This includes a 1,000 word 12 font, single-spaced Times New Roman) where you will incorporate five...

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This includes a 1,000 word 12 font, single-spaced Times New Roman) where you will incorporate five (5) full text Articles(aside from books) on the topic and reference to FASB Codification as appropriate. The objective of this activity is for you to be aware of what is happening in the real world that relates to intermediate accounting--to practice your writng skills and make the study of accounting more meaningful. Post the assignment under the RESEARCH PAPER DROP BOX as a Word Doc. attachment.Be sure to read the Instructions and a sample research paperprovided on Week 3.    The research paper should not be more than 3 pages (approximately 1,000 words, single-spaced, 12 font) including one page for references. Please submit as a Word document and submit as an attachment in the "Drop Box - Research Paper". Kindly follow the APA style for in text citing your sources (e.g John, 2009 page...) of information and the Reference page (3rd page) alphabetical - hanging indent.  It will be graded as follows:   	 	 	 		 			Content - development of ideas, 1,000 words 			25 points 		 		 			APA Style,references listing, intext source, 5 articles 			5 points 		 		 			Overall Presentation - format, indentions, spaces, spelling, etc. 			10 points 		 		 			Maximum points available 			40 points 		 	           
	
Document Preview: A NEW LOOK AT MATERIALITYGregory FalbergWhat are the latest views on materiality in financial accounting? How have standards for measuring materiality changed since passage of the Sarbanes-Oxley Act? And what new approaches are being taken to better assess the materiality of financial information? In the aftermath of the Enron scandal, corporate financial statements are under greater scrutiny than ever, forcing auditors to pay closer attention to many transactions previously considered immaterial. This paper reviews the basis of materiality in financial reporting and the methods commonly used to assess what is – and what is not – material.The concept of materiality has been receiving increased scrutiny by the Securities and Exchange Commission since at least 1998, when then-chairman Arthur Levitt made his much-quoted “Numbers Game” speech. Levitt complained of the misuse of materiality by companies that deliberately record misleading financial information to increase their earnings statements, and then later claim that any errors introduced were immaterial. Levitt clearly abhorred the practice and went on to say that “in markets where missing an earnings projection can result in a loss of millions of dollars in market capitalization, I have a hard time accepting that some of these so-called non-events simply don’t matter” (Messier, et al, 2005, p XXXXXXXXXXIn the year following Levitt’s speech, the SEC issued Staff Accounting Bulletin No. 99, which made it clear that quantitative measures alone are insufficient to determine materiality; qualitative measures must be considered, too. For example, if the inclusion of any item or transaction, however small, will cause a firm to miss forecasted earnings estimates, then that item must be properly recorded and reported.The abuse of materiality standards can be traced back to the mid-1980s, when Wall Street intensified its focus on quarterly earnings and practically demanded continual increases in corporate...

David · Accepted Answer

Acquisition & disposition of Property Plant, and Equipment 
It is always understood that companies do invest in long-lived assets more or less in quantum such 
as plant, property and equipment. The investment depends upon the business model of the 
company it is engaged with. To quote with some examples, companies like Southwest Airlines and 
Wal-Mart do invest in PPE close to 56% to 75% of the total assets. The other way of looking at it is , 
companies do not prefer to block their huge investments in such forms of fixed assets in turn they 
prefer to outsource it and get complete the requisite work. 
We may discuss the topic of acquisition and disposition of property, plant and equipment in the 
below mentioned ways:  
1. Acquisitions. 
2. Valuations  
3. Costs subsequent to acquisitions. 
4. Disposition through sale. 
5. Involuntary conversion disposition. 
Acquisitions of PPE: 
This should be ensured that, the PPE is acquired for use in business operations and nor for selling 
them again. It should be also understood that, they are all used for hardcore business activities and 
company utilize them to generate revenue in a longer term prospective. In this context, we also may 
say that, the same equipment may be a short term asset for the some company who is dealing in 
selling the equipment, but it also may be treated as a long term asset for some other company. To 
quote with an example, the land and building for a manufacturing company, is a long term asset, 
whereas the same may be treated as short term asset for land Development Company. These PPE 
are treated as assets and they are all depreciable over the years. All the assets are acquired to be 
shown in the financial statement of the company in historical or market value whichever is lower. In 
the process of land acquisitions, the cost of land noted in the books of the firm are the cost incurred 
from land acquisition till it is ready to use. Similar treatment with cost of buildings and cost of 
equipments. For self-constructed assets , the interest cost may be capitalized .  
Valuing PPE: 
While valuing the PPE,

Content - development of ideas, 1,000 words	25 points
APA Style,references listing, intext source, 5 articles	5 points
Overall Presentation - format, indentions, spaces, spelling, etc.	10 points
Maximum points available	40 points

This includes a 1,000 word 12 font, single-spaced Times New Roman ) where you will incorporate five (5) full text Articles (aside from books) on the topic and reference to FASB Codification as...

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