Student
Segment Reporting: Kobyashi Moru Pet Food, USA Limited
Rasmussen College
Adelina Rosa
Author Notes This research assignment is being submitted on July 22, 2012, for Jay Wright’s Advanced Auditing Concepts and Standards A340/ACG3085section II course.
Segment Reporting: Kobyashi Moru Pet Food, USA Limited
Kobyashi Moru Pet Food, USA Limited
July 22, 2012
To Honorable Stakeholders
And Management
Enclosed is a report of the activities of the Kobyashi Moru Pet Food, USA Limited for the year ended December 31, 2012.
The report presents, in detail, the various accounts within the Kobyashi Moru Pet Food, pertaining to revenues and expenditures. Also, presented for approval is a proposed budget of anticipated revenue and expenditures for the corporation for the year 2013.
The report is made possible through the cooperation and support of the staff, management, and accounting staff. I would like to acknowledge and thank employees for their contribution for the development of our corporation.
Respectfully submitted,
Adelina Rosa, CPA
In IAS 14, the companies are required to disclose segments information by business (products or services) and location. At the same time, management should determine which of two options should be presented as the primary format whether it is by risks or returns of firm’s operation. Less disclosure is required for secondary format. The US GAAP use the management approach whereby segments are determine based on how information is presented to the decision maker for allocation of resources. The product revenue, assets, and location are required, regardless by the decision of management. IFRS 8 converges international accounting with US GAAP by utilizing the management approach to determine reportable segments. The two major differences will remain under IFRS 8. Firstly, US GAAP requires companies with a matrix form of organization to report segments based on products or services. In IFRS 8, it allows these firms
Rasmussen College
Adelina Rosa
Author Notes This research assignment is being submitted on July 22, 2012, for Jay Wright’s Advanced Auditing Concepts and Standards A340/ACG3085section II course.
Segment Reporting: Kobyashi Moru Pet Food, USA Limited
Kobyashi Moru Pet Food, USA Limited
July 22, 2012
To Honorable Stakeholders
And Management
Enclosed is a report of the activities of the Kobyashi Moru Pet Food, USA Limited for the year ended December 31, 2012.
The report presents, in detail, the various accounts within the Kobyashi Moru Pet Food, pertaining to revenues and expenditures. Also, presented for approval is a proposed budget of anticipated revenue and expenditures for the corporation for the year 2013.
The report is made possible through the cooperation and support of the staff, management, and accounting staff. I would like to acknowledge and thank employees for their contribution for the development of our corporation.
Respectfully submitted,
Adelina Rosa, CPA
In IAS 14, the companies are required to disclose segments information by business (products or services) and location. At the same time, management should determine which of two options should be presented as the primary format whether it is by risks or returns of firm’s operation. Less disclosure is required for secondary format. The US GAAP use the management approach whereby segments are determine based on how information is presented to the decision maker for allocation of resources. The product revenue, assets, and location are required, regardless by the decision of management. IFRS 8 converges international accounting with US GAAP by utilizing the management approach to determine reportable segments. The two major differences will remain under IFRS 8. Firstly, US GAAP requires companies with a matrix form of organization to report segments based on products or services. In IFRS 8, it allows these firms
References: Arens, A. Beasley, M. and Elder,R. (2010). In Auditing and Assurance Services. Upper Saddle River: NJ. Pearson Prentice Hall.