Berkshire Hathaway

Berkshire Hathaway
ISSUES
Warren Buffet invoked the substance–over–form concept to justify accounting for the GEICO and
General Foods transactions as dividends distributions rather than sales of stock. Do you agree with
Buffet that the substance of each of the proportionate redemptions was a dividend and not a sale of
stock?
In deciding how to account for an unusual or unique transaction for financial reporting purposes,
should one consider the tax treatment applied to the transaction?
Did Peat Marwick have a right to change its position on the proper accounting treatment for the
stock redemptions? What factor or factors may have been responsible for Peat Marwick's decision to
change its position regarding these transactions?
FACTS
In 1983, GEICO ... Show more content on Helpwriting.net ...
When asked to comment on Buffet's criticism of Peat Marwick in his company's 1984 annual report,
a Peat Marwick partner simply noted, "It's the client's prerogative to disagree. Our report speaks for
itself." Another prerogative of an audit client is to change auditors. In 1985, Berkshire retained
Touche Ross & Company to audit its financial statements. As required by the Securities and
Exchange Commission, Berkshire filed an 8–K statement with that federal agency to disclose the
change in auditors. In that statement, Berkshire reported it was "dissatisfied" with Peat Marwick's
inconsistency regarding the proper accounting treatment for stock redemptions.
AUTHORITY/ANALYSIS
The substance over form accounting concept means that the economic substance of transactions and
events must be recorded in the financial statements rather than just their legal form in order to
present a true and fair view of the affairs of the entity. Preparers of the financial statements should
use their judgment when employing the substance over form concept, which helps to derive the
business sense from the transactions and events and to present them in a manner that best reflects
their true essence. In some instances the legal aspects of transactions and events may have to be
disregarded in order to provide more useful and relevant information to the users of financial
statements. The concept of

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Case Study Of The Pinnacle Company
1. The degree external users' reliance on financial statements: The Pinnacle is a medium size
business based on total asset and total revenue amount and the business is considering selling the
Machine–Tech division which make external users moderately rely on Financial Statements. Also,
the Pinnacle company is a privately held, but there is a large amount of debt which make financial
statement be used extensively. 2. Likelihood of financial difficulties: Because the nature of
Pinnacle's operation which revolves around changing technology that make the business more risky
than other business; specially, higher risk in bankruptcy. Item 1 in the planning phase of the audit
raises a concern about the viability of Solar– Electro division since ... Show more content on
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This affects account receivable, bad debt expense and allowance for uncollectible accounts.
Realizable value and accuracy under balance related audit objective was affect, because company
should make sure if the account balance be reduced and the amount included at correct amount. Item
6: There is no effect on inherent risk or affected account. Item 7: Inherent risk is there is a potential
related party transaction which affect valuation of the transaction and may require disclosure as
related party transaction. Because the Pinnacle vice president own the T–shirt company and
Pinnacle use that T–shirt as uniform. Account affected include maintenance expense and account
payable. Accuracy of audit objective was affected. Item 8: Inherent risk is indirectly affect by the
turnover in the inventory audit department because the risk of fraudulent financial reporting
increased. This situation probably cause by the upper management have fraud and then leave
company, and this may also affect the auditor's assessment of control risk. All accounts are affected
since it relates to risk of fraudulent financial

Transaction Services Tax
Transaction Services
TS Insights
List bullet List bullet Sub bullet
evaluation of the other two sources of taxable income ― Vol. 3
Heading 2
Financial reporting in an uncertain economy
A closer look at income tax valuation allowances October 2009
Additional text goes here. Heading 3
Additional text goes here. Notwithstanding early signs that the global recession may be waning, the
uncertain economic future continues to constrict corporate America. As companies continue to incur
losses, focus has heightened on income tax valuation allowance assessments by companies and their
auditors, as well as the Securities and Exchange Commission staff, through the issuance of comment
letters. Specifically, much of this focus is ... Show more content on Helpwriting.net ...
While not defined by ASC 740, practice has generally been to consider the most recent three years
when assessing cumulative losses. Positive evidence of sufficient quantity and quality would be
needed to overcome this significant negative evidence and conclude that a valuation allowance is
not warranted. As with all elements of available evidence, a cumulative loss is simply one data point
– it is not a "bright line" test that is in and of itself determinative of the need for a valuation
allowance. To illustrate, assume that a company is in a three–year cumulative income position of
$10 million, but the results of the past three years have flipped from income to losses (2006: income
of $100 million; 2007: loss of $30 million; 2008: loss of $60 million). Does the fact that the
company is still in a three–year cumulative income position at the end of 2008 automatically suggest
that a valuation allowance is not warranted? On the other hand, assume a company had previously
recorded a full valuation allowance and incurred a loss of $100 million in 2008, but earned $30
million in 2009 and $60 million in 2010. Does the fact that the company is still in a

Bitcoin Was A Hoax?
In December 2013, after a series of governments' legislation was passed, the price of Bitcoin
crashed. While many hoped for a revival, the prices continued to plummet until they reached low of
$200. In one short year, the price had fallen to one–sixth of its previous high ("Complete Bitcoin's
Price Chart"). This fall proved what many thought; Bitcoin was a hoax.
One of the greatest downfalls of cryptocurrency is due to its lack of governing power. It is important
to note that this creates inherent weaknesses in the currency as well as governmental concerns. Both
of which could prove to be detrimental to cryptocurrencies.
According to renowned PhDs in Economics, Hendricson, Hogan, and Luther, there are many issues
with the regulatory nature ... Show more content on Helpwriting.net ...
An example of the lack of safety can be found in Bitcoin's recent history. Student of law Misha
Tsukerman M.J. relates that "Mt. Gox, founded in 2009 ... became the dominant online marketplace
for the purchase and sale of Bitcoins, handling 80 percent of all Bitcoin trading activity in 2013. On
February 25, 2014, Mt. Gox failed after hackers stole approximately 850,000 Bitcoins" (1150). In
this event, hackers managed to steal approximately 480 million dollars (Takashi Mochizuki and
Eleanor Warnock). Mt. Gox's failure shook the confidence of Bitcoin users. Due to the previously
mentioned weaknesses, the stolen Bitcoins could not be retrieved.
Furthermore, due to the lack of regulations, Bitcoin can easily be used for illegal means. Technical
writer Andy Extance claims that "because users are allowed to mask their identity with pseudonyms,
the currency is perfect for screening criminal activity" (22). German philosopher, Claus
Dierksmeier, further expounds, stating, "On websites specifically designed to escape public scrutiny,
cryptocurrencies are being used to buy and sell illegal drugs, weapons, and sex. Unquestionably, the
anonymity afforded by some altcoins affords criminals advantages compared to either trading in
physical spaces or to using privately or publically owned exchange media within the virtual space of
the Internet, opening the door to many forms of fraud and theft..." (6–7). Due to blockchain
technology, the only identities of

Vinsun Essay
MGTC08 – L02
Case Assignment 2: Goodbuy Drugs Ltd
To: Audit Committee
From: CA/CGA/CMA
Re: Goodbuy Drugs Ltd's (GDL) 2012 Analysis Report for Audit Meeting
This report has been prepared for the audit committee's review and summarizes the 2012 accounting
issues that GDL faces. It includes an analysis of the revised basic & diluted EPS calculations based
on the recommendations.
COMPANY BACKGROUND AND CONSTRAINTS
GDL is a public company with operations in drug & food product retail as well as real estate. GDL's
shares are traded on the public market and follows IFRS reporting standards. It reports basic &
diluted EPS before & after tax & capital gain for Y/E Dec 31 and emphasizes its ... Show more
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Issues 2 & 3 have been presented based on this deduction.
2. Recording sale of real estate to Sisson REIT
The sale occurred on Dec 21, 2012 and was not reflected in the financial statements. Per IFRS
standards, since the transaction occurred before Goodbuy Drug's Y/E; the transaction and the related
tax expenses have to be recorded. If the transaction costs are related to the disposal, they will have
to be expensed. If they are related to the acquisition of the equity investment REIT units, they can be
accounted for in two ways:
Alternative 1: The units are recorded under the Fair Value through Net Income (FV–NI) model.
Under this model, the units will be initially recognized at their fair value ($50 M) and the acquisition
costs would be expensed ($7 M).
Alternative 2: The units are recorded under the Fair Value through Other Comprehensive Income
(FV–OCI) model. Under this model, the Units will be initially recognized at their fair value plus any
acquisition costs ($57 M).
Recommendation: The FV–OCI model can only be used if GDL does not intend to trade the units, in
other words, only if they are held for strategic purposes. Since the units are not being used as such
(see issue 1), it is recommended that GDL accounts for these units through the FV–NI model. The
compulsion to record the transaction will result in a net gain of $178 M, leading to an increase in
Net Income and

Us Gaap and French Gaap
Implementing IFRS
Extract from:
IFRS compared with US GAAP and French GAAP
Assurance Services
The information contained herein is of a general nature and is not intended to address the
circumstances of any particular individual or entity. Although we endeavour to provide accurate and
timely information, there can be no guarantee that such information is accurate as of the date it is
received or that it will continue to be accurate in the future. No one should act upon such
information without appropriate professional advice after a thorough examination of the particular
situation. © 2003 KPMG International, a Swiss nonoperating association. All rights reserved.
KPMG International is a nonoperating Swiss verein which provides no ... Show more content on
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© 2003 KPMG International, a Swiss nonoperating association. All rights reserved.
Contents
Regulatory background Generally accepted accounting practice Legal and listing requirements
General issues Form and elements of financial statements Statement of recognised gains and losses
Statement of cash flows Basis of accounting Consolidation Business combinations Foreign currency
translation Prior period adjustments and other accounting changes Events after the balance sheet
date Specific balance sheet items General Property, plant and equipment Intangible assets
Investment property Investments in associates and joint ventures Financial instruments, including
hedging Inventories Biological assets Impairment Equity Provisions Deferred tax Contingent assets
and liabilities Specific income statement items General Revenue Government grants Employee
benefits Share–based payments Interest expense Income tax Extraordinary and exceptional items
5 5 5 5 5 6 6 6 6 7 8 8 8 8 8 9 9 9 10 10 11 11 11 11 12 12 12 12 12 13 13 13 13 13 13 14
© 2003 KPMG International, a Swiss nonoperating association. All rights reserved.
Contents (continued)

Special topics Leases Segment reporting Earnings per share Discontinuing operations Related party
disclosures Financial instruments disclosure Non–monetary transactions Accompanying financial
and other information Interim financial reporting
14 14 14 14 14 15 15 15 15 15
© 2003

Regulation Of Digital Currency
Introduction The purpose of this paper is to recognize the current lack of regulation imposed on the
use of Digital Currency or altcoin (alternative coins). I am strongly against how the United States'
Internal Revenue Service (IRS) and FinCEN (Financial Crimes Enforcement Network) are currently
treating transactions, and the lack of transparency and taxation enforcement against investment and
movement of the valued currency. Although extremely volatile, virtual currency has progressed to
the mainstream and I don't think it is going away anytime soon. Law enforcement, accountants, as
well as criminals remain in awe at the lack of guidance and the ease of using this alternate currency
to potentially hide illicitly obtained and or make ... Show more content on Helpwriting.net ...
A decentralized currency, such as bitcoin, has no central repository or single administrator."
Matsuura (2016) explains, "National governments apply well–established rules addressing the
creation and use of fiat currency used in their countries. Fiat currency is often also described as a
nation's legal tender. It is the national currency, issued and guaranteed by the national government.
At present, no nation has established any form of digital currency as its sole form of fiat currency.
For this reason, traditional laws governing currency have not been directly applicable to Bitcoin and
other virtual currencies." Depending on what the currency is classified as will of course change how
its use is supposed to be regulated or tracked, documented and taxed from both sides of the
transaction. Background With its debut in 2008, Bitcoin represents the first form of Digital
Currency. The currency was the resulting financial reward from computer–generated 'mining' or
solving of special cryptographic coding puzzles, thus forming encrypted and unique blockchains (or
blocks of code and confirmation data to communicate back with other finished coins or processing
centers). The currency was formatted to be completely decentralized from control, while offering a
means for low–cost transactions via a global peer–to–peer network requiring no intermediaries (such
as banks or payment processors), and presumed

Case Analysis: Merrymen Band
The Most Trusted (And Most Educated) Advisor To The "CEO",
Jesse Rowe
Indiana Institute of Technology
Q1– List and explain the key issues that must be addressed.
The unruly ways of the Merrymen band were an issue due to the continuous growth of the band and
their lack of resources, however the sheriff was much more equipped and had a greater capacity to
organize defense and offensive attacks which he was currently doing to the band. Also, the size of
the band, compared to the amount of food available, the food capacity was becoming less and less
so therefore the band had yet to establish a viable food source in order for the band to have a
continuous supply of food, which had begun to diminish due to the capacity of the band ... Show
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The virtue of their toil– Utilize the band member's talents whether it be of cooking gardening,
blacksmithing, fighting, entertaining, each member should work their talents to the best of their
abilities, this would increase productivity and morale. Also, having a entrepreneurial spirit to be a go
getter and not always having to be told to do a task if one knows to do that particular task.
Reliability– (a) – Does the band follow directions of Robin and lieutenants? (b) – Does the band
have bad attendance or discipline? These are the two primary questions in it. But the management of
the band was much organized and there were many lieutenants appointed for different jobs.
Ambition – Is the band self–reliant, do they take charge without having to be told to, and brainstorm
to solve and diffuse any problems that arise? Does the band practice what they preach in other words
are the members of the band a living testament of their own mission statement? In this case, Robin
was trying to implement taxes, to eradicate the problems raised due to increasing of the band this
move was ambitious and logical, but it takes keen foresight to see the necessity of such a

What Are The Legal Requirements Of A Business
Business Name: Patel supermarket Products and services offered: grocery, medicine ,fresh fruits and
vegetables, cosmetics, household cleaner, seasonal items like umbrella, raincoat ,etc.Also provide
services like mobile recharge, Myki recharge, selling of mobile card. Legal form: sole trader Sole
trader business is an individual who sets up his/her own business. This business is self controlled
and also responsible for all assets and liabilities of business. sole trader ship is a business entity
owned by one person. The business and the sole trader are one legal entity. A sole trader business is
the easiest business structure to form due to the legal number of formalities Business type
:merchandising products(retail) Legal requirement: ... Show more content on Helpwriting.net ...
Exchangeable : it is very easy to change into another form of business if your business grows up.
Freedom for certain government regulations: There is no need to pay payroll tax, compensation of
workers, superannuation in sole trader business. Also u can use your TFN number to lodge your tax
returns, privacy: owner get completely privacy in terms of decision making profit. quick decision
making: Decision making process become easy without any conflict. I don't choose partnership or
company because of their drawbacks: Drawbacks of partnership: joint and individual liability:
Members have unlimited liability as they are liable for the debts of the business. In addition,
personal assets of all partners can be used to satisfy the partner's debt. Disagreements among
partners: there may be chance of some disruption during decision making process. shared profits:
Also profit sharing equally although having an uneual contribution of time, effort, or resources can
cause discord among partners. Disadvantage of starting company: It is expensive to start–up,
maintain and shut up. Also complex structure ,registration process is difficult. Company required
large amount of money. In company, profit shared to share holders. in case of loss,owner have to
face so much risk in terms of returning finance ,also hard to shut up . Financial source for business
Finance: money source of finance: This is where we get money for business why business need
finance: starting

Statement Of Financial Position Thesis Statement
STATEMENT OF FINANCIAL POSITION
The Statement of Financial Position is the statement that will show the real condition of the
business. This is the standard name of the statement and the alternative term is the balance sheet.
(Aliling, 2013)It is comprised of three main components: the assets, the liabilities and the equities.
ASSETS
Assets are defined as resources controlled by the entity as a result of past transactions or events and
from which future economic benefits are expected to flow to the entity. (Aliling, 2013) Assets must
be classified in the balance sheet as current or non–current depending on the duration over which the
reporting entity expects to derive economic benefit from its use. An asset which will deliver
economic benefits ... Show more content on Helpwriting.net ...
This is the first stage of preparation of final accounts in an accounting cycle. The purpose of
preparing trading, profit and loss account is to ascertain the net profit or net loss of a business
concern during the accounting period. (Periasamy, 2009)
Income statement comprises of the following main elements:
Income – money that is earned from doing work or received from investments; a company's profit in
a particular period of time
 Operating revenue – the sales associated Income derived from transactions not involved in daily
operations of a business. For example, rent received from other business properties.
 Other income – Income derived from transactions not involved in daily operations of a business.
For example, rent received from other business properties.
Expense – is the reduction in value of an asset as it is used to generate revenue.
 Employee benefits expense – expense for employee benefits that are indirect means of
compensating workers; employees receive these benefits above and beyond their wages. Unlike
wages alone, benefits foster economic security and stability by insuring beneficiaries against
uncertain events such as unemployment, illness, and

Foreign Currency Payments
A Case Study: How CIGNA Streamlined its Foreign Currency Payments Global Finance CIGNA, an
international employee benefits provider, makes cross–border payments by wire, check and ACH to
more than 225,000 beneficiaries in over 70 countries. The company wished to simplify and
automate its foreign currency payments. Key objectives were to accelerate payment processing time,
trim cost and to ensure a superior service to their clients. The Problem: Payment Timing is Critical
to Service Quality Typically, producing checks and Explanation of Benefits (EOB) statements (i.e.,
remittance advices), adds a week or more to processing time in addition to the time for crossborder
delivery. But payment timing is of the essence. The payment process ... Show more content on
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Why Deloitte? The tax work was put to tender and we presented a five year view of how the client's
Corporation Tax compliance and accounting processes could be transitioned over to an outsourced
arrangement with us in a safe and assured manner. We also gave a clear articulation of the
opportunities that existed over the same time period for the client to transform their practice of tax,
setting out a strategic and innovative plan to deliver both process efficiencies and better, quicker
access to information. Our vision for the client encompassed quality, automation, tax knowledge
sharing and organisational change, and detailed how our two organisations could collaborate to
secure an eminent future for the client's tax function. Approach The client picked us as their partner
of choice and we are currently undertaking one of the largest projects of its kind in the world,
transitioning Corporation Tax compliance and accounting processes from a combination of in–house
management and service providers to Deloitte. We will deliver filing of tax returns, management of
tax audits, forecast of cash tax outflows, FIN48 compliance, and interim and year–end accounting
and disclosures. Deloitte teams in the client's major locations across the world are also conducting a
structured review of tax risks and opportunities to ensure best practices are applied globally.
Solution What benefits will the

Ias 12
In April 2001 the International Accounting Standards Board adopted IAS 12. IAS 12 has to do with
the accounting treatment for Income Taxes. There have been many amendments and changes over
the years with the last one being in 2010. The objective of International Accounting Standard 12 is
to advise on the accounting treatment for income taxes. The main issue in accounting for income
taxes is how to account for the current and future tax consequences of certain items. One item it
advises on is the future recovery or settlement of the carrying amount of assets or liabilities that are
recognized in an entity's statement of financial position. The second main item the standard covers is
transactions and other events of the current ... Show more content on Helpwriting.net ...
If the carrying amount of the asset exceeds its tax base, the amount of taxable economic benefits
will exceed the amount that will be allowed as a deduction for tax purposes. The difference is a
taxable temporary difference and the obligation to pay the resulting income taxes in future periods is
a deferred tax liability. Over time the entity recovers the carrying amount of the asset and the taxable
temporary difference will reverse which will result in taxable profit for the entity. This makes it
probable that economic benefits will flow from the entity in the form of tax payments and therefore
requires the recognition of all deferred tax liabilities. For taxable temporary differences a deferred
tax liability shall be recognized for all taxable temporary differences, except to the extent when the
deferred tax liability arises from the initial recognition of goodwill, or the initial recognition of an
asset or liability in a transaction that is not a business combination and at the time of the transaction
neither affects taxable profit or loss not accounting profit. There are certain rules pertaining to
investments in subsidiaries, branches and associates that are covered in a later section. When income
or expense is included in accounting profit in one period and included in taxable profit in a different
period a temporary difference also arises. Temporary differences such as these are described as
timing

Money Laundering
MONEY LAUNDERING IN THE BANKING SECTOR
TABLE OF CONTENS 1. | MONEY LAUNDERING – the concept An organized crime Why it is
done?? | 2. | Stages and Process Of Money Laundering | 3. | Vulnerability of the Financial System to
Money Laundering | 4. | Banking Sector: Medium, Regulator And Cause | 5. | Private Banking And
Money Laundering: | 6. | What Banks Should Do? | 7. | Indian Law For Prevention Of Money
Laundering | 8. | Law Enforcement Authorities | 9. | Tax Havens And Money Laundering | 10. | Case
Studies | 11. | Conclusion | 12. | References ... Show more content on Helpwriting.net ...
Another definition is "The conversion or transfer of property, knowing that such property is derived
from serious crime, for the purpose of concealing or disguising the illicit origin of the property or of
assisting any person who is involved in committing such an offence or offences to evade the legal
consequences of his action, and the concealment or disguise of the true nature, source, location,
disposition, movement, rights with respect to, or ownership of property, knowing that such property
is derived from serious crime". (Article 1 of the 1990 European Communities (EC) Convention on
Laundering, Search, Seizure and Confiscation of the Proceeds from Crime).
The UN defines it as"Money laundering is a process which disguises illegal profits without
compromising the criminals who wish to benefit from the proceeds. It is a dynamic three–stage
process that requires: first, moving the funds from direct association with the crime; second,
disguising the trail to foil pursuit; and third, making the money available to the criminal once again
with the occupational and geographic origins hidden from view". United Nations Global Programme
against Money Laundering.
MONEY LAUNDERING – AN ORGANIZED CRIME:
Money Laundering has a close nexus with organized crime. Money Launderers accumulate
enormous profits through drug trafficking, international frauds, arms dealing etc. Cash transactions
are predominantly

Accounting Analysis On Financial Accounting
Accounting has many branches that it can be divided into. It can be divided into several areas of
activities. Accountings main branches are financial accounting, Management accounting, Cost
accounting, Auditing, Tax accounting, Accounting systems, Fiduciary accounting and Forensic
accounting.
Financial accounting: This branch of accounting measure's and records the transactions of a
business. Financial accounting focuses on the preparation of the five basic financial statements
namely statements of financial position, statements of comprehensive income, statements of cash
flows, statement of changes in equity and notes to financial statements. At the end of a period
usually a year a profit and loss account and a balance sheet is prepared ... Show more content on
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It is governed by the internal revenue code and has specific instructions that should be followed by
individuals and companies when preparing tax returns. Accounting Systems: Accounting systems
involves the implementation, installation, development and monitoring of accounting procedures
and the systems used in the accounting process. This includes the gathering of accountable financial
data, software management, accounting personnel directing and the designing of business forms to
be used in the data– gathering process. This branch is linked to management advisory services. To
be successful in this field technical knowledge and skills in information technology is needed.
Fiduciary Accounting: Fiduciary accounting is the accounting and evaluation of a third party's
business, property and possessions maintained under the guardianship by an entrusted individual. A
few examples of fiduciary accounting include receivership, trust accounting and estate accounting.
Forensic Accounting: This branch involves the investigation of embezzlement or fraud using
accounting skills and analysing financial information to be used in legal proceedings. Forensic
accounting deals with court and litigation cases, fraud investigation, claims and dispute resolution
and other areas that involve legal matters. This area is a popular trend in

The Formation Of Garrison Litigation Management Group
"As to the astuteness of taxpayers in ordering their affairs so as to minimize taxes, the very meaning
of a line in the law is that you intentionally may go as close to it as you can if you do not pass it.
This is so because there is no public duty to pay more than the law demands: taxes are enforced
exactions, not voluntary contributions." (Case 1)
According to an Journal on Regulation published by Yale University, throughout the years especially
in the mid–1990s corporate abuse the system by creating tax shelters, a common scheme typically
involving complex financial transactions between corporation, partnerships, trust, legal instruments
and others to artificially offset their taxable income. Tens of billions are estimated to be lost in tax
revenue due to these shelf tax created by companies that took advantage in how complex the
Internal Revenue Code to create paper losses to offset their taxable income.
To understand better how the complexity of the Internal Revenue Code affects both parties I focus
my research paper in the formation of Garrison Litigation Management Group created by Coltec
Industries, Inc. a publicly–traded holding company. Garrison was created to separate potential
asbestos liabilities following a complex series of prearranged steps to reduce potential tax cost
qualifying under section 351.
In the first case it was decided that Coltec was right to receive a refund for capital loss due to
asbestos liabilities and in case number two the United Stated

Texas Cpa Exams Requirements
TEXAS UNIFORM CPA EXAM PAPER The Uniform Certified Public Accountant Examination
(Uniform CPA Exam) is the examination taken by people who wish to become Certified Public
Accountants in the United States. The Uniform CPA Exam is developed and maintained by the
American Institute of Certified Public Accountants (AICPA), and is administered by the National
Association of State Boards of Accountancy (NASBA). In order to sit for the Uniform CPA Exam, a
person must be declared eligible to do so by one of the 55 state boards of accountancy in the United
States. However, the requirements of state boards vary. Thus, we should do some research about the
state's requirements we plan to take. I would like to state the results I searched ... Show more
* Understanding the Entity and Its Environment (including Internal Control) (16% – 20%) * For
example, the topics include determine and document materiality levels for financial statements,
conduct and document risk assessment discussions among audit team, consideration of fraud,
perform and document risk assessment procedures, consider internal control, document and
understanding of the entity and its environment, assess and document the risk of material
misstatements. * Performing Audit Procedures and Evaluating Evidence (16% – 20%) * For
example, the topics include develop overall responses to risks, and perform audit procedures
responsive to risks of material misstatement; obtain and document evidence to form a basis for
conclusions. * Evaluating Audit Findings, Communications, and Reporting (16% – 20%) * For
example, the topics include that perform overall analytical procedures, evaluate the sufficiency and
appropriateness of audit evidence and document engagement conclusions, evaluate whether audit
documentation is in accordance with professional standards, document the summary of uncorrected
misstatements and related conclusions, and evaluate whether financial statements are free of
material misstatements. * Accounting and Review Services Engagements (12% – 16%) * For
example, the topics include plan the engagement, obtain and document evidence to form a

Sample Resume : Doc Rogers
Index Cover Page..................................................................................1
Index.........................................................................................2
Introduction.................................................................................3 Question
1..................................................................................4 Question
2.................................................................................. Question
3.................................................................................. Question
4.................................................................................. Question
5.................................................................................. Question
6.................................................................................. Question
7.................................................................................. Question
8.................................................................................. Question
9.................................................................................. Question
10................................................................................. Question
11.................................................................................
Conclusion.................................................................................. Reference
List.............................................................................. Introduction Doc Rogers has had a huge
growth in their business from a small online business to opening retail stores interstate. They are
expecting a turnover for this current year to increase well over 150,000, from increasing product
range and new staff in the stores. Mr and Ms Rodgers have asked for financial advice on the
reporting and accounting requirements for this change in their business. They both lack knowledge
in a number of important areas, and this report will answer many questions to get Mr and Mrs
Rodgers confident and educated for their new retail stores. This advice will be used to help Mr and
Mrs Rodgers to make appropriate decisions– how to financially manage the business and provide
information on vital things such as source documents and its importance, chart of accounts and how
it can be used. The policies and

As Assessment of Financial Management in International...
Abstract.
Paper discussed how operating of financial management in different nations impacts investment
decisions with multinational enterprise. Paper describes financial options available to the foreign
subsidiary of the multiple enterprises and shows how money management in international business
can be used to minimize cash balances, and taxation and introduce us to basic methods of money
management.
This project is focusing on financial management in the international business, discussing three sets
financial decisions such as:
Investing decisions, decisions about what activities to finance.
Financing decisions, decisions about how to finance those activities.
Money management decisions, decisions about how to manage firm ... Show more content on
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For example Japan relates on debt ratio them more U.S. firms. One of the explanations for different
financial structures is a different tax regime. For example, if interest income were taxes at higher
rate, a preference for debt financing over equity financing would be expected. However, according
to the empirical research, country differences in financial structure do not seem related to any
systematic to country difference in tax structure. Another explanation is that these country
differences may reflect cultural norms, cultural influences not yet been explained.
Principle behind global money management is that that firms must use the firm's cash recourses in
the most efficient way and work on minimization cash balances and reducing transactional costs.
Firms must hold certain cash balances that will cover payments of accounts payables and expected
demand on cash. The rest of the cash assets are usually reinvested on in money markets accounts
and firms earn interest on them. However, firms must have flexible accounts so it can withdraw all
cash freely. Such accounts usually have low interest rates and if it doesn't, firm can suffers from
financial penalties. That is the dilemma many firms are facing and that is why firms are minimizing
cash balances, so it can earn interest in high rated market account.
Another way to reduce costs of doing business internationally is to reduce transaction costs.
Transaction cost is the cost of exchange, it is

accounting standards. Introduction to Accounting Standards
accounting standards accounting standards
Introduction to Accounting Standards
Accounting is the art of recording transactions in the best manner possible. Accounting Standards
are the policy documents issued by recognized expert accountancy bodies relating to various aspects
of measurement, treatment
and disclosure of accounting transactions and events. Every country has its own standards.
Accounting Standards in India are issued by the Institute of Chartered Accountants of India (ICAI).
At present there are 30 Accounting Standards issued by ICAI. As of 2010, the Institute of Chartered
Accountants of India has issued 32 Accounting Standards. These are numbered AS–1 to AS–7 and
AS–9 to AS–32 (AS–8 is no longer in force since it ... Show more content on Helpwriting.net ...
4. Cost Concept
This concept states that an asset is worth the price paid for or cost incurred to acquire it. Thus, assets
are recorded at their original purchase price and this cost is the basis for all subsequent accounting
for the assets. The assets shown on the financial statements do not necessarily indicate their present
market worth. As such, there is no relationship between depreciation and changes in market value of
the assets. The purpose of depreciation is to allocate the cost of an asset over its useful life and not
to adjust its cost so as to bring it closer to the market value. 5. Accrual Concept
The accrual concept makes a distinction between the receipt of cash and the right to receive it, and
the payment of cash and the legal obligation to pay it. In actual business operations, the obligation to
pay and the actual movement of cash may not coincide. In connection with the sale of goods,
revenue may be received (i) before the right to receive arises, or (ii) after the right to receive has
been created. The accrual concept provides a guideline to the accountant as to how he should treat
the cash receipt and the rights related thereto. In the former case the receipt will not be recognized
as the revenue of the period for the reason that the right to receive the same has not yet arisen. In the
latter case the revenue will be

Tax Law
Summarize the sources and objectives of modern income tax statutes.
The primary source of US tax law is Congress. Power to initiate tax legislation is vested in the
House of Representatives but all tax bills must pass both houses and be signed into law by the
President. Many times the details of the legislation are not dictated by Congress, but left to the
Treasury Department which adopts regulations (that have the force of law) to spell out the details as
well as interpret the statutes and provide guidance on the law. In addition, the Internal Revenue
Service (IRS) issues rulings that address the application of the law to specific fact situations.
The court system is also involved in making tax law through decisions about specific ... Show more
If you are established in your business and do not need to issue financial statements, or your
personal budget is adequate and realistic to your living needs, the simpler tax accounting methods
may be better for you as your focus will remain on what is needed to successfully file taxes at the
end of each year, and you do not need the masses of data associated with tracking every financial
transaction that occurs during the year.
Expert Insight
Tax accounting, also known as OCBOA (Other Comprehensive Basis of Accounting), also includes
a method of accounting known as cash basis. It is rare that any business can succeed basing its
accounting on cash. The intricacies of financial transactions and the necessity of looking for non–
cash based deductions come tax time make cash based tax accounting impractical. Note that all
standards for accounting are set by the IASC (International Accounting Standards Commission).
Differentiate between tax avoidance and tax evasion.
Since the passage of the first income tax law, tax accountants, lawyers, and business persons have
concerned themselves with choosing among the various forms a transaction may take. Tax planning
is the process of arranging an individual's transactions in such a manner as to maximize the
individual's after–tax income. This process is called tax avoidance, and it is a legal and legitimate
pursuit.
Some persons

A Critical Component Of Capital Budgeting Is Risk Analysis
The decision of a firm to merge or acquire another firm comes with a tremendous amount of due
diligence. Due diligence in, not simply acquiring all of the available knowledge that it can regarding
the company it seeks to acquire, but also understanding the financial health of themselves and their
ability to acquire another firm and benefit from the potential synergies realized. Companies must
also assess the risks involved of the potential acquisition, and if the numbers prove worthwhile,
decide how the company plans to fund the transaction. Many companies hesitate in making such
major transaction decisions, however "mergers and acquisitions are the lifeblood of growth"
(DiPietro, 2010, p. 18). A critical component of capital budgeting is risk analysis (Correia, 2012).
Risk analysis includes assessing risk and adjusting for risk in order to measure return variability and
the probability of not reaching the required rate of return that deems and investment a worthy choice
(Correia, 2012). This practice, called sensitivity analysis, becomes compulsory to any firm that
desires making sound investment and capital structure decisions.
The theory of capital budgeting suggests that firms employ discounted cash flow (DCF) techniques
in order to select investment projects (Correia, 2012). A theoretically sound and accepted DCF
method is net present value (NPV). Money earned today is worth more than money earned in the
future, and the NPV method takes in to account the time value of

Marketing Research
IAS 12: Income Taxes
Objective: The objective of this standard is to prescribe accounting treatment for income taxes.
Scope: IAS 12 should be applied in accounting for income taxes.
Income taxes include:
All domestic and foreign taxes the based on taxable profits
Taxes, such as withholding taxes, payable by a subsidiary, associate or joint venture on distributions
to reporting company
IAS 12 does not address:
Investment tax credit
Methods of accounting for government grant
However it does address the accounting for temporary differences arising due to above.
Definitions
Accounting Profit is profit or loss for a period before deducting tax expense.
Taxable Profit (or tax loss) is profit (or loss) for a period, ... Show more content on Helpwriting.net
...
deferred tax liabilities = taxable temporary difference * tax rateDeferred tax assets are the amounts
of income taxes recoverable in future periods in respectof: Deductible temporary difference The
carryforward of unused tax losses, androshankumar.2007@rediffmail.com
4. Carryforward of unused tax credits i.e. deferred tax Assets = deductible temporary difference *
tax rate + unused tax losses * tax rate and tax creditsDeferred Tax:Sometimes carrying amounts of
assets and liabilities may be recovered or settled at anamount or at a time different than that
considered for tax purposes. In such case IAS 12requires an entity to recognise deferred tax liability
or deferred tax asset so as to recognisethe deferred tax effects in the current financial statements as if
those differences did notexists.This standard also deals with: The recognition of deferred tax assets
arising from unused tax losses and unused tax credits The presentation of income taxes in financial
statements, and Disclosure of information relating to income taxesSpecial Points:When any
transaction gives rise to any asset or liability, but does not affect either accountingprofit or taxable
profit at the time of transaction then IAS 12 does not permit an entity torecognise deferred tax asset
or deferred tax liability.A deferred tax liability should not be recognised when it arises fromThe
initial recognition of Goodwill orInitial recognition

The Sarbanes Oxley ( Sox ) Act Of 2002
The Sarbanes–Oxley (SOX) Act of 2002 was legislated by Congress to restore reliability of financial
statements with the objectives to raise standards of corporate accountability, to not only improve
detection, but to also prevent fraud and abuse (Terando & Kurtenbach, 2009). Additionally, SOX
was the response to general failure of business ethics such as the propagation of abusive tax shelters
and greater aggressive tax avoidance strategies (Raabe, Whittenburg, Sanders, & Sawyers, 2015).
Tax Advantages of Sarbanes–Oxley
Considering the tax planning, SOX identify the potential risks of the similar firm conducting both
tax services and auditing for a business by changing the relationship between the audit Committee
of company and external auditors, thus providing a new obligation for the tax services to be pre–
approved by the audit committee while the auditors are not limited from the tax services they can
offer (Piotroski & Srinivasan, 2007). The Security Exchange Commission specifies that the audit
committee in charge of retention and appointment of auditors must examine first, transactions
primarily suggested by the accountant of the firm, secondly transactions which the only purpose is
tax evasion, and lastly the treatment of tax that may not be assisted by the Internal Revenue Code of
the United States and associated regulations (Piotroski & Srinivasan, 2007). Tax evasion constitutes
the illegal nonpayment of tax and cannot be condoned (Raabe, et al., 2015). Those three

Generally Accepted Accounting Principles ( Gaap ) And...
Generally Accepted Accounting Principles (GAAP) and Financial Accounting Standards Board
(FASB) exist to make financial reporting consistent while reducing fraud and material errors.
Because GAAP guidance is crucial for public and private companies depend heavily upon it to make
financial decisions. Through GAAP, the entity understands how to properly carry out the accrual
accounting process and most importantly when to recognize revenue. However, what happens when
GAAP guidance is not sufficient or non–existent in its interpretations of gray areas? Here lies the
question that accountants and the crypto–currency community of bitcoin has requested answers too
for the last few years. After the release of Internal Revenue Service (IRS) tax ... Show more content
on Helpwriting.net ...
Most entities do not have the technological capability to keep track of up to date bitcoin market
prices at the time of bitcoin exchange. Providers such as BitPay or Coinbase have effectively made
it easy to account for bitcoin by immediately transforming bitcoin into a legal unit of currency. For
this reason, the business that accepts bitcoin are transferring bitcoin to a third party and the third
party is transferring legal tender. Traditional accounting systems can then classify and record the
transaction. Due to bitcoins nature and the legality of it the IRS has classified it as property and not
currency for U.S. federal tax purposes. General tax principles that relate to property transactions
apply to transactions using bitcoin and other virtual currencies. The IRS states virtual currency has
an equivalent value in real currency, or that it acts as a convertible virtual currency (AICPA 2014).
Bitcoin is a legal, financial investment and legal for trade and exchange into United States Dollars
(USD) under IRS guidance. When receiving bitcoins as payment the coins are computed to gross
income by using the fair market value of the virtual currency on that date. Gains or losses are
classified as ordinary income or loss depending on whether the virtual currency is a capital asset in
the hands of the taxpayer. A payment made using virtual currency is subject

Basic Financial And Management Accounting Principles
In the business world, business accounting embraces many professional and trade skills and
abilities, such as being able to gather, record, summarize and analyse financial transactions. It is
studied and known that business accounting is useful in people's everyday lives. This report is going
to be about basic financial and management accounting principles and techniques used in today's
working society, with the aim to introduce how daily transactions activities are partaken in the
working environment as an accountant. The report will also discuss about the main branches in
within business accounting and will talk about concepts, policies and principles in accounting.
As written on Business News Daily, accounting is: "Vital to a strong company, keeping track of the
business's finances and its continued profitability", (Martin, 2015). It is certainly vital and important
that companies and businesses acquire understanding and knowledge on accounting, but also
individuals should acquire knowledge in accounting for personal benefit. This is because in the
today's society and civilization, people use accounting in their daily lives. For example when they
study financial statements to make investment decisions, assess interest rates to pay off their houses
mortgages and calculate rates for house bills and car payments.
The accounting branches and sub–branches
Accounting is a very broad and emerged field, perhaps very interesting ground to work. Rosivach, a
business woman

Financial Reporting Framework For Small And Medium Sized...
I. INTRODUCTION In June of 2013, the American Institute of Certified Public Accountants issued
the "Financial Reporting Framework for Small and Medium–Sized Entities", or FRF for SMEs. This
option was developed due to the frustrations of the Financial Accounting Foundation focusing on
public companies and disregarding the differences for financial reporting for private companies
(Briggs Jr., 2013). FRF for SMEs includes key features specifically for these private companies.
These features consist of the following. The foundation of the framework comes from reliable and
comprehensive accounting principles. The framework uses historical cost as opposed to fair value.
FRF for SMEs also allows for less disclosures, but includes relevant ... Show more content on
Helpwriting.net ...
· The entity is for–profit · The owners and management have no intention of going public · The
entity is a closely held company in which those owing a controlling interest in the entity are
substantially the same as those running the company · Management and owners rely on the financial
statements to assess performance and confirm cash flows and what the company owns and owes ·
The entity does not engage in overly complicated transactions · The entity does not have significant
foreign operations · Key users of the entity's financial statements have direct access to the entity's
management. · Users of the financial statements may have greater interest in cash flows, liquidity,
statement of financial position strength, and interest coverage. · The financial statements support
applications for bank financing when the banker does not base a lending decision solely on the
financial statements but also on available collateral or other evaluation mechanisms not directly
related to the financial statements If the entity checks off multiple characteristics, the FRF for SMEs
might work better for the entity than GAAP. IV. HISTORICAL COST VERSUS FAIR VALUE
MEASUREMENTS The use of historical cost over fair value measurements creates a major
difference between FRF for SMEs and other frameworks. Under the historical cost method, the
entity recognizes transactions and events at the amount of cash or cash equivalents paid or received
when the transaction took place. The method

Communication Actitivy
As a new auditor for the CPA firm of Croix, Marais, and Kale, you have been assigned to review the
internal controls over mail cash receipts of Manhattan Company. Your review reviews the following:
checks are promptly endorsed "For Deposits Only", but no list of the checks is prepared by the
person opening the mail. The mail is opened either by the cashier or by the employee who maintains
the accounts receivable records. Mail receipts are deposited in the bank weekly by the cashier.
Instructions: Write a letter to Jerry Mays, owner of the Manhattan company explaining the
weaknesses in internal control and your recommendations for improving the system.
Mr. Jerry Mays
Manhattan Company
Dear Mr. Mays
RE: INDENTIFICATION OF WEAKNESSES IN ... Show more content on Helpwriting.net ...
Additionally, we recommend the segregation of duties, where different individuals receive the mail
cash, record the receipts and hold the cash. This will ensure that different individuals are responsible
for any related activity and that the responsibility for record keeping for the cash is separate from
the physical custody of the cash.
Finally, we also observed that the cashier deposits mail receipts in the bank weekly. The internal
storage of cash on the premises of the Company is not advisable for obvious reasons– theft, robbery,
and unauthorized access. Employees with other intentions can alert external cohorts to raid or rob
the Company at night or at another time to gain access to the cash stored on the premises.
Additionally, the storage of the cash on the premises presents a "working hazard" for the employees
as outsiders wanting to gain access to the cash may subject them to unwanted raids. The use of a
bank on a daily basis contributes significantly to good internal control over cash. The company can
safeguard the cash on a daily basis by using a bank as a depository and thus minimizing the amount
of currency that the Company has on hand at any point in time during the week. Additionally, the
use of the bank on the daily basis facilitates the control of cash because it creates a double record of
all bank transactions – one by the Company and one by the bank. Also we recommend that all
receipts be deposited in the bank on a daily basis

Second Circuit Conjunctive Analysis Essay
Since Frank Lyon, the Circuit Courts have been divided on how to apply the two–prong test of the
economic substance doctrine. The inconsistency is reflected in the current and ongoing STARS
transaction cases. Each circuit has chosen a different path pertaining to the test. The Second Circuit
applies a flexible unitary analysis. The Federal Circuit applies a conjunctive analysis but takes a
different approach from the Second Circuit in applying the objective prong of the test. The Eighth
Circuit also applies the conjunctive test and also applies the objective prong differently. Finally, the
First Circuit applies a disjunctive analysis.
Alongside similar facts, the courts faced a common key question in analyzing the objective prong in
the STARS cases: whether the relevant transaction created a reasonable opportunity for profit
exclusive of the tax benefits claimed.
BNY explicitly included the foreign taxes paid by the U.S. bank as part of the costs of the
transaction, despite authority that both U.S. taxes and foreign taxes should be ignored in the
evaluation of pretax profitability. However, BNY and Salem did not include income from the Bx
payment in their analysis of profitability because they had characterized that payment as a tax effect.
Santander took the opposite approach. It concluded that the Bx payment was not a tax rebate and
therefore treated it as income for purposes of the profitability analysis, resulting in a determination
that the satisfied the objective prong

Accounting Case 12-4: Temporary Differences
* Case 12–4 Temporary Differences
SFAS No. 109, "Accounting for Income Taxes," requires inter–period tax allocation for temporary
differences.
Required:
a. Define the term temporary difference. b. List the examples of temporary differences contained in
SFAS No. 109. c. Defend inter–period income tax allocation.
a. Temporary Difference – Definition
An assumption inherent in an enterprise 's statement of financial position prepared in accordance
with generally accepted accounting principles is that the reported amounts of assets and liabilities
will be recovered and settled, respectively. Based on that assumption, a difference between the tax
basis of an asset or a liability and its reported amount in the statement of ... Show more content on
Helpwriting.net ...
There may be differences between the assigned values and the tax bases of the assets and liabilities
recognized in a business combination accounted for as a purchase under APB Opinion No. 16,
Business Combinations.
c. Inter–period Income Tax Allocation – A Defense It is critical to understand that the transaction
events which give rise to timing differences are economic in nature and therefore have economic
consequences. The question then becomes how to best reflect those economic consequences in the
financial statements. Inter–period income tax allocation considers the tax consequences of
transaction events such as revenue, expenses, gains, and losses and associates these items with the
period in which these events are recognized. In other words, inter–period tax allocation is consistent
with the basic tenets of accrual accounting. Underlying this method is the understanding that there is
a direct economic relationship between identifiable transactions reflected in the financial statements
and related income tax effects (Arthur et al., 1984). Therefore, each transaction has a tax effect.
Information based on accrual accounting has historically and empirically provided a better
indication of a company's ability to generate cash flows than information gathered under the cash
method. If there is not inter–period allocation, then the information is not as meaningful and will
result in a mismatching of economic benefits

General Electric, An American Multinational
Introduction
General Electric is an American Multinational that has been operating since 1892. GE 's leaders
through the years have built a diverse portfolio of leading businesses; its business activities span a
wide range of areas–everything from aircraft engine manufacturing, appliances, healthcare
equipment, and even the NBC television network. Therefore, a huge company operating in different
and variant fields must be financially balanced and profitable for regular activity, sustainability and
growth. Also the financial analysis of this company will be rich and educative because of its
diversity.
My financial analysis will focus on different aspects of the firm. A detailed view of the tax and its
components, an analysis of profitability and GE's ability to educe profits for shareholders, strategies
of involvement and motivation of employees, as well as a deep analysis of its cash flow statement.
Most information and numbers in the report are taken from the company's 2013 Annual Report that
is reflecting the consolidated financial statements of General Electric Company combined with the
industrial manufacturing and services businesses of GE with General Electric Capital Corporation.
According to the report, the financial information is sometimes derived from consolidated financial
information, but not presented in the financial statements prepared in accordance with U.S general
accepted accounting principles (GAAP). However, most amounts displayed and analyzed on the

Major Differences Between Us Gaap And Ifrs
MAJOR DIFFERENCES BETWEEN US GAAP AND IFRS Student's name: University: Date of
submission:
PART I
a) History of the convergence project between US GAAP and IFRS The US Generally Accepted
Accounting Principles (GAAP) is a set of international accounting rules which originated from the
United States. US GAAP can be defined as a set of accounting principles, standards and procedures
that companies use to compile their financial statements (Elliott & Elliott, 2008). The International
Financial Reporting Standards (IFRS) on the other hand are accounting rules originating from the
United Kingdom. International Financial Reporting Standards (IFRS) are a set of accounting rules
designed with a common global language for business affairs so that financial accounts of
companies are understandable and comparable across international boundaries (Devinney, Pedersen
& Tihanyi, 2010). There are two major similarities or points of convergence between US GAAP and
IFRS. The first similarity is with regards to objectives of financial. In this case, both IFRS and US
GAAP take the same general position with regards to objectives of financial reporting. The two
main objectives shared by the two accounting bodies are relevancy of

Professional Issues And Ethics Of Accounting
Professional Issues and Ethics in Accounting To: Dr. Linda Zucca, CPA, Ph.D. Cryptocurrency Wei
Hu Yang Liu Kent State University November 16, 2014 Abstract The paper talks about the invention
and growth of cryptocurrency, its accounting treatment, audit implications combined with tax
implications, and analysis of the potential problems and the direction the technology is headed in the
future. This paper also presents the accounting rules for foreign currency and investments. Bitcoin
was a software–based online payment system. Also, it was designed to be a virtual currency that
would remedy the need other traditional currencies encounter when used online, a need for a third
party to verify the transaction and ensure the ... Show more content on Helpwriting.net ...
As Nakamoto described, "We propose a solution to the double–spending problem using a peer–to–
peer distributed timestamp server to generate computational proof of the chronological order of
transactions. We define an electronic coin as a chain of digital signatures. Each owner transfers the
coin to the next by digitally signing a hash of the previous transaction and the public key of the next
owner and adding these to the end of the coin." (Nakamoto, 2008) Bitcoin now has the largest
market capitalization among all kinds of crytocurrency. Bitcoin 's success has generated a number of
other crypto–currencies including Litecoin, Peercoin, and Namecoin, etc. Bitcoin, an electronic
currency, is established by computers producing a string of unique numbers through complicated
math problems. Bitcoin is sold on unregulated exchanges and acknowledged by an increasing
number of people and businesses due to the fast speed and low transaction cost. One Bitcoin is now
valued at about $500 and other crypto–currencies hold less value. The trend is that cryptocurrencies
are attracting more interest as potential investments. A distinguishing feature of crypto–currency is
that it is not issued or backed by government. So it is difficult for government to manipulate or
interfere with. Governments around the world hold different perspectives

Illegal Money Flows In The United States
Illegal money flows pose a massive challenge to all societies, rich and poor. Tax evasion undercuts
the financing of public services and distorts the economy. Financial crime fuels and facilitates
criminal activities from drug trafficking and human smuggling to theft and fraud. Corruption
corrodes public institutions and warps decision–making. Terrorist finance sustains organisations that
spread death and fear. The scale of such illicit money flows is staggering. Depending on the country,
tax evasion robs the public sector of anywhere between 6% and 70% of what tax authorities estimate
they should be collecting. Global financial crime flows are estimated to amount to over US$2tr per
year. Corruption amounts to another US$1tr. Most of the effort

Case Study: Culver City Revenue Tax
Sales tax is the city's single largest revenue source. With the state imposing a 10% sales and use tax
on all taxable transaction within the state, Culver City receives 1% on these transactions. Sales tax
accounted for 18.7% of General Fund revenues for the year ending 2017. Business tax is right
behind it at 12.1% of the General Fund revenue. Property tax receipts ended the fiscal year in 2017
at $4.56 million. This was a 3.85% over the last year. The Transient Occupancy Tax which is a tax
on occupied hotels and motels. It had a slight improvement of .1% with a total of $7.6 million.
There are Fund financial statements that are included in this report. The Government Fund includes
the General Fund, Special Revenue, Capital Projects,

Myer Holding Limited Annual Report 2014
1. The composition of the group; namely the subsidiaries, associates, any joint Ventures and any
other significant investments According to note 30 (Myer Holding Limited annual report 2014, p.
104), Myer's subsidiaries appearance is mainly from Australia with difference names. The Parent
entity is Myer Holdings Limited. There are 22 subsidiaries including 5 subsidiaries are from
overseas shown as list below: According to Australian Business Register, depending on which type
of the entity, associates might be persons or organisations. Moreover, associates include top 20 of
shareholders. In this case, the entity is Myer Holdings Limited, which is type of company. As shown
in the annual report 2014 of Myer Holding Limited (2014, p. 117), there are 20 largest shareholders
in the following list: There are 5 significant shareholders which are important investments: Harris
Associates with 42,724,764 shares; Goldman Sachs Group Inc. with 41,444,348 shares; UBS AG
with 38,339,954 shares; Commonwealth Bank of Australia with 35,169,489 shares; and BlackRock
Group with 29,286,209 shares. The Myer Holding Limited is wholly owned all of the Australian
controlled subsidiaries. Within the whole owned subsidiaries, for those entities that along to a deed
of cross guarantee or called as 'closed group' have to follow the Class Order 98/1418 issued by ASIC
(the Australian Securities and Investments Commission), which requiring to prepare financial
statements and director

Australian Accounting Regulations
Financial accounting regulations are the laws and principles that are governed by regulators to
protect investors' confidence and to promote financial stability. The regulators are directly involved
in setting harmonized standards for the execution of efficient operations and to facilitate
management in making effective decisions. The regulators are directly involved in regular
inspection and investigation and will take strong action against any misconduct.
The analysis presents the impact of financial accounting regulations on business in Australia. The
first part of the analysis provides the aim of financial accounting regulations and a brief discussion
about different governing regulators in Australia along with their specific responsibilities. ... Show
more content on Helpwriting.net ...
ASIC determines whether the company has complied with corporate governance and consumer
protection strategies to run the business. Shareholders need accurate, relevant and timely
information to analyze the future prospects of the company and to determine whether the enterprise
is generating sufficient return as compare to the industry. Managers in return may manipulate the
profits to retain shareholder's confidence but ASIC strongly condemn this act and require
management to comply with corporate governance strategies to maintain and enhance shareholder's
confidence (Gugler, Klaus, 2001)
Corporate governance strategies require the effective implementation of internal control and the
appointment of independent audit committee. Internal controls will help to effectively run the
organization's operations whereas on the other hand, audit committee will help to maintain the
transparency of financial information and boosts investor's confidence (Gugler, Klaus, 2001).
Australian Prudential Regulatory Authority

The Cost Of College Education
As the cost of college education continues to rise exponentially year–by–year, politicians are talking
about either or not to make it free. Presidential candidates like Bernie Sanders raise the point of
making all public colleges free, and others like Hillary just want to end student debt. Making college
a free and accessible to anyone sounds like a great idea, in theory, but in the United States it is not
so feasible. At least; not the way some politicians plan on making it free. Reasons for which making
it free would not work is that in the end, it will be damaging to the U.S. economy. Bernie Sanders
wants to raise tax on the rich, the primary source of money in the U.S., but also get most of the
money for this program through a tax called "Financial Transactions Tax" or FTT. To put it simply,
for every transaction made in the financial markets, the tax will be of one basis point (.01 percent).
Doesn't sound terrible, right? Well not for household traders, but in companies that trade billions
each day, that number is drastically larger. Another reason for which this will be damaging is that
since all the money funded through this project is from Wall Street, some years could see a drastic
shrink in money earned. That ties into the last point that short–term gains are very visible, but in the
long run less money will be funneled to this program. So although free college may seem like a
worthwhile plan for the United States, the possibility of this plan going into fruition

The Role Of A Corporate Structure Within Corporate...
Critical Element A.
A corporate structure enables a company to maintain the separation between its owners and its
management through the implementation of corporate governance. Corporate governance provides
companies with monitoring changes in corporate hierarchy as well as ensuring the protection of
shareholder interests. Most corporations break down its hierarchy into two tiers. The first tier is
made up by shareholder elected officials called the Board of Directors. The board of directors is
further broken down into three distinct categories: the chairman, the inside directors, and the outside
directors. The Chairman is chosen by the Board of Directors and acts a liaison between the company
and the shareholders. Inside directors can either be members of higher–level management or
corporate shareholders. Also known as executive directors, inside directors oversee internal
corporate affairs. Outside directors are external parties that provide unbiased viewpoints to corporate
decision making. The second tier includes the executives who provide the corporation with
executive, financial, and operational support. Popular examples include: the Chief Executive
Officer, the Chief Financial Officer, and the Chief Operations Officer. Both tiers correlate efforts to
ensure that shareholder interest is maximized (The Basics of Corporate Structure 2015).
Like most companies, Wal–Mart uses the two–tier corporate structure. The company currently has a
Board of Directors containing twelve

Berkshire Hathaway

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