CURRENT ISSUES IN FINANCIAL REPORTING Essay Example | Topics and Well Written Essays - 1500 words - 3

CURRENT ISSUES IN FINANCIAL REPORTING - Essay Example Such statements, however, have inaccuracies due to increased off-balance sheet activities devised by firms to escape legal bondages. In this case, the aspect of OBS transactions and their relative representation of economic substance in a business setup is explored. This refers to the structures put in place by corporate to reflect their economic reality for the purpose of facilitating various transactions including tax optimization. In the United States, the doctrine of economic substance is used to direct tax policies, with focus on reducing tax burdens on the given firm. Through this doctrinal setup, the validity and intentions of various organizational structures relative to tax-policy compliance are determined. It provides precise procedures used in computation of taxable income, and other deductions payable by a given entity (Jacobson, 2009; 3). Through court processes, various amendments have been made on the standard economic substance doctrine. Such amendments have been aimed at curbing unethical practices which may be motivated by financial gains. Through legislative reforms, it is widely acceptable that courts can deny firms or individuals from enjoying specified tax benefits if such transactions are ill-intentioned. By all indicatio ns, however, the application of this doctrine has been marred with several instances of inconsistencies, with courts challenged with determination of the liquidity of various entities. Such challenges in ascertaining accurate financial positions of firms have been compounded by the increasing adoption of OBS transactions, a prospect that has rendered financial statements of many firms inaccurate and unreliable in predicting financial position of the firms. One of the common ways through which firms promote off-balance sheet transactions is through sales of receivables (Molina and Preve, 2009: 653). Basically, accounts receivable are representative of sales that are yet to be collected.

The Beginning And Development Of Gothic Architecture Case Study

The Beginning And Development Of Gothic Architecture - Case Study Example The characteristics of Gothic architecture gave the specific definition which was related to what is often referred to as the French style, beginning in the 12th century and going through the 16th century. The architecture was most often used as high art and was created for cathedrals, castles, palaces and other governmental buildings. Many often referred to the style as one which was regarded as belonging to higher powers, which was why it was used for these specific types of buildings. The original term was created by Giorgio Vasari in 1530 in response to a culture which was considered rude. Most during this time believed that the group should be outcast. To represent this, different symbols were used to show that vandals and others within society shouldn’t be present in specific buildings. The architecture of the building is then made to symbolize the individuals who should not enter into a given place (Glaser, 15). The main beliefs and descriptions with the Gothic architec ture then led into concepts which were associated with the symbolic meaning that was created, most which was in reference to the Christian and high-quality attributes which would not welcome others within the region. The features which were used, inclusive of ornate structures and intricate decor became some of the defining parts of the architecture. ... The main focus was designed with both a vertical emphasis, which pointed upwards as a symbol to the higher powers as well as with the concept of having as much light in the building as possible (Murray, p. 18). An example of Gothic architecture can be seen in influences such as the Notre Dame church, as seen in figure 1. Figure 1: Church of Notre Dame In this figure, the elements of the Gothic can be seen. At the lower area, there are three arches which one can enter, all of which are rounded.