Caltron Computers, Inc

In: Business and Management

Submitted By littlek
Words 405
Pages 2
Accounting Standards Boards

Sharon Little

ACC 541

Marina Layvand

May 27, 2013

The FASB, Financial Accounting Standards Board was created in 1973 when the APB, Accounting Principles Board, was abolished. The FASB focuses on accounting standards in the United States. The board established the Generally Accepted Accounting Principles, or GAAP, emplyed by financial accountants in the United States. It also establishes rules and standards for individual certified public accountants practicing in the United States. The IASB, International Accounting Standards Board, focuses on global standards of accounting. It was established in 2001. The IASB has sixteen members on board, and each one has a vote. Members are selected based on their professional competence and practical experience. The IASB deals with the development of International Financial Reporting Standards and promotes the application of the standards. The IASB’s standards are used as national requirements, as the basis for some or all national requirements, as an international benchmark for those countries that develop their own requirements, by regulatory authorieties for domestic and foreign companies, and by companies themselves. (Schroeder, Clark, & Cathey, 2011, Ch. 3, p. 90-91). The FASB and the IASB work together to bring together a variety of accounting and financial reporting requirements that have been developed by both entities into single international financial reporting standards. Having one set of global accounting standards not only makes it easier for companies to adhere to the proper financial reporting standards, but it also makes their financial reporting more transparent. Although the IASB and the FASB work together, there are some major differences between these two entities. The…...

Similar Documents

Caltron Case

...Caltron Case University of Phoenix ACC/541 Accounting Theory and Research Week 5 Marina Layvand 21 July 2008 To: Caltron Computers, Inc. From: Peale, Gower and Quill Date: 21 July 2008 Subject: Revenue Recognition Issues There are many different sources for rules and regulations coming from different accounting boards. They are created to ensure every company reports their financial statements properly and that each transaction is in accordance with the generally accepted accounting principles (GAAP). Peale, Gower and Quill have been designated auditors for Caltron Computers, Inc. and have questioned four transactions regarding revenue recognition. These transactions will have an impact on the 2008 report earnings and the proposed secondary public stock offering in February 2009. To alleviate the concerns of auditors and reviewers of Caltron’s financial statements, recommendations have been made to amend the transactions in accordance with the associated accounting pronouncements. Caltron’s revenue recognition policy has been to recognize each transaction that occurs despite any stipulations included in the transaction. Peale, Gower and Quill have been assigned to discuss the implications of recording these transactions and the effect on the earnings. The earnings are not recorded properly because some of the transactions currently in place are not in accordance with SEC standards. The revenue recognition policy is to record every sale that......

Words: 1047 - Pages: 5

Dell Inc in 2008 Can It Overtake Hewlett Packard as the Worldwide Leader in Personal Computers by Thomson Essays and Term Papers

...Dell Inc. in 2008: Can it overtake Hewlett-Packard as the Worldwide Leader in Personal Computers? Dell is a global company that delivers products and services in more than 190 countries and over 40000 employees who live and work on six continents. The company deals in enterprise computing products, desktops, monitors, printers, notebooks, handhelds, software and peripherals with a focus on fully integrated improved environmental performance into business. The company had gone through many ups and down from its inception in 1984 and has to face many challenges and competitions to stay ahead in the market (Kolter and Lee, 2008). This paper strategically discusses the fall and rise of Dell Inc from 2007 to 2008 and to compare Dells strategy with that of Hewlett Packard with due reference from the case study “Dell Inc in 2008: Can it overtake Hewlett Packard as the worldwide leader in personal computers.” A) Dell’s Strategy to overcome HP in Personal Computers Michael Dell founded the company with simple vision and business concept that the personal computers could be built and sold directly to the consumers which would eliminate the additional costs of intermediaries between the company and consumer and thus reducing the overall cost of the PCs making it cheaper than other PCs in the market. The other advantage was that it reduces the costs and risks associated with carrying large stocks of parts, components and finished goods (Thompson and Gamble, 2006). The company......

Words: 318 - Pages: 2

Caltron Electronics

...Caltron Electronics, Inc. Reporting ACC 541 – Accounting Theory and Research April 22, 2013 MEMORANDUM To: Scott Calvin, Chief Financial Officer From: Chief Financial Analyst Subject: Peale, Gower & Quill Audit Report Date: April 22, 2012 Issue Results of the audit report prepared by Peale, Gower & Quill raised concern’s regarding four transactions and revenue recognition. Transactions in question involve Unix-based, high power minicomputers causing a total market capitalization in excess of $450 million. Currently, Caltron Computers, Inc. recognizes revenue when minicomputers are shipped. Orders involving bill-and-hold are recognized by the entire amount recorded as revenue. Current revenue recognition and bill-and-hold processes conflict with GAAP requirements, which indicate a need for change. Presented in this memo are the four transactions in question, explanations for concern, and detailed recommendations. Transactions in question Four transactions in question involve Elegant Housing, Inc., Alation Electronics, BTO Computer Leasing, and Harvey Industries. Elegant Housing, Inc. purchased two minicomputer systems totaling $400,000. A six-month trial period was allotted to ensure customer satisfaction with an option to return the two systems if unsatisfied. Elegant Housing, In. paid $20,000 at the time of shipment, November 15, 2011. Alation Electronics purchased one minicomputer system under a bill-and-hold arrangement. $250,000 of......

Words: 941 - Pages: 4

Apple Computer, Inc. Environmental Analysis

...Apple Computer, Inc. is a computer technology company offering award-winning and innovate products. Founded in 1976 by Steven Jobs, Ronald Wayne, and Steve Wozniak, together the trio built and designed a motherboard in Job’s garage and labeled their first product Mac I. As technology advanced with break-through developments, Apple has evolved into a leading computer technology company boasting an array of cutting-edge products. Ranked currently 263 in the Fortune 500 and 159 in FT Global 500, Apple has 14,800 employees located across the globe. Based in Cupertino, California, Steven Jobs is the current Chief Executive Officer and Director of Apple accompanied by six other individuals who comprise the Board of Directors. As a publicly traded company under the stock symbol of AAPL, Apple experienced significant growth and profitable financial results. According to Hoovers, which provides in-depth financial information of large public companies, Apple accomplished a one year net income growth of 383.7 percent and a one year’s sales growth of 68.3 percent. From year 2005 sales, Apple grossed $13,931 million dollars—$8,194 alone in the Americas. Nevertheless, Europe, Japan, and Asia’s strong market accounted for 36 percent of overall sales. Apple’s success is a result of their highly desired, sleek, stylish, and creative products. Since Apple was founded, implementing new technology has always been an important objective for Apple. The company transformed the music......

Words: 1366 - Pages: 6

Donna Dubinsky and Apple Computers, Inc.

...Donna Dubinsky and Apple Computers, Inc. Why was Dubinsky initially successful at Apple? Donna Dubinsky was initially successful at Apple because she projected a lot of confidence and conviction in her beliefs. Donna was a decision maker who battle for procedure. Donna was focused primarily on her caring and honest relationships with her subordinates. Donna was aggressive with her convictions; she pushed hard for an interview with Apple and received an offer only after pointing out that they would never find another Harvard MBA that wanted to work in customer service. Donna took advantage of every opportunity with to advance at Apple through her direct and hard-nosed style. Donna’s individual performance was impressive. She was able to deliver results and her groups performed well on key metrics. Apple was the perfect place for Donna since being a young company light on formality that underwent frequent reorganizations. Apple’s fast growth, loose organization, and corporate culture allowed Donna to make decisions “above her pay grade” and thus demonstrate her ability to perform at higher levels of responsibility. Place yourself in Dubinsky’s position. Why did she respond the way she did to the JIT proposal? Donna could never understand why the JIT proposal was even being discussed. She didn’t see any problems in the distribution area, and thought this was a cost cutting measure by Jobs because the Mackintosh division was underperforming. Donna never......

Words: 532 - Pages: 3

Adventurous Computer Games, Inc.

...Part 1. Accounting for the Cost of Software Programs at AdCom Games, questions A-C: A product costing system for Adventurous Computer Games, Inc. (AdCom) should take into account all the costs that are associated with each different game. This will ensure that all costs, both variable product costs as well as fixed costs are being covered. Beginning with the project team costs was a simple allocation, as these costs were already divided between the three different games. Next, the costs from the product development center needed to be allocated to each game; however, they did not keep track of these costs per product. The information that was provided gave some detailed information as to the number of hours the project team worked on each game, the number of lines of code that were written for each game by the product development center, and the cumulative pages of documentation provided for each game. I decided that to accurately distribute the product development costs to each of the games using lines of code as the activity would be the most relevant. Lines of code would provide an actual report of the actual work that was done on each game from the product development center. By taking the total development product center cost and dividing them by the total number of lines of code gave them a cost of $63.76 per line of code. Using this dollar amount I was able to allocate the product development costs to each different game. The other costs which include,......

Words: 2253 - Pages: 10

Apple (Computer) Inc. Live Case Series

...It was one thing to succeed in the technology sector, but Jayson Werth, product development manager at Apple Inc. (Apple), felt particularly satisfied that Apple’s innovation engine had been able to achieve incredible success with its range of consumer products, all possessing CEO Steve Jobs’s singular sense of style. In addition to laudatory reviews about the ease of use his company’s products offered, many reviewers and analysts had been particularly complimentary of how the Apple aesthetic had bolstered the firm’s value. The company had developed and refined the form and function of the iPhone and iTouch, and the release of the iPad had already had a huge impact on mobile computing, winning converts from laptop users to business-class road warriors to users looking for a better e-reader. Over and over, Apple had designed products that achieved a look of effortless grace, and as a result, consumers had been willing to pay a little extra to be part of the Apple phenomenon. But this was the seventeenth time this week that Werth had gotten an inquiry from one of his team members about a recent Newsweek article, which claimed Apple was destined to lose the war over mobile computing because it was playing out the same way the PC wars had in previous decades. Werth’s developers wanted to know: Was Google to mobile computing what Microsoft had been to PC operating systems? And if so, what could Apple do about it? These probing questions turned his thoughts toward the PC segment...

Words: 620 - Pages: 3

Total Computer Inc

...Case 04-1 Total Computer, Inc. Tim Jacobs (Audit Manager) was reviewing the working papers for Total Computer, Inc., a large, privately owned retailer of computer hardware in the United States. Tim is on site at the client’s headquarters and has only two sections to review: inventory reserves and accounts receivable. Inventory Reserves While reviewing the inventory working papers of Total Computer, Inc., Tim focused on the lower of cost or market (“LOCOM”) inventory reserve, which had been identified as an area of audit risk. The working papers included a schedule prepared by the client showing beginning and ending balances, write-offs, and the current-year provision. Sarah Byrd (Audit Staff) summed the schedule and traced the ending LOCOM reserve balance into the general ledger without exception. Further, Sarah documented in a memo that she held discussions with Betty Bingham (Controller) to gain an understanding of the client’s assumptions and judgments regarding the calculation of LOCOM inventory reserves. Betty prepared the LOCOM reserve based on her extensive knowledge of the company and the computer hardware business, as well as, her discussions with Jerry Lee (Director of Marketing). Sarah’s memo documented the following: • Inventory is a diverse portfolio of computer hardware produced by several manufacturers. • Total Computer, Inc., consistently has experienced an average inventory turnover of 10 times per year. • Based on his knowledge of the marketplace, Jerry......

Words: 995 - Pages: 4

Apple Computer Inc

...absolutely no control over, the natural disasters that have also impacted many of the economy’s turmoil. There is a very strong need for increased knowledge and more innovative measures of putting the state of the economy in a more favorable light. There are organizations that seek to find inventive ways of solving the issues that can be solve by man. Many corporations are looking for more efficient ways of preserving the environment, inventing planet friendly technology and creating a society of educated consumers. Apple computer Inc. is committed to being the leader in the computer industry. This essay will discuss the contributions that Apple has contributed of the past decade, such as how and why it continues to be the leading corporation among all of its want to be competitors. Apple Computer Inc Overview Apple computer Inc. was co-founded by CEO Steve Jobs and friend Steve Wozniak in 1996. Their original products were computers. Apple continues to manufacture computers and related software currently. It also develops and markets, portable digital music players, related accessories and services , including online music distribution and sales, audio books, videos and has even marketed movies. It operates in the United States and global (, 2000). Although there was no transparent missions statement, Apple brings the best personal computing products and support to students, educators, designers, scientist, engineers, businesspersons and consumers in over......

Words: 1345 - Pages: 6

Working Computers, Inc.

...ANA H. RÍOS SÁNCHEZ H.C. 57 BOX 10037, Aguada P.R. 00602 - (787) 546-0263 OBJETIVO Adquirir un empleo en una posición relacionada con mi experiencia y educación, la cuál me provea una oportunidad de crecimiento y desarrollo profesional. EDUCACIÓN 1998-2003- Bachillerato en Administración de Empresas y Gerencia de Hoteles- Universidad Interamericana- Recinto de Aguadilla 2004-2005- Certificación en Educación Secundaria- UMET de Aguadilla EXPERIENCIA Fancy by Arianis Boutique Rincón, P.R. Propietaria 2009-2014 · Atender al público en la búsqueda y selección de mercancía. · Realizar inventario de las utilidades y mantener los registros del mismo. · A cargo de impulsar ventas y mercadeo através de las redes sociales Escuela Jorge Seda Crespo Rincón,P.R Servicios Profesionales (Tutorías) 2014 · Reforzar material de la clase de español · Fomentar el aprendizaje para el beneficio de el estudiante. Coordinadora Regional de Tutorías Rincón, P.R. 2012-2013 · Encargada de visitar cada escuela asignada para......

Words: 264 - Pages: 2

Flare Fragrances Computer Inc

...Flare Fragrances Company Inc Definition of Success: In order for MEC to change the negative impression of their private-label and increase market share to 3 percent and profit by approximately $92 million (Exhibit 7) within 5 years, MEC will need to address the following: 1. How to educate and communicate to the consumers regarding production and design so that market share increases by 0.36 percent per year for the next 5 years. 2. How to decrease cost of sales by 16.7 percent of the private label merchandise so that the gross margin increases to 50 percent by 2014. 3. How to enhance the competitive advantage of green initiative by increasing sales by approximately $619,325(in thousands) to put toward the environmental fund and patronage return in order to contribute to a market share increase of 0.36 percent per year for the next 5 years. Decision Criteria * Operational/Ethical- Support the creation and stewardship of parks and recreation opportunities in Canada, to foster a change toward environmental, social and economic sustainability in the marketplace by maintaining the 1% contribution for the planet. * Marketing- Change the perception customers have on how MEC performs its business, shown through an increase in sales and/or the number of members to contribute to the required 1.8 percent increase in market share. * Financial/ Marketing- Increase market share through increasing sales by 1.8 percent over the next 5 years. *......

Words: 662 - Pages: 3

Total Computer, Inc

...Case 10 Total Computer, Inc. As a whole, the evidence collected by the auditors was insufficient. The working papers were created by the client and the auditors relied heavily on conversation and correspondence from the client. While Total Computer, Inc. may have been truthful in their discussions with the auditor, it is necessary that the auditor use professional skepticism and verify the given information. When dealing with inventory reserves, estimates are based off a lot of personal judgment instead of concrete estimates. AU Section 342.10 states: In evaluating reasonableness, the auditor should obtain an understanding of how management developed the estimate. Based on that understanding, the auditor should use one or a combination of Review and test the process used by management to develop the estimate. Develop an independent expectation of the estimate to corroborate the reasonableness of Review subsequent events or transactions occurring prior to the date of the auditor's The three approaches mentioned above could be the alternative procedures used to verify the accuracy of management’s estimates and figures. 1. The confirmation from serves as sufficient evidence. The confirmation was returned directly to the auditors and was correctly filled out by the client’s debtor. No additional audit procedures need to be performed. 2. The email received from Gary Jones at does not serve as sufficient evidence. Betty...

Words: 618 - Pages: 3

Apple Computer, Inc.: Maintaining the Music Business

...Apple Computer, Inc.: Maintaining the Music Business While Introducing iPhone and Apple TV Donna Prevatte Instructor:  Jacinta Acquay BUS499 Sr. Seminar in Business Administration 31 January 2012 Apple Computer, Inc. changed online music tremendously in 2003 by developing the first legal online music service known as Apple’s iTunes Online Music Store. They were first online music service to have agreements with all five major record labels. Although initially available only for Macintosh users, iTunes sold more than 1 million songs by the end of its first week in operation (Hitt, Ireland, & Hoskisson, 2011). Describe the key strategic challenges facing Apple Computer. Apple Computer, Inc. is currently a very innovative company. It has gone through many ups and downs over the past thirty years. From a successful company that brought in millions thanks to two guys, a garage, and a dream, to Steven Jobs, one of the founders, walking away from the company and in the process causing competitors to acquire ideas due to legal mistakes. Eventually, Apple came back, thanks to Jobs rejoining and also because of the introduction of iTunes. But securing their information from this highly competitive industry is just one of their challenges. Apple saw a way to capitalize on the emerging trend of cheap music downloads by creating a legal online music distribution network. iTunes would be the key to exploiting the market (Hitt, Ireland, & Hoskisson...

Words: 1667 - Pages: 7

Apple Computer Inc

...Apple Computer, Inc. is a well-known designer and retailer of computer hardware, software and electronic entertainment devices. Apple began as a small personal computer manufacturing firm in 1976 with a vision to build computers that could be purchased by anyone. The company has now grown into one of the most powerful technology companies in existence. The path that led to the creation of a brand like Apple is a true testament to the level of innovation and the cultivation of customer focused business strategies that have led to devices and software such as the iPhone and iTunes. By analyzing the challenges Apples faces while putting its strategies into action the information that is gathered could be used to facilitate better strategic management planning for other business scenarios in the same or similar industries. Apple is a world-wide competitor in the electronic device and digital content delivery industry. This dual role creates a broad environment involving a multitude of suppliers, millions of potential buyers and intense rivalries among competitors. An important element that Apple capitalizes on is the demographics it serves in the competitive environment. Creative marketing and innovative, straight forward interfaces for its products allows Apple to position its software and hardware as the “everybody” product. Differentiation is a major part of the competitive environment Apple operates in so well-known competitors like Motorola’s Android operating......

Words: 1440 - Pages: 6

Cost of Capital for Coff Computer, Inc.

...The Cost of Capital for Goff Computer, Inc. BUS650: Managerial Finance (MAH1209A) Dr Charles Smith March 18, 2012. The Cost of Capital for Goff Computer, Inc.: 1. Most publicly traded corporations are required to submit 10Q (quarterly) and 10K (annual) reports to the SEC detailing their financial operations over the previous quarter or year, respectively. These corporate fillings are available on the SEC Web site at Go to the SEC Web site, follow the “Search for Company Filings” link, the “Companies & Other Filers” link, enter “Dell Computer,” and search for SEC filings made by Dell. Find the most recent 10Q and 10K and download the forms. Look on the balance sheet to find the book value of debt and the book value of equity. If you look further down the report, you should find a section titled either “Long-term Debt” or “Long –term Debt and Interest Rate Risk Management” that will list a breakdown of Dell’s long-term debt. Answer:          The book value of a company's equity is the same as stockholder's equity, which can be computed by subtracting the total value of liabilities from total assets. (Total Assets) = (Total) Liabilities + Stockholder's Equity (book value of equity). Stockholder's Equity (book value of equity) = Total Assets –Total Liabilities. The book value of the company’s liabilities and equity was found from the site . I found Dell’s Form 10K, dated January 28, 2011, and snap shot is attached here with.......

Words: 1887 - Pages: 8