Got a tricky question? Receive an answer from students like you! Try us!

Information Regarding CPA's Report - Essay Example

Only on StudentShare
Undergraduate
Essay
Finance & Accounting
Pages 4 (1004 words)

Summary

Memo Sub: Requested Information Regarding CPA’s Report From, (Name), Controller To, Jane Smith, CEO, XYZ Company 1. Methods Used to Determine Deferred Taxes Deferred tax can be defined as an accounting concept which indicates a future tax liability or asset arising out of temporary differences between book value of assets and liabilities and their worth for tax purposes…

Extract of sample
Information Regarding CPA's Report

The deferral method specifically focuses on income statement and the tax expense is calculated on the basis of identified revenues and expenses in the income statement. However, the deferral method is not acceptable under GAAP. In contrast, the liability method would estimate the future taxes payable or receivable. Hence, the liability method focuses on the estimation of current as well as deferred tax assets and liabilities. “The amount of income tax expense recognized for a period is the amount of income taxes currently payable or refundable, plus or minus the change in aggregate deferred tax assets and liabilities” (CCH Editorial, p.28). The liability method primarily focuses on the balance sheet. The changes in the balance sheet elements are used to calculate the amount of income tax expense under this method. 2. Procedures for Reporting Accounting Changes and Error Corrections Generally, accounting changes are of two types including changes in accounting principle and changes in accounting estimate. Mainly, there are two approaches available for reporting accounting changes. They are retrospective approach and prospective approach. Under the retrospective approach, comparative financial statements are recast to clearly illustrate the changes. ...
Download paper
Not exactly what you need?

Related Essays

Company's interest regarding private equity buyouts
In just one generation the private equity industry has grew to become a dynamo for growth, innovation and enterprise (Kolade. W, 2008). Britain is a world leader in this sector with one of the largest private equity markets globally, second only to the US. There are over 450 active UK firms, which provide several billion pounds each year to unquoted companies. Despite private equity now being a recognised asset class, the rapid growth in market has provoked debate about private equity and its intensions. Private equity firms have been taking over some of the UK's most notorious names, many…
50 pages (12550 words)
Information Management
This paper analyzes the unique e-business model perpetuated by Ebay with respect to conceptual frameworks like Porter’s five forces model and value chain analysis. The findings reveal both the competencies of Ebay and the surrounding factors which favored the growth of EBay’s business model, owing to the need of speed, access and frequency of information managed in the industry. Recommendations follow at last to highlight few of the threats and means to overcome them. Introduction The selection of the topic is very relevant and significant in relation to the increased popularity of…
7 pages (1757 words)
information managment
The article after providing a brief background of the Cloud Computing technology, focuses on its evolutionary path. “This paper examines cloud computing in the context of other major changes in Information Technology (IT) and explores the revolutionary transformations and challenges it brings to IT management.” (Bento and Bento 39). The authors divide the evolution into six phases starting from 1970’s, when the IT systems in organizations got centralized, particularly regarding the financial and accounting information. They further delve into these phases by discussing how advancement in…
5 pages (1255 words)
Report about an Accounting Information Systems Disaster
Issues include: “Cost and errors associated with manual creation and reconciliation of documentation. Lack of transparency in inventory and cash positions, when goods are in the supply chain. Disputes arising from inaccurate or missing data. Fragmented point solutions that do not address the complete end-to-end processes of the trade cycle” (Ramaswamy et al. n.d., p. 38). All the areas of business operations need to be considered, and a meeting of the team members needs to be arranged to inform them about the changeover. The changeover is made in such a way that it does not interrupt the…
4 pages (1004 words)
Report about Procter and Gamble Case ( Information Technology)
For this reason, it endeavoured to automate the practices of distribution system involving information technology with the expectation to reduce inefficiencies in the process and to improve its brand image in the market (Clark, 1995). Therefore, the management of P&G aimed to increase the total sales of its products both in small retail outlets and in supermarket chains which was attained by the company with the introduction of the system of Continuous Replenishment (CRP), resulting in alternation within the practices of the distribution system. This further helped in enhancing the…
Britvic plc's 2011 annual report,1) Critically evaluate the information contained in the Chairman's Statement
The statement explains the company’s progress in terms of its profits and that it has grown by about 80% for the past six years. According to his statement and the financial report, the company has made a record of both revenue and volume growth in 2011 in the international market (Gibson 201). This growth is evident in the French and an international territory which contributes to the company’s overall growth of about 4.3%. This growth brings the company to the current 138.1 million Euros. This is quite true as the growth in profits and revenue can be used to evaluate the progress of the…
4 pages (1004 words)
report
Medium sized businesses like XX chemical that wants to diversify into foreign markets and start their business activity there, need to invest huge amount of capital in foreign markets. These types of businesses are the main target customers of leading investment banks across the world (Ritter, 2003, p.278). Medium sized companies generally target the emerging markets for foreign direct investment. They prefer issuing rights for raising fund as rights issue is one of the most efficient to raise fund. Investment banks are recognized for expertise in this service. Rights issue refers to corporate…
9 pages (2259 words)