Overview[ edit ] Definitions of complexity often depend on the concept of a confidential " system " — a set of parts or elements that have relationships among them differentiated from relationships with other elements outside the relational regime. Many definitions tend to postulate or assume that complexity expresses a condition of numerous elements in a system and numerous forms of relationships among the elements. However, what one sees as complex and what one sees as simple is relative and changes with time. Warren Weaver posited in two forms of complexity:
Accounting and legal services, and Other selling, general and administrative expenses. The staff expects any expenses clearly applicable to the subsidiary to be reflected in its income statements.
However, the staff understands that in some situations a reasonable method of allocating common expenses to the subsidiary e.
The disclosure has been presented for each year for which an income statement was required when such basis produced materially different results. Recently, a number of parent companies have sold interests in subsidiaries, but have retained sufficient ownership interests to permit continued inclusion of the subsidiaries in their consolidated tax returns.
The staff believes that it is material to investors to know what the effect on income would have been if the registrant had not been eligible to be included in a consolidated income tax return with its parent. Some of these subsidiaries have calculated their tax provision on the separate return basis, which the staff believes is the preferable method.
Others, however, have used different allocation methods. When the historical income statements in the filing do not reflect the tax provision on the separate return basis, the staff has required a pro forma income statement for the most recent year and interim period reflecting a tax provision calculated on the separate return basis.
Should the historical income statements reflect a charge for interest on intercompany debt if no such charge had been previously provided? The staff generally believes that financial statements are more useful to investors if they reflect all costs of doing business, including interest costs.
In any case, financing arrangements with the parent must be discussed in a note to the financial statements. In this connection, the staff has taken the position that, where an interest charge on intercompany debt has not been provided, appropriate disclosure would include an analysis of the intercompany accounts as well as the average balance due to or from related parties for each period for which an income statement is required.
The analysis of the intercompany accounts has taken the form of a listing of transactions e. Pro forma financial statements and earnings per share Question: The registration statement should include pro forma financial information that is in accordance with Article 11 of Regulation S-X and reflects the impact of terminated or revised cost sharing agreements and other significant changes.
The staff believes that such dividends either be given retroactive effect in the balance sheet with appropriate footnote disclosure, or reflected in a pro forma balance sheet.
In addition, when the dividends are to be paid from the proceeds of the offering, the staff believes it is appropriate to include pro forma per share data for the latest year and interim period only giving effect to the number of shares whose proceeds were to be used to pay the dividend.
A similar presentation is appropriate when dividends exceed earnings in the current year, even though the stated use of proceeds is other than for the payment of dividends. In these situations, pro forma per share data should give effect to the increase in the number of shares which, when multiplied by the offering price, would be sufficient to replace the capital in excess of earnings being withdrawn.
Company A, which is a reporting company under the Securities Exchange Act ofproposes to file a registration statement within 90 days of its fiscal year end but does not have audited year-end financial statements available. The company meets the criteria under Rule c of Regulation S-X and is therefore not required to include year-end audited financial statements in its registration statement.
However, the Company does propose to include in the prospectus the unaudited results of operations for its entire fiscal year. Would the staff find this objectionable? The staff will not object to the inclusion of unaudited results for a full fiscal year and indeed would expect such data in the registration statement if the registrant has published such information.
Disclosures required of companies complying with Item 17 of Form F Facts: A foreign private issuer may use Form F as a registration statement under section 12 or as an annual report under section 13 a or 15 d of the Exchange Act. The registrant must furnish the financial statements specified in Item 17 of that form Effective for fiscal years ending on or after December 15,compliance with Item 18 rather than Item 17 will be required for all issuer financial statements in all Securities Act registration statements, Exchange Act registration statements on Form F, and annual reports on Form F.
However, in certain circumstances, Form F-3 requires that the annual report include financial statements complying with Item 18 of the form. Also, financial statements complying with Item 18 are required for registration of securities under the Securities Act in most circumstances.
Item 17 permits the registrant to use its financial statements that are prepared on a comprehensive basis other than U. The distinction between Items 17 and 18 is premised on a classification of the requirements of U. GAAP and Regulation S-X into those that specify the methods of measuring the amounts shown on the face of the financial statements and those prescribing disclosures that explain, modify or supplement the accounting measurements.
Disclosures required by U. Notwithstanding the absence of a requirement for certain disclosures within the body of the financial statements, some matters routinely disclosed pursuant to U. Among other things, this item calls for a discussion of any known trends, demands, commitments, events or uncertainties that are reasonably likely to affect liquidity, capital resources or the results of operations in a material way.
GAAP, not discussed in the reconciliation, that the registrant believes is necessary for an understanding of the financial statements as a whole. These free distributions usually are from 5 to 10 percent of outstanding stock and are accounted for in accordance with provisions of the Commercial Code of Japan by a transfer of the par value of the stock distributed from paid-in capital to the common stock account.
Should the financial statements of Japanese corporations included in Commission filings which are stated to be prepared in accordance with U.
GAAP be adjusted to account for stock distributions of less than 25 percent of outstanding stock by transferring the fair value of such stock from retained earnings to appropriate capital accounts? If registrants and their independent accountants believe that the institutional and economic environment in Japan with respect to the registrant is sufficiently different that U.
If such financial statements are identified as being prepared in accordance with U. GAAP, then there should be footnote disclosure of the method being used which indicates that U. Removed by SAB 2.What procedures will be used to collect accounting evidence. Add Remove. Homework help from our online tutors - heartoftexashop.com collecting accounting evidence.
Which procedures for collecting accounting evidence have you used in your career? Procedures in Collecting Forensic Evidence 2 I am corporate controller for Apollo Shoes, and have been asked by management to find and explain any irregularities in the case.
During my review of the Apollo Shoes case, I will be discussing the procedures I used to collect my accounting evidence, along with the sampling tools and techniques I found the most useful throughout my examination.
audit evidence by testing the accounting records, for example, through anal- ysis and review, reperforming procedures followed in the ﬁnancial reporting process, and reconciling related types and applications of the same informa-.
This standard operating procedure (SOP) establishes policy and provides guidance to assist USACE Divisions and District in formulating, implementing and managing USACE Recreation Use Fee Program policy and procedures that establish accounting measures, control, and responsibilities for administering the Recreation Use Fee Program.
However, by no means all procedures covered by ISAs and candidates must be able to suggest procedures that will help in the collection of appropriate audit evidence for both the treatment of items in accordance with the accounting standards and for their amounts.
Research in Higher Education Journal Determinants of students, page 2 INTRODUCTION Background to the Study Students that enter the University of Zimbabwe (UZ) come from a wide range of.