This website uses cookies to ensure you have the best experience. Learn more

Client Understanding Paper

1496 words - 6 pages

Client Understand Paper
Accounting Theory and Research/ ACC 541
November 21, 2011

To provide your organization accurate financial data, reports and statements, we follow rules developed according to Generally Accepted Accounting Principles (GAAP). Based on GAAP, it is important that we follow certain rules and have accurate client information. You have asked why we are asking for certain information related to certain topics within your organization. An explanation as to why we are asking for this information and related examples is provided in this paper to help assist you in your understanding of what we are doing.
Adjusting lower cost or market on inventory valuation
Valuing ...view middle of the document...

This is done in order for a company to minimize its tax liability. How this works is if you have a product you purchased for $100. If today’s value of the product is still $100 you would record the inventory valuation at $100. But if the replacement cost or market value of this item drops to $80, the $80 would now be the inventory valuation amount, based on LCM. LCM follows the “ conservatism principle and a specific accounting pronouncement, Accounting Research Bulletin No. 43 (ARB No. 43) leads to an accounting valuation method known as the lower of cost or market, or LCM” (AccountingCoach.com).
Capitalizing interest on building construction
There will be times when you will need to purchase a building or have a building constructed for you. Due to the considerable period of time between start to the finish of the project, there are special considerations taken regarding the costs of the building project. One of the special circumstances involves the capitalizing of interest on the building project. Generally, interest costs related to the construction are included in the cost of the building. This is called capitalizing the interest costs. To capitalize the interest costs, FASB Statement No. 34, “specifies that three conditions are necessary for capitalization of interest costs: qualifying expenditures must already have been made; the activities that will prepare the assets for use must already be in progress; and the company must actually be paying interest. If the project does not meet the criteria, then the interest would be recorded as interest expense” (FASB.org). According to Schroeder, Clark, & Cathey (2011), it is stated in FASB ASC 835-20-30, that the amount of interest to be capitalized is the amount that could have been avoided if the asset had not been constructed.
Here are two examples of this concept. The first is if it cost you $500,000 to build a building and the capitalized interest was $20,000, then the cost of the building would be $520,000. If this building was already built, we would only capitalize the difference of the $20,000 paid to build a new building and the $10,000 needed to get this building ready for use. The cost would be depreciated over the life of the building and the remaining interest would be reported as an interest expense.
Recording gain or loss on asset disposal
Assets are sold or disposed of all the time. When assets are sold, it is important to account for any gain or loss. “If a company disposes of (sells) a long-term asset for an amount different from its recorded amount in the company's accounting records (its book value), an adjustment must be made to net income on the cash flow statement” (AccountingCoach.com).

For example, let's say you sell one of your printing presses for $45,000. That printing press is shown on the company records at its original cost of $500,000 less accumulated depreciation of $475,000. The book value of the printing press is $25,000. ...

Other assignments on Client Understanding Paper

Cross Cultural Business Policy Analysis: Hipaa

932 words - 4 pages The world has changed. Client information (especially health information) can no longer be freely discussed or shared with just anyone. In previous years there has been limited regulations on privacy of health information. The how, why, and to who information was shared was less scrutinized, which allowed people to inadvertently gain access to information that was not necessary. There are very specific rules for who and when it can be used

Multicultural Experience Essay

1413 words - 6 pages Multicultural Experience Blake Runkle PSY/400 August 15, 2012 Rockel Etinne Multicultural Experience There are many uncomfortable situations that people deal with, situations such as eating foods that a person does not usually eat or attending a religious service other than his or her own. In this paper the topics that will be discussed will first be to

Financial Planning Manner

1344 words - 6 pages lack of the discussion between him and his Client, so the agreement was signed without clear information from the Financial Planner The Client’s statement that when she asked Respondent what the commission was for the RAVA, Respondent said she thought it was $1,000: the Respondent has very poor communication skill based on the conversation between him and client, he needs to state out the amount with specific calculation and paper provided to

Understanding Your Customers - Hr Cipd Level 3

873 words - 4 pages The role of a HR Assistant is a varied and interesting role as no day is ever the same, whilst dealing with clients. A HR function should ensure the services they provide are timely and effective, as they are a cost centre and need to be adding value to any business. Understanding Customers Customers of HR want a proactive HR function, which spots issues ahead of time and works closely with managers to address them. Within HR there are

Defining Marketing Paper

866 words - 4 pages Defining Marketing Paper Christopher Davis MKT 421 August 14, 2012 Willie Larry Jr. Defining Marketing Paper This paper will describe the definition of marketing according to Chris Davis and two other sources. The reader will also learn how marketing in an organization the key component to that organization’s success is. Finally, it will provide examples from the business world to support his explanation. Marketing Marketing is

Historical Development Of Nursing Timeline

1402 words - 6 pages -46 are encouraged to join this long-term women's health study.” ("," 2014, para. 22) New technology such as computers, cellular telephones and digital cameras have been influencing many professions to include nursing. This paper has explained the historical development of nursing science, by citing years, theorists and theories, and different disciplines that have influenced theorists and nursing science. References [Understanding uncertainty

Credit Approval Process

6818 words - 28 pages report in such a short period of time. ← Representation of data: The sample was selected from the client files of September, 2011 to December, 2011. Hence there is a chance of not depicting complete picture or situation of Credit Approval Process of Small Enterprise Financing. ← Limited Knowledge: Limited knowledge on the subject may hamper the understanding of the process within the given time frame. So, please you are requested to

Multiculturalism In Counseling

2088 words - 9 pages because they have not lived life in the shoes of those who are non-privileged – think of how this would affect the alliance of a therapist who is privileged and a client who isn’t. Those who are culturally diverse typically have a hard time in therapy, because it is often that therapists will unconsciously incorporate their personal perceptions, beliefs, and values when counseling. During therapy, a good technique is to validate the client’s

Wgu Capstone

8774 words - 36 pages the new online program was the ability to work offline, so this process is co-dependent on the response time between the workstation and server being improved. Deliverables The intangible deliverables that were provided to the client was a better understanding of network security, and why it was important for him to maintain the integrity of his and his customer’s information. The ABC Company’s improved internal reputation is another

Community Assessment And Analysis

5042 words - 21 pages section. http://nacts.asu.edu/projects/teaching-mexican-american-history Actual diagnosis: Knowledge deficit Interventions: Assess the level of understanding on disease condition, teach the client about disease prevention and health perception, provide the necessary resources for healthcare services, encourage the client to seek healthcare services and provide interpreter when necessary to increase communication between the patient and

Mcbride Marketing Plan

940 words - 4 pages refinancing or interest rate reduction. MFS will target professionals and retirees that may be purchasing a primary or even secondary home, and families and/or individuals purchasing recreational properties. The purpose of this paper is to outline a marketing plan that will enable McBride Financial Services to accomplish their mission through market analysis, research and web based advertising. As with any marketing plan you must know the best

Similar Documents

Client Understanding Paper

1283 words - 6 pages Client Understanding Paper ACC/541 April 10, 2012 Client Understanding Paper Dear Client, please find below the detailed written explanation on the topics you requested. The items addresses are as follows: 1. Adjusting lower cost or market inventory on valuation. 2. Capitalizing interest on building construction. 3. Recording gain or loss on asset disposal. 4. Adjusting goodwill for impairment. Adjusting lower cost

Personal Theory Of Counseling Essay

3616 words - 15 pages therapist client relationship and its importance. Fourth, I will describe key functions and role of the therapist. Fifth, I will discuss the goals of therapy. Sixth, I will determine the techniques and theories of my approach. Seventh, I will discuss specific client issues best suited for my approach. (Walden University, 2012). In this paper I plan to describe and explain my own personal model for counseling. My personal model of counseling uses

Fundamental Research Essay

1112 words - 5 pages quantitative research method. Qualitative research deals with understanding why people perform or do what they do. Using Lowcountry AIDS Services again, the case manager’s interview will illustrate the risk factors a client may have demonstrated doing the assessment interview. Using the qualitative research method the case manager will able to observe the client and work closely to find solutions to any issues or problems. Lowcountry AIDS Services may

Mktg 300 Individual Project Essay

1258 words - 6 pages marketing plan. Although the ultimate goal is to help your client company achieve its long-term potential, the primary emphasis of the plan should be on programs to be implemented over the next year or two. Project Composition: * Paper (Due 11/25) * Presentation (Either 11/25 or 11/27) Presentation Format: * Give a brief overview of your marketing plan. * Make sure you time your presentation to be around 10-12 minutes (12-15