Under U.S. GAAP, property, plant, and equipment are reported at historical cost net of accumulated depreciation. These assets are written down to fair value when it is determined that they have been impaired. A number of other 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. The primary argument favoring revaluation is that the historical cost of assets purchased ten, twenty, or more years ago is not meaningful. 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.
This differs from other forms of business organizations, S corporations are required to use the calendar year unless they can establish a business purpose to use a fiscal year. Partnerships has to have the same tax year as their partners who have a majority interest unless there isn’t one then they use the same year of all its principle partners, unless none exists then the least aggregate deferral method must be used unless the partnership can establish a business purpose to use the fiscal year. 14-22 What are the differences in the treatment of capital gains and capital losses of corporations and of individuals? Solution Corporations cannot take deductions for net capital losses in the year in which they occur and can never use net capital losses to reduce ordinary income. Corporate taxpayers may use capital losses against capital gains; however losses can be carried back.
The company believes that he is an administrative employee and therefore exempt from receiving over time pay Issue The legal issues in this case is whether not paying Michael overtime pay constitutes discrimination on non-payment of overtime pay as stipulated in Fair Labor Standards Act of 1983 (FLSA) 29 U.S.C. § 207(a), or is he an exempt employee performing administrative duties and therefore not liable for overtime pay. Rule
It is your company responsibility for keeping records of your business expenses and personal use of any property used by your company during the period covered by the period covered by the above return. 1. I will perform the following services: I will compile from information you provide, the ___________financial statements of the company for the _________ ending_____________. A compilation is limited to presenting in the form of financial statements information that is the representation of management. I will not review or audit the financial statements and accordingly, will not express an opinion or any other form of assurance on them.
Make a recommendation to the CFO for the issuance of restated financial statement restatement. Identify at least three (3) significant issues that can result from the failure to issue restated financial statements. Examine the economic effect of restatement of the financial statements on investors, employees, customers, and creditors. Use five (5) quality academic resources in this assignment. Note: Wikipedia and other Websites do not qualify as academic resources.
Make a recommendation to the CFO for the issuance of restated financial statement restatement. Identify at least three (3) significant issues that can result from the failure to issue restated financial statements. Examine the economic effect of restatement of the financial statements on investors, employees, customers, and creditors. Use five (5) quality academic resources in this assignment. Note: Wikipedia and other Websites do not qualify as academic resources.
Apple may choose to reimburse employees for nonqualified expenses as well, however, these amounts are subject to income tax withholding, FICA and FUTA. Those expenses that are unreimbursed by Apple and are considered “qualified moving expenses,” can be deducted by completing form 3903. Unqualified moving expenses that are not reimbursed by Apple, cannot be deducted and thus taxpayers cannot submit these items as deductible moving expenses. According to Publication 521 (2013), those employees who experience a loss on their sale of home and are reimbursed by their employer, must include the reimbursement amount in their taxable income. With this being the rule, even if Apple were to provide its employees with an accountable plan, it is treated as paid under a non-accountable plan and reported on the employee’s taxable
The government uses the CAFR along with a budget document to compare the total financial standing to the general purpose annual budget with everything The CAFR shows the total of all financial accounting the basic general purpose budget reports so that these report are not used along with any other miscellaneous uses, such as investment accounts included in government budget. The responsibility is exercised by Harris County Commissioners Court, but not all the financial information of Harris County is not within the scope of Mental Health and Mental Retardation Financial Statement. MHMRA of Harris County, is included as a component unit under the general purpose financial statements of Harris County because of the County’s ability to significantly influence its operations. The definition of the reporting entity is based primarily on the notion of financial accountability. A financially accountable organization makes up a legal entity.
Nonetheless, liability disclosure on the balance sheet is not required. What’s more, is that OPEBs are deemed similar to defined benefit plans; however, they have three differing characteristics: OPEBs are dependent upon the amount of future services; whereas, defined benefits are calculated by formula, employees do not accrue OPEBs with each additional year of service, as they do with defined benefits, and “OPEBs do not vest (Schroeder, Clark, & Cathey., p.458).” As a result, the following components of OPEBs are treated differently than those found under defined benefits: service cost, interest, amortization of prior services, amortization of the transition obligation, and disclosure. Disclosure of OPEBs along with the funding policy and amounts as well as types of funded assets, its components and reconciliations must be reported in the financial statements of an organization. Additionally, “assumed health care cost trend rates [and] the effects of a one-percentage-point increase in the assumed health care cost trend rates” must be disclosed (Schroeder, Clark, & Cathey.,
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.