Case 5-1 Income Smoothing a. Firstly‚ investors tend to invest in companies with stable earnings rather than one with volatile earnings. With stable earnings‚ there will be more likely an issuance of dividends and investors could easily predict the company’s future earnings compared to one with unstable earnings. With consistent earnings generated‚ it gives investors a secured feeling that it will again generate earnings as predicted. Confidence in the growth of rate of earnings is crucial because
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“Income Tax Structure in Bangladesh and Taxation of a Non-Corporate Individual taxpayer” LETTER OF TRANSMITTAL Date: Prof. Y School of Business‚ Z University. Subject: Assignment on “Taxation on a Non-Corporate Individual taxpayer‚ Asst. Year 2014-2015. Dear Sir‚ It is my pleasure to submit the report of my assignment on “Taxation on a Non-Corporate Individual taxpayer‚ Asst. Year 2014-2015”. As an instructor and advisor to the report‚ you provided valuable insights to improve the
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Receivable Beg. 558 Sales 5‚710 ? Collections ? Write-offs End. 545 - = Net Realizable Value 538 532 1 Beg. allowance $20 + Bad debt expense $5 – Write-offs ? = End. Allowance $13 Write-offs = $12 2 Beg. accounts receivable $558 + Sales $5‚710 – Write-offs $12 – Collections ? = End. accounts receivable $532 Collections = $5‚711 Req. 3 2006 2007 2008 Net Income 510 497 $(312) ÷ Net Sales 4‚700 5‚695 $5‚710 = Net Profit Margin 10.85% 8.73% (5.46)% The company’s net profit margin has fallen
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TAX LEG: ITAA1936 [eg. S6(1)]‚ ITAA1997 [eg. S6-5]‚ FBTAA 1986‚ GST Act 1999. Topic 2 – Jurisdiction to Tax taxable payable Tax Payable (s4-10 ITAA1997)= (Taxable income * Tax Rate) – Tax Offsets (Tax/Financial Year = I July – 30 June) – Income tax payable on a year-by-year basis s3-5 ITAA97. Taxable income (s 4-15 ITAA) = Assessable Income less Deductions Assessable Income (s6-1) = Ordinary income (s6-5) and Statutory income (s6-10) but not Exempt income (s6-15). Assessable income includes
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approaches are used for costing products for the purpose of valuing inventories and cost of goods sold. One approach is called absorption costing. Absorption costing is generally used for external financial reports. The other approach called variable costing is preferred by some companies for internal decision making and must be used when an income statement is prepared in the contribution format. Ordinarily absorption costing and variable costing produce different figures for net income and the difference
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national income …………………………………………………3 1.2. Overview of issues of National income in the world………………………………………3 SECTION 2……………………………………………………………………………………5 2.1. Definition of national income ………………………..........................................................5 2.2. Factors that determine national income…………………………………………………...6 2.3. Methods to measure national income………………………………………………………6 2.4. Treatment of national income from abroad………………………………………………...8 2.5. Uses of national income statistics
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(2006) 511–529 www.elsevier.com/locate/jfec CEO incentives and earnings management$ Daniel Bergstressera‚Â Thomas Philipponb a Harvard Business School‚ Boston MA 02163‚USA NYU Stern School of Business‚ New York‚ NY 10012‚USA b Received 25 September 2003; accepted 13 October 2004 Available online 22 December 2005 Abtract We provide evidence that the use of discretionary accruals to manipulate reported earnings is more pronounced at firms where the CEO’s potential total compensation
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When it comes to buying a car or a house‚ big ticket items are carefully thought over before purchasing‚ yet at one time or another people always end up buying. A car will break down and a house will weather away‚ but they can always be replaced. A different costly item that people won’t partake in buying‚ because of price‚ is college. College is one thing that won’t fade over time but instead will stick around and go farther in life. This will be one of the biggest investments anyone will make in
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There are different ways in how two income statements are prepared. For example: the income statement (also known as P&L) of a merchandising company consists of Revenue‚ Expenses (related to the sales volume through the Cost of Goods Sold (COGS) and General & Administrative Expense (G&SA)‚ which all result in Net Income. The income statement of a Service company consists of Service Revenue minus any Expenses related to that service‚ which results in Net Income. Another way to look at it is that
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HUB HUB RESEARCH PAPER Earnings management: a literature review S. Verbruggen‚ J. Christaens‚ and K. Milis HUB RESEARCH PAPER 2008/14. FEBRUARI 2008 Hogeschool – Universiteit Brussel Stormstraat 2‚ 1000 Brussel‚ Belgium T: +32 2 210 12 11 F: + 32 2 217 64 64 Earnings management: a literature review S. Verbruggen‚ Hogeschool Universiteit Brussel Prof dr. J. Christaens‚ Universiteit Gent Prof. dr. K. Milis‚ Hogeschool Universiteit Brussel Abstract Based on a literature review of major
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