The $5,000 received after the trading period qualify as income for the period ended 30 June 2010. This is in accordance with accruals accounting method. income is recognized when it is earned. All this is in accordance with and requirements of section 6-5. The trading stock for Philip’s business has to be evaluated according to the general rule of accounting for stock-S70-35(1). The difference between the opening and closing stock is added to assessable income because the closing stock exceeds opening stock-S70-35(2). The allowable deductions (division 8) include the $2,000 which was an expense from the replacement of the air conditioner-S25-10. The amount is minimized to the cost that Phillip incurred since he resold the air conditioning system which generated back income-S6-5. W Thomas co v FCT? bought a building and did not know that the building had damage when they bought it – the courts held that the ATO will treat expenditure that remedies defects, damage or deterioration to property as capital if the defect, damage or deterioration existed at the time of acquisition of the property, and did not arise from the operations of the person who incurs the expenditure. Note – the mere fact that the purchaser did not know that initial repairs were needed at the time of purchase is irrelevant. His interest accrued on a loan that was used in renovating the rental houses resulting in a generation of assessable income-S25-25(1). The $500 he used for replacing the light bulb is also a deductible income since it falls under repairs and replacement-S25-10. Fine paid by Phillip to the local does not qualify as a deduction as per the S26-5 stating that penalties are not deductible amounts. The expenses incurred in the manufacturing of the tennis racquet also, are a part of the deductible allowance as it is an expense incurred in generating an assessable income-S8-1. Under Division 30, donations are deductible allowances as long as they are voluntary and, no collateral claimed. This can be related to the charity donation. However, the gifts he presented to family and the 5 racquets he took for personal use do not qualify as deductible allowance-S26-54. Paper 2 Joan’s total taxable income Joan’s income $ $ Salary 375,000 Home ware magazine 24,000 13,500 537,500 Agreement 230,000 Payment for damages through accident 360,000 590,000 Total assessable income 1,127,500 Allowable deductions $ $ Pain and suffering 10,000 University Union fees 650 Textbooks 750 Photocopying and writing aid 350 Travel 450 2,200 Total allowable deductions 12,200 Joan’s total taxable income Assessable income 1,127,500 Allowable deductions 12,200 Total taxable income 1,115,300 Joan’s total taxable income amounts to $1,000,300.
The annual report not only contains the financial statements such as income statement, balance sheet, or cash flow statements but also other reports such as director’s report, auditor’s report, corporate social responsibility information, etc. In short, the annual report contains company’s business functions, products or services, sources of finances and resources, human resource involvement, countries of operation, responsibilities and contribution towards society, performance in terms of revenue generation, financial and accounting standards that it follows, and future goals or objectives structured for the next year (Thomsett, 2007, p. 5).This report is Sparkle Plc., a company which deals with cleaning products. Sparkle Plc. want to prepare their annual reports to attract more investors and also present a transparent image to their existing shareholders. The board of directors of the company already has the idea that the annual report would include the financial statements of the company. However, as discussed it is not only the financial statements that are important because many investors do not and cannot assess the financial health of the company only through revenue figures. So this report would include a detailed analysis as to what information should be included to make the annual report of Sparkle Plc. complete and appropriate to the shareholders and potential investors
I can be creative in emergent atmospheres and can face difficulties. I can adapt creative thoughts and proposals and setting goals and achieve them. I have completed a Master degree in Business Administration specializing in Human Resource Management. I possess work experience as 1st Lt. Officer in Abu Dhabi Police G.H.Q-(Strategic Department). Also, I had been a Warrant Officer in the ministry of interior- Ras Al Khaimah Police HQ. The work responsibilities included being the manager of Women Police (Financial Administration Affairs- Personnel), head of revenues, head of audit, manager of aftercare in dept of criminal investigation and dept of drugs, secretary of drugs director. I was part of the International Emirates Bank – Ras Al Khaimah as a Dept. Supervisor in personal loans, car loans, credit loans, customer service, secretary, remittance, and accounting. I have also completed administrational training courses in planning and performance measurement, financial training courses, and also computer training courses. I have also undergone military training courses in women police basics and a course in chemical precursors. I have also received a certificate of appreciation for performing the strategic developing plan for the Abu Dhabi Police Departments in 2009. I have also been a frequent participator in various global and local events. I participated in the conference of latest practices in the management of change and organizational development and also been a part of the 2nd world conference for organizational talent development program, world latest practices in leadership, and few others. I was also part of the strategic development plan of the Abu Dhabi Police Department. At present, I have submitted a proposal for a thesis for a doctorate to Birmingham University, United Kingdom titled “Systematic analysis of the human resources strategy and its role in the process of change”.
The reasons have been discussed in the paper to great length, the ultimate answer to the question being that GDP is not the only key aspect that helps in measuring the welfare or happiness of a nation and that there is more to that.Gross Domestic Product is a value of all the final goods and services that are produced in the domestic territory of an economy, within a single accounting year. This is used as a measurement for finding out the different levels of growth in an economy. Not only that, but the GDP is used to compare the growth and development of one economy with another as well. However, with time, many economists have begun trying to find out the happiness index faced by the citizens of a country, with the help of the GDP.However, they fail to pose the following questions. what is the relationship between GDP and welfare? Can GDP be regarded as a good index of welfare among the people of a country? Or is it simply a measure for finding out the kind of growth and development the economy has undergone, not taking into account the actual distribution of wealth?While looking at the figures of per capita income and national income of a country, on the whole, one may find that the country is prospering very well and has achieved growing levels of independence when it comes to its market segments and trade-related areas. The country might be doing really well in almost all fields – right from the primary to the tertiary sector. But just because something looks good from the outside, it cannot be judged inside as well, can it?In simple terms, the capacity to purchase goods and services is what makes people feel satisfied. However, this capacity or purchasing power is available to the people of a nation on the basis of their incomes. If they have low incomes, then they are able to afford lesser and vice versa. The happiness index of a person thus depends on the kind of satisfaction he is able to achieve, which in turn, as discussed above, is a direct reaction to the level of income earned by him.
Narsimha Rao and the finance minister Dr. Manmohan Singh in the year 1991. Through this reform foreign direct investment was brought in many sectors. By the 20th century India headed towards a free market economy which reduced the state control of the economy with increased financial liberalization (Datt Sundharam, 2009, p. 976). The Indian economy is the eleventh largest in the world by the nominal GDP and the third largest in terms of the PPP (Purchasing Power Parity). In 2010-2011 India maintained a GDP growth rate of around 8% thus bringing down the fiscal deposit of the country to 4.8% of GDP by maintaining a current account deficit to 2.6%. However, the fiscal year 2001-2012 has been a challenging for the Indian economy. With the progressing year monetary tightening was witnessed in response to the untamed inflationary pressures. The gradual increase in inflation of the Indian economy resulted in slowing down the growth rate of India. In spite of the economic turmoil in the country India still is goring at a rapid pace in comparison to other developing countries. This in turn is enhancing the opportunity of India to push through further reforms, generate economic opportunities and create infrastructure for the country (“Current State of Indian Economy”, 2012, pp.1-7). The Indian financial market has progressed over the years especially in the banking sector with 14 nationalized banks to provide 40% of their net credit to priority sectors so as to fulfill the developmental and social goals of the country. Company’s Business HDFC bank mainly provides service in wholesale banking, retail banking and treasury services undertaken by the company. In the whole sale banking the target customers of the… This paper shows that according to the study of HDFC bank we can conclude that the company is performing very well even ender the turmoil economic situation of the country. The evidence of which is their increased net profit which has amounted to Rs.113, 413, 323, 000. But the cost of revenue of the company has increased over the year which is cause of concern for the bank. The company is listed in National Stock Exchange in India. The bank has made some investment decision which has resulted in negative returns for the company. This has reduced the cash and cash equivalents of the company to Rs. 209, 377, 263, 000. The accounting principles that is adopted in India is a little different from that of IFRS which is usually applied in developed countries like America, Europe, etc. Thus the item under consideration is usually a little different from that of a manufacturing company and so is their process of accounting. Hence, the bank under consideration has been successful in generating an income of Rs. 325,300,466,000. This paper approves that the impairment of the assets is usually assessed in the balance sheet of the company. The occurrence of the impairment loss, if any is forecasted in the profit and loss statement of the company. This generally arises when the carrying cost of the assets exceeds the estimated recoverable amount. The revisions of the accounting estimates are prospectively recognized both in current as well as future periods.
Tesco Plc complies with International Financial Reporting Standards (IFRS). Specifically, Tesco Plc’s £4,338 m goodwill and other intangible assets amount complies with IFRS no. 3, Business Combinations, which states that must identify and fair value the intangible assets amortization charges and costs. IFRS defines an intangible asset as lacking physical substance and are not financial instruments. Likewise, IFRS requires entities can identify the intangibles. To identified, the intangible asset can be bought or sold. Goodwill is one of Tesco’s IFRS- based intangible assets (Kieso, Weygandt, Warfield 2011).Inventories. Tesco Plc’s 2011 inventory is £ 3,162 m. Inventories are valued at lower of cost and fair value less selling costs. IFRS states that market price is equivalent to the inventories’ net realizable value. IFRS does not approve of U.S. GAAP’s use of the ceiling and floor factors in computing for market prices. IFRS agrees with U.S. GAAP in terms of recording the cost of the inventory. Tesco Plc’s inventories include the goods displayed in the company’s sales counters. The company’s inventories also include properties in the course of development. Tesco Plc complies with IFRS concepts (Kieso, Weygandt, Warfield 2011). Property, Plant, and equipment. The company’s £ 24,398 m property plant equipment amount complies with International Accounting Standards. IAS 16 mandates that the company recognizes the cost of the property, plant and equipment amount. The carrying value is the resulting from the depreciation expenses from the cost of the property, plant, and equipment accounts (Kieso, Weygandt, Warfield 2010). Intangibles. Tesco records its intangibles in compliance with IAS 38, Intangible Assets. The standard mandates all entities to record all intangible assets that include software, licenses, customer relationships, contracts, and brands at cost. The intangible cost is amortized over the straight-line basis during the intangible assets’ remaining useful life. In addition, management must record the research and development as expenses, not amortized over the remaining life of the asset involved. The standard requires that research costs should be expensed outright and development costs can be capitalized (intangible assets) if the asset will generate future economic benefits (Nikolai, Bazley, Jones 2009). The inventory value complies with IFRS’s implementation of IAS no. 2, measurement of inventory. The standard requires entities to record their inventories at lower of cost or net realizable value. Cost is equal to the purchase cost, cost of conversion, and other costs incurred in bringing the inventories to their present location (Esptein 2008). Some of the contents of the Audit Committee Chairman’s report are irrelevant. One irrelevant content is stating the group internal controls and risk management processes are embedded in their businesses. All businesses are required to implement internal controls to reduce or stop fraudulent and erroneous transactions.
Introduction: Leasing is an important concept in asset management and trade. A lessor can lease out an equipment, building, machinery, vehicle, etc, and enjoy the benefits of getting capital of their value in circulation. Many companies find certain assets of no significant use in their business. The lease out such assets and as the lease amount gets transferred to the lessee, the lessor can again lessee the lessor, the risks and benefits of ownership get transferred to the lessee. Lease specifies the contingent liabilities returns, fixing responsibility for maintenance of assets and availing of depreciation. Diversity in accounting practices and a system of rapid and 100 percent finance for fixed interest rates makes leasing a subject matter of inquiry.The ABSB defines a lease as an agreement whereby the lessor conveys to the lessee in return for a payment or series of payments the right to use an asset for an agreed period of time (AASB 117 para 4). As the lease period increases from short term to long term the risks and rewards associated with ownership shifts from the lessor to the lessee. There are two types of leases—1. Operating Lease. 2. The Finance Lease.Finance Lease: In the Finance Lease, the fair value of the asset is taken into account. Fair value is the actual cost of the asset assessed at the time when the lease agreement is signed. The lessee then pays the amount of interest on the lease amount which is called the finance charges. The Finance Lease last for most of the life of an asset that it can be put to good use. The ‘time of good use’ is agreed upon by the lessee and lessors with the help of analysts before the signing of the lease agreement. In other words, the company can avail the depreciation benefits only for such a time as the asset can put to good use. It is recognized in the finance lease that at the end of the lease period the ownership gets transferred to the lessee. The Present Value of the Lease is arrived at calculating the interest over the years, the lease is valid.
From the closer assessment of my personal and professional skills, it is apparent that the following skills were developed from the course: analytical skills, critical thinking, and intellectual growth from increased inputs on AIS concepts and theories, comprehension skills, the ability to interpret and apply required tasks and activities, an increased understanding of financial and accounting operations of an organization, among others. Further, skills to enable me to comply with the needed follow-through in the module are likewise improved: prioritization of tasks or time management, problem-solving skills, introspection and even decision-making skills.The given lectures do not only provide the required explanation for terms being the subjects of discussion. but more importantly, learning goals are identified and illustrations are provided to guide and enhance learning skills. For instance, the topic on transactions processing gave students the lay-outs for sales or revenue cycle, as well as other cycles such as the purchasing, payroll and fixed asset cycle. These layouts assisted students in understanding the theories through a visual representation of elements and interactions among stakeholders: managers, different departments, and external institutions (suppliers, government, and customers).I realized, however, that there were some topics which are generally difficult to understand given the nature and level of complicated concepts that were presented. For example, the topic of IS auditing was a fairly difficult topic that aimed to provide concepts in the most concise form. It, however, was successful in providing a general overview of the audit techniques and steps from a student’s perspective. Both critical and analytical skills are improved in this phase. I realized that students who developed a deeper interest in the subject would need to make additional research or undertake additional courses on that topic alone.
3). Basically, the statutory audit can be defined as the legal requirement to review and determine the accuracy of the financial statements of a company or government (including its agencies). Kumar and Sharma (2005, p. 41) notes that for audit to be considered proper there are certain thresholds that should be attained key among them the independence of auditors and the presentation of the opinion in accordance with Generally Accepted Accounting Principles (GAAP). In the light of these thresholds, concerns have been raised by certain stakeholders as to the relevance of statutory audits in today’s business environment. Their concerns are informed by the argument that the independence of auditors is sometimes compromised and some of GAAP flouted to attain certain objectives by the entities’ management, resulting to untrue and unfair representation of financial statements (Drent, 2002, p. 50). It is for this reason that it is necessary to probe into the statutory audits’ true fulfilment of societal mandate of offering true and fair opinion of audited entities’ financial statements (European Commission, 2010, p. 3).In order to ascertain the relevance of audits in today’s business environment, this discussion will cover the following aspects: What does it mean to express an opinion on the truth and fairness of financial reports? How relevant is this expressed opinion in today’s business environment? What are the limitations of an audit and to what extent, and how, are these limitations compensated for? In addition, the discussion will briefly discuss the following aspects: when are statutory audits required? What does “fitness for purpose” mean within the auditing realm? What is the expectation gap and how is this managed in practice?What does it mean to express an opinion on the truth and fairness of financial reports? Auditing entails independent examination of the financial statements of public- interest entities with the view of expressing an opinion on whether those statements represent the true and fair view of the financial position of the audited entity (Gray and Manson, 1999, p. 8).
The company was quite big in size adding $45 billion in revenue in 1987 in comparison to previous acquisitions wherein changes to MIS were necessitated as in the case of retail cookie chain, the Chocolate Chip Company in 1984 but LPB baked and served products, according to Randy were, “a logical extension for the bakery aspect of Mrs. Fields’ cookies.” The same rule was applied to the company’s technological processes also so that leverage could be made from the already operational MIS system without tailoring it to the needs of management functions of LPB. Management at Mrs. Fields was of the opinion that different department heads functional at LPB like accounting, finance, human resource, and training could be assimilated in their MIS system positively.Imagining me in the position of an LPB store manager could be like waiting my turn to be declared incapacitated to work in the new environment. The system I had been habitual to work got vanished. All those reporting to me their job duties remaining absent from work and instead of finding solace in the generated MIS reports and taking action on the basis of new workflows I had not been a part of, could have put me easily in an awkward position. Without any orientation and training of the new IT structure, I could have been a disaster and liability for the company. The reporting structure at Mrs. Fields was such that all senior-level and middle-level managers besides the company bosses had to be informed of all jobs performed. Was I such a soft nut to crack? Certainly not!The other side of the scenario could be some initial jerks but with the passing of time, assimilation in the new environment would have happened, enabling me to work in my comfort zone. Considering me an IT-freak, actually, it would have been a good opportunity to learn the IT-enabled processes and perform under the new work structure at LPB, organization.