Finance and Accounting Intelligence Accounts Techniques

Question: Describe about the Finance and Accounting for Intelligence Accounts Techniques. Answer: To, Mary McCarthy Managing Director, McCarthys Cafes Ltd Suite 6889, Level 18, Cafe Plaza Building 685 Charles Street Adelaide SA 5000 There were several issues related to the financial situation of Piper, Pepper and Associates. In this regard, it can be said that computation of depreciation and the valuation of assets are one of the pertinent issues that is posing a threat to business sustainability of the entity. The preparation of the financial statements shall be dependent on the accounting guidelines that are prevalent at that point of time. Any discrepancies present in the existing accounting policies would also be identified and have an impact on the financial strategies of business enterprise. Droms and Wright (2015) stated that an- in-depth analysis of the financial situation would be necessary for the development of pertinent financial strategies of the business entity. In addition , the type of the industry the firm is operating as well as the current market share of the business organization in the domestic and the international market are the factors that can be considered in the development of the financial strategies of the business entity. Financial policy would be required in preparing the financial policies of the business entity .The company had purchased a business segment of Karens Cofees Ltd and had paid $950000 for the total transaction. However, the book value of the transaction was stated to be $650000. As such, this inequality in the measurement of assets for the business enterprise would have to rectify in the annual reports of the company to reflect the accurate financial condition of the business entity. The company proposes to bridge this gap by showing the difference as goodwill. The valuation of intangible assets like goodwill shall have to be treated in an appropriate manner to assess the authentic financial condition of the business enterprise. Giles (2014) stated that the intangible assets form an important part of the financial policies of the business enterprise. Thus, intangible assets need to be separately accounted and measured, in the context of the business operational policies. In order to me asure the value of the intangible assets in the business organization, the economic value of the asset to the owner over a consistent period of time has to be assessed. According to Xie and He (2013), the valuation assignments shall refer to the valuation assignments that are present in the external market environment that includes the volatility, ongoing creation as well as issues with protection and re-enforcement. Here, the role of the business analysts is very important as it relates to the exchange between the owners for estate as well as gift tax purposes. Therefore, the business entity shall have to determine the operational and the marketing policies of the business enterprise as per the inherent financial condition of the business enterprise. Therefore, the business transaction can be treated as goodwill and has an impact on the operational policy of a business enterprise. The value of intangible assets shall have to be evaluated in an appropriate manner to effectively evaluate the original assets in the business organization. The intangible assets shall only be recognized in the financial statements, if it brings certain economic benefits to the business entity . Therefore, the business operational policies in the business organization would have to be restructured to develop the marketing and the operational strategies of the business entity. As such, it can be said that the business operational policies have to be re-structured to evaluate the issues of the business entity. The revised budgeted profit and loss statement shall state the profits of the business organization and have fall short by 10% or 15%. The value of the land shall have to revaluate to meet the existing value of the organization. To bridge this gap, the profits of the organization have to increase to $2500000. As such, the budgeted profit in the business entity would have to be formulated to forecast the existing sales in the business organization. Thus, a revised budget in the business organization shall help in allocating appropriate expenses for the business entity and develop the organizational goals and the objectives of the business entity. In this context, it can be said that the assets in the business organization shall have to be revaluated to assess the relevant value of the assets and the liabilities of the organization. The profit and loss account of the company as well as the balance sheet of the organization shall have to be prepared as per the necessary Australian Accounting Standard Bord recognition criteria. Therefore, Lindner (2012) noted that internal auditing is an effective financial tool that monitors the transaction of the business enterprise. This shall prevents any financial irregularities and reduce the unnecessary wastage of the financial resources of the business entity. Special emphasis must be implemented in developing effective forecasting policies for the business entity. Thus, this shall help the business entity in preventing any financial crisis for the business entity. As such, the revised budgeted statement as well as the balance sheet of the organization shall depict the current. Assessing the depreciation on machinery is another issue that is hampering the financial processes of the business organization. The rate of depreciation is stated to be 2% in the context of 20%. As such, in the case of building the depreciation is stated to be 0.5% instead of the original 5% on the books of accounts of the business entity. Therefore, the depreciation rates currently followed in the business organization has to alter to the correct depreciation policies followed in the business organization. The existing depreciation rates followed in the business organization has been way lower than the original depreciation adopted in the business organization. Zhan and Xu (2013) stated that the depreciation on machinery is an essential part of the financial policies of the business entity. In this regard, it can be said that business entity has to select between the a ccounting for depreciation as well as the marketing strategies of the business entity. As such, the depreciation method of straight line as well as the reducing balance method of accounting shall have to be selected to assess the proper depreciation expenses for the business entity As such; the total financial policies of the organization shall require innovation to remove the existing discrepancies in the business operational police of the business entity. The method of measurement in the business enterprise would have to be changed to the fair value of measurement to assess the market conditions as per the present market value of the assets. According to Brief and Peasnell (2013), the adjustments have an impact on the financial policies of the business enterprise. The journal entries that is to be structured and the adjustment entries that are made shall reduce the gap in the depreciation of the accounts. As such, the journal entry can be rectified by passing adjustment journal entries in the books of accounts for the business entity. In addition, the life span in the case of the computer systems was miscalculated which lead to financial discrepancies. Therefore, Anandarajan (2012) noted that the life span of the assets should have to e calculated to help the business entity to make relevant financial and operational policies for the business enterprise, Thus, measures shall be taken to reduce such discrepancies, and determine the correct amount of depreciation that is to be deducted from the assets. Therefore, the assets of the business organization are to be valued in a appropriate manner. In this regard, it can be stated that the management of the business entity has to develop the operational strategies of the business enterprise.. The extra amount at the end of the three years shall have to be replaced to help the business entity to develop appropriate financial policies. In this regard, it can be said that the business enterprise has to respond appropriately for the growth and the propensity of the business entity. In the context of calculating the depreciation, it is necessary that the actual values of the assets in the current market conditions. The change from the proprietary company to the public company shall have an impact on the operational and the financial policies. Besides this, there shall be considerable legal complexities that shall have to be considered. Thus, the business entity shall require considerable time as well as resources to execute the business functionalities in an appropriate manner. (Aasb.gov.au 2016). Therefore, the business entity shall require adequate financial resources to meet the daily operational expenses of the business enterprise. As such, potent financial policies shall be required to achieve this aim. References Aasb.gov.au. 2016. Australian Accounting Standards Board (AASB) - Home. [online] Available at: https://www.aasb.gov.au/ [Accessed 9 Sep. 2016]. Anandarajan, M., Anandarajan, A. and Srinivasan, C.A. eds., 2012. Business intelligence techniques: a perspective from accounting and finance. Springer Science Business Media. Anandarajan, M., Anandarajan, A. and Srinivasan, C.A. eds., 2012. Business intelligence techniques: a perspective from accounting and finance. Springer Science Business Media. Brief, R.P. and Peasnell, K.V., 2013. Clean surplus: A link between accounting and finance. Routledge. Droms, W.G. and Wright, J.O., 2015. Finance and accounting for nonfinancial managers: All the basics you need to know. Basic Books. Garcaà ¢Ã¢â€š ¬Ã‚ Teruel, P.J., Martnezà ¢Ã¢â€š ¬Ã‚ Solano, P. and Snchezà ¢Ã¢â€š ¬Ã‚ Ballesta, J.P., 2014. Supplier financing and earnings quality. Journal of Business Finance Accounting, 41(9-10), pp.1193-1211. Giles, R., 2014. Finance Accounting New 4th Edition. Lulu. com. Lindner, F., 2012. 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