What policies or procedures, if any,should CBU develop to avoid such problems in the future?

Inventory Situation Case Study

On January 1, CBU installed a new computer system for tracking and calculating inventory costs. On December 31, at years-end closing, CBU’s system reported inventory at $4.5 million for financial statement purposes. At midnight, the auditors performed a physical inventory count and found the inventory total to be $3.5 million. To correct the discrepancy, CBU’s accounting staff processed an adjusting entry to reduce inventory by $1.0 million. The next day, 2 accountants were discussing the events of the previous night. Accountant A was proud of the audit and said it illustrated the benefit of having a good system of internal control. CBU had followed good internal control procedures by having a regular physical inventory count to safeguard a valuable enterprise resource. Accountant A was relieved that the problem was resolved: the financial numbers were corrected before they were reported. In short, he felt successful and thought CBU should feel fortunate to have his accounting staff as control advisors. Accountant B felt differently. She was concerned about the bad decisions that were made throughout the year based on the incorrect inventory numbers. She felt that she and the other accountants should have helped develop more timely and effective system controls.

With which accountant’s philosophy do you agree?

How can you explain the diverse opinions?

What policies or procedures, if any,should CBU develop to avoid such problems in the future?

Your response should also include a Biblical perspective. Also, try to include accounting and auditing standards to support your opinion.

Explain the nature,behaviour,and purpose of cost accounting,and apply cost accounting concepts,techniques,and methods to business transactions.

None

LO 1 explain the nature,behaviour,and purpose of cost accounting,and apply cost accounting concepts,techniques,and methods to business transactions;

LO 2 review the basic principles of accounting, including the use of appropriate software;

LO 3 prepare financial statements from initial data, dealing with both routine and non-routine transactions, and analyse financial statements with confidence.

What is the account and amount of the top line item on the Statement (or Consolidated Statement) of Comprehensive Income? 

SEC 10-K Project: Income Statement

Respond to one or more question(s) from each of the three categories below.

Category: Revenue and Net Income

1. What was the corporation’s net sales, cost of goods sold, and gross profit?

2.  What was the corporate tax rate?  [Hint: divide income tax expense by income before income taxes]

3.  What was the corporation’s net interest expense?

Category:  Comprehensive Income

1.  What is the account and amount of the top line item on the Statement (or Consolidated Statement) of Comprehensive Income?

2.  What items appear under “Other Comprehensive Income (Loss)”?

3.  What is the account and the amount of the bottom line item on the Statement (or Consolidated Statement) of Comprehensive Income?

Category:  Analysis

Calculate the following ratios for the most recent year, and interpret/comment on what those results of your ratio analysis indicate about the financial aspect measured.   Show your calculations.

Gross profit margin

Net profit margin

Times interest earned

Briefly describe the objective of the international Integrated Reporting Council Integrated report framework.

Financial Reporting (IAS & IFRS)

Download a copy of the Annual report for the Barloworld group annual report About Barloworld | Barloworld Limited – AFS 2020 ()

Give a brief overview of the purpose and explain how the following IFRS/IAS’s have been complied with in Barlow world’s group financial statements:

(i) IFRS 8 Operating segments (20 Marks)

(ii) IAS 33 Earnings per share (20 Marks)

(iii) IFRS 5 Non-current Assets held for Sale (20 Marks)

(60 marks)

(i) Briefly describe the objective of the international Integrated Reporting Council Integrated report framework

(ii) Utilising the groups online integrated report, describe and comment on the strategy, business model, the six capitals and strategic enables through which the group seeks to create value over the short, medium and long term and the process used to manage material risks.

(30 marks)

Assignment Guidance Notes

Your assignment should be no longer than 1500 words in total.

Make sure that you have the full annual report for 2020 including the consolidated financial statements and notes to the accounts for Barloworld Limited.

The learning outcomes covered by this assessment are:

LO1. Understand the regulatory framework for financial reporting and critically evaluate UK and international approaches to financial reporting regulation

LO2. Explain, apply and critically evaluate the accounting rules contained in IAS and IFRS.

LO3. Understand the effects of different accounting policies on financial statements.

What are the costs reported as line items on the income statement?Are they increasing with sales or other changes?  

Accounting

Overall your goal for Project One is to read the Management and Analysis and introductory pages of your SEC 10-K to learn more about your company and the information reported.  Incorporate concepts from the course readings.

Operations:

What products does your company make and sell?

Do they manufacture their products or purchase from others?

Trends in revenues and impact on inventory and accounts receivable:

Are sales increasing or decreasing year to year?

How does this relate to changes in inventory and accounts receivable?

Business environment:

What issues might your company experience related to risk? Search the PDF version of the SEC 10-K for your company for the word risk.  Are there other companies and brands under your corporation’s control; locations where they operate; and other big picture business concerns?

Income Statement costs:

What are the costs reported as line items on the income statement? Consider how these relate to the operations of the company.  Are they increasing with sales or other changes?

You might also consider the concept of competitive advantage.  Companies are required to disclose certain financial information to comply with good business practices.  How could this impact their competitive advantage with respect to competitors?

What are the practical accounting issues and challenges for the preparers of financial statements related to cryptocurrencies?

Impact of Cryptocurrencies (digital assets) on financial reporting.

Research paper. APA 7th Edition. 11 pages.

Overview:

Description of the general area to be studied.

Impact of Cryptocurrencies (digital assets) on financial reporting.

A more specific problem identified within the general area. Think about why this problem is important to study and specify what is already known about the problem.

There are no accounting rules dedicated to cryptocurrencies. Under current US GAAP and, under IFRS, intangible asset accounting is applied. The result of the lack of such guidance has led to a variety of accounting treatments used in practice which have created significant challenges for preparers of financial statements.

What is not known about the problem that is important to study. Be specific.

What are the practical accounting issues and challenges for the preparers of financial statements related to cryptocurrencies?

What type of asset is a cryptocurrency and how should changes in their value be reflected in profit and loss, and when?

Issues about accounting for revenues and disclosures of information in financial statements

Risk factors related to accounting for cryptocurrencies

Review various accounting theories, which ones are applicable to the issues related to financial reporting of cryptocurrency assets?

Evaluate at least three types of financial fraud common to the selected company and its associated industry supported with a detailed description of each type of financial fraud and how it can occur.

Operations Strategies

You will create a financial risk mitigation plan to reduce overall costs and increase efficiency in operations for your selected company. Your strategy is to apply best practices for mitigating financial risk and fraud exposure in the company’s operations. You will conduct research to identify industry best practices for risk mitigation to reduce financial fraud exposure and then integrate the relevant best practices into the risk mitigation plan as appropriate for the company. Your findings and recommended strategies would be presented as a financial risk mitigation plan for your selected company.

Instructions

Write a 5–6 page paper in which you:

Describe a selected a company, its operations, and its associated industry and evaluate these areas to develop a financial risk mitigation plan.

Evaluate at least three types of financial fraud common to the selected company and its associated industry supported with a detailed description of each type of financial fraud and how it can occur.

Recommend at least two proposed strategies for mitigating financial risk and fraud exposure based upon financial methods, auditing techniques, and industry best practices used to mitigate financial risk.

Identify the location and date of the last annual shareholders’ meeting.Does the company hold online (virtual) or “bricks and mortar” shareholders’ meetings?

Elaborating a Full Business report on an assigned company

Basic Company Facts

How many board members are on the company’s current Board of Directors?

What is the proportion (either # or %) of male vs. female directors?

Using the ticker symbol provided, check Google finance or the stock market for the market capitalization (market cap) of your company. Market capitalization is the total dollar market value of all of the company’s outstanding shares and is used by the investment community as a measure of company size.

Indicate the amount of current market capitalization (market cap.) for your company and the date on which you obtained this information.

The company’s leadership addresses the shareholders, typically, at the annual stockholders meeting.

Identify the location and date of the last annual shareholders’ meeting.Does the company hold online (virtual) or “bricks and mortar” shareholders’ meetings?

Does your company describe its corporate governance practices in its annual report or on its website? What are the benefits of providing this information?

Briefly explain to the partners the difference between the OAR and ABC methods and why ABC might be a better tool to use for their business;

Management Accounting

The spreadsheet must be designed so that input variables can be changed to enable‘what if’ (sensitivity) analysis and it should be clear to the user (work on the assumptiont hat the end user is not an accountant) which numbers can be changed to see their effect on overall costs and which cannot. Any sensitivity analysis should update both the

OAR and ABC results from one change in inputs.

Report

Write a 1500 word report to the DVP partners. You should:

1) Briefly explain to the partners the difference between the OAR and ABC methods and why ABC might be a better tool to use for their business;

2) Set out the differences in costings between methods for the four Cases you have analysed;

3) Discuss the implications of these differences for the business and recommendations about how the business might become more profitable. Your recommendations should be sensitive to the business environment and take into
account costs, drivers and pricing decisions.