Essays on Accounting Information

Two distinct set of financial reports are used in managing a company, one made by Financial Accountants and the other by Managerial Accountants. These reports are aimed at the company’s external stakeholders such as investors and creditors and are prepared for each quarter and at the end of the financial year and. The format and content of these reports are laid down in laws such as the SOX (Sarbanes- Oxley) Act and in accounting regulations such as the GAAP (Generally Accepted Accounting Principles) and the IFRS (International Financial Reporting Standards). Financial reports become comparable across companies. Managerial accounting ...

In theory, financial accounting and reporting should be objective and neutral. However, the standard setting process can be a challenge as it is influenced by external factors and groups with different interests (Gaffikin, 2005). In different countries, financial accounting tends to be heavily regulated, with laws governing how particular transactions and events are to be recognized, measured and disclosed (Gaffikin, 2005). As such, the accounting process leads to the generation of general purpose financial reports. There are two approaches to the accounting regulation process, the regulated and non-regulated approach (Hossain, 2011). The non-regulated approach is also known as the ...

Introduction

Over the last few decades, there have been several changes in the roles of audit companies notably due to challenges that have affected the ethics and integrity of the institution of auditing. Traditionally, audit companies are mandated with the responsibility of analysing the financial systems, financial records as well as the compliance of companies’ financial reporting procedures with the specific national regulations. The effectiveness of audit companies in implementing these duties is extremely important in the public trust in business organizations around the world. Local and international investors rely on the accuracy of audit reports produced by audit companies ...

Introduction

The invention and development of computers have changed many aspects of human society. Most of these changes were too revolutionary, that it is often hard to imagine a life without computers. This increasing reliance of the society towards computing technology is referred to by scholars as ‘internet of things’, a term they use to describe the interconnectedness of people and computing technologies (Gubbi, Buyya, Marusic & Palaniswami, 2013, p.1646). One of the most impacted professions in the advancement of computers is the accounting profession. In fact, computing and accounting are so related that they are often used interchangeably. For accountants, ...

Organizational Chart

There are three types of decision making which are taking place at the different level of organization. At strategic level of decision, an overall picture of accounting information is needed which basically involves financial report such as balance sheets and income statement (Dichev, 2008). At functional level organization-level decisions that carry day to day, operations are taken. At functional level accounting data input and maintenance take place.

Q2. Users and Purpose of Accounting

Solution: Accounting refers to the recording of the transaction which includes the detailed examining of all the budgeting proceedings (Riahi-Belkaoui, 2004). The basic function of accounting is to provide all the information ...

The airline industry is considered to be highly competitive and therefore airline company managers will need to determine the relevance of their current ERP systems with regards to the applicability of the financial information it generates. This is because the same quantitative and qualitative information is used for both financial and management accounting. However, the main goal of a company is to generate better profitability for its owners while remaining sustainable. This is done by controlling costs while improving revenues through the use of budgets and the standardization of costs and results to variances, which are primarily under management ...

Financial reports are an essential component of any organization. The reports need to be accurate and easily accessible. In the past, the reports were produced in the form of Microsoft Word or Excel. This could not be easily accessed by the stakeholders due to their inability to be accessed on different devices without appropriate software. Such inflexibility, as well as inaccessibility, necessitated the introduction of a standards-based format for financial reporting. The eXtensible Business Reporting Language (XBRL) provided the needed flexibility in reporting of financial information. The focus of the paper is to examine the use and adoption of ...

Investor Communication Plan

Investor Communication Plan

Background

Western States Electric Components Group, a subsidiary of Consolidated Electrical Company, mistakenly misrepresented its sales income for the past four years. Western has been selling about 55% of its connolator generators to various ConsoE’s divisions at lower internal retail prices. The different divisions resold these connolators acquired from Western to outside companies. Unfortunately, the financial department has been recording these activities as two separate earnings, hence double booking. Upon the revision of the accounts for the four years, profits for the following financial year will come out as big loses hence affecting the prices and ...

Introduction

The accounting information system involves the collection, storage, and processing of data concerning financial accounting that is applied by the decision makers (Hall, 2012). Therefore, an accounting information system is computerized to track the accounting operations in conjunction with the resources of the computer. Consequently, the statistical report is used by the management internally and externally by the interested people such as the investors, tax authorities, and creditors. It combines the traditional accounting practices like the Generally Accepted Accounting Principles and the resources of the current information technology. The AIS is composed of six elements as follows: people who ...

Introduction

In the industrial era competition, several key concepts have become obsolete. Therefore, the environmental determinants of the accounting information should have new capabilities to win the competition. The national information technology infrastructure and the accounting information as a management of the financial resources should be in place for the smooth running of the national economy. This is to provide efficient operation of the firm with sufficient information in real time. However, it is not a simple concept that can be changed from the computerized accounting to AIS because it is a representative concept of the accounting reform and developments. ...

Information Technology Infrastructure

Information Technology Infrastructure

Introduction

Information technology infrastructure is a combination of network, hardware, software, facilities and other services that are required to manage, control, and deliver the operations of information technology. It is comprised of computer systems, networks, software applications, data storage, servers, and other components. It helps to manage the internal business operations of any organization. Information technology infrastructure consists of different hardware like computers, printers, routers, hubs, scanners, data centers, and others. The management of different software’s like enterprise resources planning (ERP), Oracle, customer’s relationship management (CRM), and others is involved in it. It is divided ...

Introduction

Managers are constantly making decisions that affect the operations and the bottom lines of the business. Such decisions could include the stocks in which to invest, when to introduce a new product into the market, how to optimize the profits of a firm, how to assign employees to various tasks, and when to venture into new markets. Managers require information to make correct and timely decisions. Managerial accounting and financial accounting are potent sources of the information that managers require when making decisions. Managerial accounting entails the identification, measurement, and communication of the economic information that is needed by ...

H1 This hypothesis should test if IFRS adoption improves accounting quality in R&D firms. However, many research studies that have been conducted established that lower predictability and persistence in earnings. There is also a decrease in earnings influence to stakeholder value, weak volatilities in prices charged by markets, better predictability of cash flow of a company as well as financial predictions. Also, there is a rise in accruals together with timeliness loss of recognition as well as a reduction in expenditure on research and development. According to Ahmed, Neel, and Wang (2012), their study established that increase in income ...

Introduction

This paper explores the costing and pricing methods applicable to firms in the tourism and travel sector using Allegiant Travel Company as an example. Allegiant Travel Company is an American company providing leisure travel products and services to under-served cities in the US. It provides air transport, air transport-related products, travel protection products, hotel rooms and other third party travel products. The paper also analyses the financial statements to assess its financial state.

Costing methods

Several costing methods can be applied in the tourism industry depending on the nature of the assignment and the operations of the organization. Applicable costing methods ...

**Business 4465**

Be sure to put your name and student number at the top of the email attachment. Your document must be less than 10 typed pages. Please read the questions carefully. Write all you answers in a word document, label all questions carefully. The best answers are those that answer the questions well and concisely using material within the scope of the course and not irrelevant material from other sources or from the internet. Answers that are beyond the scope of the course will receive no marks. Answers that are not written in the own words of a ...

Accounting refers to the activities of recording, summarizing, maintaining and publishing financial statements for public, etc. These activities play a vital role not only for internal users of the information but also for the external users who might raise issues and concerns to the work being carried out. It is essential for the investors to get the correct picture of the business before taking the risk of investing in the venture. The ethical practice also enhances the performances and procedures of the organization. Ethics relate to segregating what is good or bad for the consideration of the moral duties ...

Identify different users of accounting information and discuss the varying information needs of these users.

Users of accounting information are both - internal & external to the company in question. Internal users are the primary users of accounting information. They are company managers, employees and proprietors. Managers make use of the accounting information for analysis purpose regarding the company’s output and ranking so that suitable measures could be taken for bettering company performance. Next-in-line internal stakeholders are company employees. Their information needs are different from that of company managers. They use company information for measuring the earnings made by the company and deriving results thereof for relating with their future income and job safety; ...

Introduction

The decision as to the form of business structure that one chooses depends on quite a number of things. There are different legal requirements in New Zealand for running different forms of business structures. For instance, there is a minimum number of people of people required to start a private limited company. There are also tax implications in whichever form of business structure that an investor chooses. For instance, for partnerships, only partners are taxed on their share of partnership profits earned (Collier, 2003). On the other hand, limited liability companies are taxed at a corporate tax rate on ...

MANAGEMENT OF E-COMMERCE

Management of E-Commerce Introduction The improvement in technology all over the world has led to the adoption of E-Commerce in the businesses. According to Andam (2014), E-Commerce is the use of electronic systems and the internet to facilitate selling and buying of goods and services. Grandon (2004) is of the opinion that the Electronic Commerce started forty years ago but currently through the day to day innovations, many firms and individuals are entering the market through the internet. In the work of Demirel (2011) businesses incorporate the use of Electronic Commerce to offer its goods and services in a ...

Over the last two decades, corporate social responsibility has gained deep interest from accountants and auditors. It happens because substantial amounts of financial resources are invested in corporate social responsibility; yet there are not explicit accounting policies and standards to report on corporate social responsibility financials and activities (The Institute of Internal Auditors, 2016). Owing to this, there has been varied views and discourses on the conduct of corporate social reporting with many commentators focusing majorly on the triple bottom line reporting as a prelude to corporate social reporting. The current paper presents a detailed review of the ongoing ...