The possible revenue recognition points are the signing of the contract, the beginning of construction, the progress stages of the construction (gradually over the life of the contract), the completion of the project to the satisfaction of the customer, and collection of the cash. To postpone taxes, you would want to delay recognition of revenue until the next year, even though you have completed more than half of the project. Of the four criteria, the strongest argument might be that the costs will not be fully known until the customer has indicated that the work is satisfactory. Collectibility of the payment may also be somewhat uncertain. The Income Tax Act allows completed contract accounting on contracts of less than 24 months so at a minimum, this revenue could be recognized when the contract is complete.
The gain on the portfolio could be recognized in the year in which it occurs or when the shares are sold. To postpone taxes, revenue should be recognized when the shares are sold. That can be supported based on the fact that the selling prices of the shares are quite volatile and may very well fall back to, or even below, the original cost. In other words, the amount earned is not known until the sale actually takes place. This treatment is consistent with the requirements of the Income Tax Act which only requires that income from investments be recognized on disposition. Read more…
Merrill Lynch Investment Manager has several core approaches to their 30-year investment philosophy. Rigorous fundamental analysis of investment, the pursuit of quality investment and the construction of concentrated portfolios are the approaches that are responsible for the success of Merrill Lynch.
Merrill Lynch Mercury’s1 investment philosophies are as follows:
A belief in active management
Merrill Lynch Investment Managers believes in actively managing portfolio where there is an active approach to all levels of the investment process: stock selection, sectors weightings and asset and geographical allocation.
Commitment to primary research
The investment process is driven by research where investment managers undertake double responsibilities of fund management and extensive individual research covering markets open to international investment. Managers are also benefiting from a vast range of analysis from brokers where the management has a privileged relationship. Experience and extensive research has provided confidence to commitments to investment decision. Read more…
The possible revenue recognition points are the signing of the contract, the beginning of construction, the progress stages of the construction (gradually over the life of the contract), the completion of the project to the satisfaction of the customer, and collection of the cash. To postpone taxes, you would want to delay recognition of revenue until the next year, even though you have completed more than half of the project. Of the four criteria, the strongest argument might be that the costs will not be fully known until the customer has indicated that the work is satisfactory. Collectibility of the payment may also be somewhat uncertain. The Income Tax Act allows completed contract accounting on contracts of less than 24 months so at a minimum, this revenue could be recognized when the contract is complete.
The gain on the portfolio could be recognized in the year in which it occurs or when the shares are sold. To postpone taxes, revenue should be recognized when the shares are sold. That can be supported based on the fact that the selling prices of the shares are quite volatile and may very well fall back to, or even below, the original cost. In other words, the amount earned is not known until the sale actually takes place. This treatment is consistent with the requirements of the Income Tax Act which only requires that income from investments be recognized on disposition. Read more…
Selecting the best accounting research paper ideas includes reviewing a number of possible current events regarding accounting. Recently many organizations have been plagued by the negative behaviors of other organizations, which are requiring that organizations take a serious look at ethics and accountability. As many organizations are responsible to any number of stakeholders, your accounting research paper could demonstrate needs in any of these sources, or even develop a paper about how accounting is directly related to sustainability needs that organizations are now required to prove to stakeholders.
A great deal of information is available to accounting students; however, most of the information is directly related to forms and math. This means that your accounting research paper could be related to why the forms are important, demonstration on how to use the math and forms, or even historical relevance to thy the forms were developed in the form they are now used. Every idea you have for accounting can be developed right from the textbooks of your course or the lectures from your instructor. Read more…
September 29th, 2009
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Could it cost more for an Australian company to raise capital on the global markets because Australian accounting rule makers are not moving swiftly enough to convert to international accounting standards?
The scenario of Australian corporate funding costs rising because our accounting standards are out of line with those of some other countries might become reality, says PricewaterhouseCoopers partner Jan McCahey, if urgent steps are not taken to bring Australian accounting requirements in line with those of the International Accounting Standards Board (IASB).
McCahey, one of Australia’s pre-eminent financial reporting experts, believes the domestic accounting standard setter, the Australian Accounting Standards Board (AASB), needs to move more quickly to ensure there are as few differences as possible between the international accounting standards framework and the domestic literature.
Otherwise, notes McCahey, Australia and its business community will continue to lag behind international developments and be unable to keep in step with the rapid-fire pace at which the London-based standard setter is moving. Read more…
