Posted: July 6th, 2016

Give an explanation of how the convergence and the Concept Framework Project impacts accountants?

The goal of the IASB and the FASB Framework convergence is to create a common conceptual framework of accounting standards. It is important to consider whether its development will meet the needs of users, Research the IASB and FASB frameworks and the Conceptual Framework Project.

Give an explanation of how the convergence and the Concept Framework Project impacts accountants. Explain at least one benefit and one drawback of the convergence of IASB and FASB.

Requirement 1:
Compute the following profitability measures for the year ended December 27, 2008:
(a) Return on investment, based on net income (perform a DuPont analysis).
(b) Return on equity, based on net income.
(c) Price/earnings ratio.
(d) Dividend yield.
(e) Dividend payout ratio.

Requirement 2:
Compute the following liquidity measures at December 27, 2008:
(a) Working capital.
(b) Current ratio.
(c) Acid-test ratio.

Requirement 3:
Compute the following activity measures for the year ended December 27, 2008:
(a) Number of days’ sales in accounts receivable, based on a 365-day year.
(b) Number of days’ sales in inventory, based on a 365-day year.
(c) Accounts receivable turnover. (Round your answer to 1 decimal place.)
(d) Inventory turnover.
(e) Turnover of net property, plant, and equipment.

Requirement 4:
Compute the following financial leverage measures at December 27, 2008:
(a) Debt ratio.
(b) Debt/equity ratio.

Requirement 5:
Compute the following physical measures of Intel’s profitability at December 27, 2008:
(a) Net revenues per employee.
(b) Operating income per employee.