Chapter 1 – Overview of Accounting Research (#6,7,10,12 in your text)
Brainstorm an example of:
1) a financial accounting issue that would be researched before a transaction is finalized,
2) an accounting issue that would be researched after a transaction has been executed, and
3) an accounting issue that would be researched following financial statement issuance.
The chapter states that a communications failure between a company’s accounting team and operations teams could result in company accountants evaluating the accounting for a transaction after it has occurred. Brainstorm a process that companies could put in place to encourage the timely communication of proposed transactions.
Using www.sec.gov (Links to an external site.)Links to an external site., go to Divisions, then Division of Corporate Finance. Under Statutes, Rules, and Forms, go to Rules then to “Regulation S-K.” Under Item 303 (Management’s Discussion and Analysis) of Regulation S-K, list the five items (items 303(a)(1-5)) that must be included in a public company’s MD&A disclosures.
Go to sec.gov (Links to an external site.)Links to an external site., then Divisions, then Division of Enforcement. Under Federal Court Actions, locate the June 18, 2015, enforcement action brought against Norstra Energy. Summarize the charges brought by the SEC against Norstra. Describe how this enforcement action fits with the SEC’s mission.
Chapter 2 – The FASB Codification (#3,4,5,6,7,9,10,14 in your text)
Use the FASB Codification to answer the following questions. There is a specific, correct answer to each of the following questions. Keep looking in the Codification until you find the reference that directly responds to these questions.
In the following reference, label the Topic, Subtopic, Section, and Paragraph. Also, provide the description from the Codification for each of these (e.g., the description for Topic 840 is Leases). Here’s the reference: ASC 715-30-25-1.
Name four of the topics listed within the Broad Transactions area.
a. Go to the tab entitled “cross reference” on the Codification homepage. What is the FASB Statement No. that corresponds to Topic 480-10 (Distinguishing Liabilities from Equity)?
b. Using the “Other Sources” list on the left side of the Codification, go to pre-Codification standards. What is the full name of this FASB Statement that you identified in (a) above?
c. Next, go to the Basis for Conclusions of the standard (as amended) that you identified in step (b). (To find this, you might start in the standard’s Contents list on page 4.) Considering the introduction to the Basis for Conclusions, describe two reasons for which this standard was issued.
d. Finally, did any FASB Board members dissent to the issuance of this FASB statement? Explain.
Use the “advanced search” feature (search by exact phrase) to answer part (a).
a. Find the ASC reference (ASC xxx-xx-xx-x) for the following guidance excerpt: “The acquirer shall recognize separately from goodwill the identifiable intangible assets acquired in a business combination.”
b. Does this guidance (that is, in the ASC subtopic just identified) apply to private companies? Explain why or why not. Cite your sources.
For the next set of questions, identify the ASC reference—down to the paragraph level of detail—that you would look to for guidance on each issue.
Criteria for determining whether information about an operating segment should be reported separately (i.e., as a reportable segment) in the notes to a company’s financial statements.
Criteria for determining whether a lease should be classified as capital versus operating.
Guidance indicating which assets are generally classified on the balance sheet as “current assets.”
For the next question, answer using the FASB Codification and cite your source down to the paragraph[s]. Respond using complete sentences.
Provide two examples from the Codification of “nonauthoritative” sources of GAAP.
Submit your completed document to this assignment by the assigned due date/time.
The lifestyles and culture of India is developing drastically. The quantity of tenants in India is growing every year and this will specifically influence the FMCG business and its affiliations. Regardless of the way that people of India is extending every year the masses improvement rate is decreasing over some extend of time. In 2008 the masses advancement rate is 1.6%, in 2009 it is 1.5%. In 2010 the improvement rate is 1.3%. Regardless of the way that the figures didn't change unquestionably, the free market movement of the FMCG things will be affected as a result of advance in masses structure. There will be reduce mainstream and excellent competition as the birth rates and number of customers lessen. Specifically it is the change is lifestyle of Indian customers and social direct will impact the FMCG business in India. It will ask for another things and organizations over the time and will incite increase in enthusiasm for R&D of FMCG associations. By and by the world is looking with support need provoking extending place assets into sustenance creation. If the affiliations disregard to offer things and organizations according to changing lifestyle and direct then it will be troublesome for any relationship to make due in the market. Monetary: Current respite in overall monetary circumstance affected generally every industry over the world. There has been addition in joblessness and low purchaser spending power. This prompts clients not choosing to buy exorbitant things or organizations. This further pressurizes the RMCG associations to diminish the expenses for the things and organizations. Affiliations should review this money related ride and need to respond in like way, A productive affiliation will respond concurring changing money related conditions, customer and accomplice direct. A capable affiliation must think about the changing budgetary condition the country over and worldwide and ought to use a proper methodology to stay in the market. Political: Political components will influence the affiliation and industry and it is the commitment of the relationship to tail it. It is critical for the relationship to take after the authorizations completed nonconformance of which may incite honest to goodness repercussions on the affiliation. The governing body has completed certain restriction in the import courses of action. However charge special cases in arrangements and concentrate commitment are suited the little scale organizations. This will allow the SMEs to contribute continuously and will fabricate the amount of new members. Transportation and system workplaces are improving in urban and also in the nation zone which will help in movement compose. Mechanical: Movement in advancement bolster the age with update in nature of things and organizations rendered to the customers. Affiliations began to grasp e-business to upgrade check correspondence and market. Mechanical progress impacts the supply to chain and trades along the chain essential. Affiliations decreased costs with effective IT progresses and extended the rate of information trades. Advancement is having a key and colossal impact in the FMCG zone by working up the new packaging, extending benefit and longer time period of practical ease of use of sustenance things. Better, more grounded, more fruitful and speedier are the key segments that all creators in this part push for, as it drives bargains. The progress overhauls the arrangements by enabling the improves to convey things with engaging packaging and better correspondence. With progress in correspondence advancement and rising electronic long range informal communication framework it enables the relationship to grant better to the customers by upgraded publicizing endeavors. Overall examples: The money related crisis and respite had massively impacted the business FMCG items over the world. However rising economies like India, China and Brazil are not fundamentally affected and make sense of how to do well to recover quickly. A run of the mill design that was taken after finished the world in the midst of budgetary stoppage was trading down. Since, customers ended up being more careful hunting down more reasonable brands, unprecedented offers and refunds. This extra gigantic weight accessible costs in light of extraordinary contention and down trading. However rising economies like India, China and Brazil saw change in hypermarkets helping the advancement of FMCG grandstands in these countries. Substantial scale characteristic openings: India has Vast Rural Market with bigger piece of masses where the market is up 'til now unfamiliar market. India has poor work to give cost advantage over various countries. Various multinational associations are having inflicted significant damage advantage by outsourcing its thing necessities from its Indian association. Biological THREATS AND OPPORTUNITIES: Industry structure: The FMCG market of India isolated into two divisions the dealt with section and the cluttered portion. The formed part has simply couple of Indian associations and MNCS however the dislocated territory is swarmed by a various close-by players. Indian FMCG promote speaks to about Rs.460 billion where the market has been extraordinarily required by close-by and unbranded things. This has been a test for a few, dealt with players to adequately dispatch a thing and to include the bit of the pie. Course and store organize has moreover been a test as India's structure and transport systems not precisely steady with a considerable number retail outlets in the country. Regardless of the way that system and transportation structure is making starting late it is up 'til now considered as a test by various players. The FMCG part has a broad assortment of things including sweet shops, drinks, chemicals, toothpaste, can cleaning agents, shampoos, creams, powders, sustenance things, cigarettes. Regular characteristics of FMCG things are: The things consider need, comfort and excess. Cost and pay adaptability of intrigue moves across finished things and clients. Particular things are of little regard (little SKU's) but all FMCG things set up together record for a basic bit of the purchaser's budgetary arrangement. The buyer puts little vitality in the purchase decision. He now and again ever looks specific particulars. Brand loyalties or proposition of strong retailer/vendor drive purchase decisions. Limited load of these things (immense quantities of which are perishable) are kept by customer and needs to get them as regularly as could reasonably be expected, as and when required. Brand trading is as often as possible incited by considerable notice, recommendation of the retailer or verbal. Perceiving features of Indian FMCG Business FMCG associations offer their things particularly to customers. Genuine features that perceive this portion from the others join the going with: Plan and Manufacturing Low Capital Intensity as most by far of things in FMCG requires by and large little enthusiasm for plan, equipment and other settled assets. Principal development required for amassing is successfully available. Untouchable amassing is typical and the points of interest consolidate creation and stock organizing flexibility, versatility in controlling work costs and collaborations. Exhibiting and Distribution High Initial Launch Cost with gigantic enthusiasm for thing headway, measurable looking over, test advancing and dispatch. Making care for another brand requires tremendous beginning use. Tremendous Distribution Network as India has a considerable number retail outlets the country over making the collaborations limits troublesome for a few players. Contention Market is swarmed with various clamorous players. Proximity of various messy players and exceptionally gifted MNCs gives savage competition in the market to dispatch various new brands. This gives broad assortment of determination of brands for the customers. PORTER'S FIVE COMPETITIVE FORCES: Buyer POWER: The purchaser base of this industry is greater than some other industry and they have alongside zero impact on the cost of the thing. The buyer constantly has amazing choice of brands inside the thing class and they can move beginning with one then onto the following absent much effect. Along these lines, buyer control isn't precisely strong in this industry. Nevertheless, they have control when they offer hazard to move beginning with one brand then onto the following brand. In FMCG retailers should similarly considered for examination. Retailers can basically pick which brand to stock and customers don't demonstrate much excitement to delay if one brand of choice isn't available. So retailers can essentially settle on choice among brands and they have more buyer control than purchasers. Supplier POWER: Supplier control is practically nothing or limited in the FMCG business. The business constantly has great number of suppliers with exceptional size. There won't be any uniqueness in the thing or organization of suppliers and the maker can basically move from one supplier to other supplier. However creator faces some measure of supplier control due to the cost they have to cause while trading suppliers. Suppliers who do broad business with makers are continually obliged to their customers. >GET ANSWER