tailieunhanh - OMB Circulars and Guidance

In this section we develop a simple model of operating cash flows and the accounting process by which operating cash flow forecasts are incorporated into accounting earnings. The model explains why operating cash flow changes have negative serial correlation and how earnings incorporate the negative serial correlation to become a better forecast of future operating cash flows than current operating cash flows. The model also explains other time series properties of earnings, operating cash flows and accruals. Further, the model provides predictions as to how the relative forecast abilities of earnings and operating cash flows vary across firms and explicit. | OMB Circulars and Guidance Pt. 225 15 months obtained by combining the period described in subparagraph f 1 of this subsection with the next regular cost accounting period. A change in the educational institution s cost accounting period is a change in accounting practices for which an adjustment in the sponsored agreement price may be required. 5. Illustrations a An educational institution allocates indirect expenses for Organized Research on the basis of a modified total direct cost base. In a proposal for a sponsored agreement it estimates the allocable expenses based solely on the estimated amount of indirect costs allocated to Organized Research and the amount of the modified total direct cost base estimated to be incurred during the 8 months in which performance is scheduled to be commenced and completed. Such a proposal would be in violation of the requirements of this standard that the calculation of the amounts of both the indirect cost pools and the allocation bases be based on the educational institution s cost accounting period. b An educational institution whose cost accounting period is the calendar year installs a computer service center to begin operations on May 1. The operating expense related to the new service center is expected to be material in amount will be accumulated in an intermediate cost objective and will be allocated to the benefitting cost objectives on the basis of measured usage. The total operating expenses of the computer service center for the 8-month part of the cost accounting period may be allocated to the ben-efitting cost objectives of that same 8-month period. c An educational institution changes its fiscal year from a calendar year to the 12month period ending May 31. For financial reporting purposes it has a 5-month transitional fiscal year. The same 5-month period must be used as the transitional cost accounting period it may not be combined because the transitional period would be longer than 15 months. The new fiscal