The book basis of the transferred equipment was $6 million, and the equipment was recently appraised for $6.5 million. The fair value of the investment in Theta is $5.5 million as reasonably determined. Acer has a significant influence over Theta, but does not control financial interest in Theta. Under U.S. and international standards the appropriate accounting for this transaction is for the investment under Acer Corp to be accounted for using the equity method in the consolidated financial statements, or under the fair value option for US headquartered companies only. The FASB ASC 845-10-30 provides guidance for certain nonmonetary exchanges in which one entity transfers nonfinancial assets to a second entity in exchange for a noncontrolling ownership interest in that second entity.
Which of the following controls most likely would help ensure that all credit sales transactions of an entity are recorded? A. The billing department supervisor sends copies of approved sales orders to the credit department for comparison to authorized credit limits and current customer account balances. B. The accounting department supervisor independently reconciles the accounts receivable subsidiary ledger to the accounts receivable control account monthly.
The meaning and implications of using FIFO, LIFO, and weighted average cost-flow assumptions. 6. How to calculate depreciation using the straight-line method. 7. The journal entry for the issuance of bonds (at par, discount, or premium) and for the issuance of stock (at par or above par).
Overall, which of the two measures do you think provides the best measure of EnCom’s periodic performance? Why? Earnings for each of the five periods provides the best measure of corporation performance because it matches revenues and expenses, while free cash flows distorts the connection between revenues and expenses. #6 Compute EnCom’s return on equity (ROE, computed as earnings for the period divided by book value of equity at the beginning of the period) for each of the five periods, compare EnCom’s ROE for each period to EnCom’s IRR and provide a qualitatie explanation for any major differences. 1 2 3 4 5 ROE 16.28% 13.21% 14.58% 16.28% 18.42% The IRR is an overall assessment of the project, so it is a fixed number.
What special role do CRAs play in financial markets and how successful have they been? · Credit ratings play an important role in financial markets. These ratings synthesise the vast array of information available about an issuer or borrower, its market and its economic environment. This gives investors and lenders a better understanding of the risks associated with borrowing or lending from a particular entity or investing in a particular debt-like financial product. (asic.gov.au) · As the financial markets became mainstream and matured, the access to capital markets and their scrutiny have both increased.
Engagement Letter Anderson, Olds, and Watershed, CPAs October 31, 2007 Mr. Larry Lancaster, President Apollo Shoes, Inc. 100 Shoe Plaza, Shoetown, ME 00001 Dear Mr. Lancaster: This will confirm our understanding of the arrangements for our audit of the financial statements of Apollo Shoes Inc. for the year ending December 31, 2007. We will audit the company’s financial statements for the year ending December 31, 2007, for the purpose of expressing an opinion on the fairness with which they present, in all material respects, the financial position, results of operations, and cash flows in conformity with accounting principles generally accepted in the United States of America. We will conduct our audit in accordance with auditing standards generally accepted in the United States of America. Those
Enhanced Financial Disclosures- this title has eight sections in which it is stating that all documents have to be reported as well as being audited. It also states that if anything has ever changed in the material that was submitted it will be reviewed by the SEC. 5. Analyst Conflicts of Interest-this is very simple- it only comes with one section, it is basically just made to help regain confidence the investors when reporting security analasyst. 6.
Discuss surplus-enhancing transactions in markets 6. Explain how elasticity affects the way in which the burden of a per-unit tax is shared between buyers and sellers 7. Explain how elasticity affects the size of the deadweight loss created by a per-unit tax **NOTE: All of chapter 5 of Hubbard, Garnett, Lewis and O’Brien (2011) Microeconomics, 2nd edition, Pearson is required reading. 1. Consumer surplus The difference between the highest price a consumer is willing to pay for a good or service, and the price they actually pay.
Federal Reserve and Monetary Policy The Federal Reserve is considered independent because, although it is accountable to Congress, its decisions do not have to be ratified by Congress or the President. The System consists of seven members who sit on the Board of Governors, and 12 regional Federal Reserve Banks in major cities throughout the United States (U.S. Federal Reserve, 2010). An indispensable element of the Federal Reserve System is the Federal Open Market Committee (FOMC). The FOMC uses three tools to affect money: * Open market operations – Buying and selling U.S. government securities. * Altering reserve requirements – The amount of funds commercial bank are required to hold in reserve
Introduction The Comprehensive Annual Financial Report (CAFR) is a governmental unit’s comprehensive accounting report that shows the financial position and the performance in operation. In the Howard County CAFR, it has 170 pages and provides detailed statements and wealth statistical data on its jurisdiction. This paper would analyze the Howard County CAFR presentation and would provide comments on the MD&A, summary of significant accounting policies, the government-wide statement versus to the governmental fund statement, and the proposed changes that would enhance accounting for the CAFR. Certificate of Achievement for Excellence in Financial Reporting The Howard County received the award of a Certificate of Achievement for Excellence