Any opportunity costs that lower overall utility created show that utility is not being maximized. Accountants in our current society have a lot in common with the utilitarian perspectives view of good accountants. Typically, accountants look to valuate as much as possible and see themselves as gatekeepers of financial information based on objective methods. However, accountants in our society do have an interest in the "means" as well as the "ends." Describe what a "Good Accountant" would look like from a deontological perspective.
Another disagreement between FASB proposal and Dell believes is related to the method of accounting for income taxes. Dell brings to discussion both, theoretical and impractical reasons that not support this statement idea. It seems illogical to classify the tax effects of movements in stock price after grant date as expense if a shortfall, versus equity if a benefit, defective tax rate in the income statement should align with the expense recognized in accordance with the matching
With Mr. Parker being clearly motivated to merge, I would like to consider motivations for Mr. Baily to oppose the merger. When Mr. Bailey was initially approached regarding a merger with USO he expressed concern regarding the financial stability of the UOC versus the financial stability of the USO. The UOC is financially stable due to a reserve fund that is in place due to their current business model. These funds allow the UOC to be flexible and maintain stability if they only cut projects that do not meet their fund-raising goals. The USO does not have this flexibility and could not operate within their current successful business model.
An economic principle is that markets will act in rational ways. Given the rise and bust of the housing bubble, do you agree or disagree that consumers act rationally? Explain why or why not. Consumers act rationally because they hear something bad and assume that things won’t get better from there on out. That’s not the case, for every bad thing that happens, a good thing will arise, it may take a few tries until the good comes but it always does.
It is important to recognize the regulation impact statement that is not prepared in connection with the issuance of AASB 13 as the amendments made are minor in nature. What can make AASB is adoption of a wider scope of proposed issues. Some of these issues are write-downs of sound assets required under the current implementation of fair-value accounting which adversely affect market sentiment. The provision on AASB should accommodate well the write-downs margin that impacts in a downward spiral that may lead to large-scale fire-sales of assets, and destabilizing, pro-cyclical feedback effects. These damaging feedback effects worsen liquidity problems and contribute to the conversion of liquidity problems into solvency
Leslie Fay Companies 1.) Clearly Inventories was a big item to address along with Accounts Receivable. Sales and gross profit were stellar in a time of industry unease. Furthermore Accounts Payable decreases as a percentage of current liabilities while Inventories increase as a percentage of current assets. This is an implausible trend on the Balance sheet that BDO should have investigated further, especially with Leslie Fay’s outstanding Income Statement.
The question we all as taxpayers should be asking is whether or not we will see a good return on our investment. The Democratic proposal is a bit more negotiable since the taxpayers would at least own an equity interest in these companies. However, even that modified plan seems too expensive and way too intrusive. We should consider alternative plans that are not quite as intrusive to market mechanisms such as the Lindt plan. The Paulson plan also seems to signal a dangerous shift away from liberal market mechanisms into an age of neo-mercantilism.
Continuous replenishment program (CPR) cannot provide a long forecasting horizon. Thus, adopting of Collaborative Planning, Forecasting, and Replenishment (CPFR) would help manage retail promotions and limit their impact on the stock-outs and obsolete inventory. 2. What are some of the symptoms? What are the root causes of those symptoms?
The paradox of efficient market hypothesis is that some investors have to believe that market for the market to continue to be efficient. Explain your understanding of the above paradox. Include in your discussion the forms of market hypothesis. The paradox of efficient market is that if every investor believed a market was efficient, then the market would not be efficient because no one would analyze securities. In effect, efficient markets depend on market participants who believe the market is inefficient and trade securities in an attempt to outperform the market.
E2-1 (a) Accounting rule-making that relies on a body of concepts will result in useful and consistent pronouncements. TRUE (b) General-purpose financial reports are most useful to company insiders in making strategic business decisions. FALSE. General-purpose financial reporting helps users who lack the ability to demand all the financial information they need from an entity and therefore must rely, at least partly, on the information provided in financial reports. However, an implicit assumption is that users need reasonable knowledge of business and financial accounting matters to understand the information contained in financial statements.