SEC believes that the removal of this item from Groupon results of operations creates a non-GAAP measure that is potentially misleading to readers. I agree with the SEC’s perspective of Groupon’s usage of ACSOI mislead the readers and its marketing cost should be considered as a recurring operating cash expenditure of the company. It is because according to CON6 characteristics of an expense is that actual or expected cash outflows or the equivalent that have occurred or will eventuate as a result
A primary argument against revaluation is the lack of objectivity in arriving at current cost estimates, particularly for old assets that either will or cannot be replaced with similar assets or for which no comparable or similar assets are currently available for purchase. Discuss the qualitative concept of comparability. In your opinion, would the financial statements of companies operating in one of the foreign countries listed above be comparable to a U.S. company's financial statements? Explain. Countries including Australia, Brazil, England, Mexico, and Singapore, permit the revaluation of property, plant, and equipment to their current cost as of the balance sheet date, so does this affect the qualitative concept of comparability to U.S. companies’ financial statements?
The appellate court reversed the trail court’s ruling that Winkle was entitled to the profit – sharing bonus. The court held the opinion that since Winkle has not been paid his salary and bonus, therefore the contract had not been executed. “Section 1698 of the Civil Code provides: A contract in writing may be altered by a contract in writing or by an executed oral agreement, and not otherwise.’… “Section 1698 has a dual operation. On the one hand it invalidates oral contracts of modification that are unexecuted, and on the other hand it validates executed agreements that might otherwise fail for lack of consideration...”(668 P 2d
ii) Compliance with U.S. GAAP for Tesco: Tesco was also incorrect in their dealing of the refund from a customer’s perspective. Article 605-50-25-10 on “Customer's Accounting for Certain Consideration Received from a Vendor” states that “a rebate or refund of a specified amount of cash consideration… shall be recognized as a reduction of the cost of sales based on a systematic and rational allocation of the cash consideration offered to each of the underlying transactions” (FASB ASC). This means that Tesco should not have recorded the £750 million as sales
An entity changes its depreciation method for production equipment from straight-line to a units-of-production method based on hours of utilization. The auditor concurs with the change, although it has a material effect on the comparability of the entity’s financial statements. 6. An entity discloses certain lease obligations in the notes to the financial statements. The auditor believes that the failure to capitalize these leases is a departure from generally accepted accounting principles.
First, payments on debt interest are tax deductible but payments on equity are not. Second, equity allows shareholders to share the company profits. With that, equity holders now also hold stake in AMSC and share control. Comparatively, debt financiers have little or no impact on control of the company; assuming payments are being made. Profits are also used to pay the debt, however, so how this weighs out as a disadvantage would clearly depends on how well or not
The effects of forfeitures and income taxes should be ignored. Analysis: 1. I think Sooner or Later should use $9 grant-date fair value to measure its compensation cost. FASB requires companies to recognize compensation cost using the fair-value method, and also according to 718-10-30-2 “A share-based payment transaction with employees shall be measured based on the fair value (or in certain situations specified in this Topic, a calculated value or intrinsic value) of the equity instruments issued.” Therefore, Sooner or Later should use the fair value to measure its compensation expenses. But the question is which fair value should Sooner or Later use to measure the compensation.
✔ 6. Which of the following is an advantage to exporting goods to reach international markets rather than entering into some form of FDI? B A) a greater risk of losing markets to copycat goods producers B) Fewer agency costs ✔ C) An inability to exploit R&D as effectively as if also invested abroad D) Fewer direct advantages from research and development 7. Which of the following is NOT a form of FDI? B A) Joint venture B) Exporting ✔ C) Wholly-owned affiliate D) Greenfield investment 8.
In determining whether a given discount program may violate commerce clause it is important to determine whether determine whether the state is simply participating in the market to obtain a discount or whether it is actually regulating price activities. When a state is merely purchasing a product in the market, it is not subject to the restriction of the interstate commerce clause. But when a state uses its purchasing power in one area to achieve a goal in another area – the court could find that the state is not merely acting as a purchaser but rather using its purchasing power to regulate the market. 2. Supremacy Clause If there is a conflict between federal law and state law, the resolution is clear – the state law is invalid.
a. The Company would recognize and record $25 Referral Credit when the existing customer redeems this credit at the time of future purchase from the Company. b. According to IAS on Provisions, Contingent Liabilities and Contingent Assets 37.86, the Company should not recognize contingent liabilities (a possible obligation depending on whether some uncertain future event occurs) but should disclose them, unless the possibility of an outflow of economic resources is remote. Since the incurrence of cost of $25 Referral credit depends on future event of existing customer future purchase and use of this credit therefore the Company should not provide for this cost but