Accounting Irregularities at Groupon Introduction In September 23 2011‚ Groupon (the Company)‚ a rapidly growing online coupon merchant was forced by the SEC to file a restated S-1 registration statement. The reason for the restatement was that the SEC objected to the accounting methods that Groupon used in the calculation of its revenue‚ causing it to be overstated. According to Villanova University (2012)‚ Groupon’s auditors at Ernst & Young stated that Groupon was not setting aside sufficient
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Chapter Nine – Completing the Accounting Cycle 9.1 The Adjusting Process The adjusting process is important for financial statements to be accurate‚ up to date‚ and consistent from year to year. When preparing financial statements‚ the accountants must ensure that: * All accounts are brought up to date * All late transactions are taken into account * All calculations have been made correctly * All GAAPS have been compiled with Adjusting Entry – an entry made before finalizing
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airlines‚ however accounting for frequent flyer points (FFPs) is not a straight forward process (Bowman 1995). The aim of this assignment is to examine the concept of how FFPs should be accounted for according to the Framework‚ compare how Qantas Airways Limited (Qantas) and Virgin Blue Holdings Limited (Virgin) account for FFP’s‚ and determine the potential consequences of different accounting treatments. Accounting procedure for frequent flyer points according to the principles of the Framework
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NATIONAL OPEN UNIVERSITY OF NIGERIA SCHOOL OF MANAGEMENT SCIENCES COURSE CODE: ENT432 COURSE TITLE: INTERNATIONAL ACCOUNTING SYSTEM ENT432 INTERNATIONAL ACCOUNTING SYSTEM Course Developer/Writer A. I. Ehiagwina School of Management Sciences National Open University of Nigeria Lagos. Course Editor Dr. I. D. Idrisu School of Management Sciences National Open University of Nigeria Lagos Course Coordinator Mrs C. Aturu-Aghedo School of Management Sciences National Open University
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There are Five Basic Elements of Accounting and Financial Statements: |Assets |Economic resources owned by the company which are expected to provide future | | |benefits. Historically‚ assets have been accounted for at cost. However‚ current | | |accounting guidance is moving towards more fair value asset valuation models. | |
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Accounting Cycle Paper Every business small‚ medium or large uses an accounting cycle to collect and process transactions from events to prepare financial statements to interested parties. The accounting cycle consist of eight steps (1) analyzing transactions and other events‚ (2) journalizing‚ (3) posting; (4) preparing trail balance‚ (5) adjusting entries‚ (6) preparing adjusting trial balance; (7) preparing financial statements; and (8) closing process (Kieso‚ Weygandt‚ & Warfield‚ 2007‚ p. 93)
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MCQ FOR IMT 57 – FINANCIAL ACCOUNTING Test : (Journal‚ Ledger‚ Trial Balance‚ Errors) Name: _________________ Fundamentals of Accounting Max. Marks: 30 1. RPC Ltd. follows the written down value method of depreciating machinery year after year by applying the principle of (a) Comparability. (b) Convenience. (c) Consistency. (d) All of the above. 2. A change in accounting policy is justified
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searching for these objectives‚ it was stated that there was a superseding of the amendment. The addition stated “comparability and consistency in accounting for transferred financial assets will also be improved through clarifications of the requirements for isolation and limitations on portions of financial assets that are eligible for sale accounting.” In other words‚ financial statements will become more accurate and less fraudulently represented to users and the objective is not to double count
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Financial Accounting and Reporting Case: America Online 1. What accounting approach has AOL used in the past that it is now changing (related to the $385 million)? AOL‚ prior to October 1‚ 1996‚ recorded the expenditure related to subscribers acquisitions as an asset and amortized monthly over a period < 24 months. This was a strongly criticized approach. Furthermore‚ the accounting approach in the article is considered aggressive. In October 1996‚ they discontinued capitalizing customer acquisition
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GUIDE ACCOUNTING BASICS CONCEPTS‚ PRINCIPLES & BASIS A. Entity Concept • An organization stands apart from other organizations as a separate economic unit B. Going Concern Concept • Entity will continue to operate long enough to recover cost of its assets C. Time Period Concept • Report information at regular intervals D. Reliability Principle • Accounting records must be based on the most reliable (verifiable by an independent observer) data available E. Cost Principle • Assets/services
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