Chapter 1 The Canadian Financial Reporting Environment Prepared by: Dragan Stojanovic‚ CA Rotman School of Management‚ University of Toronto The Canadian Financial Reporting Environment Role of Financial Reporting • Financial statements and financial reporting • Accounting and capital allocation •Stakeholders Objective of Financial Reporting •Management bias •Users’ needs Standard Setting • Need to develop standards • Parties involved in standard setting • Standard setting in a political
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MEMORANDUM TO: Chief Financial Officer FROM: Controller DATE: August 4‚ 1990 SUBJECT: How to Report Earthquake Damages in the Income Statement CHHS Inc. has suffered extensive damages due to the after math of the October 17‚ 1989 San Francisco Bay Area earthquake that hit at a 7.1 magnitude on the Richter scale. Twelve of the twenty-two stores have been closed for a varying period of time due to the large damages that occurred. In total‚ damages have summed to
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events and pressures. This pattern certainly holds true in regards to financial reporting. The first financial reporting regulations were set in place during the Great Depression in reaction to the stock market collapse of 1929. These regulations were The Securities Act of 1933 and The Securities Exchange Act of 1934‚ which established the Securities and Exchange Commission (SEC) and became the foundation for future financial reporting regulations. While addressing Congress‚ President Roosevelt said
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RISE OF ECONOMIC CONSEQUENCES The impact of accounting reports on decision making may be the most challenging accounting issue of the 1970s. by Stephen A. Zeff Since the 1960s‚ the American accounting profession has been aware of the increasing influence of "outside forces" in the standardsetting process. Two parallel developments have marked this trend. First‚ individuals and groups that had rarely shown any interest in the setting of accounting standards began to intervene actively and powerfully
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this funding is through the use of long-term debt. Depending on where the company does business and who uses their financial statements‚ there are different ways of recording this debt through the use of United States Generally Accepted Accounting Principles (U.S. GAAP) and International Financial Reporting Standards (IFRS). The main differences between the two accounting standards‚ with regards to long-term debt recognition‚ deal with debt issue costs and convertible bonds. Debt issue costs
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Investment Property Entities Financial Accounting Theory: Investment Property Entities Introduction Leases have become a highly debated financial accounting theory in the accounting and business world throughout the integration of U.S Generally Accepted Accounting Principle (GAAP) and International Financial Reporting Standards (IFRS). The purpose of the following research is to evaluate the project being conducted on financial accounting theory: Investment Property Entities. The FASB project
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Accounting‚ or accountancy‚ is the measurement‚ processing and communication of financial information about economic entities. Accounting‚ which has been called the "language of business"‚ measures the results of an organization’s economic activities and conveys this information to a variety of users including investors‚ creditors‚ management‚ and regulators. Practitioners of accounting are known as accountants. The terms accounting and financial reporting are often used as synonyms. Accounting
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When I think of accounting‚ I automatically think of complex mathematical formulas and hard to comprehend definitions and terminologies. This module has helped me to better understand basic accounting principles‚ definitions and the use of accounting terminologies. In the United States financial statements are prepared under a set of principals or guidelines called Generally Accepted Accounting Principals (GAPP). The Financial Accounting Standards Board (FASB) is the current body
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The Governmental Accounting Standards Board and the Financial Accounting Standards Boards were put in place to assist in regulating the private sector‚ federal‚ and state and local governments. These regulations that are in place are to hold he sector accountable for its accurate financial reporting and documentation. I ask how these two divisions differ in its objectives and how to they regulate each party it governs. The Governmental Accounting Standards Board oversees the federal‚ state
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Clarification Memo Sammy Shelton ACC/541 – Accounting Theory and Research July 23‚ 2011 Memo To: Client From: Team B Date: August 6‚ 2012 Re: The Financial Accounting Standards Board (FASB) defines a contingency as a possible future event that will have some impact on the firm. The decision to report contingencies should be based on the principle of disclosure. Namely‚ when the disclosure of an event adds to the information content of financial statements‚ it should be reported. If a
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