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International Accounting Standards - 1317 Words

International Accounting Standards What is the International Accounting Standards Board? This paper will give a brief overview on the history of the International Accounting Standards, starting with the role of the IASC Foundation, the structure of the IASB and the number of accounting standards currently published. Next, it will explain the steps in creating an international accounting standard in accordance with due process and it will show the mailing address and phone number. Lastly, there will be a summary of two most recent accounting standards issued by the IASB. By the early 1970’s businesses started expanding globally. With the expansions, companies were finding their financials incomparable to other companies in other†¦show more content†¦In the publication they will state an overview of the issue, how to address the issue, view of the IASB and an invitation for comment (International Accounting Standards Board, n.d.). The fourth step is the publication of an exposure draft. This step is mandatory in the due process. The IASB will consider the issues based on staff research and recommendations, comments receive on any discussion paper and suggestions made by the SAC, working groups and accounting standard setters. Once the issues are resolved there is a draft made up. Then the draft is voted on; once voted on this draft will be published for public comment (International Accounting Standard Board, n.d.) Step five, is developing and publishing the standard. After all comments are received on the draft, the IASB will consider revising or not. When considering revising the IASB will check for substantial issues that emerge during the comment period on the exposure draft that it had not previously considered. They assess the evidence that has considered. They evaluate if they have fully understood the issues and have made sure the people views are on the same issues. The IASB considers the different view points in the draft and to make sure they have been reviewed in the correct context for its conclusions (International Accounting Standards Board, n.d.) The last step in developing standard is after the standard is issued. Once issued, there will be ongoingShow MoreRelatedAccounting Standard And International Accounting Standards Essay1500 Words   |  6 PagesAccounting standard has been introduced after the World War II where every country has its own proper accounting practices such as the United States Generally Accepted Accounting Principles (the US GAAP). As time flies, international trade and foreign direct investment has experience a period of rapid growth where the companies begin to expand their business in a larger scale. Frequent international mergers and acquisitions especially by American corporations to the European companies has createdRead MoreInternational Accounting Standards : Standards1365 Words   |  6 PagesInternational Accounting Standards What are International Accounting Standards? The International Accounting Standards or IASC are accounting standards issued by the International Accounting Standards Board or IASB and its predecessor, the International Accounting Standards Committee or IASC. The International Accounting standards were started in 1966 after a proposal that was presented to create an International Study group that included the Institute of Chartered Accountants of England and WalesRead MoreBookkeeping Standards And International Accounting Standards1845 Words   |  8 PagesINTRODUCTION Bookkeeping Standards are utilized as administrative systems for planning of budgetary reports in very nearly all the nations of the world. Bookkeeping Standard are composed approach archives issued by master bookkeeping body or government or other administrative body covering the parts of distinguishment, estimation, treatment, presentation divulgence of bookkeeping exchange in the monetary proclamation. Goal of bookkeeping standard is to institutionalize the differing bookkeepingRead MoreThe International Accounting Standards Board1341 Words   |  6 PagesThe IASB Conceptual Framework is a framework developed by the International Accounting Standards Board (IASB). In a nutshell, what this framework does is to lay out the concepts needed for accurate preparation and presentation of financial statements to external users such as auditors, tax authorities, investors, regulatory authorities and so on. According to the IASB, the Conceptual Framework for Financial Reporting does the f ollowing; â€Å"†¦describes the objective of, and the concepts for, generalRead MoreUs Accounting Standards vs. International Accounting Standards1742 Words   |  7 PagesUnited States Accounting Standards vs International Accounting Standards June 21, 2009 Introduction This research project will inform the reader of the difference between the United States accounting standards and International accounting standards. The United States uses the Financial Accounting Standards Board (FASB) to issue financial reporting procedures. The International Financial Reporting Standards (IFRS) are issued by the International Accounting Standards Board (IASB).Read MoreInternational Accounting Standards ( Ias ) Essay1651 Words   |  7 PagesInternational Accounting Standards (IAS) in effect since 2002 and International Board (IASB) together, provides the conceptual framework of financial reporting in the UK, in effect as of 2005. They have been working together to meet International Financial Reporting Standards (IFRS) issued by International Finance Committee (IFC) which have been endorsed by the EU. IFRS uses a principles approach designed to provide flexibility, transparency and comparability allowing a robust system in providingRead MoreThe International Accounting Standards Board Essay1660 Words   |  7 PagesIAS 18: Revenue. During the same financial year a new standard to account for revenue was issued namely IFRS 15: Revenue from contracts with customers. The reasons for issuing a new standard was because IAS 18 was broad and therefore lead to confusion and inconsistencies in the treatment of similar transactions. The new standard results in different accounting implications in the annual financial statements of Transnet. To evaluate the accounting implications of IFRS15 it must be compared with IASRead MoreThe International Accounting Standards Board1249 Words   |  5 Pageschallenged by disparate accounting standards between jurisdictions, preventing the free flow of capital worldwide. The mission of the International Accounting Standards Board (IASB) is to develop a single set of accounting standards, enabling capital to flow in international markets as easily as information spreads between people. This paper presents a brief history of international accounting standard setting and the IASB, considers arguments for and against international standards, analyzes problemsRead MoreThe International Accounting Standards Board1573 Words   |  7 PagesAs the globalization of markets has become more prominent in recent years, many are wondering why a single set of accounting standards are not followed. After all, English may be the business language, but accounting is the language of business. Accounting standards are essentially just rules that must be followed when reporting any accounting data on any of the company’s financial statements. The objective is to provide the user (creditor or investor) with relevant information of the company’s financialRead MoreThe International Accounting Standards Board1687 Words   |  7 Pagesthe users of financial statements (SEC, 2000). The framework serves as a guide for the standard-setting bodies to develop International Accounting Standards and how to effectively enforce the use of each standard (IAS, 2001). These IASs were first issued by the International Accounting Standards council (IASC) and later on approved and amended by the International Accounting Standards Board (IASB). These standards are crucial for sustaining high level of financial reporting and also assure that the

Audit Client Considerations free essay sample

With this particular case study I will discuss several questions and facts regarding audit client considerations. 1) A brief summary of the case. 2) Identify key behaviors, attitudes and ethical dilemmas (if any) faced by the auditors. 3) Assess the philosophical and practical alternatives summarized in the case questions and evaluations of those solutions. 4) Briefly summarize what I would do faced with this situation in real life. The case is that of a CPA firm, Cardinal Coyote, located in Phoenix, Arizona and centers around three personnel members. Yancy Corliss is a new partner with the firm that is summoned into the managing partner’s office, Sharon Rules. Rules indicates that Jost Furniture is looking for a new auditing and she has been approached to submit a bid. Before committing to a bid Rules would like Corliss to conduct a background check to assess the potential risk of obtaining Jost as a client. The contract could prove to be quite lucrative for the firm as the company will need advice on international expansion. Since the bid is due to close fairly quickly she gives Corliss three days to report back to her. Corliss assembles his team which includes Lanny Beaudean who worked for the IRS for two years before joining the firm. Beaudean hopes to gain international experience with the firm so as to further his dream of becoming a CEO. The other two members of the team are Vinnie Gabelli and Jacki Oloff both of whom are not Arizona natives. After discussing their respective duties the team met at the end of the day to discuss their findings. After following a checklist of risk assessment they followed all except for the Verify the circumstances of any prior auditor’s dismissal1. The team felt that Yancy Corliss would be better suited to obtain this information. After non response from the firm’s attorney and sidestep answer of personality conflicts from Jost the team did receive permission to speak with previous auditors. They discovered that since there had been a modified opinion of the 2006 financial statements, where the auditors raised questions of going concern. The company had suffered persistent losses and the lack of cash flow was impairing their ability to secure financing. They also learned that subsequent auditors had been dismissed also for apparently coming to the same conclusion as the predecessor firm. Upon further investigation the team found that a million dollar loan covenant had been violated by neglect to keep a minimum balance due to the fact that the owner had withdrawn $500,000. 00 out of the company account to place a down payment on his home. The next time the covenant was broken the bank started foreclosure on the loan. The behaviors and attitudes of the auditor’s was very professional in exercising due diligence and proper training in the following manners. Oloff tried to contact the attorney several times by phone, left five messages and when she inquired about voice mail and email received a no answer to both types of technology. She also tried to set an appointment but was fended off of this type of communication as well. Corliss was put off about speaking with the previous auditors by the owner citing that there were personality conflicts and his concern was they would speak ill of the company. Corliss reminded him that it is required part of the procedure to accept them as a client. Gabelli investigated the going concern aspect, in doing so he found out that a loan to Phoenix Second Bank had begun foreclosure proceedings and the reasons behind this. He also found that by the time the foreclosure process had been completed the loan had been paid off. Finally Beaudean expressed his and the team’s concerns about taking on Jost as a client. All of these actions are in accordance with GAAS requirements on due diligence and appropriate training2. However had the situation arisen that is stated in question 2 of the case study there would be a serious issue that would be faced by Rules and Beaudean both. Question 2 asks what if Corliss had recommended that Jost be taken on as a client which surprises Beaudean and he asks what other factors did he consider and his response is â€Å"I am a new partner in the firm. I have to bring in new business. This client is a slam dunk. If we make a reasonably competitive bid, we will get the account. † â€Å". This presents a problem for Rules and Beaudean. It is abundantly clear that in this scenario Corliss is placing his needs above that of the society (in this case the firm). This as we have learned places him at Stage 2 of Kohlberg’s Model and violates all of the Six Pillars of Character. If Beaudean decides to follow the ethical choice of reporting his team’s findings to Rules the trust that was given to Corliss by assigning him the task of doing a thorough investigation. Due diligence and professional care are two of the core foundations upon with not only GAAP is founded upon but GAAS as well. Every accountant whether he/she is a Certified Auditor, CPA or CMA is required not only by law but by Ethical Standards to practice in our profession2,34. If the decision were to go ahead and submit a bid it would violate the standards by which we practice and are ethically bound to abide. In conclusion I would have done exactly as the auditor’s did. I would strongly recommend against taking on Jost as a client not only due to the going concern but also because of the red flags that appeared during a background investigation. Who knows what would further show up that was either unethical or illegal or both. In my personal opinion no contract is worth tainting my professional integrity and reputation. If Corliss were to recommend taking Jost on as a client I would raise my concerns with Rules and outline all that we had learned as well as strongly recommend against taking on Jost as a client.

Top Tips for an Above Average ACT Score

Many students barely prep for the ACT. Unsurprisingly, many end up getting an average ACT score. But breaking out of the average zone isn’t that difficult. A little prep goes a long way. The tips below will help you make the most out of your prep time. Reading tips Reading isn’t just about comprehension; it’s also about endurance. Begin reading at least an hour a day. This can include class reading, as long as the material challenges you. I recommend reading long articles from the Atlantic Monthly, the New Yorker, or even Time Magazine on something that interests you. The more your brain is used to reading, the easier it will be for you to maintain focus on the long, arduous ACT reading section. Another tip for this section: take plenty of practice tests to get a feel for the way the ACT asks questions. Sometimes you’ll miss questions. Go back and see if the issue was one in which you misunderstood the question (read the question more carefully), misunderstood the passage or were tricked by an answer that sound right, but was actually the answer. Misunderstanding the passage can happen because the reading is dense. That’s why it’s important to challenge yourself by reading relatively difficult material an hour a day (though you can skip a day here and there). The last part—getting tricked by an incorrect answer—is something that you can work on. Try to understand what made your answer wrong and why the correct answer was right. Doing this will help you avoid mistakes in the future. Writing tips Like math, writing is based on a number of rules. Your first order of business should be to know the range of grammar being tested. The good news is that, like math, the ACT writing only tests a limited number of grammar concepts. To get a sense of these concepts, you’ll want to take an official practice test. There, you’ll also encounter questions that aren’t only about grammar. These questions will test your ability to identify the logical flow of ideas. Here’s a great tip: when dealing with these questions make sure to read the entire paragraph in which the question appears. These questions are usually related to the flow of idea in the paragraphs. By not completely reading the paragraph, you’ll struggle to arrive at the correct answer. Math tips You learn a lot of math in your four years of high school. The ACT isn’t expecting you to remember all of that math. In fact, most of the questions fall into relatively predictable categories. For the basics, you’ll want to know percents, decimals, and exponents. You’ll want to be able to handle word problems that test discounts or rates (think moving vehicles). Finally, remember your geometry. You should be able to find the area of circles, triangles, and quadrilaterals. For the more advanced stuff, you’ll want to know the following: basic trigonometry identities, unit circle, logarithms, permutations and combinations, and matrices. To get a good idea of this range of topics, pick up the new ACT guide. Take an official ACT practice test (there are a few of them in there). As you are going through it, make note of the topics you are weak at. Then, after the test, make sure the study up in those areas. Make sure not to go too deep in any one area; the ACT tests the big ideas from each. So, just make sure you understand how logarithms work. Don’t look up advanced logarithms online and try to become an expert.

Vertical and Horizontal Integration

It is the goal of any business to be profitable and sustainable in the short-run and in the long run. To achieve this, many firms come up with a number of methods and strategies that tend to utilize their resources and capabilities in an effective and efficient manner. As a result, such organizations tend to become market leaders and command a large market share in their respective industries.Advertising We will write a custom essay sample on Vertical and Horizontal Integration specifically for you for only $16.05 $11/page Learn More Vertical and horizontal integration are amongst the most used methods in ensuring that companies have a competitive advantage over their rivals. These methods are therefore grand strategies that aim at giving companies the right direction in terms of their running, operations and management. Through their application, companies have the chance to have a competitive advantage over their rivals and command a large market share . Horizontal integration is the process through which firms in the same industry and similar level of production merge to jointly produce goods and services. This joint operation normally tends to reduce production and operating costs. As a result, such firms tend to produce their goods and services at a cheaper price as compared to other individual companies who undertake the whole process of production on their own. To stand on a stronger base, firms that decide to adopt this strategy should be experts in their respective fields. Through horizontal integration, firms are able to exploit the economies of scale to their advantage. This is because they incur costs jointly. Examples of costs that firms are able to incur jointly include transpiration, warehousing, advertising, selling and distributions, purchase of raw materials and labour costs. Such companies will thus produce their goods and services at a cheaper price as compared to their rivals. Due to this fact, they will stand a chance of sell their goods at a lower price as compared to other firms in the market. This will in turn increase their market share. As a result, such companies will have a competitive advantage in their industries. In addition, through merging up, companies that have adopted this strategy will enjoy the privileges of monopoly. The entry of new firms into the market will be difficult due to the high market share that they hold.Advertising Looking for essay on business economics? Let's see if we can help you! Get your first paper with 15% OFF Learn More In the motor industry, Volkswagen is a company that has benefited greatly from horizontal integration. The company merged with Skoda to manufacture vehicles. Their main target group were the members of the middle and lower classes of the society. Through their expertise, they were able to manufacture cheap and efficient cars that are desirable for individuals of these classes. At the present moment, Volkswagen is in th e process of merging up with Porsche to produce luxurious cars for the individuals of the upper class. Once this is in place, Volkswagen will have a large market share in the motor vehicle industry in Europe by having cars that meet the needs of all individuals in the society. As a result, the company will have a competitive advantage over other companies that target a specific class in the society. Vertical stratification is also another grand strategy that can enable firms to have a competitive advantage and command a large market share. This method is achieved by the acquisition of suppliers or consumers in a market by a firm. This strategy has the following options: Forward integrations Backwards integration Full integration Taper integration In forward integration, a firm acquires a company whose level of production is in a later stage while in backward integration, a firm acquires a company whose level of production is in an earlier stage. In full integration, a firm control s all the activities of manufacturing a product. In taper integration, on the other hand, a firm manufactures goods and services by merging with suppliers of raw materials and distributors of the products. Using the concept of vertical integration brings about a number of benefits within an organization. This concept tends to reduce costs, improve the efficiency of production and improve on the quality and quantity of the product. These facts are essential in ensuring that companies have a competitive advantage over their rivals. Porters Grand Strategies There are several factors that affect the manner in which firms operate within their respective industries and the profitability they enjoy. The attractiveness that a firm has in the industry in which it is operating is a primary factor in the determination of the profitability that the firm will enjoy.Advertising We will write a custom essay sample on Vertical and Horizontal Integration specifically for you for only $16.05 $11/page Learn More The position that a business holds within the industry is an operating in acts as a secondary factor (Quick MBA, 2011). Therefore, a firm may be in a state of earning profits that are below average but due to its strategic positioning it still earns high returns. According to Michael Porter, a firm positioning depends on the manner in which it is utilizing its strengths (Quick MBA, 2011). The strengths of a firm depend on whether a firm wants to cost conscious or differently from its rivals. While a firm is operating on a broad or narrow scale, it can achieve this either through cost leadership, differentiation or focus (Quick MBA, 2011). The following graph shows Porters grand strategy model. Using the cost leadership strategy, a firm will focus on reducing its cost of production. To achieve this, a firm may seek cheaper raw materials, use the most efficient methods of production or reduce its labour costs. As a result therefore, the avera ge cost of production per unit will be reduced. Such a company may sell its goods and services at the average market price or below the market price. Selling the goods at the market price will ensure that the company earns more profits as compared to its rivals. On the other hand, selling the goods below the market price will reduce the revenue of the company but will earn it market share. For this strategy to be successful, a company needs to have a lot of capital, expertise, skills and efficient channels for marketing and distribution of its products (Quick MBA, 2011). IKEA is one of the companies that use this technique. Since its incorporation, the company has been coming up with means of reducing its production costs in order to reduce the prices of its commodities. The strategy has been successful since IKEA has grown to become one of the leading furniture manufacturing and retailing companies in the world. This strategy has its own risks.Advertising Looking for essay on business economics? Let's see if we can help you! Get your first paper with 15% OFF Learn More Other firms may also decide to lower down the costs of their goods and services. Technological advancements also lead to the formulation of more efficient methods of production that reduce costs and increase the quantity of production. Other firms may also decide to target narrow markets. All these factors will reduce the competitive advantage that a firm had gained as a result of using this strategy. To build on its strengths, a firm may also adopt the differentiation strategy. While using this strategy, a firm will try to have a competitive advantage by producing goods that are different or unique as compared to the ones that are currently in the market. These new version or types of goods should suit the needs and requirements of consumers in a better way as compared to the goods that are currently present in the market. As a result, many customers will prefer the new version of the goods and services that are produced by the firm. This will in turn increase the demand for the go od and consumers they may become loyal to the product and the brand. In addition, they may recommend it to other individuals. This will in turn increase the market share of the firm in the industry. In addition, the company will have a competitive advantage over its rivals. To achieve this, a firm must be innovative and invest on research. It must also have a skilled and innovative team and must use brilliant marketing techniques to reach its target group. Imitations from rivals coupled with changes in consumer tastes and preferences are the main risks to this strategy. A firm that adopts the focus strategy is one that operates within a narrow range of the market. Due to this fact, such firms would like to achieve a mix of differentiation and cost advantage. To achieve this, a firm normally identifies a specific target group in the market and produces goods and services that meet their specific needs. Due to this fact, such firms are able to satisfy the needs of their customers and earn consumer loyalty. It will therefore be difficult for new firms to enter into this market due to the brand loyalty that the target group has for the firm. Firms operating in such markets may also sell their goods at high prices since they do not have close substitutes. However, there are some risks that are involved. These include changes in consumers tastes and preferences and imitations. Other firms may also focus on a section of this target market and supply them with a good that is of a better quality. Reference Quick MBA, n.d, Porter’s Generic Strategies. Available at:Â  http://www.quickmba.com/strategy/generic.shtml This essay on Vertical and Horizontal Integration was written and submitted by user Al1a to help you with your own studies. You are free to use it for research and reference purposes in order to write your own paper; however, you must cite it accordingly. You can donate your paper here.

Good Great Gatsby essay essays

Good Great Gatsby essay essays American society during the 1920s was a time of cynicism, loss of values, and was mainly defined by ideological and social battles. World War I was a turning point to society and altered the class structure through ideological reform. After the war, which had been called the war to end all wars by Wilson, people began to lose their sense of ideals resulting from disillusions of the true purpose of the war. This marked the disappearance of faith and common values such as American Dream, the age-old ideal that had so far been the key to Americas success, the ideal of working hard to achieve goals, and the replacement of material wealth for spiritual ideals and morals. The traditionalists, who acquired money through legal means and still retained a strict sense of morality, were reluctant to accept the modernists into their society because they seemed jaded by corruption of materialism. The modernists were the group of people who as a result of their disbelief in morals and values had become dependent on money rather than the betterment of their souls spiritually. The modern aristocrat was characterized by using money as power and by giving in to greed and carefree lives. The main conflict in society was of money overpowering morality or modernists against traditionalists. Most of the other parts of society had not been caught up in the new fervor of corruption and were still living the American Dream. These people were suppressed by the dominant modern, urban society in which they were ignored by the fast paced, elite upper class. The Great Gatsby examines this dominant society and through the characters that represent the urban society, it portr ays subtly criticizes and encourages change in this society. The Great Gatsby as a whole was a great social insight and documentation of the life and ideals of the 1920s. It could be a warning of the dismal future of society if people did not recover their ideals and values and repair the...

How modern portfolio theory can be used to manage the portfolio of Essay

How modern portfolio theory can be used to manage the portfolio of your own_ - Essay Example The pros barely edged the DJIA by a margin of 51 to 49 contests† (Investor Home, 2011). An investor simply parking their money in the Dow would have beaten the specific picks of the professionals about half the time, even without transaction costs or taxes. Even worse, later research found that the pros got a break due to the announcement effect of the stock (Liang, 1996). When the pros made an announcement, others invested naively, but these stocks later reversed quite quickly: When taking this into account, the pros did not beat the dartboard! And in the last year of the contest, the readers won slightly (Jasen, 2002). All of this seems to sink the idea of portfolio analysis: If the best pros in the world using the best techniques can't beat random chance, how can anyone? But modern portfolio tools have given investors, particularly newer ones, skills for constructing an asset portfolio that will beat out mutual funds and naive investment. The Failure of Mutual Funds It's not just professionals that struggle to create value. Mutual funds are also very bad at generating growth, and they have the advantage not only of many investors and many analysts but also time and a diverse portfolio! â€Å"By and large, what you're going to find is that very, very few active funds consistently match the performance of the various indexes over the long-term, much less beat them... Finding a fund that consistently beat its index is like looking for a needle in a haystack† (Distad, 2009). Distad's data shows that very few funds beat out the market over time. Further, he notes that many of these actively managed funds are highly unreliable in terms of their fidelity. 80% had performance history only going back a year, out of a random sample of almost 3500 funds! Investors need to construct their own portfolio, not just rely on mutual funds that have had a mixed record of success and have certainly suffered after events like Enron, WorldCom and the 2008 collapse. A ssets Chosen I chose two assets: Whole Foods (WFMI) and Nintendo (NTDOY.PK). I wanted to pick two assets, one of which was more of a growth asset and another which was an asset that produced products I was familiar with and that I knew something about the likely market response to. The goal for both was risk control first and growth second: That is, I wanted there to be a steadiness to the line, whether it was going horizontally or sloping upwards. I selected based off of a visual analysis of both companies over five years, then used iQfront's analysis to see what the statistics were, and was pleasantly surprised. Modern portfolio theory emphasizes that risk has to be measured based on the variance of the stock (Goetzmann, 2011). Indeed, the core idea is that a tangency line can be created that has a riskless asset used as a baseline for comparison where both risk-averse and risk-accepting investors could invest comfortably, a perfect middle ground (Goetzmann, 2011). But finding tha t perfect portfolio is difficult, because â€Å"a major difficulty in estimating an efficient frontier accurately is that errors grow as the number of assets increase. You cannot just dump all the means, std's and correlations for the world's assets into an optimizer and turn the crank† (Goetzmann, 2011). We will return to why analyzing risk this way is compelling since other forms of risk are so appallingly inaccurately determined (Danielsson, 2009). In any respect, while growth is easy to measure (just look at how it's