Research project Essay Example | Topics and Well Written Essays - 750 words - 1

Research project - Essay Example The projected net income before bonuses for the year is $17.2 million. The preliminary net income before bonuses for the first quarter is $3.7 million. According to (FASB 11) inaccurate recognition of bonuses result into inaccuracies within financial statements and hence it is important to make appropriate recording of bonuses as well as well as taxes associated with the same. Treatment of accounting transactions often requires careful consideration of the implications of the same both technically and at ethical levels. Reliable sources often emphasize the importance of accruing bonuses whenever it is expected that the company’s financial/operational performance will at least be equivalent to the set performance levels to warrant issuance of bonuses (Kimball 12). The accrual decision requires considerable judgment of the performance of the entire period which encompasses many future months during which one thing or another may impede achievement of the bonus plan objectives. A number of alternatives have been proposed for accrual of bonuses. These include: Non-accrual of expense until a reasonable probability of achieving the bonus is present Accrual of a smaller expense early in a given performance period to reflect high performance failure risk and accrue a larger expense in future when success probability is extremely high It is not advisable that one accrues significant bonus expense in an instance where probability of awarding the bonus is extremely low (Stickney 80). Such accruals provide a false expense which might be reversed later when the performance period comes to an end. A sample bonus accrual expense for the case presented could be as follows,    Debit Credit Bonus expense 185,000      Ã‚  Ã‚  Ã‚   Accrued bonus liability    185,000 Where payment for the accrued bonus is made later, the journal entry eliminates accrued bonus liability whilst recognizing any arising payroll tax liabilities which are associated with the accrued bonus. A entry for this could be as follows,    Debit Credit Accrued bonus liability 185,000   Ã‚  Ã‚  Ã‚   Cash    xxx Taxes    xxx As a matter of fact, when a percentage bonus is issued at the end of every quarter, it is important to recognize a portion of the bonus at the end of each month’s closing financial statements. For instance, the 5% bonus at each quarter’s end, an accrual of 5% of total salary expense is recorded at the end of every month’s cycle closure (FASB 54). A debit is posted to employee bonuses account for total accrual amount and credit is made to bonus accrual account. In the case discussed in the report, the bonus payment is pegged to the projected net income before bonuses of $17.2 million. However, going by the earnings for the current quarter, there is no high likelihood of attaining the projected income before payment of bonuses and hence its non-accrual is recommended until such time that the probability of attaining the projected i ncome before bonus is achieved. In general, the best way to treat the bonus expense is to handle it as an accrued expense or rather an expense incurred but not yet paid. This is consideration of the fact that whilst the bonus is anticipated, changes in the financial results of the company can prevent the company from incurring this expense at the end of the financial period. Incurrence of this expense is pegged on a condition which must be achieved for it to be affected.

Anything on a proposal arugment Essay Example | Topics and Well Written Essays - 750 words

Anything on a proposal arugment - Essay Example I consider this as a major social problem which must be taken care of in a serious way. This paper will follow the structure represented in Ramage's book and shall include the following: In general term, we can define child labour as a forced- work where children are put into and through which they get exploited in many ways. Children are forced to work in any place regardless of the suffering they meet. The problem of child labour is more in the developing countries like India and so on. We can say that the main cause for child labour is poverty, but it is not only this because we can see that innumerable poor children are getting educated. So, the responsibility goes to the family also. Many out there from the poor background are not aware of the problem at all. They do not know the damage it brings to the future of their children. Engaging children for work is a serious offence, but no one seems to take notice of it. Child labour spoils the educational growth of the child and always keep him out of the fast-developing and competitive society. A child labour does not face the world in a proper way; he will not develop a proper character or behavior. Here is an est imation of child labourers in the year 2002 by International Labour Organisation. According to it of about 246 million child workers aged 5 and 17 were involved in child labour, of which 171 million were involved in work that by its nature is hazardous to their safety, physical or mental health, and moral development. Moreover, some 8.4 million children were engaged in so-called 'unconditional' worst forms of child labor, which include forced and bonded labor, the use of children in armed conflict, trafficking in children and commercial sexual exploitation. We cannot say that the problem of child labour has been decreased totally. This is a continuing problem which has been not properly considered by the government authorities. Effective measures have to be taken to eliminate child labour. According to the "Roots of Child Labor" in UNICEF's 1997 State of the World's Children Report, the parents of child labourers are often unemployed or underemployed, desperate for secure employment and income. Yet, it is their children - more powerless and paid less - who are offered the jobs. In other words, says UNICEF, children are employed because they are easier to exploit. With this, let us move on to the next part. A SOLUTION TO ELIMINATE CHILD LABOUR Though there are many solutions to overcome this problem, in my opinion it is rightly through providing proper education children can be taken out of child labour. It is not just giving education; my stress would be on making it free for the desperate and deserving section of people. Government should come forward to make it reach throughout the country. Children must be able to receive proper education and the government should also concentrate on providing some help for the family concerned for their survival. In this way, there will not be any problem from the parents' side for the children. If this can be implemented everywhere the risk of child labour will slowly perish and the future of these children can be saved. CONCLUSION In my conclusion, I would like to justify the mentioned solution as an