General Accepted Accounting Principles Of Accounting

General accepted accounting principles Name Institution Professor Course Date Introduction General Accepted Accounting Principles, (GAAP) can be defined as the common set of accounting rules, standards and protocols, set by policy boards, which financial institutions and other companies use to assemble their financial statements. On the other hand, International Accounting Standards Board develops and maintains the International Financial Reporting Standards, which is a single set of accounting standards set aside with the aim of being applied internationally. As an accounting standard used in a number of countries across the world, IFRS have proven to be more effective in the representation of economics of transaction more than GAAP since it is based on principles rather than rules (Bellandi, 2012). Following the way IFRS treats acquired intangible assets, it is considered more principle based and therefore the assets are only recognized if they will have future benefits economically and has a measured reliability. On the other hand, acquired intangible assets are recognized at a more reasonable value under the U.S. GAAP. According to Chiti Mattarella (2011), the last in, first-out (LIFO) method of accounting for inventory costs, is not allowed under the IFRS. On the other hand, LIFO or first-in last-out (FIFO) methods are used under the U.S. GAAP. Written inventories under the IFRS can be changed in the future if certain criteria are met whilst these cannot beShow MoreRelatedGeneral Accepted Accounting Principles ( Gaap ) : The Revenue Recognition3817 Words   |  16 Pages Accounting Standards Update 2014-09 Revenue from Contracts with Customers (Topic 606) ACCT 610 Financial Reporting and Disclosure Daisy Gaytan California State University, San Bernardino Abstract 1. General Accepted Accounting Principles (GAAP): The Revenue Recognition Principle Revenue recognition is a difficult matter in accounting. The company’s results differ depending of the method used to recognized earnings. This is a complex situation since business activities are broadRead MoreCorporate: Generally Accepted Accounting Principles and General Reserve1598 Words   |  7 PagesCorporate Accounting III Assignment 2 Question 1: What is the difference between direct and indirect NCI? Under AASB127, the group is required to prepare the consolidation statement when parent entity acquires shares in the subsidiary. There are two parties who own shares in the subsidiary if it’s not a wholly-owned subsidiary consolidation. One is the parent entity while the other is non-controlling interest. Non-controlling interest (NCI) is defined as â€Å"the portion of the profit or loss andRead MoreGeneral Accepted Accounting Principles958 Words   |  4 PagesAccounting Principles i Running head: GENERAL ACCEPTED ACCOUNTING PRINCIPLES General Accepted Accounting Principles Accounting Principles ii Abstract My paper is about the GAAP (General Acceptance of Accounting Principles) which were created by the Accounting Principles Board (APB). The board was created by American Institute of Certified Public Accountants (AICPA) in 1959. APB issued 31 Opinions from 1959 to 1973 and those Opinions created GAAP. I think GAAP is interestingRead MoreEthics774 Words   |  4 Pagesbuilding blocks for all accounting records and business transactions that occur. We cannot forget that decisions are based on the organizations fiscal objectives others are based on general accounting principles. So to better understand you must ask the question of â€Å"Is the financial management of the organization strong and how is the financial reporting records validity†? When we think of financial management we have to start with the basic framework of any accounting structure and that wouldRead MoreHcs 4051142 Words   |  5 Pagesproper reporting practices. Financial practices and ethical finance concerns are important to the success of any organization, particularly within the health care industry. The four elements of financial management, generally accepted accounting practices (GAAP), and general financial ethics standards are part of ensuring fair and accurate financial reporting from health care organizations. Examining examples of ethical standards of conduct and reporting standards helps to understand the impact ofRead MoreEssay about Generally Accepted Accounting Principles1217 Words   |  5 PagesThere are general rules and concepts that preside over the field of accounting. These general rules, known as basic accounting principles and guidelines, shape the groundwork on which more thorough, complex, and legalistic accounting rules are based. The Financial Accounting Standards Board (FASB) uses the basic accounting principles and guidelines as a foundation for their own comprehensive and complete set of accounting rules and standards. GAAP is exceptionally useful because it attemptsRead MoreBAF 301 Accounting and financial management Assignment 1 Mohammad Gholamali 20101147 Dr. Suja900 Words   |  4 Pages BAF 301 Accounting and financial management Assignment 1 Mohammad Gholamali 20101147 Dr. Suja Sarah Thomas Colleague of Electrical Electronics Engineering Introduction In this report I am going to write some of the important principle and assumption and guidance used to prepare accounting statements. In the world of business there are some general rules and principles which the universe of accounting uses them as a general guidance. There are some international framework like Financial accountingRead MoreEthical And Legal Obligations In Accounting Essay1330 Words   |  6 PagesMarshall (2004), accounting is the process of identifying, measuring, and communicating economic information about an organization for the purpose of making decisions and informed judgements (p. 3). Specifically, financial accounting refers to the process that results in the preparation and reporting of financial statements for an entity (Marshall, McManus, Viele, p. 5). While many entities prepare their own financial statements, firms can also contract with a public accounting firm or a CertifiedRead MoreWalmarts Accounting Principles1090 Words   |  5 PagesFour Accounting Principles Sharon Wallace American Intercontinental University Accounting Principles 2012 Four Accounting Principles ABSTRACT Accounting principles used by Wal-Mart and the core function of its departments. Wal-Mart’s strength and weaknesses will be listed. Wal-Mart’s last two years of accounting statements are also present. FOUR ACCOUNTING PRINCIPLES Read MoreGovernmental Non for Profit Accounting Chapter 2 Quiz Essay755 Words   |  4 PagesChapter 02 - Principles of Accounting and Financial Reporting for State and Local 11. The accounting system used by a state or local government must make it possible A. To present fairly the financial position and results of financial operations of the government as a whole, as well as fund financial activity in conformity with GAAP, and to demonstrate compliance with finance-related legal and contractual provisions. 12. Which of the following is not a characteristic of a fund as defined by GASB

Conflict Resoluton in the Classroom Free Essays

Running Head: INCORPORATING CONFLICT RESOLUTION 1 Incorporating Conflict Resolution Melinda McCray Concordia University INCORPORATING CONFLICT RESOLUTION 2 As an educator, it is important that I not only know how to effectively deliver the curriculum to my students, but to also be able to effectively manage my classroom. Managing the classroom is not just writing disciplinary referrals or assigning detentions, but also includes making the proactive decision to prevent and mitigate conflicts as they arise in the classroom. While all conflicts obviously cannot be prevented, teachers must be instrumental in guiding students to resolving their conflicts. We will write a custom essay sample on Conflict Resoluton in the Classroom or any similar topic only for you Order Now Thomas Lickona (1991) touches on guiding students through conflicts. He writes, â€Å"even if students have the benefit of a conflict curriculum, social skill training†¦ many will still have trouble applying these learnings†¦ In these situations the teacher usually has three tasks: (1) Helping students understand†¦ (2) Helping students work out a fair solution†¦ and (3) Helping children practice the behavioral skills†¦. (294-295). While some of these suggestions may not be applicable to high school students in some instances, I think that Lickona’s suggestions have merit. In my classroom, I could certainly incorporate helping my students practice good behavioral skills. I would definitely focus on the moral aspects of discipline and behavior, because students can relate to how they would like to be treated, using the â€Å"what if† scenario. Morality of mind is always an incentive to encourage a child to behave in the proper way. Community involvement is not always that easy at my school, but using our parent liaison could be a step in that direction. Maybe the liaison could reach out to the parents when teachers cannot. Lickona(1991) suggests that observant teachers know the situations that trigger situations, (295) as one such teacher, using effective conflict resolution strategies such, one-on-one counsel, seating arrangements, and modeling good moral conduct is the way I plan to continue to resolve conflicts as they arise in my classroom and keep the classroom environment safe. References Lickona, T. (1991) â€Å"Educating for Character† How our schools can teach respect and responsibility. New York: NE Bantam Books How to cite Conflict Resoluton in the Classroom, Papers

Corporate Finance Future Expansion Plans

Question: Describe about the Corporate Finance for Future Expansion Plans. Answer: Introduction The present report aims to provide advice to Woolworths as a financial advisor for supporting its future expansion plans. In this context, the report demonstrates the current financial standing information of the company by analyzing its market value, share value and debt to profit ratio. It also describes the recent capital raising activity of the company through share equity financing or debt financing. In addition to this, the financial strategy is also analyzed to gain an understanding of the strategies used by the company to raise funds. At last, the report provides advice to the company for raising capital in order to fund its future expansion plans. Background of the company Woolworths Limited is an Australian company that is involved in retail business in the country offering food, petrol, liquor, home improvement and general merchandise products to the customers. The company is recognized as largest supermarket chain of the country and operates about 961 stores across the Australia. It is publicly listed on Australia Stock Exchange (ASX) since past 20 years. The company is believed to employ about 111,000 people in its retail stores, distribution centers, and support offices for providing customers high quality products conveniently. The company is recognized as Fresh Food People as it procures about 98% of fresh fruit and vegetable from Australian farmers and growers (Woolworths Supermarkets, 2012). Woolworths Current Financial Standing Position The current market capitalization of Woolworths is around 28.72B and it shares are worth around $ 19.87 (Raszkiewicz, 2015). The debt/equity ratio indicates the financial leverage of the company and is calculated by dividing the total liabilities by stockholders equity. The best/equity radio of Woolworths for the financial year 2015 is calculated as follows: Formula: Debt/Equity = 5331/10834 = 0.49 The ratio indicates the incorporation of more equity in comparison to debt in the capital structure of the company. This is a good sign for the company as it decreases the business risk and therefore supports its long-term growth and development. As indicated by debt/equity ratio, the company incorporates more the use of equity as compared to debt for financing its assets (Annual Report, 2015). Thus, it is analyzed from the market value, share value and debt to equity ration of Woolworths that its current financial position is stable but the company must take future measures for increasing the share prices as market value of shares are low as compared to the previous years. Capital Raising Activity of Woolworths The companys performance is declining in the recent years due to the huge investments made by it in sectors such as home improvements. This caused a shift in focus of the company from manufacturing its food products from fresh ingredients to other sectors causing a decrease in its profitability. The fund manager is currently planning to raise the capital through asset sales of its unprofitable home improvement business (Heffernan, 2016). The credit rating of the company is under risk with rapid decline in its supermarket sales in the past few financial years. The board of directors is cutting down the dividends paid to the shareholders by about 30 per cent and also reducing the payout ration from 70 per cent to about 50 per cent. This is done to retain cash and thus strengthen the balance sheet of the company for improving its credit rating (Mitchell, 2015). The company is also currently emphasizing on incorporating more debt in its capital structure for meet out its current liabilit ies (WOOLWORTHS HOLDINGS LIMITED 2015 INTEGRATED REPOR, 2015). Thus, it can be said that the company is preferably incorporating the use of equity and debt financing both for raising its capital structure. Woolworths financial strategy The financial strategy of the company includes appropriate capital structuring for enhancing the shareholder value. The company pays good dividends to shareholders through optimizing its weighted average cost of capital (Annual Report., 2015). The debt financing policy of the company includes creating an adequate match between long-term debt to long-term equity, minimizing re-financing results and hedging of interest rate for outweighing the potential risks from foreign currency exposure. The board of directors ensures the presence of certainty in liquidity position for meeting the challenges of occurrence of any global financial crisis. The companys incorporate the use of equity financing largely for maximizing shareholder value. It seek to provide highest dividend to shareholders through reducing its liabilities from debt financing (Managing Directors Report Capital Management and Outlook., 2012). Woolworths is also recently utilizing the use of its balance sheet for raising capita l as to reduce its dependence on debt financing. The company is reducing its payout ratio and re-selling its unprofitable assets for enhancing the equity proportion in the capital structure (Mitchell, 2015). However, the company is also currently planning to increase the debt proportion in its capital structure for meet its current liabilities (WOOLWORTHS HOLDINGS LIMITED 2015 INTEGRATED REPOR, 2015). Conclusion On the basis of the overall discussion held in the report, it can be concluded that current financial position of Woolworths is not sound as it is facing huge loss in its profitability owning to less market sales of its retail products ion home improvement category. The company, is recommend to emphasizes on its main business area, that is, manufacturing fresh food products by divesting its unprofitable businesses for regaining its market leader position in the retail sector of the country. It has invested largely in the manufacturing of products such as home improvement, petrol station, liquor that are not proving to be largely profitable for the company. The company can acquire funds through selling its non-profitable business units and therefore raise capital for supporting its future expansion plans of acquiring finance for production of its main business area of food products. The Company should also incorporate less debt in its capital structure as it would increase the future liabilities posing a threat for its sustainability. The company should focus largely on incorporation of equity financing for reducing the business risk of increasing liabilities. References Annual Report. 2015. [Online]. Available at: https://www.woolworthslimited.com.au/icms_docs/182381_Annual_Report_2015.pdf [Accessed on: 19 September 2016]. Managing Directors Report Capital Management and Outlook. 2012. [Online]. Available at: https://www.woolworthslimited.com.au/annualreport/2012/md-capital-management-outlook.html [Accessed on: 19 September 2016]. Mitchell, S. 2015. Woolworths dividend, credit rating at risk. [Online]. Available at: https://www.smh.com.au/business/retail/woolworths-dividend-credit-rating-at-risk-20151103-gkq2lr.html [Accessed on: 19 September 2016]. Heffernan, M. 2016. Capital raising, store closures may be in store for Woolies. [Online]. Available at: https://www.smh.com.au/business/retail/capital-raising-store-closures-may-be-in-store-for-woolies-20160722-gqbiae.html [Accessed on: 19 September 2016]. Raszkiewicz, O. 2015. How much are Woolworths Limited shares REALLY worth? . [Online]. Available at: https://www.fool.com.au/2015/06/12/how-much-are-woolworths-limited-shares-really-worth/ [Accessed on: 19 September 2016]. WOOLWORTHS HOLDINGS LIMITED 2015 INTEGRATED REPORT. 2015. [Online]. Available at: https://www.woolworthsholdings.co.za/investor/annual_reports/ar2015/whl_2015_integrated_report.pdf [Accessed on: 19 September 2016]. Woolworths Supermarkets. 2012. [Online]. Available at: https://www.woolworthslimited.com.au/page/Who_We_Are/Our_Brands/Supermarkets/Woolworths/ [Accessed on: 19 September 2016].