Saturday, September 15, 2012


Discussions by M. Azim Ulfati

Accounting and Financial Statements
  • Imagine that you have been appointed the treasurer of a local not-for-profit organization. You would like to improve the quality of the organization’s financial reporting to existing and potential donors.  
  • Describe the kinds of financial statements you would like to see the organization’s accountant prepare.
  • Analyze how better quality financial statements might help reassure donors.
  • From Case Study 15.2, from a business standpoint, analyze the advantages that BDO enjoys from belonging to a large, international group. Provide examples and a rationale with your response and discuss the implications of these benefits for an organization you plan to start. Determine what you would expect from BDO if you were a customer.

 If God willing that I have been appointed the treasurer of a local not-for profit organization, I would be very cautious, prĂ©cised and responsive in my daily, monthly and annual reports and would report accurate information about the organization’s finances.
In order to set an accurate feedback or report for the not for profit organization, I would give priority to use the balance sheet, income statement, owner’s equity and statement of cash flow. All the mentioned accurate financial statements would let the managers to make financial decisions on all aspects of the organization.
Balance sheet statements are the permanent statement of a firm’s financial claims against its assets which is used from year to year.
My income statement in the organization will be the resources, which are used, and flows in the organization either monthly or after each three months or each six months. I would do each three months to better show the profits and losses in my organization so that managers and I would make sure where the money flow in and out.
I would make sure that the owner’s equity is used from both balance sheet and income statements for my report on each fiscal year to show the changes in the organization from one fiscal year to the next one.
Cash flows will be the cash receipts and payments used through the year and I will make sure to find out its resources in order to record and make my accurate reports for that period of time.

BDO benefits for being in a large international group or benefits from collaboration through an alliance and enjoys from belonging to a large international group, like associations of accounting firms that have become a common way of facilitating communication and sharing “best practices” among firms in separate geographic marketplaces. Dues are paid to the association, which is typically managed by several full-time resources who help to coordinate requests for information, training, networking, referrals, annual meetings, etc. Member firms range in size and level of sophistication. Thus BDO not only operates and benefits from its business in the United States of America but it also benefits in other countries like Canada, United Kingdom, West Germany and the Netherland. BDO is proud of its achievements and belongings for being a bigger company which benefits every one and every one works hard to do an outstanding job.
If I was a customer I would expect the opportunity to conduct business on a global scale by being allied with one of the nation’s largest accounting and consulting organizations.
Professional services that will supplement my core accounting, auditing, tax and consulting needs.National contracts with major tax.

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