Finance accounting assignment - Essay Example

Only on StudentShare

Extract of sample
Finance accounting assignment

Income encompasses both revenue and gains. Revenue is income that arises in the course of ordinary activities of an entity and is referred to by a variety of different names including sales, fees, interest, dividends and royalties. “Revenue is recognised on the provision of goods and services that relate to the ordinary activities of the entity” (ACCA, 2013). Gain or loss is calculated with reference to the amount received in excess or short of the asset's carrying amount in the books of account. It is also important in accrual accounting that revenue and expenses are required to be matched with the accounting period. IAS 18 clearly specifies that “When the selling price of a product includes an identifiable amount for subsequent servicing, that amount is deferred and recognised as revenue over the period during which the service is performed” (, p. 2). For instance, income received in respect of annual maintenance contract by a company can recognise only 1/12th of revenue in a month. It is immaterial whether a sale is made on cash or credit basis. ...
Download paper


Question 1: Revenue Recognition The chief objective in auditing is to see that the statements of account convey true and fair picture of the affairs of the company during specified period. It should not mislead others. The errors and frauds should not exist to distort what the accounts are expected to convey…
Author : qmante

Related Essays

Finance and accounting assignment: Advanced financial reporting & regulation
11 PSA Peugeot and Vodafone cases… 14 References… 17 Question 1: A common technique to manage earnings is to ‘stuff the channels’, that is, to ship prematurely to dealers and customers, thereby inflating sales for the period. A case in point is Bristol-Myers Squibb co. (BMS), a multinational pharmaceutical company head-quartered in New York. In August 2004, the Securities Exchange Commission (SEC) announced a USD 150 million’s penalty levied against BMS. This was part of an agreement to settle charges by the SEC that the company had engaged in a fraudulent scheme to inflate sales and...
10 pages (2510 words) Assignment
Finance and accounting assignment: Advanced financial reporting and regulation
Management would often resort to extreme earnings’ management techniques in order to inflate sales and earnings so that meet the analysts’ earnings forecasts (Kumar, 2008). One way of inflating sales and earnings is through the use of window dressing marketing strategy. Department stores normally resort to window dressing marketing strategies. Window dressing is placing top selling products on the store shelves. Consequently, customers would enter the store to buy the products displayed on the store shelves. Upon entering the store, the customers can observe and buy other not so popular...
10 pages (2510 words) Assignment
Finance accounting assignment on earning management
The second part of the paper would answer questions relating to impairment of assets. It will involve a critique of the circumstances under which impairment is declared. It will also explain when companies must perform impairment reviews and examine a practical case of impairment my Peugeot-Citroen and Vodafone.
10 pages (2510 words) Assignment
Finance and Accounting Assignment
Since in this case, the payment is done at the beginning of the period every time, hence it is a case of an immediate annuity as each yearly payment is allowable to compound for an additional year as compared to the normal annuity case. In this context, Future Value of Annuity = A [{(1+i) ^n -1} / i] (Finance Formulas., n.d.) Where, A= Annual payment, i= interest rate per year, n= number of periods As in this case, each annual payment is completed at the start of each period, the same is allowed to compound for one extra period and hence its future value would be the product of value of a...
3 pages (753 words) Math Problem
Finance and Accounting Individual Assignment
It was later reorganized in 2001 to become the International Accounting Standards Board (IASB). In 1973 the Financial Accounting Standards Board (FASB) was also born. The accounting standards that the FASB helps formulate for accountants in the United States are the generally accepted accounting principles (GAAP). Over 100 countries around the world are currently using the international financial reporting standards (IFRS) created by the IASB. The amount of countries that have adopted the IFRS has drastically increase in the 21st century since prior to 2002 only eight countries were using IFRS...
5 pages (1255 words) Essay
Finance and Accounting Assignment
The customers are seen as resources with which firms are able to create a solution that takes into consideration the needs of the customers and solve the issues and problems (Jacob & Rettinger, n.d). Service Dominant Logic Executing on the new perspective, the service dominant logic is a hyper active and a competitive market place. Old ways of performing things along with the entrenched habits tends to die slowly creating challenge for firms across the globe. It will not be taken as surprise if the biggest resistance or barriers occur from marketing perspectives which are built around the...
4 pages (1004 words) Assignment
Finance and Accounting Assignment
Irrespective of such disruptions, in the year 2011, Ford completed its consecutive three years of earning profit in relation to its operating costs and, therefore, announced the payment of dividends to its valued shareholders in five years, which, in turn, has significantly motivated the company to preserve its financial efficiencies in the long run (Ford Motor Company). Thesis Statement The report will analyze various divisions and departments of Ford where costs are allocated currently. Furthermore, it will provide recommendations based on the importance of divisions and departments about...
6 pages (1506 words) Research Paper
Got a tricky question? Receive an answer from students like you! Try us!