Category: Accounting

Write a short essay explaining the need for global accounting standards and include how IFRS is used in Mexico and South Korea.

The focus of this module is on the terminology and concepts that will be used throughout the course. It is important to learn this terminology and watch the videos to better understand the cost flows.
Management Accounting
Financial accounting and managerial accounting are subdivisions of accounting and play an essential role within an organization.
Discuss the major differences between managerial and financial accounting then apply your understanding to the following 4 scenarios. Discuss if these are managerial accounting or financial accounting and why.
A company is looking to increase its gross profit by reducing costs for the upcoming periods. To further investigate, the production manager pulls reports that detail costs in the previous year. After discussions with the purchasing manager, he creates a budget based on assumptions and estimates.
An investor researching profitable companies pulls quarterly reports of various corporations. The reports are prepared according to GAAP with objective information and focus on the business as a whole. Are the reports prepared using managerial or financial accounting?
To fund its expansion in the upcoming year, Deacon Corporation negotiates a $4,000,000 loan with a local bank. The bank requires financial statements to ensure the company’s ability to pay interest and repay the principal. Would Deacon Corporation use managerial or financial accounting to create the reports for the bank?
During an audit, an agent looks at the company’s financial statements to verify that the same accounting practices were used in the tax return for a certain expense. Would the financial statements used by the agent be prepared using managerial or financial accounting?
Directions:
Discuss the concepts, principles, and theories from your textbook. Cite your textbooks and cite any other sources if appropriate.
Your initial post should address all components of the question with a 500 word limit.
Readings
Required:
Chapter 1 in Managerial Accounting
Treec, Dock D. (2021). Management accounting. Business News Daily.: https://www.businessnewsdaily.com/16202-management-accounting.html
Recommended:
Module 01 PowerPoint Presentation
Thomson, Jeff. (2021). 2022 will be the year of the management accountant. Forbes. https://www.forbes.com/sites/jeffthomson/2021/12/20/2022-will-be-the-year-of-the-management-accountant/?sh=3b30cb2e2d71

Explain the primary purpose of financial reporting for governmental entities and who are the oversight bodies. One point should include: how does this differ from for-profit, public companies?

Corporate valuation and performance reports provide key metrics for determining shareholder value. An analysis of cash flow and income statements reveals important information related to valuation and performance. In this learning activity, you explain the areas or indicators found in the income and cash flow statements that are most important for determining corporate valuation and performance.
Instructions
Provide a 1-page explanation of the areas or indicators in the income and cash flow statements that are most important for determining corporate valuation and performance. Provide specific examples.

Writing assignments are judged on the quality of the response. Word count is NOT one of the criteria that is used in assigning points to writing assignments. However, students who are successful in earning the maximum number of points tend to submit writing assignments that are 350-500 words (1-2 pages) per question.

Discuss the various classifications of assets on the balance sheet. Why are they important? Also, discuss the various classifications of liabilities on the balance sheet. Why are they important? In addition, discuss the various categories of stockholders’ equity. Why are they important?

Written Report Formatting (other formatting information are in the document given + i’ve provided previous semester suggested solutions) APA 7 TH
Limits for each sections are described in the given document for the writing report
Refference the company report and the existing Australian laws such as AASB for accounting report
Your written answers should be in A4 page size, in Times New Roman font, Australian English, 11pt font size, at least single line-
spacing, margins at least 2cm on all sides.
Do not insert images of text into your written submission in an attempt to defeat Turnitin. Your document
should be machine-readable, i.e. it should be possible to copy-and-paste every sentence from your document
without running optical character recognition.
Briefly indicate the question you are answering by writing the question letter and number in bold, e.g. ‘B1.’.
There is no need to copy-and-paste the whole question into your answers. This wastes valuable space that you
could use for your answer.
Excel Formatting Requirements
Your Excel file must be easily auditable by a marker. This means that a marker can easily trace your
calculations in Excel from raw input numbers/assumptions through to your final calculations. It also means
that your Excel work must comply with certain standards around formatting and layout. My workings for IPH,
which are available on Learn.UQ, illustrate these formatting conventions. Following an Excel formatting
convention is also a standard requirement in the workplace, so it is worth getting used to doing it.
Excel modelling conventions:
• There should be clear distinction between cells that are inputs/assumptions, cells which reference
figures in other worksheets, and cells that are calculations.
• All calculation cells should consist entirely of cell references, not numbers. Do not ‘hardcode’
calculation cells. This makes it very difficult for a marker (or future employer) to understand your
calculations/workings
• Figures in the reformulation should, where relevant, link back to figures in the raw financial
statements so that they can be audited. In other words, do not ‘hardcode’ figures in the reformulation
that could be linked back to other inputs
• The reformulated financial statements should be prepared on a separate Excel worksheet from the raw
financial statements and named as specified in each question
• Cell text colour formats must be followed:
o Input/assumption cells: blue font
o Calculations involving figures within the same spreadsheet: black font
o References to cells on other spreadsheets: green font
o Warnings/comments: red font
• Cell number formats should be neat and consistent:
o Do not put dollar symbols in each cell in a column. Instead specify the units at the top of the
column of numbers. Be careful to check what units the company reports in, e.g. millions,
hundreds of thousands, thousands.
o Numbers over 1,000 should have commas to delineate each thousand, e.g. 12,345.6
o Negative figures should be in parentheses, e.g. (12,345.6)
o Up to two decimal places should be shown where they are meaningful, i.e. where they are not
simply zero.
o Cells that are percentages (e.g. RNOA) should be formatted as percentages. Negative
percentages should be in parentheses, e.g. (10.45%)
• Worksheets should be named correctly, i.e. as specified in the question, e.g. ‘BS_R’ for the
reformulated Balance Sheet.
• Your Excel file should not include cell references or links to any other Excel files, i.e. all numbers and
workings should be contained within one Excel file

Introduction
There are 100 marks available for this assignment.
For Assignment 4, you will demonstrate your comprehension of the concepts covered in Modules 6 and 7.
In your last assignment, you were able to estimate the cost of capital for a company. This is essential for many financial roles including capital budgeting—deciding which projects a company should take on—and valuation. You might want to value a company for a private transaction, for your investment portfolio, or for fair value calculations.
Make sure to clearly explain your work so that your Open Learning Faculty Member can give feedback. You may get partial marks, even if your final answer is incorrect. You will submit a single Word document for this assignment, please review the Submission Guidelines.
Instructions
Complete the following in the order listed, and label your work.
Rayburn Corporation has preferred stock that will pay an annual dividend of $3.76 every year in perpetuity. If the required return is 3.89%, what is the current stock price? (5 marks)
Roscoe Raspberry Corp. just paid an annual dividend of $2.53 on its common stock. They increase the dividend by 3.30% annually. What is the company’s cost of equity if the current stock price is $39.16 per share? (5 marks)
Wise Corporation stock has a beta of 1.21. The market risk premium is 7.20% and the risk-free rate is 2.94% annually. What is the company’s cost of equity? (5 marks)
What are the advantages of using the security market line (SML) approach to finding the cost of equity capital? What are the disadvantages? What are the specific pieces of information needed to use this method? Are all of these variables observable, or do they need to be estimated? What are some of the ways you could get these estimates? (5 marks)
Smart Corporation has a bond outstanding with a coupon rate of 6.1% and semi-annual payments. The bond has a $2,000 face value, a current price of $1,933 and matures in 19 years. The tax rate is 21%. What is the company’s after-tax cost of debt? (10 marks)
Sage Corp. has a cost of equity of 10.7%. The YTM on the company’s bonds is 5.3%, and the tax rate is 21%. The company’s bonds sell for 92.7% of par. The debt has a book value of $381,000, and total assets have a book value of $943,000. If the market-to-book ratio is 2.47 times, what is the company’s WACC? (10 marks)
Prudent Corp. has 16,100 shares of common stock outstanding at a price per share of $81 and a rate of return of 11.85%. The company also has 340 bonds outstanding, with a par value of $2,000 per bond. The pre-tax cost of debt is 6.25%, the bonds sell for 99% of par, and the tax rate is 21%. What is the company’s WACC? (10 marks)
Guru Corp. will pay the following dividends over the next 4 years: $12, $8, $7, and $2.50. After this time, the company will maintain a 5% growth rate in dividends. What is the current share price if the required return is 12%? (15 marks)
Shrewd Corp. just paid a $1.25 per share dividend. Dividends will grow at a rate of 28% for the next 8 years and then grow at a rate of 6% in perpetuity. What is the current share price if the required return is 13%? (15 marks)
Sharp Corp. has 10,000 bonds outstanding. These bonds are 6.4% coupon rate, $1,000 face value, and 25 years to maturity with semi-annual payments. They currently sell at 108, which means each $1,000 face value bond sells for $1,080. The company has 495,000 common shares selling at $63. They also have 35,000 of $3.50 preferred shares selling for $72 per share. The risk premium is 7%, and the risk-free rate is 3.2%. Beta is 1.15, and the tax rate is 35%. What is the company’s WACC? (20 marks)

The question include week 2 reporting and disclosure, week 3 impairment of asset , week 4 accounting for income tax, week 5 accounting for income tax2. below you gonna do the exercise of acc question.

One helpful service you can provide your clients is a periodic newsletter or access to a blog post about accounting issues they may be facing. This can also be a helpful way to attract new clients. This week create a story for a newsletter or blog post about one of these topics (or a topic similar):
Importance of budgeting for a small business
Cash management
Cash budgeting
Understanding your cash flow
Getting your customers to timely pay you
The post does not have to be long, just readable and contains some valuable information. Remember the target audience is a small business owner not fellow accountants. There are plenty of examples of similar post so feel free to look at some for guidance. Just do not copy them.