ON BOEING AND  China Eastern Airlines

Describe at least two differences in disclosure provided in the footnotes of the competitors under IFRS and US GAAP. Example:

The Property, Plant and Equipment footnote is much more detailed for Company X in IFRS than for Company Y using US GAAP. For each PP&E component, it reconciles the differences beginning and ending net book values including additions, disposals, currency translation effects, depreciation and impairments. Company Y lists the PP&E components only.

For one of the major accounting differences, do further research into the applicable standards for IFRS and for U.S. GAAP. Quote portions from each standard and then explain the standards in your own words. Where are the U.S. GAAP and IFRS standards specifically similar and different? Example:

Earnings per Share:   Under IFRS, Company X calculates dilutive potential common shares independently for each interim period presented (discrete method). Under US GAAP, Company Y computes dilutive potential common shares on a year-to-date weighted average for each interim period presented (integral method).

2. The Sandcastle Motel adjusts and closes its accounts at the end of each year on 30 June. Most guests pay at the time they check out but a few guests pay in advance and these amounts are posted to Unearned Rental Revenue account at the time of receipt. The following transactions are being considered for adjustment:

(i) A one-year bank loan of $80,000 was obtained on 1 May. No interest has yet been paid. The interest accrued at 30 June is $1,000.

(ii) On 16 June, a suite of rooms was rented to a company for six months at a monthly rental of $3,200. The entire amount of $19,200 was collected in advance and posted to Unearned Rental Revenue account.

(iii) At 30 June, the motel has earned $18,090 rental revenue from current guests who will not be invoiced until they are ready to check out in July.

(iv) Salaries earned by employees at 30 June, but not yet paid, amount to $4,000.

v) On 30 June, the motel entered into an agreement to host the National Bodybuilders Convention in August. The motel expects to earn rental revenue of at least $90,000 from the convention.

(vi) On 1 June, a payment of $3,000 was made for six months cleaning services. The payment was entered into the Prepaid Cleaning account.

Question:

(a) Prepare the adjusting journal entries for the year ended 30 June. Ignore GST. (Explanations not required)

(b) The owner of the Sandcastle Motel is anxious to know the results for the year and wants to ignore the above adjustments in the interests of speedier reporting. Advise the owner why adjusting journal entries are important.

For this problem, carry at least four digits after the decimal in your calculations. Answers may vary slightly due to rounding.

In a random sample of 60 professional actors, it was found that 35 were extroverts.

(a) Let p represent the proportion of all actors who are extroverts. Find a point estimate for p. (Round your answer to four decimal places.)


(b) Find a 95% confidence interval for p. (Round your answers to two decimal places.)

Give a brief interpretation of the meaning of the confidence interval you have found.

We are 95% confident that the true proportion of all actors who are extroverts falls outside of 0.46 and 0.71.We are 5% confident that the true proportion of all actors who are extroverts falls between 0.46 and 0.71.    We are 5% confident that the true proportion of all actors who are extroverts falls above 0.46 and 0.71.We are 95% confident that the proportion of all actors who are extroverts falls between 0.46 and 0.71.

(c) Do you think the conditions np is greater than or equal to 15 and n*(1 - p) is greater than or euqal to 15 are satisfied in this problem? Explain why this would be an important consideration.

A No, the conditions are not satisfied. This is important because it allows us to say that the sampling distribution of p̂ is approximately normal.

B Yes, the conditions are satisfied. This is important because it allows us to say that the sampling distribution of p̂ is approximately binomial.

C No, the conditions are not satisfied. This is important because it allows us to say that the sampling distribution of p̂ is skewed right.

D Yes, the conditions are satisfied. This is important because it allows us to say that the sampling distribution of p̂ is approximately normal.

This multimedia deals with the issue of growing economic inequality in the US. There are three parts to it. (Due Sept 9th) The first link shows that what we believe our economic reality to be is far from accurate. http://www.youtube.com/watch?v=QPKKQnijnsM This second link provides some important information about just how many of us are actually donating to political campaigns. http://www.opensecrets.org/overview/donordemographics.php. The third link deals with who makes the laws governing this country, and why. https://www.youtube.com/watch?v=5tu32CCA_Ig In one, single-spaced page, summarize what you've learned and draw some conclusions about what your insights might mean for democracy.

The University of Crookington wants to offer one of its courses online. It costs $45,000 to create the necessary infrastructure, and $15,000 to develop the digital content for the first course.

The University estimates that there is a 80% probability of the course being successful, in which case annual cash flows from assets of $8,000 can be expected for 7 years. Otherwise, annual cash flows from assets of only $5,000 can be expected over the same time period.

The University has a weighted average cost of capital of 10% and estimates that the online course would be as risky as its existing assets.

1. What is the NPV of the project?

The University will observe the demand for the first online course over two years. If the course turns out to be successful, the University can offer another 2 courses online by investing $15,000 each for content development in two years and then earning $8,000 per year for 7 years. No additional investment in infrastructure will be required.

2. What is the NPV of the project including this option?

You joined Digitech in Cambridge as the Chief Innovation Officer four years ago, and since then the company has been undergoing significant changes. Although known for its computer software, with a worldwide reputation for a smaller company, the leadership has been looking to expand the work in the social sector. You have been actively searching for ways that Digitech could get more involved with public-private partnerships and the board has proposed a wide variety of initiatives from promoting computer literacy in the US public school system to improving technology access in developing countries. You and the board have decided to create a new position to help you start and manage these initiatives, Director of Public and Non-Profit Partnerships. However, you have been having a hard time finding someone to lead the new department. A couple weeks ago, you ran into another parent, Jordan Webb at a fundraiser for your child’s pre-school. Jordan is finishing a graduate degree, but previously worked for one of your rivals, Alpine Technology, as the Manager for International Business Strategy. Jordan really wants to stay in the Boston area due to family ties and seemed enthusiastic about a potential job leading public-private partnerships at their old company. Because of this enthusiasm, you thought Jordan might be a great fit for Digitech and after talking more they appear to be a perfect fit: experience in the tech industry, familiar with a similar sized organization, and additional education to support this interest. Jordan came through for informal interviews with your executives and everyone came away with a positive impression, wanting to offer Jordan the job as Director of Public and Non-Profit Partnerships. You called Jordan to share this news and promised to send a follow-up email to figure out the terms. You checked in with the Vice President of Human Resources (VP of HR) at Digitech to find out what kind of package you may be able to offer. She informed you that the going salary range for the incoming director working on nonprofit public-private partnerships would be around $70,000-$100,000, and she would prefer you to negotiate an agreement at the lower end of the range, since public and non-profit partnerships are unlikely to generate much revenue for Digitech. This would be a substantial pay cut from Jordan’s previous position with Alpine Technologies, which you are guessing would have paid in the range of $150,000 to $200,000. You told the VP of HR that although the salary range she presented seems fair, you may not be able to attract Jordan without providing additional incentives. The VP of HR responded by describing the standard benefits package offered to Digitech employees: 4 weeks of paid vacation plus select holidays off, full individual health coverage with all premiums paid by Digitech (family coverage requires employees to make a $350/month contribution; employees who waive all employer-sponsored health insurance coverage can get a rebate from Digitech for $5,000 per year). Digitech also matches employee 401k retirement contributions by 50%, for up to 6% of an employee’s base salary. Finally, Digitech does not give tuition reimbursement to employees. The VP of HR let you know that these standard benefits are offered to all employees and no exceptions can be made. When you pressed the VP of HR to increase the amount you can offer for salary, or to allow you to offer a year-end bonus, she was very unenthusiastic. She explained that year-end bonuses are tied to the profitability of each department, and since this new department would work primarily with non-profit or government partners, it is unlikely to be highly profitable. However, she did finally agree to authorize you to use up to $20,000 in extra money, to be offered at your discretion--as a signing bonus, to reimburse moving costs, or for whatever purpose seems most appropriate. You would prefer not to have to offer any extra money beyond the base salary, unless you think it absolutely necessary to convince Jordan to join you. Digitech has a very strong office culture and employees are expected to work out of the office in Cambridge so they can interact with colleagues, except when on business trips. The company was founded on the belief that making personal connections and being able to directly turn to colleagues for immediate, personal feedback are key pillars to success. Employees are given one flex day per week in the summer months (when they can work at home or reduce their hours by working extra hours other days of the week), but the rest of the year most employees work 5 days per week from the office. You did allow two employees to work from home one day per week last year (one had a new baby and the other was caring for an elderly parent); however, you are reluctant to allow this to spread too widely for fear your strong office culture may be damaged. You expect Jordan’s position to require travel once every month or so, to meet with partners in other locations. However, you are open to Jordan conducting most meetings via teleconference. You expect that this new position will be fairly demanding, especially in the first year, but you hope the opportunity to create a new department, as well as the prestige and focus of this new job, will be worth it. You want to make sure that the person you hire is really a team player. That is one of the reasons you are so excited to hire Jordan. Recently, one of the board members suggested you consider his best friend’s daughter, Robin, who is about to graduate with an MBA. At the advice of the board member, you hired Robin as a summer intern last summer, and were very unimpressed. You felt Robin lacked sufficient experience and was not very proactive, waiting to be guided in each activity. Robin also went on vacation halfway through the summer and left a project unfinished. You are a little worried that if you do not lock in someone else for the new job soon, the board member will push you to consider Robin more seriously; you would really like to avoid this if at all possible. Because Digitech’s lawyers need time to structure the public-private partnership agreements, you would prefer Jordan start in early to mid-July. However, Jordan has been so enthusiastic that if Jordan really wants to start immediately after graduation, you will try to be flexible.

You are now getting ready to send an email to Jordan to try to reach an agreement on the terms of employment. Prepare for and conduct your negotiation with Jordan. What would you do to convince Jordan to work for your company in your email?

Suppose the probability of an IRS audit is 2.9 percent for U.S. taxpayers who file form 1040 and who earned $100,000 or more.

(a) What are the odds that such a taxpayer will be audited? (Round your answers to the nearest whole number.)
  
Odds that a taxpayer will be audited            to

(b) What are the odds against such a taxpayer being audited? (Round your answers to the nearest whole number.)
  
Odds against a taxpayer being audited      

Bernoulli Glass Company provides the following information at the end of its current year:

Required:

• Using this information, prepare (1) a classified income statement and (2) a classified balance sheet, for Bernoulli Glass Company.
• After preparing these reports, calculate Bernoulli Glass Company’s (3) debt-equity ratio and (4) gross profit margin.

Use textbook and other resources to answer questions: 1. Describe the ongoing interventions for Mr. Yoder who developed sepsis from a wound infection. 2. What individual cues would indicate Mr. Yoder’s treatment is improving his wound care and stabilizing his diabetes? 3. Describe Ms. Larson’s risk to adverse syndromes due to her polypharmacy. What client and care giver teaching would be important to provide prior to dischar

At the time of his death Jason had the following assets:

•     Home owned jointly with rights of survivorship with his wife Sally, valued at $500,000.

•     Stock account in his individual name, valued at $250,000.

•     Life estate received from his mother, Judy, in a family vacation home. The home is worth $1,000,000. Jason’s sister Toby is the remainder beneficiary.

•     IRA worth $750,000. His wife Sally is the primary beneficiary.

Who will receive the family vacation home?