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This Word document provides a structured template for preparing your responses to the questions in the annual report project. If you did not purchase the workbook you are not permitted to use this template.
INTRODUCTION TO THE CORPORATE ANNUAL REPORT:
A Business Application with IFRS Content
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To be completed by the student and submitted with the completed annual report project according to your instructor’s requirements.
Complete the following before you submit your assignment. This step is required to validate your compliance with sections 107 or 108 of the 1976 United States Copyright Act. 1. Remove the front cover of the workbook and identify:
Student Name: Jackeline S. Gonzalez
Selected Company: NIKE Inc.
2. Print your completed electronic template.
3. Attach the following:
* This page completed with all required information.
* Completed Word template. Template boxes expand as you input responses. Adjust page breaks as necessary to submit a professional representation of your work.
Chapter 3 - Financial Statements
The Balance Sheet
Chapter 3: Balance Sheet – Question 1 Identify the date shown at the top of your selected company’s balance sheet.
| Current Year
| Prior Year
May 31, 2010
| May 31, 2009
Does the company’s fiscal year follow the calendar year? Yes _____ No _X__ If not, why do you think it is different?
Selecting a Non-Calendar (or “Fiscal”) year, however, means that all corporate income and expenses shall be calculated based on the start date and end date that your Board of Directors has designated; (e.g. NIKE Inc. June 1 through May 31 of each year). The selected beginning and ending dates should be selected with a plan toward deferring reported income and payment of taxes: The Short-Year Tax Return: NIKE first taxable year begins on the date of its incorporation and ends on whatever fiscal date its Board of Directors has selected. Thus, by properly planning corporation’s fiscal year, it is possible to choose a short period for its first taxable year thereby deferring the corporation’s reported income and payment of taxes thereon to a later date. Thus, any tax liability is effectively deferred until the corporation’s following taxable year. Delaying tax on distribution to officers and shareholders because most individuals observe the standard calendar year for purposes of taxation, the tax liability involved with distributions to these individuals can be deferred by properly selecting NIKE fiscal year. The corporation’s fiscal year is May 31. Benefit to Employees: The tax liability for this bonus is deferred until AFTER the closing of the CALENDAR year (most individuals observe a standard calendar year for purposes of taxation). Thus, the individuals receiving the bonus will not have to report it as income until 11 months later! Benefit to the Corporation: The corporation will benefit because, since its tax year is May 31, the expense from the year-end bonus may be immediately realized in its corporate tax returns thus reducing its tax liability TODAY... instead of 12 months from now.
Chapter 3: Balance Sheet – Question 2 Review the current asset section of your selected company’s balance sheet. Explain why the order of individual items begins with cash. In your opinion, would it be more or less appropriate to order these items according to dollar magnitude? Explain.
Current assets have a life span of one year or less, meaning they can be converted easily into cash. Such...
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