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…
Financial accounting essays can be frustrating and tiresome. However, using a few key points you can get through them successfully. Begin by gathering all your information – the rules to the essay – page count, word count, subject matter, etc. Follow up by writing a short outline that defines the scope of the paper – Introduction, Body, and Conclusion. Gather research to aid you in developing your essay – this may be relevant organizational information, sources for other organizations that have done these practices, or even related historical information.
Next, you can develop almost a “fill-in-the-blank” approach to your paper if you establish the parameters well. You can do this by determining how many pages your assignment requires (or words) and assigning the bulk of the pages or word count to the body. Select at least three points that you will cover and title each paragraph with that point and split the Body’s section of words of pages between them. Following this, you should return to the introduction and write a short paragraph of what you will write, (this should be reviewed as you work and possibly revised when you have completed the writing). In the introduction, you will also add in your topic sentence – which is the focal point of your essay.
Once you have established these parameters – split the remaining pages or words between the introduction and the conclusion. For each of your three topics you put your Body, introduce the concepts, and establish a topic sentence for that concept. Fill in each paragraph, and then review the information to be certain it still follows the goals of your introduction paragraph. Once you have completed all of these, you will try to add in some history or related formulas that most apply to your particular essay. Write the conclusion to tell the reader the important points they have read, and then edit your paper.
Writing a great accounting essay requires that you have a great, idea for the essay and this may be difficult because many students only consider accounting a math course. However, you should consider accounting essay ideas as an opportunity to demonstrate how you will use the material you are learning. For example, if you are learning about a number of records that are kept to conform to legal needs, you may demonstrate how these records are useful to your particular organization, or what benefits an organization can see after using these types of records and information.
Additionally, accounting is related to ethical needs of the organization. As the world changes so do the ethical needs of an organization – these to include the needs to demonstrate sustainability and the required accountability of the organizations books and records. It is essential that all accounting students understand the many laws and ethical requirements that accounting offices’ face today, and what lead up to these needs. After a number of organizations have been charged with illegal activities that passed through the accounting offices, it is true that many students will be under a great deal of scrutiny when they get their first job in accounting. In this way, you could even write an accounting essay using the idea of what it was like in accounting 50 years ago versus what happens today.
Finally, remember that application of information is the primary objective of writing an accounting essay. Your idea should begin with a simple search through the topics in your textbook and assigned readings. This will begin your best Accounting ideas and give you somewhere to begin.
