from abroad by national residents for rendering factor services in other countries and factor incomes paid to the foreign residents for rendering factor services in domestic territory of the country. Net factor income from abroad have following components: a) Net compensation of employees. b) Net income from property, i.e. rent interest and income from entrepreneurship. c) Net retained earnings of the resident companies working in foreign countries. d) Net flow of capital (i.e. inflow of capital – outflow of capital). Income Method: -Income method is also called Distributive Share Method or Factor Payment Method, which measures national income from the side of payments made in the form of wages, rent, interest and profits to the primary factor of production i.e. labour, land, capital and enterprise respectively for their productive services in an accounting year. According to this method, the income received by the residents of a country for their productive services during a year is added up to obtain national income. Thus, income method consists of adding together all the incomes that accrue to the factors of production by way of wages, profits, rents, interest and other values. This gives the national income classified by distributive shares. However, transfer payments and capital gains are excluded from NI. Thus, GNP is the sum total of following items or components: …show more content…
2 Wages and salaries: It includes sums received or deposited during a year by way of wages and salaries paid to households or workers by private firms and by the government as well as all other types of contributions like bonus overtime, commission, and social security contribution (provident fund, insurance,
The overtime issue is specifically related to non-discretionary bonus wages that were paid to employees based
For the tax years at issue, the taxpayer used a cash method of accounting for federal tax purposes. Costs were deducted immediately and income is recognized when payment is received. The Commissioner determined that the asphalt was merchandise meaning the taxpayer would have inventory and need to use the accrual method of accounting. As such, the taxpayer would recognize income upon completion of the job.
Today the courts would find the definition of gross income in Section 61 (a) of the Internal Revenue Code of 1954, 68A Stat. 17. The court does hold that the award of punitive damages
Pension Plans By Tay’veun Glenn Introduction Pensions are known as a retirement account that most employers maintain to give employees who have stayed with the company a payout upon retirement. Most employers give recipients of pension accounts a choice between a lump-sum payment or monthly annuity payments that are based upon the amount of time that the employee worked and their final salary prior to leaving the company. There are different types of pension plans and the use of each one is dependent on the employer. The Governmental Accounting Standards Board and Financial Accounting Standards Board both have to report pensions and have designated different ways to account for it.
Part II relays information about the employer’s group health coverage, and Part III reports information about any self-funded health coverage the employer has. This section includes the name of the enrollee and his or her Social Security number. The names and Social Security numbers of an employee’s dependents are also included, if covered. The level of detail will depend on the coverage required.
The fund is collected from income of the employee which also known as the income tax and payroll tax is the payroll of the employer. The state government collect the tax to provide a security the retirement fund of all people who work hard when they are young, thereby ensuring their live after retirement. The retired people will receive a small amount of monthly retirement pension.
You then must also consider the income that debtor once brought in that is
The DCF method has a lot of advantages over the Multiples approach, one would be that the DCF method considers the future of a company and values the future cash flows for every debt or equity holder. So, this method forces us to explicitly explore and analyze the fundamental factors that drive business value creation. Another advantage is the discount factor which shows us if a given company will be able to generate cash flows equivalent to its riskiness. A disadvantage of the DCF method is its complexity. The Multiples approach is usually only used to get a rough estimate how much a company could be worth.
Total rewards and compensation is the key component for all companies across every industry. Total rewards and compensation can either make a great company or deteriorate a great company. Tangible direct rewards, tangible indirect rewards, and intangible rewards are the three components to total rewards and compensation. (Valentine, 2014, pp. 368) Tangible direct rewards compose of base pay and variable pay.
Throughout the case, it can be seen how Cendant Corporation was performing activities that dealt with the interactions of income smoothing. The main cause of performing with Income Smoothing was to make their shareholders and investors believe that they had a professional and ethical operation running. Income smoothing can best be represented as how either gains or losses from a certain period are taken into a good or bad period with losses or no profits. Income smoothing throughout this case was used as an unethical practice performed by Cendant Corporation to achieve financial stability and falsify numbers to make the investors believe they had premium stocks when in reality it wasn’t what was really occurring which would then lead to the
Attached is the information you requested. I have been working with RTG on the first two items on the list. The $814.00 was a deduction for a shortage, which they have agreed should be paid. I am waiting for it to show on a check. The $75.00 relates to an invoice difference on freight (driver assistance).
6 Case Study: General Electric Expat Policy The following is a case study of a former expat Employee of General electric company who lived in china for 5 years for the purpose of the overseas assignment. The case studies the policy of the company and the certain processes followed by the problems that the expat faced during the term of his overseas assignment. Given the globalization, it has become the critical part of an organization to drive the expatriate opportunities for the their employees which in turn helps the organization to retain the top talent as well as to build the talent pool for more challenging roles with global best experience back in their country.
Usually the host-country nationals will have better understanding on the local market conditions, politics, laws and culture, so that they could manage subsidiaries effectively. For example, host-country managers are unlikely to make the mistakes arising from cultural misunderstands that expatriate managers are vulnerable to. Moreover, the recruitment of local employees also deliver a message to the host-country and its consumers that the company is willing to make a commitment to the country and its people. Another advantage is that polycentric approach is less expensive to implement as there are no relocation expenses and premium compensation for working abroad.
The demographic segment is commonly analyzed on a global basis because of their potential effects across countries’ borders and so the level of change in GDP (Gross Domestic Product) might affect global companies. For Sany Heavy Industry Co. Ltd, a Chinese multinational heavy machinery manufacturing company, the GDP growth in domestic and overseas countries has significant effects on
Equality, like fairness, is an important value in most societies. Irrespective of ideology, culture, and religion, people care about inequality. Widening inequality also has significant implications for growth and macroeconomic stability, it can concentrate political and decision making power in the hands of a few, lead to a suboptimal use of human resources, cause investment-reducing political and economic instability, and raise crisis risk. The economic and social fallout from the global financial crisis and the resultant headwinds to global growth and employment have heightened the attention to rising income inequality.