Define Reportable Segment
The reportable segment is the section of development, it can meets the points in the following standard: the segment part generate long-term income that accounts for more than10 percent of the total’s; the segment part has total loss and benefits for the year equal to or in the outnumber of 10 more percent of the business’s total benefits or losses; the segment's part of total assets are worth to or more10 percent of the business’s sum of assets.
Segment reporting
Segment reporting was recognized the International Accounting Standards Board’s short-term object to cut down the differences between the International Financial Reporting Standards . January 2005 the international accounting standards board decided the
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The first equation is: Enterprise = visible assets + intellectual capital, it means intellectual capital is the total number of all intangible assets to run enterprises. This point explain why the intellectual capital is so important - intellectual capital is an integral part of corporate capital and no intellectual capital companies can not run, another point highlighted the intangible nature of intellectual capital. Traditional accounting intangible asset reflects only a part of the intellectual capital, so trademarks, patents and other intellectual property rights. Most related to business survival intellectual capital, such as goodwill, innovation, customer relations, because the limitations of traditional accounting methods, accounting statements could not show it’s value. the virtually assets are not from the traditional financial statements., but their value will be fully reflected by …show more content…
1. Direct Intellectual Capital Methods (DICM) – identify various composition for evaluating the dollar value of the intangible assets. after this components are identified, they also can evaluate directly, one of the individually and as an aggregated coefficient.
2. Market Capitalization Methods (MCM) – find the issue between a company’s market capitalization and its stockholders’ equity as the value of its intellectual capital or virtually assets.
3. Return on Assets Methods (ROA) average pre-tax benefits of a company and divide them by the company's average tangible assets. the end is a company ROA that is then compared with the industry average. The difference is multiplied by the average tangible assets of the company to calculate the average annual income from intangible assets. Through the company's weighted average cost will be higher than the average level of income subject to capital or interest rates, can be drawn on its estimated value of intangible assets or intellectual capital of.
4. Scorecard Methods (SC) – identify various components of intangible assets or intellectual capital and indicators and indices are generated and reported in scorecard or as graphs. SC methods just like the DIC methods, the reason is not evaluate is made of the dollar value of intangible
ABC offers separately priced extended warranties for appliances sold that are non-refundable and have no limits to the potential cost of honoring the warranty. Although ABC does track warranty profits and losses by appliance type, assume that no analysis has been performed to determine the rates at which cost are incurred throughout the warranty period. Assuming that manufacturer warranties provide coverage for the appliance for 1 year from the date of purchase, when should revenues and expenses of such warranties be recognized? FASB Accounting Standards Codification (ASC) topic 605-20-25-3 (Revenue Recognition) states that in regard to extended warranties “revenue shall be recognized in income over the period in which the seller is obligated
(Arnow & Xakellis, 2001). Assets An asset is any item or property that can be considered to have value, owned by a person or business, in this case we will deal with that of the health care business area. “Cash, accounts receivable, notes receivable, and inventory are
a) Accounting policies and comparison with international accounting standards: Net sales, cost of sales, gross margin, expense, operating income, interest income, taxes, cash, assets, long-term and short-term liabilities, Properties, common stock dividends, total shareholder’s equity are all the accounting policies. All of those and other financial data be used in preparing the Macy’s financial reports. In the section of the common stock. The company’s Board of Directors has the discretion of the declaration and payment of future dividends.
Non-current assets are items owned by an entity that cannot be converted into cash within one year. Goodwill is the value of the company’s reputation, location, and brand. Goodwill is an intangible asset. It appears on the balance sheet when a company buys another and pays more for the company’s intangible assets than tangible assets. There are three sources of goodwill of Dollarama Inc.
Section 401 requires liabilities, obligations etc to be included in these financial reports. Lastly Section 404
Intellectual property refers to creations of the mind, such as inventions; literary and artistic works; designs; and symbols, names and images used in commerce (Source 1). Some common types of intellectual property include, but are not limited to; trademarks, patents, copyright, and industrial design rights. While there has always been intellectual property, it was not until the late 1900’s that the term “intellectual property” was used. Intellectual property, like physical property, is owned by a certain person or group, who has legal rights over that property. Mr. Timothy Sykes and his company own the rights over all of his products, including the 9 DVD’s I downloaded and uploaded to my website.
Tootsie Roll Tootsie Roll industries is a company that has engaged its operations in manufacturing and selling confectionery products for over 100 years. The company produces a number of products including Tootsie Roll pops, charms and Blow Po among other products. This paper will highlight on the company’s accounting policies and estimates disclosures as well as looking at the company disclosures based on the identified policies. Revenue recognition One of the accounting policies that have been identified in the company’s annual report is the revenue recognition policy.
What do pro forma financial statements show? There are various things Pro forma financial statement shows but first, let’s understand the word pro forma which means a financial statement based on projection and assumption of what the business future would be to determine what should be happening now. Pro forma financial statement can be thought of as a “Projected results for financial statements in the future, given assumptions about what will happen in the meantime” (Siegel & Yacht, 2009, p. 81).
Term of Reference Background Objective Executive Summary Financial Ratios Formula Financial Ratios Analysis of BA and Ryanair Horizontal Analysis of Income Statement Vertical Common Size Analysis of Balance Sheet Comparison of the two companies Strength and Weaknesses Conclusions/recommendations --- Terms of Reference a) Background A success degree of one company can be measured by comparing its financial performance to its competitor. By assessing two companies, this will enable to adequately evaluate their current positions in the market, and to eventually learn as to which one of the two truly applies the better or most successful business model.
Analysis • This section is regarded as the most critical step in writing an effective accounting memo by bringing together the required facts of the research, any supporting authoritative literature, and an accountants overall evaluation before forming a conclusion. • Analysis includes information from relevant guidance, along with an accountant’s own words about how the guidance is applicable. • The memo should contain enough authoritative guidance that the user will not need to perform additional research in the Codification. • Make sure to utilize the concept known as the “guidance sandwich.”
Having different accounting standards in the world is a problem for multinational public limited companies and investors in order to be able to compare and evaluate financial statements (Doupnik & Perera, 2009). Due to the economic and financial scandals and meltdown in recent years, the pressure has been increased on some countries such as United States. Therefore, it must eliminate the gap between the International Financial Reporting Standards (IFRS) and US Generally Accepted Accounting Principles (GAAP). The world of accounting diversity will have consequences on such changes, and the standard convergence of US GAAP with International Financial Reporting Standards also largely affect corporate management, investment, stock market, accounting personnel and accounting standard setters. In addition, the convergence of accounting standards will change the approach for international accounting harmonization to CPA and CFO, it affects the quality of international accounting quality standards and the effort made toward GAAP and IFRS convergence
In the wake of achieving sustainability, the difficulties that lie ahead for Skillshare would be undertaking to remains competitive as far as services development and finding another request champion which would put them in front of their rivals. 7.3 Intellectual Property Issues A firm’s intellectual property comprises of intangible assets, which are considered the most significant to them. These assets will furnish a business with an upper hand in the business sector. The loss of its intangible assets could be just as unreasonable as a vanished physical property of a firm.
We used arithmetic average to determine the annual rate of return. As rate of return calculated using arithmetic average gives higher return compared to geometric average, investors are more likely to estimate their future return based on arithmetic average measure. Hence we use arithmetic average to measure the rate of return to match the expected rate of return required by investors. What type of investments would you value using Marriott’s WACC?
Balanced score Card?: WalMart Balanced Score Card?: WalMart University of Maryland University College By Robert T. Jordan Professor Smith DMBA 620 March 9, 2018 Introduction Balance score card (BSC) is a strategic tool used to enhance the performance management of a company. The BSC is very popular and it is widely used by companies and organizations throughout the world. A BSC helps companies set targets, set organizational goals, and achieve organizational goals.
Also many companies reporting related to the state of the value added or environmental information, these are concentrated in industrial sectors. The financial statements reflect the financial position of company, financial performance and cash flows of the company, it is significant to note that the correct depiction of the impacts of transactions and other events and circumstances according to the explanations and criteria identification of assets, liabilities, income and expenses go in the same outline (Brealey,