prepared financial statements The International Financial Reporting Standards or better known as IFRS‚ are generally principal-based standards‚ interpretations‚ and framework which is taken up by the International Accounting Standard Board (IASB) (Accounting Standards‚ 1997). The IFRS financial statements include the presentation of a set of statement of financial position‚ an income statement‚ a statement of cash flows and a statement of changes in equity. Information that are presented
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experience curve)‚ 3) The true cost and profit picture for each product must be known and 4) Cash flow is as important as profit. The "cycle of decay" (when cost cutting efforts lead to competitive decay) is typically begun when management uses financial accounting data‚ not control data‚ for decision making. Costs are classified as bedrock fixed (very few qualify as this)‚ managed fixed‚ direct variable and shared costs. Most costs qualify as managed‚ and therefore are controllable in the long run. [I]
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following would not tend to make a manufacturer choose a perpetual inventory system? A. Management wants information about quantities of specific products. B. A low volume of sales transactions and a computerized accounting system. C. A high volume of sales transactions and a manual accounting system. D. Items in inventory with high per unit costs. 3-37. Which of the following factors would suggest the use of a perpetual inventory system? A. A small company. B. A high volume of many different
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The lean accounting method was first developed and introduced by Toyota and other Japanese companies. Toyota executives claim that the famed Toyota Production System was inspired by what they learned during visits to the Ford Motor Company in the 1920s and developed by Toyota leaders such as Taiichi Ohno and consultant Shigeo Shingo after World War II. As pioneer American and European companies embraced lean manufacturing methods in the late 1980s‚ they discovered that lean thinking must be applied
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MANAGEMENT ACCOUNTING Information for Decision-Making and Strategy Execution SIXTH EDITION Anthony A. Atkinson University of Waterloo Robert S. Kaplan Harvard University Ella Mae Matsumura University of Wisconsin–Madison S. Mark Young University of Southern California Boston Columbus Indianapolis New York San Francisco Upper Saddle River Amsterdam Cape Town Dubai London Madrid Milan Munich Paris Montreal Toronto Delhi Mexico City S~ Paulo Sydney Hong Kong Seoul Singapore
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Chapter 7 Homework Solutions Q7-1 Absorption and variable costing differ in how they handle fixed manufacturing overhead. Under absorption costing‚ fixed manufacturing overhead is treated as a product cost and hence is an asset until products are sold. Under variable costing‚ fixed manufacturing overhead is treated as a period cost and is expensed on the current period’s income statement. Q7-2 Selling and administrative expenses are treated as period costs under both variable costing and absorption
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Memorandum To: Sharon Sonneborn From: Date: 9/9/2012 Re: Potential Acquisition of Garmin Ltd. And Subsidiaries Garmin Ltd is under consideration for acquisition by Mega Industries. As a result‚ an assessment of Microline’s financial condition and assessment is necessary to evaluate the company as a suitable candidate. Our team has prepared a memo stating Microline’s earning power potential ‚ solvency position‚ and to which extent the companies financial statements reflect the true
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Free Cash Flow = Operating Cashflow - Capital Expenditures = Net Income + Depreciation & Amortization - Changes in Workin GMCR PEET CARIBOU 22.3 8.4 -30.7 18.3 12.9 34.4 -48.3 -1.1 7.9 79.2 38.3 -10.2 30.9 37.2 -2.3 152.1 63.2 26.6 72.9 24.9 36.8 87.9 59.3 29.9 57 22.1 32.2 48.7 30.8 17.2 40.2 -8.4 -21.4 Net Income Depreciation & Amortization Changes in Working Capital Working Capital - Latest Working Capital - Prior Year Current Assets - Latest Current Liabilities - Latest Current Assets - Prior
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Creative Accounting AC4001 12/13/2013 ‘Many investors now believe that companies can manipulate their accounts more or less at will‚ with the aim of producing profits that increase steadily over time. Provisions are bumped up in good years and later released‚ or the value of an acquisition is slashed; there are plenty of tricks.’ In your opinion is it possible to eliminate creative accounting? I do not think that creative accounting practice can be eliminated completely. However‚ I do
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ACCOUNTING THEORIES 1. What is the difference between a positive theory of accounting and a normative theory of accounting? 2. What do we mean when we say that ‘theories are abstractions of reality’? Do you agree that theories of accounting are necessarily abstractions of reality? 3. Identify and explain 5 different criteria we might use to establish a theory as being suitable for use in our research. 4. Is the study of financial accounting theory a waste of time for accounting
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