Financial Reporting Case analysis Study Example | Topics and Well Written Essays - 1000 words

Money related Reporting investigation - Case Study Example The Generally Accepted Accounting Principles (GAAP) likewise assume a significant job in the illuminating of the current issues (Epstein and Nach 77). The case including Philadelphia Communications Inc. as a matter of first importance presents the issue of exposures previously, during and after an Initial Public Offer. Since Philly had quite recently as of late finished an IPO, the SEC, FASB and IFRS prerequisites require certain exposures concerning this procedure. Another issue emerging out of Philly’s case is the trying and check of receivables to the organization. These too require certain contemplations under the SEC, FASB and IFRS arrangements. Income acknowledgment needs to get sharp concentration at this stage. The way that the receivable help gave by the customer doesn't determine intrigue or installment terms for the notes receivable from a few of the company’s CEO officer’s cousins is another issue of extraordinary concern. The bodies expressed above, in particular the SEC, FASB and the IFRS have arrangements and necessities for these sorts of exchanges and in this manner should be followed (Shamrock 11). The relatives, being viewed as related gatherings, need to have more divulgences other than those expressed previously. The family, however just effectively spoke to by Mr. Sigar in his situation as the company’s CEO executive, despite everything claims an enormous piece of the organization henceforth the need to place into thought its job in the firm’s tasks. The way that there is reliance on records from another gathering from the earlier year presents another issue to be placed into thought. The Generally Accepted Accounting Principles assume a genuine job here; empowering the inspector reach clear determinations from the data accessible. Alternatives and Solutions to the Issues a. Starting Public Offer Philadelphia Communications Inc. turned into an open organization through the Initial Public Offer. The Securi ties and Exchange Commission, after getting an application from any organization ready to open up to the world, urges the organization to apply all bookkeeping norms to which the organization buys in (Epstein and Nach 55). These incorporate the IFRS necessities, among others. The data spread in this period incorporates the portion of the organization possessed by the individual members. This serves to guarantee there is straightforwardness and responsibility. The data from Philly’s IPO doesn’t express the proprietorship as far as the quantity of offers possessed. This sort of non-divulgence is against the SEC and GAAP necessities and ought to be clung to. b. Receivables The other issue includes receivables and in this specific case from investors. This essentially is the cash gotten from investors in their acquisition of a company’s shares. It is a venture into the organization consequently astuteness is required in dealing with this issue. The SEC arrangements and GAAP set up concerning receivables from investors are that the investor ought to be up to date concerning the kind of offers bought and their sum. The notes receivable from Mr. Sigar’s cousins ought to have unmistakably expressed financing costs and installment terms. This applies to all other shareholders’ notes (Shamrock 23). For transparency’s purpose, loan fees and installment terms on all notes receivable ought to be expressed in advance. As indicated by the Financial Accounting Standards Board, the hazard level to which shareholder’s receivables are presented to ought to likewise be known by the