GAAP – This is the General Accepted Accounting Principles‚ it is the basic principles of accounting - http://www.investopedia.com/terms/g/gaap.asp Basic Accounting Formula- means that all balances and ledgers must match at all times. If it does not then something was entered wrong in a ledger -http://www.accountingtools.com/basic-accounting-formula Transaction T account – A term used for double entry book keeping‚ a ledger with 2 separate lines separating debits and credits -http://www.investopedia
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IFRS Income Tax Accounting IFRS for SMEs: A less taxing standard? On July 9‚ 2009‚ the IASB published the International Financial Reporting Standard for Small and Medium-sized Entities (“IFRS for SMEs” or “the standard”)‚ a self-contained standard of about 230 pages designed to ease the burden of IFRS reporting for entities that do not have public accountability. Globally‚ more jurisdictions may be encouraged to replace existing local GAAP with IFRS for SMEs. As a result‚ it holds
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PESTLE Political * Political insatiability affects the sales of the automobile industry. The political instability has a direct impact on the sales of the automobile industry. When there is a political unrest the purchasing power of the individuals in the particular area goes down. * Government support towards the industry favourably. This industry is the 6th largest industry in the world and brings out a lot of revenue and creates employment opportunities. Therefore governments tend
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Alliance with Tata What is the business opportunity in India? Do you think that Fiat needs a partner? Why? Actually there is a lots of opportunities in India. There is a huge automobile industry in India which was valued at over 26.3 billion USD. Unit sales in the same year exceeded 1.5 million. Passanger vehicle sales is expect to grow 14%-16%. There is a big potential in owned car statistics. It was expected to grow from seven in 1.000 to eleven in 1000. This growth can easily be underestimated but
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Porter Gervais Professor Duron 10/21/13 IFRS Rough Draft Ch.20 IFRS vs. GAAP When accounting for pensions and post-retirement benefits‚ IFRS and GAAP have similarities as well as differences. There are two pension plans that are frequently used in accounting for pensions. These two plans are known as‚ defined contribution plan and defined benefit plan. Both GAAP and IFRS separate their pension plans‚ but their accounting for defined benefit plans differ. Another major difference occurs
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5.13.205.60 Under the first approach in 5.13.205.40‚ management of Newco concludes that a business combination has occurred in which Newco is the acquirer (as the vehicle for the new shareholders). Accordingly‚ Newco applies IFRS 3 to the acquisition of both Y and Z. 5.13.205.70 Under the second approach in 5.13.205.40‚ the transaction is analysed as follows. • It is a business combination amongst entities under common control. • Newco chooses to apply book value accounting (see 5.13.50
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What is the prudence concept in accounting? Under the prudence concept‚ you should not overestimate the amount of revenues that you record‚ nor underestimate the expenses. You should also be conservative in recording the amount of assets‚ and not underestimate liabilities. Another way of looking at prudence is to only record a revenue transaction or an asset when it is certain‚ and to record an expense transaction or liability when it is probable. Another aspect of the prudence concept is that you
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reporting standards (IFRS) with their “Made in Canada” (Canadian Institute of Chartered Accountants [CICA]‚ 2006) generally accepted accounting practice (GAAP)‚ Canada would lie very close‚ if not on the line of convergence. Over the past few years‚ before the consideration of IFRS and leading up to the full convergence of it‚ Canada’s GAAP has been a ‘no mans land’ (Martin‚ 2009). It was becoming vastly foreign to the rest of the world‚ when it was once similar to US GAAP. As a result participants
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Sam O’Brien‚ C10390017‚ DT366 yr2 Report on the WACC for Fiat motors The WACC is the weighted average cost of capital. It is a calculation of the firms cost of capital taking into account the relevant weight of equity and debt as a proportion of the total. The cost of equity or KE calculated using a risk free rate example German 5yr government bond‚ the firm’s beta and the return on the market. The firm’s beta is a calculation of the firms exposure to the market‚ a beta of less than 1 indicates
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Dick’s Sporting Goods IFRS Conversion Introduction Dick’s Sporting Goods is a sporting goods retailer headquartered in Pittsburgh‚ Pennsylvania. Dick’s has 451 stores nationwide and 81 Golf Galaxy stores. Dick’s Sporting Goods was founded by Richard Stack in the early 1960s. This paper is focused on the notes of the consolidated financial statements which are changed from U.S. GAAP to the IFRS standards. Financial Statement Presentation First‚ on the 2011 Annual Report of Dick’s Sporting
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