313 )

Introduction The issue of "audit expectation gap (AEG)" has been very significant to the accounting profession since mid 1970s and continues to be debated until today. In the 1970s and 1980s, massive corporate failures have caused the accounting profession to be severely criticized by the public. For example, in 1973, Equity Funding - an insurance firm based in Los Angeles - collapsed when its computer-based fraud was ...

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Calculation Of Finance Lease Straight Line Method Finance Charge Accounting Essay

23 Mar 2015

7 (2,580 )

Total lease payment = 5*6000= 30000 (Less) Market Price of asset = 22000 8000 Allocation of finance charge: = Finance charge = 8000/5 = 1600 No: of years Depreciation: = Market Value =22000/5= 4400 Useful life Liability Schedule: Years Liability at Beginning Finance charge Total Payment Liability at end 1 22000 1600 23600 6000 17600 2 17600 1600 19200 6000 13200 3 13200 1600 14800 6000 8800 4 8800 1600 10400 6000 4400 5 ...

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Advantages and disadvantages of outsourcing the internal audit functions

23 Mar 2015

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Internal auditing is an appraisal or monitoring activity established within an entity as a service to the entity. It functions are, among other things, examining, evaluating and reporting to the management and the directors on the adequacy and effectiveness of components of the accounting and internal control systems. An internal audit department in an organization is set by the management or appointed by the board of directors ...

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Examining issues with audit quality

23 Mar 2015

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The major accounting scandals occurred worldwide has brought the focus of public to the audit profession and the audit quality. Enron and WorldCom cases in United States and Parmalat case in Europe are the example of major scandals as a result of the failure of audit services. In Malaysia, the Transmile case which involved around RM530 million of accounting fraud has also addressed the problem about the ...

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A Critical Literature Review Of Balanced Scorecards Accounting Essay

23 Mar 2015

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This review discusses the "Balance Scorecard", an integrated strategic performance management tool (see Figure 1), which was developed by Robert Kaplan and David Norton in 1990. Recently, the Harvard Business Review hailed the Balanced Scorecard as one of the 75 most influential and prolific ideas of the twentieth century (1). Nowadays, in an era of globalization, customer power, and rapid change, it is imperative for organizations to ...

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Advantages And Disadvantages Of Making Accounting Rules Accounting Essay

23 Mar 2015

5 (1,690 )

Financial reporting is part of financial accounting which is the activity involved with "classifying, measuring and recording the economic transactions of an entity in accordance with established principles, legal requirements and accounting standards" (Collis & Hussey, 2007). Financial reporting provides information about both the financial performance and position of an entity, and is involved in the communication of financial statements to external users. The process of financial ...

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Different users of financial statements have different informational needs

23 Mar 2015

5 (1,629 )

Financial statements form the backbone of communicating the information about the company to the members within and outside the organization. According to International Accounting Standards (IAS 1.9) "The objective of general purpose financial statements is to provide information about the financial position, financial performance, and cash flows of an entity that is useful to a wide range of users in making economic decisions." (Deloitte Global Services Limited, ...

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The roles of external auditors in reporting fraud

23 Mar 2015

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In Latin, the word audit means 'to hear'. One person creates the Financial Statements, whilst the auditor 'hears' what they are saying, and passes his opinion to them. External auditing (EA) is "an examination of the annual financial report of an organization by someone independent". The purpose of an EA, to express an opinion on whether the information presented in the financial statements, reflect the financial position ...

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Defined Benefit And Defined Contribution In Pension Schemes Accounting Essay

23 Mar 2015

5 (1,818 )

Pension is fund that is built during the working life of the employee and then used to secure the income after retirement. These funds can be operated by employer (occupational pension) who invests over time or alternatively employee can invest in a fund of their choice (private pension scheme). Both of these schemes generate income after retirement. The pension funds are operated in many countries. According to ...

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Strategic Management Accounting Techniques Accounting Essay

23 Mar 2015

5 (1,972 )

Since the 80s a new term has been coined in management accounting literature: "Strategic Management Accounting" (SMA) (Simmonds, 1981). Since then, an ongoing debate about what strategic management accounting comprises has been originated. The terms SMA is used by accounting academics and sometimes practitioners in the UK, Australia and New Zealand, while strategic cost management (SCM) is commonly used in the USA literature. There are various studies ...

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The IFAC code of ethics for profession accountants

23 Mar 2015

6 (2,374 )

Introduction Nowadays, independence is major issues to attain highest level of performances to meet the public interest requirement. (Messier et al, 2006) Therefore, International Federation of Accountants (IFAC) has its mission to provide consistently high quality of service in the public interest by continues establish and strengthen the worldwide economic development and enhancement the accountancy profession with harmonized standards. (ICEAW¹, 2005)[Online].An IFAC Ethics Committee which also known ...

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Compare The Activity Based Costing Abc With Traditional Costing Accounting Essay

23 Mar 2015

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1. Introduction The objective for this assignment is to compare the Activity-based costing (ABC) with traditional costing. Andrade, Filho, Maia and Qassim (1997) found out that Activity-based costing (ABC) is being widely implemented as a substitute to traditional costing. They mentioned the cost of operations in an organization that are reflected by Activity-based costing (ABC) is more accurate and dependable compare to traditional costing. Turney (1996) defines ...

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Voluntary disclosure and corporate governance

23 Mar 2015

14 (5,590 )

Introduction: Theforces that give rise in demand of information disclosure in modern capital market stems from the information asymmetry and agency conflicts existing between the management and the stockholders. Therefore, the solution to agency conflicts lies in the ownership structure and the function of board of directors. (Jensen and Meckling 1976) found that the Ownership structure is assessed by the proportion of shares held by managers and ...

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A Definition of Audit Independence

23 Mar 2015

13 (4,848 )

Independence is fundamentally an attitude of mind for exercise of professional judgment and defined as an abstract concept that is easily subject to misinterpretation. Quality of integrity, objectivity, honesty, and impartiality are included in the concept to characterize independence. Independence is also a basic element to the reliability of auditor's reports. However, it does not mean that an auditor must be free of all economic, financial, and ...

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Measurement of assets, liabilities and equities in accounting

23 Mar 2015

9 (3,349 )

Across time, various accounting theories have been developed by a number of well-respected academics. However, the accounting profession is normally failed to embrace these theories. This paper has analyzed the different valuation models that are currently used and especially focus on historical cost accounting and exit value accounting. It first examines Edward's statement and then explained exit value accounting. After the introduction of several substitute accounting models ...

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The Role Of External Auditors In Detecting Corporate Fraud Accounting Essay

23 Mar 2015

13 (4,868 )

INTRODUCTION This introductory chapter intend to inform the reader on the multiples issues that will be tackled in this paper. So after describing the main issues, this chapter will therefore cover the rationale of the research, the aims and objectives as well as the limitations encountered, which all will be fully explored. Eventually a review of the structure of the research will also be conducted to conclude ...

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Design A Costing System For Use Within An Organization Accounting Essay

23 Mar 2015

12 (4,503 )

A costing system method means the procedure adopted to ascertain costs. There are several ways of ascertain costs. Companies choose among the alternatives depending on circumstances in which accounting is required to be made based on the product being manufacture and the nature of the industry making the product. Depending on the nature of Dynamic Models PLC, the appropriate costing method will be specific order costing where ...

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Zero Based Budgeting Emerged To Overcome The Limitations Of Incremental Budgets Accounting Essay

23 Mar 2015

4 (1,290 )

Zero-based budgeting emerged to overcome the limitations of incremental budgets. This approach requires that all activities are justified and prioritized before decisions are taken relating to the amount of resources allocated to each activity. Besides adopting a zero-based approach zero-base budgeting also focuses on programmes or activities instead of functional departments based on line-items which is a feature of traditional budgeting. Programmes normally relate to various activities ...

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Organisational processes in the Walt Disney Company

23 Mar 2015

3 (1,002 )

According to De Wit and Meyer (2010) Organisational processes refer to the arrangements, procedures and routines used to control and coordinate the various people and units within the organisation". This can be both formalized processes that span the entire organisation, or more informal organisational processes. The first category can be processes such as business planning and control procedures, final budgeting and reporting. Other control and coordination processes ...

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Definition And Importance Of A Budget Accounting Essay

23 Mar 2015

4 (1,422 )

A budget is a document that translates plans into money - money that will need to be spent to get your planned activities done (expenditure) and money that will need to be generated to cover the costs of getting the work done (income). It is an estimate, or informed guess, about what you will need in monetary terms to do your work. Importance of budget The budget ...

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Economic Value Added And Shareholder Value Added Accounting Essay

23 Mar 2015

8 (2,802 )

Agrawal (2007) defines shareholder value added (SVA) as the term used for the difference between the wealth held by the shareholders at the end of a given year and the wealth they held the previous year. In other words, SVA is the estimated future cash flows that are discounted to present value to calculate the value of the firm continuously. Measuring the current performance is based on ...

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Unethical issues of AIG

23 Mar 2015

6 (2,232 )

Company history          American International Group, Inc is a company whose operation began back in 1919. It was established back then by Cornelius Vander Starr as an insurance agency in Shanghai, China. AIG left china in 1949 after Starr had established himself as the westerner the sell insurance to the Chinese people. AIG headquarters then shifted from china to New York City, which is still the headquarters ...

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Budgetary Slack As A Management Control Mechanism Accounting Essay

23 Mar 2015

9 (3,598 )

Introduction Budgeting control system is one of the popular mechanisms in the management control systems that have undergone significant shifts of emphasis in both literature and practices. Budget slack meaning a deliberate underestimation of revenues and overestimation of costs than of actual budget is one of the aspects of budgetary control in the research of contemporary accounting management literature. The conventional wisdom on budgetary slack underlies a ...

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Audit Planning And Risk Assessment Accounting Essay

23 Mar 2015

13 (5,046 )

Chapter 6 [LO1] The audit plan documents detailed information about audit procedures to be performed on the engagement. T [LO2] Scaling the audit refers to fitting the audit work into the proper context in terms of the engagement's size, environment, and complexity. T [LO2] Statutory audits are required on all integrated audits performed in accordance with international accounting standards. F [LO2] An audit plan will be the ...

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Carrolls Pyramid Of Corporate Social Responsibility Model Accounting Essay

23 Mar 2015

10 (3,802 )

In the past, the common perception of a business responsibility was to maximize their firm's profit. This is because businesses were perceived to always put the shareholder interests first. However, businesses are moving towards impacting the socials and environments. Several research have found that businesses now have direct responsibilities to various other stakeholders which include preventing the harm of human rights and ensuring that there are solutions ...

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Depreciation And Provision For Depreciation Accounting Essay

23 Mar 2015

5 (1,934 )

Depreciation is the cost allocated as expense which has the effects of reducing the value of a fixed asset during the period it is used by a business. It is a non-cash expense and need to be charged to the Profit & Loss account yearly which lowers the company's profit which increasing free cash flow. Fixed assets are long life. They are bought to assist in the ...

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The purpose of accounting and its role in the management of a busienss

23 Mar 2015

9 (3,288 )

Introduction Understanding how a business operates and what makes it successful requires knowledge of the accounting process. This unit introduces you to the purpose of accounting and its role in the management of a business organisation. Accounting involves the recording of business transactions, and this in turn, leads to the generation of financial information, which can be used as the basis of good financial control and planning. ...

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Examining different types of budgets and their uses

23 Mar 2015

12 (4,547 )

Budgeting operations are very important for any kind of an organization, that is involved in making profits or not. This is the case because all forms of organizations have a number of resources, both material and human, which have to be managed in order to promote and effective realization of goals and objectives. As well, all organizations shall have a number of obligations and missions that have ...

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Structure Of Nigerian Financial System Accounting Essay

23 Mar 2015

19 (7,285 )

The need for transparency and clarity in the presentation of financial statements has been an endemic phenomenon which has contributed to the high level of corruption in Nigeria. This level of inadequacy in proper disclosure of relevant information is peculiar to most developing economies. Ali et al., (2009) buttressed the point that the level of disclosure of adequate and reliable information by companies in emerging nations lags ...

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Looking at Corporate Governance in TESCO Plc

23 Mar 2015

3 (1,066 )

Corporate governance basically is a kind of concept that has been described with thousands of definitions because of its relations to economic positions of the companies.The most basic ones that can be conceptualised are as Corporate governance is a system that regulates efficiency in management of business companies involving of certain codes of practice,contracts and legislations. 'Corporate Governance are the policies, procedures and rules governing the relationships ...

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Defining And Evaluating Methods Of Measuring Performance Accounting Essay

23 Mar 2015

6 (2,269 )

Performance measurement is the performance-based management process which is flowing from the organizational mission and the strategic planning process. Performance measurement are includes the objective and subjective assessments of the performance of both individuals and subunits of an organization such as divisions or departments. Performance measurement are effective in ensure that a strategy of organisation is successfully implemented by monitor an organisation's effectiveness in satisfying its own ...

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The History And Role Of External Auditors Accounting Essay

23 Mar 2015

8 (2,899 )

The first part of the assignment will look at the role of the external auditors, and the history of auditing will be briefly discussed. Then the second part will look at fraud, its definition, examples of fraud and the implications of fraud. Then finally before concluding the impact of International Auditing Standards on external auditors will be discussed. According to Arens et al. (2003) the auditor is ...

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The Economic Crisis of 2008 and the UK Government Response

23 Mar 2015

6 (2,011 )

Introduction The current economic crisis which had its roots in the US sub-primes market produced a profound shift in UK economic policy, Hodson et al (2009). The latter suggests that prior to this crisis UK economic policy centred on three principles which included fiscal prudence, low inflation and inadequate regulation and supervision of the UK banking sector. However, the result of the crisis was so severe that ...

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Corporate Governance Failures And Scandals In Recent History Accounting Essay

23 Mar 2015

7 (2,609 )

In this essay, we are going to contemplate law, which is one of the most fundamental jurisdictional areas at present. Value will be given to the unraveling of the significant area of company law. One should acknowledge that in the past two centuries, several corporate collapses have overturn the facts in the business world and brought many changes in the corporate field in UK and abroad. In ...

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An analysis of the budgeting in management accounting

23 Mar 2015

5 (1,616 )

With the fast development of in the area of management accounting, more and more managers are aware of the importance of the budgeting, "budgeting is an important control system in almost all organizations" (Stephen C. Hansen, Wim A. Van der Stede, 2004, Management Accounting Research, Multiple facets of budgeting: an exploratory analysis,), and it "provides an expression of the steps which management must take in the current ...

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Research Proposal On Threat To Auditors Independence Accounting Essay

23 Mar 2015

15 (5,718 )

History reveals that audit is a Latin word meaning "he hears". Auditing originated in those years when individuals entrusted with public funds were required to give an oral account of their handling of those funds. Porter (1997) An opinion of an independent chartered accountant is needed to give the public rest of mind that the sets of accounts presented were true and fair and also conform to ...

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Benefits of DuPont Analysis

23 Mar 2015

3 (1,099 )

The dynamic environment of the world today suggests that one should be apt enough to apply his skills immanent to a system and also external with respect to credit management function. These functions include financial planning, plausibility of a defined business strategy or whether a particular merger or acquisition is feasible or not. This has to be done in a rapid yet meaningful way so as to ...

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Cost Control Definition And Management Accounting Essay

23 Mar 2015

8 (2,987 )

A good knowledge about costs is vital in order to better understand what cost control is about. Authors have defined costs in different ways. The definition of cost was the money that was to be spent on production in the 1970`s (Van der Schroeff et al., 1970). This definition was later re-analysed and confirmed by Bilkerbeek(1992), van`t Klooster(1992) and Horgren(2005). Costs are the factors of production like ...

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A case study on Westmount Retirement Home

23 Mar 2015

6 (2,042 )

New information can be considered valuable in terms of decision making. From new information, the derivation of new and more applicable strategies can be utilized. In this paper, an analysis on how does new information becomes a valuable asset to transform Westmount Retirement home struggles with its current accounting system which affects its profitability to a more effective Activity-based costing system that can improve overall business operations. ...

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Conceptual Framework And Why Is It Needed Accounting Essay

23 Mar 2015

4 (1,304 )

According to FASB, the conceptual framework is a coherent system of interrelated objectives and fundamental concepts that prescribes the nature, function, and limits of financial accounting and reporting and that is expected to lead to consistent guidance. It is intended to serve the public interest by providing structure and direction to financial accounting and reporting to facilitate the provision of unbiased financial and related information. In short, ...

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Financial statements Accruals Prudence and Going Concern concepts

23 Mar 2015

3 (1,197 )

Discuss the problems for companies in applying the accruals, prudence and going concern concepts when preparing financial statements, and explain why at least two other concepts might also be important. Accounting concepts and conventions as used in accountancy are the rules and principles applied when recording economic events and in the preparation of financial statements, that all accountants abide by. Some of the fundamental accounting concepts that ...

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Analysis Of Financial Ratios Of Next PLC Accounting Essay

23 Mar 2015

7 (2,712 )

UK retail market has huge scope with £138.2 billion revenue during fiscal year 2011/2012. Next Plc. and MARK & SPENCER are direct competitors and listed in the FTSE100 UK companies. Analysis of financial statement gives an idea about the company's performance, profitability, as well as future development forecast. Company Overview Next Plc. Next Plc. is the major fashion retailer with wide range of customer appeal in the ...

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The Reasons Behind The Largest Corporate Scandal Of India Accounting Essay

23 Mar 2015

7 (2,685 )

'Satyam' means 'Truth' and the truth was revealed very late in case of India's one of the largest IT company, Satyam Computers Services Limited. By the time, Satyam fraud came to public light, Ramalinga Raju, the chairman of the company, had already committed India's largest corporate fraud ever. The first section of essay will discuss the reasons behind the largest corporate scandal of India. It will discuss ...

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Stewardship versus economic decision making in financial reporting

23 Mar 2015

4 (1,565 )

The main objective of financial reporting according to the IASB's Preparation and Presentation of Financial Statements framework is that of providing adequate information in order to enable shareholders conduct economic decision making. This brought the debate of whether such objective neglected the importance of the stewardship assessment by the part of shareholders. In the past decade the IASB and the US FASB have been working on a ...

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