ASSIGNMENT OF ACCOUNTING THEORY

Modern Medical LTD

Letter of Transmittal or memorandum

[Students name]

[Lecturer]

[Department]

[University]

Subject:

Dear Sir,

We feel immense pleasure in presenting you the assignment as part of our course requirement. We found this report to be truly challenging in many aspects and indeed very interesting in relation to the various interpretational and engrossing exercises. Writing and preparing this report itself was truly comprehensive learning experience.

We have tried our level best to complete the report with respect to the desired requirements. However, if any explaining is required, we would be honored to oblige. Kindly accept this humble effort of bringing forward our research and findings on the subject matter.

Yours sincerely,

Name ID Signature

Executive Summary

This report provides an analyses and evaluation of financial reporting requirements and recommendations on behalf of Modern Medical Ltd on the feasibility of acquiring care fusion as a subsidiary in the United States of America.

The report will outline the financial reporting and disclosure issues that might arise if Modern Medical Ltd acquires care fusion as a subsidiary in the United States of America. The report will particularly include a detailed analysis of US GAAP (generally accepted accounting principles), which will consider the events that led to the current financial reporting requirements for publically listed companies in the USA. The report will also highlight the cultural and political influences on financial reporting and its setting in the USA. The report will further analyze the future and likely outcomes of the move by the FASB and IASB to converge IFRS and US GAAP into a global set of accounting standards.

In the end a detailed description of the reporting (financial and non-financial) undertaken by the Care fusion will be carefully examined and presented.

Table of Contents

Introduction5

Financial reporting environment in the USA5

Influences on Accounting Standards8

Future outlook FASB and IASB and the convergence approach9

Financial and non-financial reporting undertaken by the CARE FUSION12

The annual reports12

Additional reporting undertaken by company14

Conclusion15

Modern Medical LTD

Introduction

Modern Medical Ltd is involved in the development and manufacture of pharmaceuticals for the treatment of a range of medical conditions. Since its seeking more core expansion opportunities particularly in the United States of America, care fusion can be a best fit for it.

The report will outline the financial reporting and disclosure issues that might arise if Modern Medical Ltd acquires care fusion as a subsidiary in the United States of America. The report will particularly include a detailed analysis of US GAAP (generally accepted accounting principles), which will consider the events that led to the current financial reporting requirements for publically listed companies in the USA. The report will also highlight the cultural and political influences on financial reporting and its setting in the USA. The report will further analyze the future and likely outcomes of the move by the FASB and IASB to converge IFRS and US GAAP into a global set of accounting standards.

Financial reporting environment in the USA

Historical events

One of the most advanced systems of accounting and financial reporting is the American system ...