1. What guidance does the Codification provide on the classification of current liabilities? (reference & brief explanation) - Reference: FASB ASC 210-10-45-5 through 45-12 Explanation: Current liabilities are obligations due within a year. On the balance sheet the listing of current liabilities start with obligations that arise from the operating cycle such as payables incurred in the acquisition of materials and supplies‚ collections received in advance of the delivery of goods or performance
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of interest and property taxes on a construction project Case 9: Deferred compensation and life insurance policy recognition Case 10: Reporting earnings per share balances for subsidiary companies Case 11: Deferment of lease payments Case 12: Disclosure of prior period adjustments in the statement of cash flows Case 13: Measurement and recording of payments for sick days Case 14: Comparative cash flow statements Case 15: Social security benefits as assets Case 16: Recording a stock dividend as
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financial statements‚ M should record $17 million as a liability. 2. M should adjust its liability for the year-end December 31‚ 2009‚ financial statements. $1‚500‚000 should be recorded. And this adjustment should be considered a 2009 event. 3. M should record 18.5 millions of dollar as a reduction of the previously recorded loss contingency in 2010. 1. For the year-end December 31‚ 2007‚ financial statements‚ what amount should M record as a liability? In this case‚ the management of determined that
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of the manner in which the financial information is presented. Further‚ some of the presentation and disclosure requirements as set out in the pre-revised Schedule VI appear to have become outdated and do not appear to synchronise with the objective of a fair presentation of financial information. Although from time to time‚ the Central Government had amended Schedule VI‚ some of the disclosures required by that Schedule such as licensed capacity‚ CIF value of imports‚ etc. are quite irrelevant from
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Accounting Standards Accounting is the art of recording transactions in the best manner possible. Accounting Standards are the policy documents issued by recognized expert accountancy bodies relating to various aspects of measurement‚ treatment and disclosure of accounting transactions and events. Every country has its own standards. Accounting Standards in India are issued by the Institute of Chartered Accountants of India (ICAI). At present there are 30 Accounting Standards issued by ICAI. As of
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THE ROLE OF AN ACCOUNTANT IN THE IMPLEMENTATION OF IFRS It is often said that an organization without an accountant is not a serious organization as it has no credibility. This is because the accountant is seen as the financial “gatekeeper” whose presence within an establishment underlines a commitment to sound financial principles and good business values. It is known that almost all aspect of human activities have undergone changes globally as a result of improvements in hi-tech Information and
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Study Guide Liabilities – Probable debts or obligations that result from past transactions Current Liabilities – Are due within one year of the balance sheet date Liquidity – The ability to pay current obligations Working capital – Current assets minus current liabilities Accrued Liabilities – Expenses that have been incurred but have not been paid at the end of the accounting period Deferred Revenues – Revenues that have been collected but not yet earned‚ they are liabilities until the goods
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applied to audit revenues and expenses. Outline the overall analytical procedures to be performed at the final stage of the audit‚ including analysis of the income statement‚ the cash flow statement‚ financial statement presentation and disclosures. Explain the purpose of lawyers’ letters and how they are used at the completion stage of an audit to identify any contingencies. Explain why written management representations are obtained‚ and the items generally included in the representation
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frequent the following statement. Without qualifying our opinion‚ we draw attention to: Qualified audit reports are usually issued for: scope limitations‚ violation of GAAP (i.e. IFRS‚ US GAAP‚ IFRS for SMEs‚ etc)‚ material misstatements‚ inadequate disclosure‚ change in accounting method not justified‚ etc. There are also "modified" audit reports that warn users of particular issues. Strictly speaking these are unqualified reports‚ since no misstatements are detected. Modified audit reports are usually
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SYNTHESIS IFRS FOR SMEs (International Financial Reporting Standard for Small and Medium-sized Entities) INTRODUCTION 1.1 What is the objective of PFRS for SMEs? The objective of PFRS for SME is to develop a set of high quality‚ understandable and enforceable standards for SMEs. Which includes proper accounting practices for the preparation and presentation of financial statements that creates a common understanding between preparers and users of financial statements. PFRS for SME are
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