Responding to GASB request for the Public Comment Research Paper

Responding to GASB request for the Public Comment - Research Paper Example It is also a very good avenue for a person to exercise his/her rights as the law demands that the exposure drafts be availed to them. Another benefit of providing public comment is for the practicality of the changes recommended to be assessed by the general public and experts alike. The critical elements of the draft are that a sole or agent employer should on its basic financial statement show a net pension liability that is a result of the pension liability less the value of net assets available to pay for pension benefits and also that the calculation of the pension liability should be made in accordance with the individual level-percent-of-pay entry age normal funding method (Buck Research, 2011). These elements are not present in the current standards and allow pension information or any other supplementary information that may be required to be presented in notes. They also allow for the use of a number of funding methods to be used when doing accounting disclosures which was not permitted in the previous standards. Government agencies usually have component units that are considered as legally separate organizations although these agencies include them in their financial statements. However, the new standards proposed in the exposure drafts will require those government agencies and the component units deemed as being fiscally dependent have a financial or burden relationship. The proposed standards will determine how those organizations that do not meet financial accountability concepts will be handled if the government deems it to be misleading to exclude them. The way that component units initially went about their reporting will also be amended to make sure that their reporting is done as if they were part of the government. Management of the government agencies will have an operational responsibility towards these component units in addition to the benefit/burden

A topic that shows an understanding of economics conept Term Paper

A topic that shows an understanding of economics conept - Term Paper Example Wal-Mart gets a huge discount for buying the milk in large quantities. Similarly, the suppliers who deliver the ten thousand cartons enjoy the economies of scale. The cost of delivering many cartons is remarkably low. Notably, the average cost of delivering the thousand cartons is less than that of transporting hundred. In effect, the transport cost per unit reduces remarkably. The supplier will need to pay a single driver, and the fuel cost will remain fixed. It is evident that the economies of scale benefit the firms that purchase products in large quantities. The reduction of the cost per output in turn increases the profitability of firms as in the case of Wal-Mart. The Wal-Mart economies of scale is internal. It is specific to the individual enterprise. Boyes and Melvin (2012) contend that the firms that buy products in bulk for resale benefit from the internal economies of scale known as purchasing. Such firms reduce the expenses including the transport costs. Wal-Mart continues to gain the purchasing economies of scale for buying products from the suppliers in large quantities. Similarly, the supermarket chain achieves purchasing discount. In essence, Wal-Mart and suppliers benefit from the economies of scale by purchasing and delivering in bulk respectively. Therefore, firms should capitalize on the economies of scale to maximize profits and reduce the cost of production as exemplified by Wal-Mart. The economies of scale enjoyed by the Wal-Mart can be used expound the patterns of global trade. In effect, the exploitation of the economies of scale can explain the growth of firms such as Wal-Mart in a particular industry. Boyes and Melvin (2012) argue that economists utilize the economies of scale justify free trade policies. Perhaps, the economies of scale, which Wal-Mart enjoys, has facilitated the expansion of the chain supermarket to many parts across the globe. The low cost of