18 Aug Need Help In Accounting
Part 1:
Determine the fundamental reasons why Financial Accounting Standards Board (FASB) requires a company to use the equity method of accounting for investments. Next, propose two (2) theoretical problems of recognizing equity income that the opponents of the equity method would consider. Provide a rationale for your response.
Analyze the potential impact of eliminating the retrospective application of the equity method to increases in previously held ownership interests that result in significant influence and which qualify for use of the equity method. In the role of chief executive officer (CEO) for a midsized company, propose the type of managerial incentives that could influence the company’s percentage ownership in another company. Provide a rationale for your response.
Part 2:
Compare the attestation services provided by independent professionals with other assurance services provided by CPAs. Next, discuss at least two (2) goals of each service and how the service contributes to decreasing the risk of reporting errors or misstatements in financial statements. Provide the underlying principles supporting your response.
Evaluate the effectiveness of the current quality control standards and practices in the accounting profession. Next, identify at least one (1) standard or practice that merits improvement and the corresponding improvements recommended.
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