by | Sep 16, 2022 | Accounting
FASB Lease update ASU_2021-05.pdf Write a summary of the document you have selected. Your paper should include such information as:
An explanation of the issues discussed in the document,
The FASB position on the issue including the FASB arguments supporting their position,
Discuss any opposing positions (review the comment letters as a source)
Discuss your position for or against the FASB position and explain why
Paper Requirements:
Case Analysis Requirements:
Based on your readings and peer reviewed literature complete this assignment
Writing/Presentation Requirements:
The body of this paper should be 2-3 pages (not including cover page, abstract or references) but not more than 4 pages.
This research paper requires a minimum of two scholarly references: academic journals, professional journals, and/or appropriate authoritative references such as FASB Codification System, COSO, COBIT, Audit Standards, etc.
Be sure to provide specific examples throughout your paper to back up your statements
by | Sep 16, 2022 | Accounting
Go to the website of any public company and review their (consolidated) financial statements. Review the financial statement and footnote presentation for their leases. Discuss and evaluate their reporting for leases based on professional standards in a presentation. include the financial statements as components of your presentation
by | Sep 16, 2022 | Accounting
Which of the following do you think a city should report as an “extraordinary” or a “special” item assuming that they are material in amount:
The settlement of an age discrimination lawsuit
The sale, at a sizable gain, of city‐owned land to a private developer
The unreimbursed cost of providing housing and other assistance to hurricane victims who have relocated from other areas
A major donation, which the city had actively solicited from a local corporation to support a city science center
According to the GASB, “Financial statements for governmental funds should be presented using the current financial resources measurement focus and the modified accrual basis of accounting.” Financial resources are conventionally defined as “cash, investments, and receivables, and other assets that can be expected to be transformed into cash in the normal course of operations.” Included among the assets of governmental funds are supplies inventories and prepaid items, such as insurance and rent. Yet neither of these appear to meet the definition of financial resources. In your opinion, should these items be reported on the balance sheets of governmental funds? In light of the conventional definition of financial resources, how can including them be justified?
You are the auditor of a state. The state made a $10 million grant to a city. The grant reimburses the city for allowable costs incurred in hosting a meeting of international leaders. The meeting was held two weeks prior to the end of the state’s fiscal year, but as of the end of the fiscal year the city had not yet submitted documentation of any costs incurred. The state comptroller asserts that no amount of the grant should be reported as an expenditure of the current year in that the state has no reliable information as to the actual amount of allowable costs incurred and that are thereby eligible for reimbursement. Do you agree with the comptroller?
A city on the coast of Florida has incurred losses (including impairment of assets, clean‐up costs, additional public safety costs, etc.) of $50 million owing to a recent hurricane. This was the third time in as many years in which the city was hit by major storms. Should the losses be classified as “extraordinary”?
by | Sep 16, 2022 | Accounting
Project – Conch Republic Electronics
You will find an Excel spreadsheet to be the most effective way of completing this assignment. Use the attached Conch Republic Spreadsheet to help you.
Conch Republic Electronics is a mid sized electronics manufacturer located in Key West, Florida. The company president is Shelley Couts, who inherited the company. When it was founded over 70 years ago, the company originally repaired radios and other household appliances. Over the years, the company expanded into manufacturing and is now a reputable manufacturer of various electronic items. Jay McCanless, a recent MBA graduate, has been hired by the company’s finance department.
One of the major revenue-producing items manufactured by Conch Republic is a personal digital assistant (PDA). Conch Republic currently has one PDA model on the market, and sales have been excellent. The PDA is a unique item in that it comes in a variety of tropical colors and is preprogrammed to play Jimmy Buffett music. However, as with any electronic item, technology changes rapidly, and the current PDA has limited features in comparison with newer models. Conch Republic developed a prototype for a new PDA that has all the features of the existing PDA but adds new features such as cell phone capability. The company has performed a marketing study to determine the expected sales figures for the new PDA.
Conch Republic can manufacture the new PDA for $200 each in variable costs. Fixed costs for the operation are estimated to run $4.5 million per year. The estimated sales volume is 70,000, 80,000, 100,000, 85,000, and 75,000 per each year for the next five years, respectively. The unit price of the new PDA will be $340. The necessary equipment can be purchased for $16.5 million and will be depreciated on a 5 year straight-line schedule.
Net working capital investment for the PDAs will be $6,000,000 the first year of operations. Of course NWC will be recovered at the projects end. Conch Republic has a 35 percent corporate tax rate and a 12 percent required return.
Shelly has asked Jay to prepare a report that answers the following questions:
What is the IRR of the project?
What is the NPV of the project, based on the required rate of return of 12%?
by | Sep 16, 2022 | Accounting
In this assignment students will review the accounting process for merchandising operations.
E5.1 page 5-41,
E5.3 page 5-42,
P5.2 page 5-47 parts a, b, and c,
P5.4 page 5-48 parts a, b, and c. Use MS Excel or Google Sheets for spreadsheets and statements.
by | Sep 16, 2022 | Accounting
Sales revenue is generated by the sale of inventory. Companies can choose between the perpetual and the periodic system to account for the inventory. Please discuss the difference between the two accounting processes and explain how one would be the best choice for a company that makes Televisions. Discuss the reason why one accounting method might be preferred over the other or could both be used properly for a company that makes televisions. What factors were used to determine the best choice supporting your selection. In your discussion, provide another product that would best be accounted for using the system you did not select and explain what features of the product or merchandise, in your opinion, are the drivers for the opposite method.
