If the company does not take this step, to improve its product line and offer a better future option the company is likely to lose significantly more than the internal offset erosion of the existing brands. In fact the cash-flow question would only be an issue if another company were about to produce a product that would erode current sales of traditional products. Without the development of new products and the utilization of surplus production space the company is not only likely to lose but sure to lose market share in the niche they produce products for. Though the case study does not make clear that an outside threat exists it can be assumed that if this company has gone into full development of a new product that better meets the needs of consumers any other industry company could and would likely erode sales of existing products.
The fact that…...

New capacity would have to be bought or built when capacity runs out or production would have to be cut back on one of the product lines, leading to a loss in cash flows that would have been generated by the lost sales runs. Thus, Blast would result in incremental cash flows for facilities and these should be included in cash outflow calculations.
However, the case states that Blast will require only 10% of Lift-Off's plant capacity. Yet, Lift-Off has excess capacity of 45%. This indicates that Blast may not lead to the need to add capacity in the future. However, this is something that the Danforth & Donnalley executives should explore further with detailed market forecasts. The case states that Blast is very different from conventional powdered products and may well generate tremendous demand requiring more capacity in the 15 years of time considered.

In summary, even when considering present…...

Earning Growth Model

This third method considers primarily the increase in organizational earnings and the decision to purchase a stock is pegged to increases in organizational incomes. Valuation through this method is generally less challenging than the previous two models and often extremely practical.

It commences with the estimations of future earnings, based on relevant and viable information about the expected trend in the future of the assessed company -- the growth rates can be either constant either variable, and this does not impact the valuation method nor the outcomes, as long as they are reliable. The most useful and relevant means of setting the growth estimations is given by the usage of past growth rates and trends. Finally, the future earnings are discounted with the expected return on investment (OI). The relevance and utility of this model is given by the fact that it reveals the price of the stock in…...

mla

References:

Anuar, Z., Stock Valuation Model -- 3 Simple Techniques to Value Stock, Enzine Articles,   last accessed on August 25, 2009http://ezinearticles.com/?Stock-Valuation-Model-3-Simple-Techniques-to-Value-Stock&id=872014 

2009, Investopedia Website,   last accessed on August 24, 2009http://www.investopedia.com 

Days Sales in Receivable, ABREMA,   last accessed on August 24, 2009http://www.abrema.net/abrema/days_sales_rec_g.html 

Stock Valuation, Kennesaw State University,   last accessed on August 25, 2009http://ksuweb.kennesaw.edu/~mbumgarn/Stocks%204210.ppt 

These are considered to be unrealized gains, but for hold-to-maturity securities these gains/losses are not expected to be realized at any point. The company will note the fair value change in a footnote, but will not record such a change on either the income statement of balance sheet (Spiceland, et al.).
If, however, it becomes necessary to sell investments previously classed as hold-to-maturity, then the following adjustments are made. The cash received from the sale is recorded along with any discount on bond investment is sitting as an asset. The investment in the bonds will be recorded at face value. Any profit above face value will be recorded as gain on investments. This essentially ensures that the asset for discount on bond investment is reversed as a result of the sale. FASB No. 115 lists six conditions under which a change of security status from HTM could occur, including deterioration…...

mla

Works Cited:

Spiceland, D., Sepe, J., Nelson, M. & Tomassini, L. Intermediate Accounting.

Statement of Financial Accounting Standards No. 115: Accounting for Certain Investments in Debt and Equity Securities. FASB. Retrieved April 23, 2010 from  http://www.fasb.org/cs/BlobServer?blobcol=urldata&blobtable=MungoBlobs&blobkey=id&blobwhere=1175818827848&blobheader=application%2Fpdf 

Leone, M. (2008). Revised fair-value rule is weaker: Moody's. CFO Magazine. Retrieved April 23, 2010 from  http://www.cfo.com/article.cfm/12623892/c_12624199?f=home_todayinfinance

Accounting information can be used by business owners to carry out a financial analysis of the businesses and their operations. The use of this information for such function is attributed to the fact that it usually contains quantitative and qualitative characteristics. While quantitative characteristics are the calculations of financial transactions while qualitative characteristics can be described as the business owner's apparent significance of financial information. In essence, qualitative characteristics of financial information are attributes that contribute to the usefulness of information provided in financial statements. Since these qualities can sometimes be at odds with each other, they need to be balanced against each other. In addition, these qualities are essential in decision making because they provide the basis for assessing businesses and the effectiveness of their operations.
Fundamental Qualitative Characteristics:

As previously mentioned, qualitative characteristics in accounting are attributes that result in the usefulness of provided financial information by users. These characteristics…...

mla

References:

Spiceland, J.D., Sepe, J.F. & Tomassini, L.A. (2007). Intermediate accounting (4th ed.).

Retrieved February 20, 2014, from  http://highered.mcgraw-hill.com/sites/0072994029/student_view0/ebook/chapter1/chbody1/qualitative_characteristics_of_accounting_information.html 

Vitez, O. (n.d.). Qualitative Characteristics of Accounting Information. Retrieved February 20,

2014, from  http://smallbusiness.chron.com/qualitative-characteristics-accounting-information-3952.html

disclosure principle in accounting is the standard adopted by the accounting profession, which "calls for financial reporting of any financial facts significant enough to influence the judgment of an informed reader" (Kieso, Weygandt, & Warfield, 2007). Obviously, this definition is a very subjective one, because the reporting entity makes the determination of what facts are significant enough to influence an informed reader. "To reduce the amount of disclosure, it is customary to only disclose information about events that are likely to have a material impact on the entity's financial position or financial results" (Accounting Tools, 2011). However, the principle is not meant to be narrowly interpreted, and may require a company to report things that cannot be reduced to numbers on a balance sheet. For example, "this disclosure may include items that cannot yet be precisely quantified, such as the presence of a dispute with a government entity over…...

mla

References

Accounting Principles. (2011). The full disclosure principle. Retrieved from http://www.accountingtools.com/full-disclosure-principle

Kieso, D.E., Weygandt, J.J., & Warfield, T.D. (2007). Intermediate accounting (12th ed.).

Hoboken, NJ: John Wiley & Sons.

Non-Profit CAFR
Nonprofit accounting is based on the fund accounting, making it very complicated and different from for profit accounting. Fund accounting financial statements are divided into government wide, proprietary, and fiduciary statements. Nonprofit actually has three sets of financial statements compared to one set of financial statements for a for profit entity. Government wide statements basically cover the operations of the government in general. The government wide statements are the ones that are basically the same as for profit financial statements, except they are done differently. Proprietary statements cover funds that are restricted for certain items, such as capital infractures. Fiduciary statements are funds the government is responsible for that are for held other entities, such as the hospital district.

Differences in Missions

There are key differences between non-profit and for profit accounting. (Nonprofit (Not-for-Profit) Accounting) The primary mission of nonprofit is to provide needed services to the community, where for profit…...

mla

Bibliography

Comprehensive Annual Financial Report. (2010, Nov 30). Retrieved from Cook County, Illinois:  http://www.cookcountygov.com/taxonomy2/Finance,%20Bureau%20of/Downloads/2010_CAFR,pdf 

Kieso, e. a. (2008). ACC 303/304/305 Intermediate Accounting I, II, & III. Hoboken, NJ: John Wiley & Sons, Inc.

Nonprofit (Not-for-Profit) Accounting. (n.d.). Retrieved from Accounting Coach:  http://www.accountingcoach.com/nonprofit-accounting/

The mistake occurred when enthusiasts tried to use those data for other purposes such as 'strategic product decisions.' The average cost of production never could, and never will, be relevant for those classes of decisions where only the change in total costs and revenues are relevant. That is, the rough, average post calculations provided a guide for pricing unique one-off products or services, but were of no use for the other purposes (emphasis added) (Garner & Tsuji, 1995, p. 52).
The strategic product decision function of management accounting described above is based on the strategic management accounting method; this approach serves to cause change in the management framework through various accounting devices designed to adapt effectively to the constantly changing external business environment (Garner & Tsuji, 1995). Strategic management accounting, though, should be managed by production people (including sales and engineering), rather than by accounting staff (Garner & Tsuji, 1995).

Under…...

mla

References

Anthony, R.N. (2003, January 1). Management accounting: a personal history. Journal of Management Accounting Research, 15, 249.

Black, T., & Gallagher, L. (1999). Are physical capacity constraints relevant?: Applying finance-economics theory to a management accounting misconception. Australian Journal of Management, 24(2), 143.

Cooper R., & Kaplan, R.S. (1990, February). Measure costs right: Make the right decision. CPA Journal, 25.

Cortada, J.W. (2004). The digital hand: How computers changed the work of American manufacturing, transportation, and retail industries. New York: Oxford University Press.

nvironmental Accounting
Test Results: "Total Cost Accounting course and Test" located at http://teexcit.tamu.edu/tca / (Total Cost Accounting online course and test).

Bakshi, B.R., Landers, .F., Singh, S., Merugula, L.A., Mishchenko, O., and Fiskel, J. (2012, November 2). Accounting for ecosystem services in life cycle assessment by co-LCA: Advances in methodology and software. Paper to be presented at the Annual Conference of the 11th Global Congress of Process Safety on April 2015 in Austin, Texas.

The authors explain the role of ecosystem goods and services in the support of economic activities, and the relation of the use of ecosystem goods and services to sustainability. The variety of ecosystem goods and services is broad, however, most sustainability methods have not considered their contribution well. Consider that these are all ecosystem goods or services that play a role in sustainability: 1) The provisioning of water, food, and biomass; 2) the regulation of pests and rules to…...

mla

Ecological accounting is a particular version of external reporting that focuses on the conversion of monetary environmental costs to physical flows. The practicality of this approach to accounting is that environmental impacts are expressed in terms of measures of emissions and discharges. The value-add of products and services is countered by using ecological accounting, which attempts to measure the ways in which products or processes generate pollution.

The author discusses three areas related to internal reporting: 1) Pollution prevention and product costing; 2) pollution prevention and planning; and, 3) pollution prevention and performance assessment. A substantive issue for an increasing number of industries -- particularly in the European Union where environmental regulations are stricter than they are in the United States -- is the life cycle recycling requirements in which manufacturers are responsible for the end product when the useful -- original intended -- life ends. Many companies now must attend to the life cycle costing and life cycle analysis for products they have produced. Life cycle costing incorporates measures of product costs for research and development, acquisition of raw materials, actual manufacturing, transportation of finished goods, usage by consumers or supply chain, and, ultimately, disposal.

As the author clearly states: "The major point of life-cycle costing is that there are many costs incurred before and after manufacturing that do not get charged to the product using conventional costing systems" (Lanen, 1994, p. 4). Life-cycle analysis enables the inclusion of costs associated with liabilities in phases far from the actual period of manufacturing. Future issues include consideration of the relation between market valuation and liabilities, and the effect of disclosure policies on costs.

PACTICES ELATING TO STOCKHOLDES' EQUITY
Hello. I write a project paper Accounting-302 (intermediate accounting 2). The topic Stockholder's Equity corporation. The emphasis practices,, corporations operate. For, I identify company ( - company) conduct a mini case study topic Stockholder's Equity company.

Common practices relating to stockholders' equity

Stockholders' equity is an item of the balance sheet that represents the capital that has been raised by the investors in the business in exchange for stock, referred to as paid-in capital, retained earnings, and donated capital. It represents the stake of the investors in the company and is calculated by deducting the company's total liabilities from their total assets. Accounting experts commonly refer to stockholders' equity as the book value of the company since it captures the funds that were originally invested by the investors and the additional investments that they made thereafter Lowe, 1961.

It also captures earnings that the company retained over time.…...

mla

References

Google Inc. (2013). Consolidated balance sheets. Mountain View, CA: Google Inc.

Hunton, J.E., Libby, R., & Mazza, C.L. (2006). Financial Reporting Transparency and Earnings Management. The Accounting Review, 81(1), 135-157. doi: 10.2307/4093131

Lowe, H.D. (1961). The Classification of Corporate Stock Equities. The Accounting Review, 36(3), 425-433. doi: 10.2307/242875

Maines, L.A., & McDaniel, L.S. (2000). Effects of Comprehensive-Income Characteristics on Nonprofessional Investors' Judgments: The Role of Financial-Statement Presentation Format. The Accounting Review, 75(2), 179-207. doi: 10.2307/248644

Paid-In Capital
It is important to keep paid-in capital separate from earned capital (retained earnings) because they are two different forms of capital. For the investor, it is important to understand the differences between the two. Paid-in capital is the capital that the stockholders have paid into the business. Earned capital is the capital that has accumulated from the firm's earnings (Kieso, eygandt and arfield, 2007). Thus, the latter is a measure of how much money the firm has made while the former is a measure of how much money the firm has raised.

It is important to keep these two forms of capital separate because they derive from two different activities. On the cash flow statement, for example, paid-in capital would be a financing cash flow while earned capital would be a combination of operating and investing flows. By maintaining a clear distinction between the two, the exact nature of the…...

mla

Works Cited:

Kieso, D.E., Weygandt, J.J., & Warfield, T.D. (2007). Intermediate accounting, (12th ed.). Hoboken, NJ: John Wiley & Sons.

overhead costs and various methods in which the overhead costs are classified.
Ehrhard righam, a renowned author, states that a business cannot consider all kind of money that it earns as profits. The reason for not calling the entire amount "profit" is that the business has to pay expenses for carrying out business activities and processes. These expenses are regarded as the operating costs. (rirgham, 2008) International Accounting Standards oard states that the most common type of overhead costs includes maintenance, production expenses and salaries. It is a common practice of businesses to track their gross income and net incomes. The two figures represent different values. Gross income is usually of a larger amount and consists of all the money a particular business takes in. (International Accounting Standards oard, 2008)

The nature of business decides the type of overhead costs that a business will have to pay. Some businesses have many…...

mla

Bibliography:

1. Ball, Rawlins, "International Financial Reporting Standards (IFRS): pros and cons for investors." Accounting and Business Research. (2003)

2. Benninger, Lowe (1954). "Development of Cost Accounting Concepts and Principles: Role of the Committee on Cost Accounting Concepts and Standards." The Accounting Review (American Accounting Association): 27 -- 37

3. Barry J. Epstein, Eva K. Jermakowicz. Interpretation and Application of International Financial Reporting Standards (2007)

4. Cherrington, J. Owen, et al. Cost and Managerial Accounting. Dubuque, IA: Wm. C. Brown Publishers, 1985.

Oxford Brookes University BSc (Hons) in Applied
Accounting esearch and Analysis Project

An Analysis of the Business and Financial Performance of StarHub Group from 2008 to 2010

Topic chosen and for the reason

For the basis of my Oxford Brookes University degree research and analysis project (AP) is project, the topic selected was number 8, "The business and financial performance of organisation over the three years period." This selection is due in large part to my ultimate dream job of being a professional financial analyst and the environment in which the Singaporean telecommunications industry is developing. For instance, Chong and Chow emphasize that, "Asia's telecommunications market has long been viewed as lucrative and fast growing. The value of the Asian market is estimated at $180 billion, while a recent study shows that the "Asia-Pacific excluding Japan has been the fastest growing information and communications technology market, moving at a compound rate of over 14.5%.…...

mla

REFERENCES

Anderson, M. (2010, August) 'Gearing.' ACCA Student Accountant.

Bragg, S.M. (2007) Business Ratio and Formulas, 2nd Ed. John Wiley & Sons, Inc.

Chong, R. & Chow W. (1999) 'Financing Telecommunications Projects in Asia: A Promising

Regulatory Perspective.' Federal Communications Law Journal, vol. 52, no. 1, p. 1.

"Failure of any district to budget funds to meet statutory requirements is a very serious matter and will result in the executive county superintendent rejection of the budget. The district will be advised of any lack of budget approval with specific recommendations on necessary corrective revisions." (New Jersey Department of Education 2013, P 14).

3. Key Budget Terminology

There are numerous terminologies with regard to the school district budget. The most important budget terminologies are

evenue

The revenue is the money received by the school district within an accounting year. A fund is part of the revenue and there are four sources of revenue for the school district and this include:

Local source,

Intermediate source, state, and Federal sources.

Expenditures

Expenditures are the expenses that the school district must fulfill within an accounting year. Part of the school district expenditures are the payment of teachers' salary, and travel expenses for the school staff

Balance Sheet

Balance sheet reveals the total…...

mla

References

Ernest & Young (2012).U.S. GAAP vs. IFRS the basics. Ernst&Young LLP.

State of New Jersey (2008).The Uniform Minimum Chart of Accounts for New Jersey Public Schools. Department of Education, Division of Finance.

New Jersey Department of Education (2013).Budget Guidelines Fiscal Year 2013-2014.Office of School Finance.

Watts's and Zimmerman's research in the late 70s gave way to the positive accounting theory and to their book, Positive Accounting Theory, published in 1986. In order to refer to political costs and how they may influence accounting standards and the way profit is regulated in order to fit individual needs, we first need to briefly refer to social responsibility, as it appears in the positive accounting theory.
Most important, Watts and Zimmerman assume that "individuals act to maximize their own utility"

It is clear, in this sense, that managers within a company will act in order to influence accounting standards to their own interest. There are two reward forms that may be influenced: cash bonuses (compensation plans) and changes in share prices (via stock and stock options)

The reported earnings influence both these reward forms. As such, increases in reported earnings will most likely increase the managerial cash reward, because it clearly…...

mla

Bibliography

1. Martien Jan Peter Lubberink. Financial statement information: the impact of investors and managers. Groningen: SOM, 2000

2. Milne, Markus J. Positive Accounting Theory, Political Costs and Social Disclosure Analyses: A Critical Look. University of Otago. Page 4. On the Internet at  http://www.commerce.otago.ac.nz/acty/research/pdf/postive_accounting_theory.pdf 

3. Rezaee, Zabihollah. AN INVESTIGATION OF THE RELATIONSHIP BETWEEN MULTINATIONAL COMPANIES ATTRIBUTES AND THE MARKET EFFECTS OF SFAS NO. 52. Journal Of Financial And Strategic Decisions. Volume 7 Number 3 Fall 1994. Page 3. On the Internet at  http://www.studyfinance.com/jfsd/pdffiles/v7n3/rezaee.pdf 

4. Watts. R.L. & Zimmerman. J.L., (1978), "Towards a Positive Theory of the Determination of Accounting Standards," The Accounting Review, Vol. 53, No 1, pp. 112-134.