Disclosure requirements for a change in principle. Indirect effect of an accounting change. Retrospective application impracticality. Reporting changes in accounting estimates. Change in principle vs. change in estimate. Accounting for change in depreciation method. Accounting for change in reporting entities. Example of a change in reporting entities. Accounting error vs. change in estimate. Accounting for corrections of errors. New principle created by FASB standard. Balance sheet errors. Definition
Premium FIFO and LIFO accounting Depreciation Inventory
Business 1A Accounting Cycle Project Name: ______________________________ On October 1‚ 2013‚ Adrian Lopez launched a computer services company‚ Success Systems‚ which is organized as a corporation and provides consulting services‚ computer system installations‚ and custom program development. Lopez adopts the calendar year for reporting purposes and expects to prepare the company’s first set of financial statements on December 31‚ 2013. A list of business transactions for the months
Premium Accounts receivable Balance sheet Asset
ACCT3708 Week 3 Tutorial Q1. What is the link between audit risk and engagement risk? How does the audit risk model allow the auditor to deal with these risks in the most cost effective manner? Audit risk is the risk that the auditor gives the wrong opinion – this can either be stating errors when there are none or when there are errors stating that there are none. This risk cannot be eliminated as auditors can only provide a reasonable assurance and not absolute‚ but instead this can only be managed
Premium Auditing Financial audit Balance sheet
Income statement The income statement or the profit and loss account as it is also called measures reports how much profit (wealth) has the business generated over a period of time. To measure profit the total generated revenue over a period must be identified. Revenue is a measure of inflow of economic benefits arising from the operations of the business. These benefits will either result in an increase of assets such as cash or amounts owed to the business by the customers or a decrease
Premium Revenue Generally Accepted Accounting Principles Depreciation
ISSUES IN ACCOUNTING EDUCATION Vol. 26‚ No. 4 2011 pp. 797–806 American Accounting Association DOI: 10.2308/iace-50053 Home Heaters: A Holistic View of the Financial Statements M. Cathy Claiborne and Kirkland A. Wilcox ABSTRACT: In this case‚ two start-up companies in the same industry have identical economic transactions. Although both companies follow generally accepted accounting principles (GAAP)‚ each manager makes different choices and estimates when applying GAAP. By preparing
Premium Balance sheet Depreciation Accounts receivable
ACCT5907 INTERNATIONAL FINANCIAL STATEMENT ANALYSIS Mid-semester Test 2 2012 Sem 1 (Solutions to Analysis Questions (section B) and comments) General comments (1) Both the analysis questions were taken from the lecture examples‚ additional exercise‚ workbook exercises and practice test. Students who had worked through these materials were competent in handling the mid-term test. Students who believe that they did not perform as well as they had expected should going through the lecture materials
Premium Balance sheet Taxation Progressive tax
Text and Cases Thirteenth Edition Robert N. Anthony Ross G. Walker Professor Emeritus Graduate School of Business Administration Harvard University David F. Hawkins Lovett-Learned Professor of Business Administration Graduate School of Business Administration Harvard University Kenneth A. Merchant Deloitte & Touche LLP Chair of Accountancy Leventhal School of Accounting University of Southern California McGraw-Hill Irwin Contents PARTI FINANCIAL ACCOUNTING 1 Chapter 1 The
Premium Cost accounting Management accounting Depreciation
direct write-off method c. percentage of receivables method d. percentage of sales method 2. Using the percentages of receivables method for recording bad debts expense‚ estimated uncollectible accounts are $25‚000. If the balance of the Allowance for Doubtful Accounts is $8‚000 debit before adjustment‚ what is the amount of bad debts expense for that period? a. $25‚000 b. $8‚000 c. $33‚000 d. $17‚000 3. Copyrights are granted by the federal government a. for the life of the creator
Premium Balance sheet Depreciation Preferred stock
Week 1 assignment 1 1CA1-1 (FASB and Standard-Setting) Presented below are four statements which you are to identify astrue or false. If false‚ explain why the statement is false. 1. GAAP is the term used to indicate the whole body of FASB authoritative literature. 2. Any company claiming compliance with GAAP must comply with most standards and interpretations but does not have to follow the disclosure requirements. 3. The primary governmental body that has influence over the FASB is the SEC.
Premium Generally Accepted Accounting Principles Balance sheet Depreciation
CONSOLIDATION 0-20% a)HELD TO MATURITY: only used for debt securities LOCOM (if impaired‚ write down) Financial Investment (A+) 22 Cash (A-) 22 b)TRADING: gains & losses are recognized in I/S; intention of investor is to profit from ST price fluctuations FAIR VALUE Financial Investment (A+) 22 Cash (A-) 22 Financial Investment (A+) 4 Gain on investment on securities (OE+) 4 c)AVAIL FOR SALE: recorded on B/S
Premium Generally Accepted Accounting Principles Depreciation Stock