Abstract This paper considers the development of the accounting concept of profit. The paper considers the methods of measuring profit under various accounting systems and also analyses how profit is reported under GAAP.
Outline
Introduction
Profit Defined
Capital Maintenance
Determining Profit Historical Cost Accounting Current Cost Accounting Reporting Profit Conclusion
From the Paper "The second measure of capital maintenance is maintenance of physical capital. This measure was born of the belief that there were inherent shortcomings in historical cost accounting and its objective of maintaining money capital. Instead, maintaining intact a monetary measure of wealth, this measure seeks to maintain the operating capacity of the firm, or the purchasing power of its wealth. Maintenance of physical capital is the objective in accounting systems using current costs (Henderson et al., p. 85-7)."
Tags:accounting, capital, cost, current, financial, maintenance, theory
Abstract This paper examines how it is due to the western method of accounting system that Japan has been able to progress so rapidly economically. It looks at how Japan had different accounting systems within the country in the pre-modern times and how these greatly hampered business, making it difficult to trade. It shows how with the western system of accounting, there was standardization which enabled Japan not only to trade internally but also with the rest of the world which has aided Japan to progress and grow rapidly.
Outline
External Influences
The Eagerness of People
From Proprietorship to Companies
Old Japanese Accounting Methods
Profit Measurement
Distinction Between Capital and Revenue Expenditures
Depreciation
Subsidiary Books
From the Paper "Previously in Japan, there were small states and people had their own businesses. There was no concept of shareholders and a need to account for profits as the owners themselves took care of accounting for the revenues and profit. But with the western influence coming in, the businesses grew and partnerships and companies began to be formed. There were shareholders and thus there was a need to give justification to the shareholders. However, the accounting methods of Japan and that of the west were different initially which was creating a lot of problems and business dealings were being hampered. In order to avoid this, the Japanese steadily modified their accounting principles and methods and ways to match that of the West so that trade may become easier and easily accountable and fraud may be avoided."
Abstract The article "The New Realities of Non-ProfitAccountability" by Peter Shiras discusses the accounting system for government and non-profit organizations and provides an overlook to the effects on our society and municipal lifestyle. This paper examines the article and discusses the main points put forward in the original article.
Outline:
What Is Different This Time?
Effects from September 11th
Failure of Government Regulators
Where Has The Sector Fallen Short?
Abuse of Trust and Privileges
Lack of Credible Self-Regulation
Crisis of Governance
Failure of Governance Denounced
Move Towards Increased Government Regulation
From the Paper "The main thinking in the article was the point in which the author makes it clear that the failing of governance systems for NPO's does not make an impact on anyone at all when the situation went from bad to worse. Whether or not every charge or unethical practice in these articles is true, a clear pattern emerges. The author also discusses few other articles presenting the same idea "A failure of governance a persistent and systematic failure of boards to exercise their legal, fiduciary and ethical duties to oversee the policies, practices, finances and CEO's of the organizations they serve - is the single most persistent theme. Governing boards have ultimate legal and fiduciary responsibility for oversight of non-profit and philanthropic organizations and these articles indicate that serious and deeply rooted problems afflict the system of non-profit governance."
Briefly looks at the differences between auditing for a non profit organization and auditing for a business and then focusses on the auditing process for a non profit organization.
2,025 words (approx. 8.1 pages), 4 sources, 2006, $ 80.95
Abstract The accounting function is central to the conduct of business for profit-making organizations and non-profit organizations alike, though clearly with a different focus for each. In both cases, the purpose of accounting is to compare the money coming in and the money going out and to do so following clear accounting rules set down by the profession and by legislators. This paper discusses auditing and the non profit organization.
Abstract In this article, the writer notes that the recent advancement of technology and the globalization and expansion of law firms have made it necessary for attorneys and staff members to be more aware of how accounting affects the operation and management of the firm. The writer discusses that when partners, associates and staff members are supplied with varying degrees of financial information and have a comprehension of the basic economic concepts utilized in making financial decisions, the firm can make gains in employee and attorney satisfaction and productivity. Understanding structural and strategic developments within the firm, as well as the ethical issues that can arise, can help managers and accountants to better plan for the firm's financial future. The writer concludes that attorneys that take the time to improve their accounting skills will benefit greatly in understanding the financial documents and reports of their firms.
Outline:
Financial Trends
Choice of Entity
Key Performance Indicators
Measuring Profitability Increasing Profitability Changes in the Industry
Ethical Considerations
Conclusion
From the Paper "This indicator is very valuable when tracking a firm's performance, as it is used to calculate net income. For example, an attorney may work forty hours in one week, but only have thirty billable hours; the difference being the attorney's gross production for the week.
"Since partners and managers often spend a lot of time performing administrative and human resource related tasks, many firms allow these individuals to set their own billable requirements. Similarly, for associate attorneys, the most recent trend is performance based compensation, also known as benchmark compensation, a method which also considers non-billable time, write-offs and rate of collection, rather than strictly focusing on billable hours."
Abstract This paper is an oral presentation of the findings of an independent auditor of the HealthSouth Corporation. The audit concerns a 300-million-dollar refund HealthSouth is seeking from the federal government on the over-inflated profits it reported on its assets. The auditor asserts that no indications of Medicare fraud were found and that the over-inflated profits reported by the company were a result of HealthSound projecting assets not truly expected to incur, as well as a refusal to take into consideration the costs of the company (reporting only money accrued, rather than actual profits. This, in turn, was facilitated by the bureaucratic nature of the medical industry, where reporting of costs, payment of bills, and administrative costs are often delayed because of the nature of health care providers. The paper concludes by stating that HealthSound has not been negatively impacted by the allegations of securities fraud and that it is, and will continue to be, a sound company because of the quality its product.
From the Paper "As a part of this presentation, I, as an independent auditor commissioned by the committee of the firm representing the HealthSouth Corporation, wish to make clear that the company I have just audited, though tarred and feathered by the modern media, is not nearly at fault as one might initially believe, given the nature of the following components peculiar to the health services and health care industry. Although HealthSouth's supposed irregularities may have been elided in the public imagination with corporations such as Enron, it is not an ?imaginary corporation.? Mistakes were made, but these mistakes should not cause individuals to forget the ongoing quality of care still provided by the company."
Tags: finances, accountant, bookkeeping, creditors, debt, survival, solvency, tenet, health, care, industry
Abstract This paper relates that, in this article, Sami and Bae define the environment that a company needs to create a strong sense of responsibility and profitability for the long-term production. The author points out that this article reflects a growing concern for accounting practices to induce more environmental disclosures for modern corporations. The paper relates that, by finding all available expenses and liabilities within the infrastructure of financial management practices, there can be a greater degree of ethics and long-term profitability for accounting in the future.
From the Paper "This article presents a detailed evaluation of the environmental aspects of accounting that must taken into calculations when understanding value and expenses of corporate finances. In this manner, Bae and Sami present findings of the EPA to help business owners and accountants understand how and why environmental standards are important to expenditures and cost values. The basis for this information begins with a cases study they performed through the EPA, which presents an N-probit analysis, which confirms that companies with a high environmental set of costs are more likely to disclose their environmental issues that surround their business."
Abstract The paper examines the three major governmental levels that follow different accounting standards. These standards are worked out and monitored carefully by private organizations. The paper explores how the Federal Accounting Standards Advisory Board (FASAB) works out standards for the federal government, while the Governmental Accounting Standards Board (GASB) and the Federal Accounting Standards Board (FASB) deliver standards for state and local governmental bodies respectively. The paper discusses how these accounting standards, at these three levels, differ significantly with those used by the private sector enterprises.
From the Paper "The fact that shareholders of the company based on the cash flow the management has managed to generate, can any time withdraw the funds or fire the management, is a good controlling tool for the private sector while there is no such a clear controlling tool for governmental bodies. The funds inflow and outflow systems within the public and private sector companies vary: where in public sector beneficiaries do not pay for a piece of product or services they receive and government does not have to be reimbursed with interest for the money it grants to a public organization, in the private sector shareholders demand returns and pay back on cash they invest and clients pay price for each unit of goods they receive."
Abstract The writer of this paper stresses that the purpose of any cost accounting system is to provide current information about the total cost of manufacturing a product or performing a service. This paper analyzes in detail the strengths and weaknesses of traditional cost accounting (TCA) and activity base costing (ABC). TCA is a well developed method of estimating cost incurred while the ABC system is based on costs which are driven by factors other than product volume.
From the Paper "A problem may arise in the use of actual overhead costs. The problem stems from the fact that many of the elements of manufacturing are fixed costs, rather than variable costs. Fixed costs are those that tend to remain relatively constant from month to month. Examples of fixed overhead costs include the monthly salary paid to plant managers, depreciation, property taxes, and insurance on plant assets."
Abstract This paper discusses various accounting topics through a review of six newspaper articles. The paper outlines the accountant's role in an organization, provides an introduction to cost terms and purposes, and describes job costs and cost allocation. Performance measurement, compensation and multinational considerations are illustrated in this paper, as are the issues involved in inventory management and backflushing costing.
From the Paper "Key Company Assets Moving Offshore" proclaims the title of this recent article from the business section of The New York Times. A casual observer might shrug, but a student of accounting must turn a closer eye to this proclamation that American companies have been rapidly shifting more of their most valuable assets to tax havens, where the companies pay little or no tax on profits. What is so striking about this technique is that instead of simply moving their headquarters offshore, companies are also placing patents on drugs or ownership of corporate logos offshore, thus putting these "intangible assets" into tax havens as well. (C3)"
Abstract In this article, the writer compares and contrasts the relationship between the accountant and the financial manager within business entities. Included are the various types of accountants and financial managers as well as their inter-related roles. Further, the writer looks at their functions, orientations, concerns and purposes. Additionally, the intangible topic of ethics and its impact on revenue is also discussed.
Outline:
Abstract
References
From the Paper "Broadly speaking, the accountant identifies, measures and communicates important economic information about a business entity; organization or corporation in order that informed judgments can be made. It has an internal orientation, is indirectly involved with but significantly supports the decision-making process. A variety of managers use this information to make informed decisions. Among them is the Financial Manager.
"Like the Accountant, there are various types of Financial Managers. A Chief Financial Officer is involved in financial policymaking and corporate planning. A Treasurer is responsible for cash management, raising capital and cultivating relationships with banks and investors. Finally, a Controller's role is quite similar to the role of the Accountant in that he or she prepares financial statements, is responsible for internal accounting and tax affairs."
Abstract This paper discusses the difference between for-profit and not-for-profit hospitals. The paper begins by reviewing the for-profit and not-for-profit classification. Next the paper discusses what makes a hospital a not-for-profit and the charitable implications associated with such an institution. The paper concludes by comparing and contrasting the care quality between for-profit and not-for-profit hospitals.
From the Paper "Not-for-Profit A not-for-profit hospital is so defined by its status with the United States Internal Revenue Service. Specifically, the not-for-profit classification means that an institution..."
Abstract The paper delves into this matter by looking at the issue of Employee Profit Sharing Plans, more commonly known as EPSPs. More particularly, a general overview of EPSPs is furnished and some different types of employee profit sharing plans are reviewed, if for no other reason than employees must make every effort to find the financial package that will work best for them. The paper also discusses the benefits and debits of employee profit sharing plans.
From the Paper "Employee profit-sharing plans offer a number of benefits to working men and women that simply cannot be passed over lightly. As social security in both the United States and in Canada erodes under the weight of an aging population and declining birthrate, North Americans are being encouraged to find alternative means by which they can provide for their future. The following paper will delve into this matter by looking at the issue of Employee Profit Sharing Plans (more commonly known as EPSPs)."
Abstract This paper presents a discussion on the need for companies to improve their customer service in order to enhance customer satisfaction since it has a direct effect on a company's profitability. The writer proposes that companies should continuously examine customer satisfaction by conducting research on the target market.
From the Paper ?In the world of business, customer service is a term that is tossed around freely and accepted to mean taking care of one's customers. In many businesses one can see signs that proclaim, "The customer is the most important person here". However, we should examine how true these words are in reality. When the economy is booming and people are spending money like there is no tomorrow, customer service is important but often times businesses slack on the need to improve it. When the economy begins to sag like it has been recently customer service becomes paramount to success. Marketing departments all over the nation are discovering that customer satisfaction can be scientifically researched and improved upon. The ultimate goal of a customer-centered organization is to maximize its customer satisfaction. By fulfilling this goal the bottom line is sure to improve.?
Abstract This paper takes an in depth look at the ways in which pharmaceutical companies unscrupulously put profit before people. Five of the main ways in which they do this that are discussed are; manipulation of research, undue influence over doctors prescribing practices, direct-to-consumer advertising, discrediting of their competitors pharmaceutical and natural alike, and investing only in profitable research. Each topic is discussed thoroughly with credible sources to back the data up.
From the Paper "The pharmaceutical industry wants people to believe that their main goal is to help people. The Pharmaceutical Research and Manufacturers of America (PhRMA) has even begun airing feel-good commercials featuring people whose lives have been saved by medications. In reality, they spend billions of dollars every year to ensure their true purpose, maximum profit. Their influence begins in the research lab, where the sponsor, usually a pharmaceutical company with a huge financial stake in the findings, has more to say over how the study is conducted and what information is released then the actual investigators, leading some of the foremost medical journals in the world to fight back with strict guidelines. After the pharmaceutical companies get their products approved, they engage in a campaign of bribery to persuade doctors to prescribe their name brand, expensive drugs over their competitor's products. Not wanting to leave it up to the doctors alone to endorse their products, the pharmaceutical industry has started advertising directly to an unwitting populace, on television and in popular magazines. Pharmaceutical companies use their political power and vast economic resources to discredit and undermine non-drug treatment options for various diseases, particularly by attacking the burgeoning field of holistic medicine. Furthermore, the pharmaceutical companies have a long history of not investing in research that would lead to drugs for diseases that effect the world's poor, because there is little profit to be made in developing nations. Through various immoral practices, the pharmaceutical companies put profit ahead of the interests, health and safety of consumers. "
