Fair value or false accounting 1. How are assets and liabilities measured under IAS 39? Answer: According to IAS 39‚ Financial Instruments: Recognition and Measurement‚ financial instrument are to be stated at their ‘fair value’- defined as ‘the amount for which an asset could be exchanged‚ or a liability settled‚ between knowledgeable‚ willing parties in an arm’s length transaction’. ‘If the market for a financial instrument is not active‚ an entity establishes a fair value
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Question 1 Suppose Nike‚ Inc. reported the following plant assets and intangible assets for the year ended May 31‚ 2014 (in millions): other plant assets $965.8; land $221.6; patents and trademarks (at cost) $515.1; machinery and equipment $2‚094.3; buildings $974; goodwill (at cost) $193.5; accumulated amortization $47.7; and accumulated depreciation $2‚298. Prepare a partial balance sheet for Nike for these items. (List Property‚ Plant and Equipment in order of Land‚ Buildings and Equipment
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submit as is Case 1-4 Generally Accepted Accounting Principles At the completion of the Darby Department Store audit‚ the president asks about the meaning of the phrase “in conformity with generally accepted accounting principles‚” which appears in your audit report on the management’s financial statements. He observes that the meaning of the phrase must include more than what he thinks of as “principles.” Required: a. Explain the meaning of the term accounting principles as used in the audit
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Introduction Accounting for leases is regulated by the Financial Accounting Standards Board (FASB) in United States .Standards for accounting leases have been effective since 1977 (Accounting Standard Board‚ 2004). The primary standard for lease accounting is Statement of Financial Accounting Standards No. 13 (FAS 13). According to FASB (1976)‚ a lease is an agreement conveying the right to use property‚ plant‚ and equipment (PPE) usually for a stated period of time. Examples of assets that can
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Question 1 Cash Budget Higlow Manufacture Ltd | Financial Budgets - 2010 | Budgeted Cash Flow Statements | October | Beginning Cash Balance | $62‚000.00 | Receipts: | | Estimated cash sales: | | October ($1248‚961 × 58%) | 724‚397.38 | September ($1‚300‚000 × 40%) | 520‚000.00 | Total estimated cash sales | $1‚306‚397.38 | Payments: | | Estimated cash payments: | | Direct Material (75‚467 ×$4) | 301‚868.00 | Direct Labor (22‚489 × $14) |
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13: 1) E13-14 (5 points); 2) E13-16 (5 points); 3) E13-18 (5 points); 4) E13-19 (1 point); 5) P13-23A (8 points); 6) P13-25A (8 points); 7) P13-33A parts a‚ b and c only (8 points); 8) P13-39B (8 points); 9) P13-42B (7 points) Solutions: E13-14 (5 points): (a) The cash payback period is: $48‚000 ÷ $8‚000 = 6 years The net present value is: | | Time Period | | CashFlows | × | 9% DiscountFactor | = | PresentValue | Present value of net annual cash flows | | 1–8 |
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n [pic] American International University-Bangladesh Summer 2007 Principles of Accounting (Section B) For CS‚ CSE‚ COE‚ EEE Students Course Outline |Course Teacher : |Shamarukh Aziz Bhuiyan (Angela) | | | | |Credit:
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Biblical Principles Applied to Accounting When most people think of business they picture a bunch of fat cats in suits stealing from the poor in order to fill their own pockets. The reality is that for the most part that couldn’t be further from the truth. Hard work‚ innovation‚ and honesty make up the true business man’s credentials. Jesus could have possibly learned some of these traits when he worked at his father’s business as a carpenter. Accounting is the numbers side
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International Accounting Case 1-2 1. An individual investor might want to invest in an international growth fund so that they can diversify their assets into mutual funds that invest in the stock of foreign companies instead of companies that are only in one country. 2. Risks common to both domestic and international funds: a. Investment style risk - the chance that returns from non-U.S. growth stocks and small- and mid-cap stocks‚ will trail returns from the overall domestic stock
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Chapter 1: The Accounting Environment – What is Accounting and Why is it Done? Accounting is a system for gathering data about an entity’s economic activity‚ processing and organizing the data and in turn‚ communicating that information to people who want to use it to make decisions. Data are unprocessed facts about an entity’s economic activity that is entered into an accounting system whereas information results from organizing and presenting the data in ways that make it useful for decision
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