Can firms capitalize research and development costs under IFRS? If so, in what circumstances? Provide specific citation to support your answer.
> Locate the insurance company State Farm Group. Using an appropriate database available to you, summarize the key financial ratios that you can find on the company. Compare that information to any information provided on the company’s website.
> Hugo Crossman, CPA, issued a review statement for the CUNY Company for last year and a compiled statement for them in the current year. During the current year, Hugo purchased some CUNY securities, which made him lose his independence—a fact noted in his
> Examine the private company Uber, headquartered in San Francisco. Summarize the corporate history of Uber. What legal concerns does this company face? Where did you find this information?
> Find 2016 stock prices on one of the largest private equity firms, the Blackstone Group. How much did their stock price change during that year? Explain why. What sources of information did you use to find this answer? Why is information on this private
> Conduct a search to find the federal laws and regulations concerning the environmental liability disclosure requirements for Chevron. List the major items. What database and parts of the database did you used to locate the information?
> Find the name of the major professional accounting journal published by the AICPA. Locate the two most recent articles in this journal using the keyword “derivatives.” Give the citation for these articles using APA style. Summarize each article in a sent
> Use a commercial database to examine IBM’s first footnote in its financial statements for 2016. Compare and contrast the advantages or disadvantages in assessing IBM from a commercial database as compared to using the SEC website with its EDGAR database.
> Use the topic guide in an article index database or legal database. Research “Theranos.” Explain the rise and fall of this company.
> Find the profitability ratios for the bank Wells Fargo for the most recent year. Provide an analysis of what these ratios indicate for Wells Fargo’s operations and use of its assets. How has Wells Fargo performed since 2015, a year before its management
> What financial ratios are provided in the Mergent Online database? Compare (identify the similarities) and contrast (identify the differences) in this result to the financial ratios presented in S&P Capital IQ.
> Conduct research to describe a major financial fraud that the SEC announced in the first half of 2016 and find a recent case involving cyber fraud or fraud that used technology. What database and parts of the database did you use?
> Find the company Alexander & Baldwin. Write a one sentence explanation describing Alexander & Baldwin’s business. Identify the company’s top competitors. Identify the databases and parts of the database that you used.
> Merrill Corporation engages in a valid cash flow hedge where it minimizes the risk from variable interest rated debt by promising to issue dividend payments from both its own portfolio and its portfolio of “outside” marketable securities. Since interest
> Review Walmart’s financial reports for the last three years, and perform a ratio analysis of them. In one paragraph, discuss the company’s financial situation. What databases and parts of that database did you use to find the answer?
> What is the most recent exposure draft or accounting standards update for accounting for derivatives? What database helped you find an answer?
> Given that GASB is related to FASB through their common oversight board, research GASB’s plans for its hierarchy of accounting sources. Identify where you found that information
> What exposure drafts are currently available from the FASAB?
> Describe the qualities establishing sophisticated analysis and reasoning in a tax research memo.
> What role does professional judgment play in the daily activities of the accountant or auditor?
> Discuss the structure of a tax research memo, as shown by the typical subheadings.
> Explain the AICPA’s Conceptual Framework that is incorporated into the Code of Conduct.
> Discuss how to use Checkpoint® to find relevant cases.
> Explain the difference between data-mining software and public databases
> The Rich Company seeks to limit its potential exposure from future variable-interest debt by engaging in a cash flow hedge. Thus, it seeks to acquire a financial instrument that varies in price “in opposition” to Rick’s expected payments on this debt in
> What documentation is needed in the research process?
> Differentiate between auditing standards and auditing procedures.
> Explain the differences between a Treasury Regulation and a Revenue Ruling.
> Define fraud and identify four examples of fraud.
> How are keywords used to evaluate and collect evidence?
> Explain two ways to collect evidence.
> Define an attest engagement. Is an audit engagement an attest service?
> Identify five tax planning concepts.
> Springer & Jones, CPAs, LLP, is currently auditing Worldwide Electronics Inc. that manufactures electronic equipment utilized around the world. The audit client purchases in bulk large quantities of various inventories of stock material to produce variou
> Young & Co., CPAs is auditing Express Inc. for the current year. Express Inc. has thousands of purchase orders each month. The CFO in discussion with the auditors raised the concern whether certain employees are utilizing company purchase orders to obtai
> Tony Computer Services Corporation trades 50% of its common stock for the rights to certain computer programs of the Janet Corporation. Janet previously expensed such costs of developing these computer programs. Tony concurrently sold the other 50% int
> Where are financial ratios found in the LexisNexis databases: Lexis Advance® or Nexis Uni™?
> Besides going to review sites such as Yelp, how should one research whether a local construction company is reliable to remodel one’s house?
> Conduct an Internet search about the Audit Analytics database. Give an example of how one can use the potential analysis through this database.
> How should one research government accounting?
> JB Company recently acquired 100% of Sampson Company for $150,000 cash. Both companies are located outside of the United States and JB needs to prepare consolidated financial statements. JB provided the following information regarding the Sampsonâ&
> Northwood Industries, a U.S.-based public company, has two subsidiaries located in Europe. These two subsidiaries are required to prepare their individual financial statements in accordance with IFRS. Northwood, contemplating that the SEC will soon requi
> Zimmer Chemical Co. has chemical manufacturing facilities around the world. Recently, Zimmer erected a new facility in South Korea at a cost of $48 million and plans to operate the new facility for a period of fifteen years. The South Korean government r
> Taxpayer is a securities firm. Taxpayer uses the accrual method of accounting. Taxpayer executes stock trades and performs settlement functions. Settlement functions include recording the sale and confirming it with the customer. Trades made on Decembe
> Xco an accrual basis taxpayer has various lines of businesses. One business is a gas station. The land underneath the gas station was not contaminated when Xco purchased it. However, the land now has potential soil and groundwater problems (environmenta
> Hidetoshi was a world-renowned rock star from NewCountry. Sony-USA Records contracted with Hidetoshi to produce records. Sony-USA Records retained all intellectual property rights in the recordings. The contract granted Hidetoshi payments or “royalties”
> Mary Howard, CPA, has long audited the Wheat City Grain Company’s financial statements. Much of Wheat City’s assets consist of wheat stored in three of its grain elevators, and the Company maintains perpetual inventory records of the quantity of wheat s
> Sylvia is a professor in business at the University of Hawaii. She went on sabbatical for an academic year to take courses in Chinese at National Taiwan University in Taipei, Taiwan, to expand her knowledge of international business and ability to conduc
> For the past two years, Minsu, a Korean American, worked as a high school physical education teacher. He was also a body-builder and a part-time graduate student in educational technology at State University. As part of preparing a master’s thesis, Mins
> Stacey became an employee of DotGismo, Inc., a privately held firm. On December 15, 20X3, Stacey was allowed to buy 20,000 shares of DotGismo stock for $40,000 dollars. At that time when Stacey bought the stock, each share was worth $2. DotGismo retains
> Use the glossary to locate the definition of a contingent liability. a. What is the definition? b. What standard is the definition found in?
> Use e-IFRS to determine how the accountant would conduct an impairment test for long-lived assets. a. Which authority describes the impairment test? b. What process did you use to find the authority? c. Briefly explain the impairment test.
> Use e-IFR Sto identify the accounting authority (citation) governing each of the following: a. Customer loyalty programs b. Operating lease incentives c. Operating segments d. Treasury share transactions e. Agriculture
> Open up an IAS or IFRS. a. What are the major organizational parts of the authority (placed in bold)? b. Compare your answer in (a) to the major organizational parts of an IFRIC or SIC. c. Are (a) and (b), for the most part, the same? If yes, how so? I
> How many IFRICs have been issued?
> Open IFRS1: First Time Adoption of International Financial Reporting Standards. a. Which authority does this replace? b. Briefly summarize the introduction to paragraph 4.
> The Treasury Department of Drof Motors invests “excess” funds daily (e.g., in foreign currencies). It, thus, earns profits and losses, which are included in the company’s consolidated financial statements. Should Drof consider its Treasury operations a
> Access the IESBA website (www.ethicsboard.org). Click on Projects and list three active projects and three 2009 completed projects.
> a. In 2017, Congress debated repealing Dodd-Frank. What were four major provisions in Dodd-Frank that impacted corporate governance? b. Has Congress repealed Dodd-Frank? How else could a roll-back on the law occur?
> a. Identify the three largest companies in the worldwide automobile industry. What is the source for your listing and what is size based on (market cap or number of automobiles sold or some other dimension? b. Examine the SEC filings for Tesla in 2016.
> a. Identify the five largest “Fortune 500” companies for 2017. b. Identify the primary basic industry for the fifth largest company. c. What does the company identify as its core business segments? d. Where is this company headquartered? e. Provide t
> In 2015, the proxy vote for Apple’s annual meeting had six proposals: 1. The election of the directors, 2. The ratification of the auditor, 3. An advisory vote on executive compensation (“say on pay”), 4. An amendment to the employee stock purchase
> The Heather Company’s fiscal year ends on June 30. Its employees (with at least three months of experience) are entitled to 12 paid sick days annually for each calendar year beginning on January 1. An employee not taking his/her earned sick days would
> What is included in CCH® Accounting Research Manager?
> Access the Association of Certified Fraud Examiners website (www.acfe.com), and: a. List three qualifications for becoming a CFE. b. List three items located in the ACFE’s resource library.
> Identify the topic of the following Treasury Regulations, Revenue Rulings, or Revenue Procedures: a. Treas. Reg. 1.385-4T e. Rev. Proc. 2017-29, 2017-14 I.R.B. 1065 c. Rev. Rul. 68-609, 1968-2 C.B. 327
> List the following topics for IRS Publications or Form: a. IRS Publication 17 b. IRS Publication 334 c. Form 941
> List the major Code section for the following topics: a. Charitable deductions b. Accrual accounting for deductions c. Foreign income exclusion
> Identify the general contents of each of the following subchapters and parts of the Code: a. Subtitle A, Chapter 1, Subchapter O b. Subtitle C – employment taxes c. Subtitle F, Chapter 67, Subchapter B
> Identify the general content of each of the following Internal Revenue Code sections: a. §274(d)(1) b. §751(b)(3)(A) c. §1221(a)(7)
> You are auditing the financial statements of Air Service Inc., an airplane wholesaler that purchases various types of corporate jets for sale to different companies or individuals. Prior to the sale of an airplane, Air Service utilizes the jet for chart
> In auditing Crispy Inc., the auditor has determined that certain information that is not required by an applicable financial reporting framework, has been included in the company’s basic financial statements which is clearly differentiated and identified
> Alex Curtis, during the audit of Landon Company, has determined that the company will be preparing its financial statements on a liquidation basis of accounting due to the fact that management has decided to liquidate Landon Company at the end of the fir
> After the Julie Company issued its previous years’ financial statements, it noticed that it incorrectly calculated depreciation expense and, thus, disclosed this fact as a prior period adjustment in its current years’ financial statements. (This differe
> Johnson & Young, LLP have been requested to be the auditors of Payroll Inc., an outside service company that processes payroll for over 200 clients. In considering the request, Johnson & Young are concerned that they might be required to be independent o
> Gates Inc. has its reviewed interim financial information included with the audited financial statement. However, after the review the auditor believes that the interim financial information is not prepared in accordance with an applicable financial repo
> In year 1, Joe Josephs, CPA, reviewed Lander Company’s financial statements. However, in year 2, the Lander Company hired Tom Holstrum, CPA, to audit its financial statements. Should Tom meet with Joe, and would Joe be considered as a predecessor audito
> Horizons Inc. has agreed to sell an investment in a subsidiary that has been accounted for on the equity method of accounting to a minority stockholder in exchange for the stockholder’s share in Horizons. Since the fair value of the investment exceeds it
> Albright Inc. has recently issued a 10% stock dividend to its existing stockholders. As a result of the issuance of the stock dividend the market price of the stock declined 25%. Albright has requested your assistance as to treating this stock dividend a
> Alex Corporation is planning this year to present comparative income statements but only the current year’s balance sheet. James Johnston, president of Alex Corporation requests your advice as to whether comparative cash flow statements for both the curr
> The Bootsie Holding Company has sales exceeding $10 billion and each of its three, wholly-owned subsidiaries has sales exceeding $2 billion. Three years ago, the subsidiaries had “complex” capital structures—until Bootsie acquired them. Bootsie’s annua
> In order to help induce Jill Gregory to remain as president of the Reed Company, in 2000 it promises to pay her (or her estate) $200,000 per year for the next 15 years—even if she leaves the company or dies. Reed wants to properly record this transactio
> James Olds buys a four-year, $1,000,000 certificate of deposit from the Second National Bank. James will receive 5% interest in year 1; 5.5% in year 2; 6% in year three; and 6.5% interest in year 4. If James “redeems” this certificate before the maturi
> As of January 1, the Lohse Company owes the First Arbor Bank $350,000 which is due on December 31. Since Lohse seems unable to repay the note, the bank agreed that Lohse can “settle” this balance by agreeing to make four, annual installments on each of t
> Leila Company began an operating lease arrangement with Debco Industries, which was slated to begin on January 1, at monthly lease payments of $10,000. However, Debco’s negligence prevented Leila from moving in on time—since it failed to clean up the pl
> Narda Corporation agreed to sell all of its capital stock to Effie Corporation for three monthly payments of $200,000. After Effie made the first required payment, it ceased making other payments. The stock subscription agreement states that Effie, thu
> Mead Motors purchases an automobile for its new car inventory from Generous Motors, which finances this transaction through its financial subsidiary, Generous Motors Credit Company (GMCC). Mead pays no funds to Generous Motors or GMCC until it sells the
> On January 1, the Old Town Heart Association received a $1,000,000 endowment from the Chamber family. Under terms of the gift, the Association must permanently restrict the endowment—but may spend up to half of the interest earned on the gift or half of
> Find an example of data analytics in tax, one that is not discussed in the text.
> Use a tax service to find the definition of a material adviser in the Code. What type of list must the material adviser maintain? Give the authorities for your answers, using proper citation format.
> Assume that the taxpayer has a tax issue in which the only authorities on point are as follows: (a) a private letter ruling that favors the taxpayer’s position and (b) a Tax Court regular decision that opposes taxpayer’s position. What does the researc
> Find the Treasury Regulation that determines whether educational expenses can qualify as deductible business expenses. Give the citation for the general rule within that regulation.
> Compare the international treatment of segment reporting to the U.S. GAAP treatment.
> Does a tax treaty exist between the United States and Japan? If so, when was the most recent version signed?
> Locate the Valuation Services Standards, and explain the 2 types of valuation engagements to estimate a value.
> Herb Construction Company is building a hotel for speculative purposes. That is, the Company has not yet found a buyer for the hotel, but expects to do so within a few months. Herb, who expects to spend about another two years to complete construction
> What is the penalty provided under Code Section 6662 (b)(2)? Where in that Code section is that penalty defined? Explain the definition in your own words.
> Access the AICPA Professional Standards via Checkpoint, and click on By-laws. Under Section730, determine when can a member receive disciplinary action without a hearing?
> Locate the AICPA Professional Standards via Checkpoint, and click on Personal Financial Planning Services’ link. Locate Section 100 and provide four examples of PFP services
> Access the PCAOB website (www.pcaobus.org), and list two new or proposed auditing standards issued by the PCAOB
> Access the AICPA.org website and locate the ASB under auditing and attestation standards. Examine the approved highlights of the ASB. What were the last three auditing standards issued by the ASB?
