Corporate Accounting Global Organisations

Question: Discuss about the Corporate Accounting for Global Organisations. Answer: Introduction: Nature of Impairment Loss and Needed Disclosures: The global organisations, comprising both profit and non-profit organisations, are the owners of several classes of assets. The assets could be further subdivided into several categories. In the words of Bhattacharyya (2012), the assets developed or utilised on the part of the organisations for running their day-to-day activities and operations are termed as the current assets. On the contrary, the fixed assets are mainly used for achieving the long-term goals from the organisational perspective. Despite these two sets of assets, many organisations embrace intellectual properties consisting of copyright, and trademarks. In addition, the assets obtained from merger or acquisition or client popularity like brand image or goodwill are also intellectual properties. As commented by Novotny-Farkas (2016), the organisations would not be able to utilise the intellectual properties directly for the generation of revenues. However, these assets could be indirectly used for boosting up the profit margin of the organisations. Such type of assets, which are intangible in nature and could not be expressed in monetary terms, are categorised as intangible assets. Therefore, these assets are recorded in the accounting books of the organisation based on the amount incurred for acquiring the same. In the recent times, it has been observed that the real asset values have begun to rise due to changes in the prevailing market conditions. Therefore, the organisations utilise impairment, in case, the book values exceed the real values of the fixed assets. Hence, in order to adjust the book values of the assets with the future market value, the organisations often develop Impairment accounts. In this context, Amiraslani, Iatridis and Pope (2013) mentioned that with the help of this method, the firms minimise the book value to the real value and the subtracted amount gets adjusted with the account of impairment. Thus, the loss arising out of such minimised asset value could be termed as the impairment loss. The asset values are changed due to several influential dynamics. Some dynamics are inherent for all the categories of assets, while some other dynamics are associated with minimising the value of particular assets. The production capacities of these assets tend to decline in future, in case, they are utilised for extensive production. In addition, the emergence of advanced technologies and equipments have lowered the market value of the traditional equipments and thus, getting obsolete. Furthermore, the land value has also been increasing with the passage of time. However, Goncharov, Riedl and Sellhorn (2014) argued that the land value might fall in situations of over population, localities, development of new towns and creation of public centres. The preferences of the customers and the introduction of contemporary technologies result in declined values of the trademarks and patent refights. Conversely, goodwill is the value at the time of acquisition of other organisation. Thus, the goodwill value is decreased, if the values of the takeover assets fall in the market. In the contemporary era, the organisations are required to make additional financial disclosures for meeting the stakeholders needs. From the perspective of the Australian government and the boards of accounting, the firms are required to represent the fair values of the assets and liabilities. This is because these stakeholders aim to ensure the interest of the other associated stakeholders of the organisations (Vernimmen et al. 2014). For instance, an organisation has bought high priced machinery five years ago. In the current conditions, the value of the machinery in the market has declined largely, which is less than half of the purchasing cost. This is because the modern machineries with advanced features are available in the market at a cheaper price. If the organisation presents the actual machinery price in its financial statements, it would be overvalued and thus, it would violate the fair accounting practices. In case, the organisations do not follow the fair value practices, the decision-making process of the shareholders could be negatively affected. Thus, in order to protect the rights of the stakeholders, the AASB has introduced the impairment concept. It has clearly instructed the Australian firms for asset impairment and accordingly, they could frame the financial reports. The impairment could only be applied when the recoverable amount of the asset falls below its carrying amount. The latter amount is kept in the accounting books of the organisational assets (Stenheim and Madsen 2016). In other words, the carrying amount related to an asset is the purchasing price and the asset value after depreciation. The recoverable amount for any asset could be of two categories, which include the actual value of the asset and the value in use. The actual asset value could be derived after subtracting the cost of expenditures from the recoverable asset amount. In the words of Ramanna and Watts (2012), the value in use is thee net cash inflow expected to be realised from the asset in future. According to IAS 36, it is viable to choose the highest of the two values, if both are available to the organisations. As per IAS 36, the impairment loss could be computed by subtracting the asset recoverable amount from its carrying amount. The loss from impairment is placed under the debit head in contrast to the particular asset for minimising its book value and preserving the same as the asset accounting amount. In addition, this loss is compromised with the income statement of the organisation by depicting it in the form of non-operating loss (Weil, Schipper and Francis 2013). In case, the organisation maintains an account for revaluation surplus, the impairment loss account is credited in contrast to the account of revaluation surplus. Hence, it minimises the value of the stockholders equity. There are certain group of assets, which are called units of cash generation like goodwill. In that case, the adjustment of tie impairment loss account is computed different from that of the discussed scenario. The impairment loss account is then adjusted with the goodwill account of the business. In case, any leftover amount is inherent even after the adjustment with goodwill, it is compromised with the units of cash generation depending on the book values of the properties or assets. Journal Entries for the Impairment Loss of Crossbow Limited at 30th June 2015: The journal entries for the impairment loss are briefly depicted in the form of a table as follows: In the Books of Crossbow Limited Journal Entries as on 30th June 2015 Debit Credit Date Particulars Amount (in $) Amount (in $) 30-Jun-15 Impairment Loss Account.Dr 260,000 To Goodwill Account 40000 To Land Account 26829 To Inventory Products Account 24146 To Brand Crossbow Shoes Account 21463 To Shoe Factory Account 93902 To Machinery Account 53659 (Being the net assets, liabilities and goodwill impaired depending on the amount of recovery) 30-Jun-15 Income Statement Account..Dr 260,000 To Impairment Loss Account 260,000 (Being the value of impairment loss relocated to the income statement) The journal entries have been formulated based on the below-depicted calculations: Calculation of Impairment Loss: Particulars Amount (in $) Assets' carrying amount (1) 1,680,000 Recoverable amount of the company (2) 1,420,000 Fair value of the assets (3) 171,000 Actual or real asset values (4) [Greater of (2) and (3)] 1,420,000 Loss from Impairment (5) [(1) - (4)] 260,000 Goodwill on acquisition of competing organisations (6) 40,000 Impairment loss from subtraction of goodwill (5) - (6) 220,000 Apportionment of Impairment Loss: Particulars Amount (in $) Percentage Impairment (in $) Land 200,000 12% 26829 Inventory Products 180,000 11% 24146 Brand "Crossbow Shoes" 160,000 10% 21463 Shoe factory 700,000 43% 93902 Machinery for manufacturing shoes 400,000 24% 53659 Total Amount of Assets 1,640,000 100% 220,000 References: Amiraslani, H., Iatridis, G.E. and Pope, P.F., 2013.Accounting for asset impairment: a test for IFRS compliance across Europe. Centre for Financial Analysis and Reporting Research (CeFARR). Bhattacharyya, A.K., 2012.Financial Accounting for business managers. PHI Learning Pvt. Ltd. Goncharov, I., Riedl, E.J. and Sellhorn, T., 2014. Fair value and audit fees. Review of Accounting Studies,19(1), pp.210-241. Novotny-Farkas, Z., 2016. The interaction of the IFRS 9 expected loss approach with supervisory rules and implications for financial stability. Accounting in Europe,13(2), pp.197-227. Ramanna, K. and Watts, R.L., 2012. Evidence on the use of unverifiable estimates in required goodwill impairment.Review of Accounting Studies, 17(4), pp.749-780. Stenheim, T. and Madsen, D.., 2016. Goodwill Impairment Losses, Economic Impairment, Earnings Management and Corporate Governance. Journal of Accounting and Finance,16(2), p.11. Vernimmen, P., Quiry, P., Dallocchio, M., Le Fur, Y. and Salvi, A., 2014.Corporate finance: theory and practice. John Wiley Sons. Weil, R.L., Schipper, K. and Francis, J., 2013.Financial accounting: an introduction to concepts, methods and uses. Cengage Learning.

Influence Of Mythology On Literature And Society Essays - Trojans

Influence Of Mythology On Literature And Society Anthony Roldan P3 3-282 1/4/01 The Influence of Mythology on Literature and Society Part One: Edith Hamilton is the author of the book Mythology. This book is about the Mythology of the Romans and Greeks through her eyes and the way she interprets it. In the beginning of the book Hamilton writes an introduction to Classical Mythology and how, and why it came about. She starts off by writing that Greek and Roman Mythology is meant to show us how people felt about the human race and about where they came from many years ago. She points out that Mythology describes the Earth when it was young and people cared for the Earth more than today. This is true, because in todays world not many people are caring about the Earth and its going by us fast. She also points out that these stories in Mythology and the characters are describe in such great detail that even through you cannot see them, that maybe just maybe they are real and believable. Mythology is the way the Greeks and Roman saw and understood the world around them and it is written in which a way that we may never truly understand it. Hamilton now describes the Mythology of the Greeks as a totally different picture than the one described in Classical Mythology. She describes it as being vile, and savage, but the reason for this is because the Greeks wrote about themselves when they had a brutal and poverty filled life. They wrote like this to show you how they came to power and what they went through to get there. Not only was Greece coming to power, but also they changed the world as it was back then and forever. The reason for this was, because when Greece came to power so did mankind, and because they finally saw how powerful they could be, mankind was born. Greek originally obtained their gods from the Egyptians when they traveled into Egypt and saw the statues of their gods. The Greeks then took the same idea and changed its meaning around. An example would be how the Egyptian gods have different body parts with other bodies and the Greek gods are humans. Hamilton states that the Egyptians made gods they thought up and made them in a way that no one has seen before. The Greeks therefore made their gods in there own image. That made it easier for them to understand them and know how they act. The major point Hamilton is showing in this introduction is that Mythology is a new to look at life and to understand it under a different light. Another point she states is that Greek Mythology its self, is so unique that it showed extreme beauty yet fear at that same time. The gods were not to be completely feared, but respected to the point where you didnt anger them. Greek Mythology is also unique, because it doesnt have many of the things that are in most religion or folklore. Hamilton states that Greek Mythology didnt contain Magic or Witches, and in reality didnt fear the dead, they actually pitied the dead. Hamiltons main point in this whole introduction is that Mythology itself is completely and totally different from any other religion or folklore ever. Mythology was written in such a beautiful way that upon reading it, it seems real and it begins to take shape. She is also saying that Greek Mythology was in a way different than normal Mythology and therefore changed the face of Mythology forever. PART TWO: Aside from mortals and immortals in Mythology there were many heroes in it as well. There are heroes such as the well-known Hercules and Hermes and Apollo, but there are many not as famous. Two examples of these are Prometheus and Io. Prometheus is a god who was the first to introduce fire to mankind. Zeus was very anger when he first learned of this and punished Prometheus for what he had done. Many other gods accommodated Prometheus for his courage to go against Zeus and do something that was right. Zeus sent Prometheus to the rock peak of Caucasus where

How to Write a Sample Essay Using Simple Past Tense

How to Write a Sample Essay Using Simple Past TenseIf you are looking for ways to come up with a good sample essay, then it is important to know the proper way to present an idea in a sample essay using simple past tense. It should not seem complex or out of place, but should be easy enough to grasp and understood by most students who are applying for the same.The first thing to do is to make the idea clear from the start. The idea behind the sample essay should be well expressed. Since this is a sample assignment, the assignment should also present the ideas clearly. Students should be able to pick out the ideas that are presented and understand them at once.Another thing to consider is to choose the form of language in which the idea is expressed in. By using simple past tense for the sample essay, it will be easier for the students to grasp the ideas and understand them. Expressing the ideas in simple past tense will make it simpler for them to grasp the concepts.Just make sure th at the ideas are presented in a short time frame. And the student should be able to see how things are related to each other in a short time frame.Another advantage of using the form of language in a sample essay in simple past tense is that it allows the students to concentrate on the different subjects in the essay. The student will be able to figure out how each subject is related to the others in a short period of time. It will be easier for them to understand each subject.But, since this form of writing has been used, there are many students who are aware of the rules of grammar and syntax. They will not be able to write like this because of their lack of knowledge about it. This is the reason why most sample essays written using simple past tense is missing some of the necessary elements for writing a good essay. The student will not be able to express his ideas properly, and it will be too hard for him to understand what he is trying to express.If the sample essay is written in simple past tense, the student will be able to express himself and understand the idea that he is trying to express clearly. The idea that the student has expressed will be more evident and readable to the student. And the student will be able to form conclusions after seeing the evidences presented in the essay.All the essays that you will write are what your goal is. For your essay to be recognized, you should do your best to write good samples using simple past tense. The better the sample essay you will write, the more chances that you will get noticed by the admissions officer.

Analsys of the Ethical Challenges faced by E-Commerce essays

Analsys of the Ethical Challenges faced by E-Commerce essays There is no single, well-established, and widely accepted definition of However, this is not a serious impediment. For present purposes it is sufficient to follow the OECD view of eCommerce as: "Business occurring over networks which use non-proprietary protocols that are established by an open standard setting process such as the Internet." (OECD, 1998). Ecommerce provides a tremendous opportunity for any business, whether it's a private enterprise looking to market great new ideas or a large cooperation looking for new methods to increase its sales. But selling goods and services on the Internet have their own set of challenges that include methods to set up and maintain secure, reliable and cost effective system for authorizing payments and managing transactions. [1] Challenges for the future of ecommerce A major challenge for ecommerce is whether they have the financial resources to invest in technology and other related costs for developing an E-business, or including E-business as a strategy to their existing operations. Human resources need to be in place to meet the demands, so having staff to develop a new type of business, having the appropriate skill base within the organization, attracting and retaining employees with applicable skills are all critical. This may be very difficult in today's business climate but it is essential to operate E-business properly. Finding sufficient time to invest in the development and implementation of an E-business package is also a critical factor. Risk taking can be daunting compared to larger organizations, particularly in ventures that are still relatively new, unfamiliar and uncertain.[2] Thus we can conclude that ecommerce has yet to overcome many hurdles and ...

Ethical Responsibility in Technology Essay Example | Topics and Well Written Essays - 500 words

Ethical Responsibility in Technology - Essay Example The agent is required to act in the best interests of the principal while performing what is required of him. But in most instances, the principal is unable measure the behavior of the agent and control the outcome of the contract, which puts him at a disadvantage vis--vis the agent. (Eisenhardt, 1989). Problems arise when there exists a conflict between the interests of the principal and the agent, which is the case in most contractual relationships. In general terms fiduciary duty is the obligation of a person to act in the best interests of another. In case of a principal and agent, it is the fiduciary duty of the agent to act in the best interests of the principal. This duty includes due diligence and due care by the agent in performing his services for the principal. "A fiduciary duty is an obligation to act in the best interest of another party." (Breach of Fiduciary Duty Law and Legal Definition, 2007). It has been stated the relationship between an agent and principal and the fiduciary duties of an agent. The principals in this instance are the future customers of Vista software who bought 'vista compatible' machines on the promise of Microsoft.

How the Industrial Revolution, post 1865, influenced migration and Research Paper

How the Industrial Revolution, post 1865, influenced migration and expanded civilization - Research Paper Example In this second industrial revolution, discovery and invention, acting as the catalysts played a major role in industrial and economic growth of the nation. These developments coupled with the developments in transportation and communications were responsible for the formation of organized industries with the emergence of big business empires in various industrial sectors such as steel and oil. Consequently the markets grew deep and wide for catering to the needs of the suppliers and consumers. These developments resulted into migration of people from different parts of the country to the urban industrial centers and different parts of the world to the US with the urban growth taking place at a rapid pace. These migrations were responsible for the diverse cultural background in the society. Industrial development The growth of industries was very fast during this period. The consumption of steel is an indicator for industrial development. The consumption of steel in the industrial and construction sector increased during this period and fuelled the growth of steel industry. The mass production of steel through innovative methods introduced by Carnegie made it cheaper and the demand for steel increased exponentially. This has accelerated construction of railroads across the country which stimulated the growth of business and industries by rendering mobility to the goods manufactured for reaching the customers throughout the country. Similarly, the growth of oil industry has changed the way the people were living in the US as its consumption was closely linked to general industrial growth, transportation and social life. Invention of telephone and telegraph aided industrial and economic growth further. â€Å"†¦the most dramatic improvement in the speed, breadth and reliability of news cov erage came with Samuel Morse's invention of the telegraph. Newspapers became the major customers of the telegraph companies, and the cost of telegraph transmissions led to the formation of wire services like the Associated Press, which was founded as a cooperative venture by New York newspapers in 1848† (Stephens). Freedoms to press, free market economy and the capitalist system of the country encouraged entrepreneurship, and it attracted people from all over the world to the US. The opportunities available in the industrial centers for employment, profession or education caused migration of people to urban areas. The new techniques used in agriculture have increased productivity. The proportion of people employed in agriculture has come down. The agricultural laborers from rural areas migrated to cities in search of employment. Steckel states, â€Å"The importance of migration to urban growth is also indisputable. Because birth rates were low but death rates were high, migra tion fueled urban growth during the 19th century. Indeed, many cities and towns would have declined in size without an inflow of people that replaced the excess of deaths over births† (p. 1). Capital formation and emergence of corporate companies Referring to New York Stock Exchange, Teweles & Bradley says, â€Å"The vast development of the railroads was particularly important to the Exchange since those corporations were the chief issuers of securities in the trading market. About 70,000

The Cask of Amontillado Essay Example for Free

The Cask of Amontillado Essay In Edgar Allan Poe’s horrific tale of â€Å"The Cask of Amontillado† readers witness a journey of two people wondering through an underground graveyard leading to a tragic and twisted end. Most readers assume that the character of Montresor is a male figure. All of the actions of Montresor, throughout the course of the story, are full capabilities of a woman. It could be possible that our two characters had a love affair before our gruesome tale plays out. Let us say that Montresor is a mistress of Fortunado. He insults her in front of another man, couple, or lover publicly; as it is never said what the insult is specifically. Upon this insult Montresor, our female character, is so enraged with adrenaline and emotion that she plots a plan to show Fortunado that she is a force to be reckoned with. While the adrenaline pulses through her veins she disassembles the wall with ease and preps it for the demise of the unsuspecting enemy. As most have heard or witnessed in everyday life, powerful surges of adrenaline can cause people to do tasks they normally would have no strength to accomplish. As she lures our ironically unfortunate Fortunado through the musty, damp tunnel of underground, she taunts him. Or could this be her feminine compassion coming to the surface of the reality that is to be Fortunado’s fate? As she continues to suggest turning around on the journey, she comforts him and his cold as though she could be having second thoughts. Montresor has a compassionate heart and conscious. A man would rarely show these traits. Finally, she has him right where she wants the insulting character. The taste of revenge returns. She remembers why she has brought our victim to his bone chilling demise. She replays the time or countless times that Fortunado has insulted her publicly and she shows him what he deserves. Bone by bone, she finds pleasurable satisfaction in her plan. As the saying goes, â€Å"Hell hath no fury like a woman scorned†.