http://www.irs.gov/businesses/small/article/0,,id=146330,00.html.” Dividends, interest, annuities, and royalties not accumulated through the ordinary course of trade or business is Portfolio income, not passive income. The sales of stock and bonds are also portfolio income. 7-13) Martially participation is
In their opinion, the financial statements present fairly, in all material respects, the respective financial position of the governmental activities, the business-type activities, each major fund, and the aggregate remaining fund information of the City, as of September 30, 2010, and the respective changes in financial position and cash flows, where applicable, thereof for the year then ended in conformity with accounting principles generally accepted in the United States of America. 5. Does the report contain Management’s Discussion and Analysis (MDA)? If so, what are the key issues addressed? Yes, The key issues addressed were * FINANCIAL HIGHLIGHTS * OVERVIEW OF THE FINANCIAL STATEMENTS consisting of government-wide financial statements, fund
The County prepared the government-wide and proprietary fund financial statements complying with the guidance of the Governmental Accounting Standards Board. In its budgetary process, the County Council would hold public hearings before passing the annual budget appropriation ordinance. If the Council does not pass it, the Executive’s proposed budget ordinance stands adopted. During the fiscal year, The Council, upon the request of the Executive, may approve projects in the capital budget but it may not increase the total size of the capital budget. It may also approve supplemental budgets from inappropriate funds only in emergencies affecting life, health and property.
Statements of Position (SOP) b. Audit and Accounting Guides (AAG)—only incremental accounting guidance c. Practice Bulletins (PB) d. Technical Inquiry Service (TIS)—only for Software Revenue Recognition 5. SEC references included in ASC to enhance the codifications’ utility for public companies: - Regulation S-X - Financial Reporting Releases - Interpretive releases - SEC staff guidance in Staff Accounting Bulletin, EITF topic D and SEC Staff Observer Comments. 1. Period for valuation of Going Concern: IAS 1, or at least but not limited to 12 months from the reporting period’s end.
We assume that the amount of debt has been constant over 2007. A better option to calculate cost of debt would be to use a synthesized rating based on the interest coverage ratio and use the corresponding default spread, but unfortunately we do not have data of these spreads for 2007. We use the market value of equity to estimate the weight of equity. The market capitalization of the firm was 128,2 million on 31-12-2007 (we assume that this is the date of the balance sheet, since this isn’t mentioned in the case). From this we can calculate the following ratio’s: debt/equity = 0,31 debt/(debt+equity) = 0,24 equity/(debt+equity) = 0,76 In calculating these ratio’s we use gross debt instead of net debt, because in our opinion the debt and cash of the firm
In compound interest the interest is added to the principal in the account so each year the interest money that is added to the principal account increases each year. In simple interest the interest money each year stays the same, so I don’t make as much money as in a compound interest saving account. 4. If you were opening a savings account
As stated earlier, we offered to pay $5.1 billion for the equity portion of the company. However, since it will take 12 to 18 months for the deal to close we must find the present value of our offer. When we discount our offer over 12 to 18 months, we can determine that the present value of the offer is $4.7 billion (Also see Exhibit 1). If we compare this to the implied market value of the equity, we can see that our offer is right in line with the value of the equity. As you can see, while we are paying right at the high end implied value for the firm, we are not overpaying for the company.
Monthly and quarterly income statements are often issued as well. The balance sheet, on the other hand, only shows a picture of the company on a single date in time. The balance sheet does not reflect a period of time but rather a moment in time. The Revenue Recognition Convention:- The revenue recognition convention provides that revenue be taken into the accounts (recognized) at the time the transaction is completed. Usually, this just means recording revenue when the bill for it is sent to the customer.
The revenue principle works on the basis that companies must recognize revenues in the accounting period in which revenue is earned. The matching principle on the other hand allows expenses to follow revenues and by doing this, expenses are matched with revenues in the period when efforts were expended to generate revenues. Another key concept in commercial accounting is, knowing the difference between accrual and cash basis accounting. Accrual basis accounting means that, “transactions that change a company’s financial statements are recorded in the periods in which the events occur, even if cash was not exchanged”. (Kimmel, 164).
According to the data from the Ministry of Finance, the highest budget deficit is in the year 2010 (ranging from year 1999 to 2011); 7% of GDP equivalent to USD 13.3 billion. This is due to the continuing effort of Malaysian Government to boost the economy after the financial crisis in late 2008. Figure 1.0 shows the Malaysia Government Budget for the period of 1999 until 2011. The figure shows