General Priciple – Performance are only recorded when the target is proable to be acheived Sooner and Later Inc On January 1, 2006, Sooner or Later Inc. granted 1,000 “at-the-money” employee stock options (i.e., the exercise price was equal to the stock price on the grant date). To align the compensation of the employees with the financial performance of the company, the award will vest only if cumulative revenue over the following three-year reporting period is greater than $10 million and the employees are still employed by Sooner or Later. As of the date of the grant, management believes it is probable that the company will achieve cumulative revenue in excess of $10 million over the following threeyear period. Each award has a grant-date fair value of $9. Sooner or Later’s valuation professionals have indicated that if the revenue target was factored into the fair value assessment, the grant-date fair value would be $6.
The FASB codification system provides a simple way for accounting professionals to access authoritative accounting standards. The FASB codification system is an advanced application that allows users to access the authoritative content, perform research, and submit feedback. It allows accounting professionals to research standards by providing utilities to view content by browsing by topic, joining related content, and reducing the amount of time to research information (FASB Accounting Standards Codification , 2013). The codification system also includes any relevant SEC guidance that is found in separate sections of the codification system. Any accounting literature
True (f) The objective of financial reporting is the foundation from which the other aspects of the framework logically result. True E2-4 Instructions Identify the appropriate qualitative characteristic(s) to be used given the information provided below. (a) Qualitative characteristic being employed when companies in the same industry are using the same accounting principles. Comparability (b) Quality of information that confirms users’ earlier expectations. Confirmatory value (c) Imperative for providing comparisons of a company from period to period.
Financial ratios have more impact when compared over several years to help identify trends. To illustrate the use of financial ratios we will compare the 2007 financial ratios of Tootsie Roll Industries and Hershey Company. These companies are engaged in the manufacturing and sale of confectionery products. The performance ratios will be based on liquidity, solvency and profitability. These ratios will be calculated from the income statement, balance sheet and statement of cash flows Liquidity Liquidity Ratios measure a company’s ability to meet its short-term debt obligations without disrupting normal operation.
Christopher Nelson Intermediate Accounting II Research Case 1 1. As of December 31, 2011, what amount, if any , of sales taxes due should be recognized in eVade’s financial statements? Assuming the financial statements for year ending 12/31/2011 have not been issued, an adjustment to sales tax liability can be recognized for the entire $25,000.000. As well, affected prior period statements will need to be re-stated. This is consistent with FASB codification ASC250-10-45-23 2.
I think it is essential that the catering service also have that standard. This will ensure that there is no profit loss from make the decision to do these services. In order for them to be competitive they focus on value added services instead of discounting and subtracting profit. Another question could be what the value of the product or service is to the buyer. Kudler Fine Foods has a competitive advantage because customers already use their facilities for parties.
In order for Kudler Fine Foods to develop a functioning frequent shopper program, it must track and monitor consumers shopping behavior. The drive of market research is to collect data on consumers and prospective consumers. The collected statistics support business decision making, which therefore diminishes the risks involved in making these conclusions. This type of research would also benefit the consumer by lowering the cost on items bought most, while giving them personalized incentives to return. As a result, legal matters concerning privacy of the consumer has risen and established far more attention.
Marketing research will uncover for Kudler not only the products desired but [For parallel construction, "not only" must be followed by "but also" later in the sentence] the price consumers are willing to pay for each item. A product may be desired [Passive voice ] but if consumers aren’t [Write out contractions] willing to pay a price high enough to provide Kudler a profit it must be taken [Passive voice ] off the shelves. However, Kudler may find through market research that offering consumers the ability to order specialty items may increase
With ABC, it will help us see where our costs are going so that we can respond to increases in orders without increasing (unduly) our overall cookie costs. It will, overall, help us see where we are spending our money and how to use it more efficiently to the most cookies and customer served for a larger profit. If Cosmic Cookie switches to backflush costing, Just In Time inventory systems can help insure that not only do we not have excesses of inventory lying around but that we are at our breakeven point consistently. We do not want unsold cookies/cupcakes/etc lying around that could have been sold. By using backflush, however, we can add back in any excess inventory as opposed to buying more than we needed initially.
This can be accomplished by creating a new column of vendor numbers from the Roger_Company_Vendors table and adding it to Roger_Company_AP_Transactions table. Problem 2 In prior year’s audits, the auditor has discovered cutoff errors in the purchasing area. In some cases, Rogers included a liability in the subsequent year when it should have been included in the current year. In other cases, Rogers included a liability in the current year, even though the purchase transaction related to the next year. For purposes of this problem only, assume the fiscal year for Roger Company is from March 1, 2011 to February 28, 2012.