Answer:
The differences between US GAAP and IFRS pose an extra cost because international corporations must prepare two separate accounting statements. But besides that, other potential risks include paying higher taxes than what the companies should pay int their home countries and the uncertainty generated by changing rules.
Not only do current tax rates affect potential investments, e.g. currently companies in the US pay relatively low corporate taxes (Tax Cuts and Jobs Act of 2017) but these benefits end on 2025. But also different methods for valuating physical assets and R&D costs can represent higher than expected taxes. E.g. depending on a company's needs, it may be beneficial to expense all R&D costs right away, or maybe it would be better to capitalize some of them after technical feasibility is achieved (IFRS).
The main advantage of having uniform rules (e.g. UCC) is that all the companies know exactly what to expect and how to act. Certainty decreases risk, and less risk reduces costs.
Explanation:
In the US, the vast majority of firms use US GAAP as their accounting method, but around the world the IFRS method is used.
Physical asset valuation is the process of determining the value of your physical assets including P, P & E, and also inventories.
- When valuing inventories IFRS uses FIFO, while US GAAP allows FIFO, LIFO or weighted average costing methods. US GAAP also values inventory at lesser of cost or market value, while IFRS values inventory at lesser of cost or net realizable value.
- US GAAP uses the cost method to determine the historic cost of an asset, while IFRS uses basically the same method but does not include all the costs of location of the assets (e.g. cost of removing or clearing a facility).
- US GAAP recognizes non-monetary exchanges while IFRS doesn't.
- IFRS also allows the cost of asset to be revalued, which can result in unrealized gains or losses. The US GAAP only considers historic costs.
- There are also other minor differences regarding depreciation, disposals and impairment rules.
Research and development must be expensed right away under US GAAP, while IFRS basically requires the same, it allows some capitalization of development expenditures if certain criteria is met (technical feasibility is achieved).
Answer:
The correct answer is letter "E": identity the issues raised by the situation.
Explanation:
In front of a situation where the consequences are still unknown, an organization must track the places where the cause of the possible problem -in this case, the cloned cow meat- to find out if there are claims raised in those places. If so, the company must contact the individuals involved in the complaints and verify if the problem could have been created because of their fault. If that happened the casualties must be reduced to the minimum to avoid the company getting a bad image in the market that potentially could lead to lawsuits and losses.
Answer:
Crane Company
If Crane Company uses LIFO, the value of the ending inventory is:
= $440.
Explanation:
a) Data and Calculations:
Units Unit Cost Total Cost
1/1/20 inventory 150 $4.00 $600
1/15/20 Purchase, 70 5.10 357
1/28/20 Purchase, 70 5.30 371
Total 240 $1,328
1/31/20 inventory 110 $4.00 $440 ($4.00 * 110)
b) The LIFO method assumes that goods that are sold first are the last that were purchased. Therefore, the cost of the ending inventory is usually based on the cost of the earlier inventory purchased. In our case, the cost per unit was based on the beginning inventory balance.
Every process that has to do with <em>gathering, storing accessing and analyzing data</em> for a company to make business decisions is referred to as: Business Intelligence.
The business world is faced with many vagaries such as risks and uncertainties. Every business intends to <em>minimize cost and maximize profits</em>. In order to do this, wise and better decisions must be made daily.
For business decisions to be made, <em>predictive views, data mining, process analysis, descriptive analytics, and performance benching</em> are all business intelligence entails.
- Therefore, every process that has to do with <em>gathering, storing accessing and analyzing data</em> for a company to make business decisions is referred to as: Business Intelligence.
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According to the eclectic paradigm location-specific advantages are of considerable importance in explaining both the rationale for and the direction of foreign direct investment.
