Phillips Petroleum Case Study Prepared by For Professor C.E. Reese in partial fulfillment of the requirements for ACC 502- Advanced Auditing School of Business/ Graduate Studies St. Thomas University Miami Gardens, Fla. Term A1/Spring 2014 February 17, 2014 Table of Contents Issues……………………………………………………………….Page 3-4 Facts………………………………………………………………..Page 4-5 Analysis/ Authority………………………………………………...Page 5-8 Conclusions/ Recommendation…………………………………….Page 8 References…………………………………………………………
The Usefulness of Accounting Estimates for Predicting Cash Flows and Earnings Baruch Lev* New York University Siyi Li University of Illinois Theodore Sougiannis University of Illinois and ALBA January, 2009 * Contact information: Baruch Lev (blev@stern.nyu.edu), Stern School of Business, New York University, New York, NY 10012. The authors are indebted to the editor and reviewers of the Review of Accounting Studies for suggestions and guidance, and to Louis Chan, Ilia Dichev, John Hand
section up to today. ➢ Earnings Management: Earnings management occurs when managers manipulate firms’ reported earnings through the biasing of accrual judgments and structuring of transactions or other means, eroding the usefulness of earnings information and misleading investors (Barua Cready, Fan and Thomas, 2010; Wilson, 2011; Healy and Wahlen, 1999). ➢ Accrual-based Earnings
(Healy and Wahlen, 1999). Although it is different from fraud which means manipulating earnings outside the GAAP, they both have the same objectives, and probably result in reduction in the earnings quality and reliability of the financial report. Accrual-based earnings management and real earnings management are the two main ways to manage earnings. Real earnings management is concerned with manipulation decisions regarding sales, production, and discretionary expenses
received and not when sales or purchases are actually made. According to IRS Publication 334 if you will be having an inventory on hand such as the cars for your used car dealership the you must use the accrual method. The IRS says that if your business’s sales are in excess of $5 million dollars that accrual accounting must be used. While the initial years of your business may not produce such sales you will have an inventory of cars that will be sold to the public which then means the sales number
And here it is when accrual basis accounting becomes quite useful, as this type of accounting requires the business to review its records and make sure that if there were additional revenues or expenses during the period, those are accurately recorded. A great example our textbook
Contents Abstract: 3 Concur Usage in Oil & Gas Business: 3 Impact of Concur in Oil & Gas Business:…………………………………………………………………………………………………3 Solution Design: 4 Master data Loding from SAP to Concur: 4 Expenses Submitted from Concur to SAP: 4 Month end Accrual from Concur to SAP: 5 Conclusion/Summery: 5 How will Your use case Bring Value to IGATE Business/Vertical: 5 About the Author: 5 Abstract This White paper is focused to showcase how SAP will integrated to Concur Interface. GE Employees Submit T
year following the accrual (see Section 404 (a)(5) and (6). Your client has asked whether the related accrued Social Security taxes on the vacation pay can be accrued under the general recurring item exception because the taxes will be paid by the fifteenth day of the ninth month after the close of the tax year. Issue The client would like to know if the related accrued Social Security taxes for accrued vacation pay earned but not paid can be deducted as a year-end accrual. Facts The client
Accrual vs. Cash Basis Accounting Alicia Wiley Grantham University Abstract In this paper I have defined accrual and cash basis accounting. Also, I have answered the following questions: Explain the difference between the accrual basis of accounting and the cash basis of accounting. What are the major reasons for using accrual accounting? What are the purpose of a journal and a ledger? Give an example of a contra-asset, and explain how it is recorded on the ledger as a transaction. Explain
for business entities. Also, the basis of accounting for the city and Colgate-Palmolive are different. The city uses modified accrual basis for its fund accounts, which are consolidated into government-wide statements that are prepared using full accrual. However, Colgate-Palmolive prepares all its accounts and financial statements with the same basis of accounting, the accrual