Accounting for Income Taxes - 1875 Words

According to Accounting Theory: Contemporary Accounting Issues by Evans, accountants have developed two alternative approaches to accounting for income taxes, which are the cash method and the allocation method. The cash method is described as a simple and direct approach. The amount of income taxes actually paid for the year is reported on the Income Statement. The amount comes from the firm s income tax return and fit is not adjusted in any way. Therefore, the firm s actual transaction to record its income tax liability is the basis for the amount of the income tax expense reported on the Income Statement. The allocation method is a bit different. The actual amount of tax that is paid in the year is ignored when it comes to†¦show more content†¦Because tax allocation was so complex at the time due to changes in the rates, FASB established an implementation group for tax allocation in 1988 and deferred implementation of SFAS No. 96. After FASB issued a special report in 1989 on implementation issues, complications led to the deferral of SFAS No. 96 again, until 1992, which shows the difficulty of obtaining a resolution on tax allocation issues. SFAS NO. 109 FASB issued this statement to replace the complex SFAS No. 96 which was concerned with the recognition of deferred income taxes. SFAS No. 109 requires that deferred tax liabilities for all taxable temporary differences and deferred tax assets for all deductible temporary differences and tax credit and operating loss carry forwards be recognized. The Balance Sheet approach is used. Deferred income tax assets and liabilities represent assets and liabilities instead of residual deferred charges and credits. Under the liability method, an enterprise recognizes a deferred tax asset or a deferred tax liability for the future income tax effects of the difference between the tax basis of the asset or liability and its reported amount in the financial statements. Accounting for income taxes continues to be a source of controversy and difficulty for accounting standard-setters. This is corroborated by the fact that the APB and the FASB have three financialShow MoreRelatedHow Income And Its Impact On Financial Reporting1046 Words   |  5 PagesHow Income taxes developed in the financial reporting I. Intro A. Why I am choosing this topic Effectively managing a company is exclusively important for executives to understand both U.S general accepted accounting principles (GAAP) that govern financial reporting and tax implications of transactions. Corporations with a better understanding of Internal Revenue Code are able to deduct their tax expenses to the government, which will result in more cash to pursue profitable business opportunitiesRead MoreA Brief Look Into American Tax Structure1282 Words   |  6 PagesInto American Tax Structure GAAP vs. IRS Tax Accounting CJ Moore Highline CC January 19, 2014 Prior to the ratification of the Sixteenth Amendment of the American Constitution, the majority of the income received by the federal government was through tariffs and excise taxation (Pollack, 2013). Tariffs are taxes â€Å"levied by governments on the value including freight and insurance of imported products (Tariffs and Import Fees, 2014)†. Excise taxes are â€Å"taxes paid when purchases are made on a specificRead MoreDefend the Asset/Liability Approach of Accounting for Inter-Period Income Tax Allocation.642 Words   |  3 Pagesapproach of accounting for inter-period income tax allocation. The asset/liability method of income tax allocation is balance sheet oriented. The intent is to accrue and report the total tax benefit or taxes payable that will actually be realized or assessed on temporary differences when their respective future taxable or deductible amounts are expected to occur. The book states 5 arguments: 1. The balance sheet is becoming more important financial statement. Reporting deferred taxes based onRead MoreEssay on Tax Law And Accounting1395 Words   |  6 PagesTax Law and Accounting In todays society income taxes are something in which almost everyone is familiar. However, the tax law and general purpose of income taxes is something in which the general society gives little thought. In addition, few tax preparers are aware that differences exist between the Generally Accepted Accounting Principles (GAAP) and tax accounting, not to mention the ramifications of avoiding or evading to proper complete the reporting of income taxes. This paper will discussRead MoreIntermediate Accounting 9th Canadian Edition - Chapt1385 Words   |  6 Pagesresults in future deductible amounts and, therefore will usually give rise to a future income tax asset. ii. Reversing Entry that results in future taxable amounts and, therefore will usually give rise to a future income tax liability. iii. A permanent Difference b) Indicate if the amounts that are involved in the current year will be added to or deducted from accounting income to arrive at taxable income. 1. Financial reporting purposes: straight line depreciation method is usedRead MoreCompany Reporting1285 Words   |  6 Pagescosts creates a Deferred Tax Liability 2 2.2 Analysis on arguments by directors 3 2.2.1 No Income Tax Expenses 3 2.2.2 No deferred tax liability 4 2.2.3 Tax losses 5 2.3 Information utility to users of financial report of deferred tax liabilities 6 3.0 Conclusion 7 References 8 1.0 Introduction Accounting Standard AASB 112 (Income Taxes) prescribe the accounting treatment for income taxes. As stated by Leo, Hoggett, amp; Sweeting (2012), transactions undertaken by an entity andRead MoreIRS and Tax Regulations1649 Words   |  7 Pagesreturns that are in accordance with tax regulations and rules developed by the Internal Revenue Service (IRS). The amounts reported under taxable income and financial income differs. These amounts are different because financial income is based on Generally Accepted Accounting Principles (GAAP) which uses the accrual method to report revenues. Taxable income on the other hand, which is determined by rules and regulations of the IRS, follow a modified cash basis to determine revenue. Therefore, it canRead MoreIntermediate Accounting 14 Edition Test Bank – by Kieso1044 Words   |  5 PagesIntermediate Accounting 14 Edition Test Bank – By Kieso Follow Link Below To Get Tutorial https://homeworklance.com/downloads/intermediate-accounting-14-edition-test-bank-by-kieso/ Description: Chapter 1 Financial Accounting and Accounting Standards Chapter 2 Conceptual Framework Underlying Financial Accounting Chapter 3 The Accounting Information System Chapter 4 INCOME STATEMENT AND RELATED INFORMATION Chapter 5 BALANCE SHEET AND STATEMENT OF CASH FLOWS Read MoreTemporary Differences1346 Words   |  6 PagesDifferences SFAS No. 109, â€Å"Accounting for Income Taxes,† requires inter-period tax allocation for temporary differences. Required: a. Define the term temporary difference. b. List the examples of temporary differences contained in SFAS No. 109. c. Defend inter-period income tax allocation. a. Temporary Difference – Definition An assumption inherent in an enterprise s statement of financial position prepared in accordance with generally accepted accounting principles is that theRead MoreCompany Reporting1448 Words   |  6 Pages1. Introduction Accounting treatment for income taxes for for-profit entities is subject to Australian Accounting Standard Board (AASB) 112 Income Taxes. In accounting for income tax, complying with tax-effect method involves the occurrence of tax consequences due to different treatments are applied for transactions and other events happened inside an entity for accounting and taxation purposes, namely current tax consequences and future tax consequences. The purpose of this report was to

The Use Of Cell Phones While Driving - 1509 Words

Several states have enacted laws banning the use of cell phones while driving; an indication of the type of society America has become. These laws were put in place not only to keep drivers from taking phone calls, but also to deter them from posting their latest tweet or commenting on their friend’s latest picture. Social media is so ingrained in society today that many are unable to entertain a world that is devoid of such technology. With usage at an all-time high, the psychological effects of social media must be brought into question, and the repercussions it has on teens in the modern day. Social media’s popularity shows no sign of stopping, so a solution is imperative. A means of safely integrating an internet culture, into an already pre-established one that was once dependent on direct human interaction. Predominantly 7% of adolescents receive negative feedback pertaining to their online profiles every visit to their social network of choice (Valkenburg). As for the remaining 93%, they have neutral interactions, receiving both positive and negative feedback. CNN reports that teens are spending 9 hours a day consuming media, the vast majority of which is done through social media (Wallace). Teens are spending more of their time than ever before interacting with the world and their peers, all possible in the comfort of their own homes. With the majority of teen’s lives being consumed by the internet, the psychological effects at play must be carefully addressed. AllShow MoreRelatedUse Of Cell Phones While Driving860 Words   |  4 PagesAmericans rely heavily on cell phones to perform daily activities. Cell phone are used for phone calls, email, sending text messages, surfing the internet, and performing other tasks. It is unfortunate that many of these daily activities occur w hile a person is driving. As a result, an increase of accidents and fatalities have occurred because of the use of cellular phones while driving. Using a cell phone while driving is an epidemic that has taken our nation by storm. Most drivers believe theyRead MoreCell Phone Use While Driving1503 Words   |  7 Pagesforth over the lines or driving at very inconsistent speeds. You wonder what could possibly be causing the driver to drive so erratically. Is the driver drunk? Is the driver preoccupied with eating his or her lunch? Is the driver busy attending children in the backseat? Once you pull along the side you realize that was not the case, instead you notice the driver has a cellular telephone up to her or his ear chatting away, or even worse you pass and see the driver holding a phone texting, you pass byRead MoreCell Phone Use While Driving990 Words   |  4 Pages Cell phones are integral to people’s lives in Canada because they are vital communication and entertainment tools. However, the use of cell phones has remained contentious, because texting and talking on the phone are associated with distracted drivi ng. Distracted driving is, â€Å"defined as the diversion of attention away from activities critical for safe driving toward a competing activity† (Klauer, Guo, Simons-Morton, Ouimet, Lee Dingus, 2013, p. 55). Although distracted driving is also associatedRead MoreThe Use Of Cell Phones While Driving1817 Words   |  8 Pagesknowledge that the use of cell phones while driving decreases driver awareness and overall road safety, and in response to this knowledge, some states have passed laws that have prohibited the use of handheld devices. However, there are no laws banning hands free cell phone usage, despite research claiming hands free devices are just as dangerous handheld devices. But, does their usage distract drivers enough to the point where states should legally ban the total use cell phones while driving? The followingRead MoreCell Phone Use While Driving1114 Words   |  5 PagesToday, we use our cell phones for just about anything and everything to include; text ing, talking to our loved ones, and connecting with the rest of the world via social media. Cell phones have become a natural way of life to where we pick up our phones and use them like second nature. However, the dangers present themselves when we get behind the wheel of a car and carry these habits of cell phone addictions with us. If all states ban the use of cell phones while driving, then there would be a reducedRead MoreUse of Cell Phones While Driving824 Words   |  4 PagesIf you are driving at 55mph for 5 seconds in that amount of time you could cross a football field. People don’t understand how dangerous distracted driving really is. All states should have some sort of legal parameters of what happens when you get caught using your cell phone while driving. People should get a stronger/ harsher punishment for the use of a cellular device while driving. People are way more impaired when you are distracted and driving than you are drinking and driving. The problemRead MoreThe Use Of Cell Phones While Driving1843 Words   |  8 Pagesknown that the use of cell phones while driving decreases driver awareness and overall road safety, and in response to this knowledge, some states have passed laws that have prohibited the use of handheld devices. However, there are no laws banning hands free cell phone usage, despite research claiming hands free devices are just as dangerous handheld devices, but does their usage distract drivers enough to the point where states should legally ban the total use cell phones while driving? The followingRead MoreCell Phone Use While Driving Essay1816 Words   |  8 PagesThe study was attempting to determine the thoughts and behaviors that African American freshman college students in regards to cellphone use while driving. They wanted to know how the students thought cellphones (independent variable) impact driving skills (dependent variable). Research suggests that cellphone use correlates to higher l ikelihood of accidents. The study used 331 (195 females and 136 males) freshman students who held a driver’s license. The students were then given a questionnaireRead More Cell Phones And Driving: Dangers Involved with Cell Phone Use While Driving1036 Words   |  5 Pagesoften. Talking on the cell phone and driving has become a very popular thing these days. Technology is coming out with the newest phones that can do everything for you and people are attracted to that. There are people that don’t have hands free and drive their car with only one hand, people that text and totally take their eye off the road and type conversations to each other. Bluetooth is another technological breakthrough where you wear an ear piece and can receive phone calls by one touch ofRead MoreStop the Use of Cell Phones While Driving854 Words   |  4 Pages13 2013 Many people driving don’t know that they can be so many wrongs they can be doing without realizing it. Plenty talk on the phone while driving, drink, text and drive. A lot of people even innocent people as well have had accidents involving one of those. Out of the three there has been one that has become more common, and it’s only increasing if people don’t put a stop to it themselves. A usage of a cell phone should not be displayed at any point while driving. It can wait many have had

Sk

Sk-Ii Essay PG Japan: The SK-II Globalization Project In November 1999, Paolo de Cesare was preparing for a meeting with the Global Leadership Team (GLT) of PG’s Beauty Care Global Business Unit (GBU) to present his analysis of whether SK-II, a prestige skin care line from Japan, should become a global PG brand. As president of Max Factor Japan, the hub of PG’s fast-growing cosmetics business in Asia, and previous head of its European skin care business, de Cesare had considerable credibility with the GLT. Yet, as he readily acknowledged, there were significant risks in his proposal to expand SK-II into China and Europe. Chairing the GLT meeting was Alan (â€Å"A. G. †) Lafley, head of PG’s Beauty Care GBU, to which de Cesare reported. In the end, it was his organization—and his budget—that would support such a global expansion. Although he had been an early champion of SK-II in Japan, Lafley would need strong evidence to support PG’s first-ever proposal to expand a Japanese brand worldwide. After all, SK-II’s success had been achieved in a culture where the consumers, distribution channels, and competitors were vastly different from those in most other countries. Another constraint facing de Cesare was that PG’s global organization was in the midst of the bold but disruptive Organization 2005 restructuring program. As GBUs took over profit responsibility historically held by PG’s country-based organizations, management was still trying to negotiate their new working relationships. In this context, de Cesare, Lafley, and other GLT members struggled to answer some key questions: Did SK-II have the potential to develop into a major global brand? If so, which markets were the most important to enter now? And how should this be implemented in PG’s newly reorganized global operations?

Natural Technological Environment of Subway Sandwich Essay Example

Natural Technological Environment of Subway Sandwich Paper There are include, all new and remodeled stores are now using energy efficient lighting saving electricity as well as low flow water faucets saving an estimated 182. 1 million gallons of water annually and today’s the majority of the packaging used in subway restaurant is made with recycled content and 100% can be recycled or composted. Besides, subways are in the process of moving to these packaging specifications globally. Nowadays there are 14 Subway Echo Restaurant are available and operating. These are the stores that built and designed to be more energy efficient, conserve water and reduce asset. Subway is trying to provide their franchise by having the best solutions to help them get improved on their operations focusing on energy efficiency, resource conservation, waste reduction and food safety. Energy Efficiency is design and the nature of our product offering our operations are fairly energy efficient but as energy costs continue to raise it is important to improve the energy efficiency of our restaurants. Lighting and electronic signage are the most important components of the restaurants and are the big users of energy in the store. Over the past few years, they have been improving their energy efficiency by shifted all new and remodeled restaurants to high efficiency lighting and made LED exterior signage optional in 2008 and then they are began to transition to LED lighting for sandwich units. Subway is in the process of piloting the use of additional energy saving equipment, features and processes such as LED interior lighting. We will write a custom essay sample on Natural Technological Environment of Subway Sandwich specifically for you for only $16.38 $13.9/page Order now We will write a custom essay sample on Natural Technological Environment of Subway Sandwich specifically for you FOR ONLY $16.38 $13.9/page Hire Writer We will write a custom essay sample on Natural Technological Environment of Subway Sandwich specifically for you FOR ONLY $16.38 $13.9/page Hire Writer So on water conservation, many regions around the world are beginning to experience varying degrees of water stress due to increases in population, weather tatter changes or adequate water management infrastructure that can result in inadequate supply of safe drinking water. For many years, recycling and composting bins have been available for franchiser’s for aiming to recycle compost. Subway restaurants are required to maintain a litter free environment and we encourage our customers to recycle. Subway are worked with their suppliers to optimize how our products are packaged to reduce waste streams for breads, meats, cheeses, sauces, produce, paper products and cleaning products used in our restaurants. For example, the sauces and most of the tuna are now in film pouches which require less energy to package and transport and remove 6 million pounds of corrugate from our waste stream annually. By removing the paper interline between our sliced cheeses, an additional 450,000 pounds of paper has been removed from our waste stream annually. In today, franchisees have the option to portion some ingredients using a scoop. This process eliminates the need to pre-proportions in food trays and removes additional packaging from our waste stream annually. Furthermore packaging the packaging goal is to only using the packaging that can be able to recycled or composted where facilities exists. The Subway restaurant franchisees have the option to serve their dine- in guests with a reuse able basket lined with deli paper or lined tray. This will be the approach minimizes the associated waste stream and improves the meal presentation. However, the franchisees conform to all the local legislation and having the recyclable paper bags that made with 100% recycled paper or reuse able bags are available for those areas that restrict or an plastic bag usage. In additional, the echo-restaurants are Subway franchisees are entrepreneurs and they are many visionaries dedicated to supporting their communities and the environment. In fact, Some have built ECHO-Restaurants designed to conserve resources during the development process and set the stage for efficient operations in the future. Technological environment The food safety and food quality are the top priority for Subway. The goal for Subway is to serve food that is consistently the highest quality of meats and feet standards from all the time when it is put into a sandwich or salad. To ensure that the food that been serve is always fresh and sustainable produced they have well as stringent audit process that they will be enforce throughout their supply chain as well as require ire that their suppliers’ employment practices meet their Vendor Code of Conduct. By giving the high standards for food safety to ensure that the entire Subway customer will getting the quality from the Subway brand. It starts with setting detail product pacifications followed by the inspection of samples that pulled from the distribution to ensure that specifications are being met. The Subway brand Office of Food Safety and Quality Enhancement team will review all the Subway food safety and quality programs and might giving recommendation for improvement if it’s needed. This team will be works together with the vendors to achieve the subway food safety and the quality improvement goals. Food safety is one of the main important roles in the Subway restaurant. Sandwich Artists are required to always follow the strict hand gashing procedures and proper glove usage for all food handling processes.