Summary 1 Introduction 2 Theories of Accounting 2 Public Interest Theory 2 Private Interest Theory 2 Regulatory Capture Theory 3 Is accounting Needed (GPFR)? 3 What does the financial department (accounts) do? 3 Why public disclosure became so serious? 4 Principal Agent Outlook 4 Agency Cost- Critical Reason for accounting frauds 6 Three Essential Accounting Areas 7 Capital Budgeting 7 Investments 9 Capital Structure 11 Trade off theory 12 Conclusion 13 References:
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Accountants follow professional guidelines for measurement and disclosure of financial information. These are called generally accepted accounting principles (GAAP). In the United States‚ the Financial Accounting Standards Board (FASB) formulates GAAP. The International Accounting Standards Board (IASB) sets global or International Financial Reporting Standards (IFRS)‚ the two basic types of external providers of capital include investors (who exchange cash for stock) and creditors (who loan cash)
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Chapter 3 – Problem 18 a) Let the probability of state 1 (the high performance state) be P(H) = 0.5 Let the probability of state 2 (the low performance state) be P(L) = 0.5 We assume that the amount of utility or satisfaction Ajay derives from a payoff is equal to the square root of the amount of the payoff. So‚ we get Ui(a) = √x‚ x≥0 Where x is the amount of the payoff The decision theory tells us that the act with the highest expected utility should be chosen. We denote
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Introduction to Financial Accounting ACCT6331 –Prior Year Suggested Time: 90 minutes 1. When the amount of expenses recognized for the purpose of financial reporting exceeds the expenses recognized for the purpose of tax reporting‚ a company will have deferred tax assets. Please indicate if the above statement is true or false. a. true b. false 2. BJ Services is an oil and gas service firm. The company does not issue any preferred stocks or convertible securities.
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Importance of Financial Accounting Introduction According to Weygandt‚ Kieso and Kimmel (2012)‚ financial accounting is identifying‚ recording and communicating the economic events of an organization to‚ mainly‚ external users. Through financial accounting‚ some financial reports will be generated. Four financial statements are frequently used to report and analyze the financial status of companies and they are Income statement‚ Retained Earning Statement‚ Statement of Financial Position and
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The Importance of Accounting Theory to the Field Of Accounting The objective of theory is to explain and predict. One of the basic goals of the theory of a particular discipline is to have a well-defined body of knowledge that has been systematically accumulated‚ organized‚ and verified well enough to provide a frame of reference for future actions. The Webster’s definition of theory is the systematically organized knowledge‚ applicable in a relatively wide variety of circumstances‚ a system
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Slide 1 ACCOUNTING THEORY & CONTEMORARY ISSUES (AT1) MODULE ONE Slide 2 ACCOUNTING UNDER IDEAL CONDITIONS Part 1 - Foundation items re the course Part 2 - Present value accounting under certainty Part 3 - Present value accounting under uncertainty Part 4 - Reserve recognition accounting Part 5 - Examination question examples Part 6 - Historical cost accounting Lecture by: Dr. A. L. Dartnell‚ FCGA Year 2009 - 2010 2 Slide 3 PART 1 Foundation Items re the Course Different Course
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stfx university | Accounting For Leases | Capital Vs. Operating Leases | | 200906027 | 11/16/2010 | This paper will outline the differences in accounting treatment of and criteria for determining whether leases should be accounted for as either a capital lease or an operating lease. I will be limiting my discussion to the accounting treatment of leases by the lessee. This paper will discuss the current accounting treatment for the two types of leases according to Canadian GAAP and
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EBC4074 Financial Accounting Consolidation Wholly owned subsidiaries & Intragroup transactions Seminar 1 - Réka Felleg School of Business and Economics Sharing Success Agenda • • • • Key steps Problem 22.4 Break (?) Problem 23.3 Seminar 1 - Wholly owned subsidiaries & Intragroup transactions Slide 2 Key steps • Acquisition analysis – Identify an/the acquirer – Determine the acquisition date – Recognize and measure FV of identifiable assets acquired‚ liabilities assumed
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our initial analysis last week‚ NewGen had the opportunity to review CanGo’s financial statement. The success of a business depends on its ability to remain profitable over the long term‚ while being able to pay all its financial obligations and earning above average returns. NewGen leveraged our knowledge of Investment rations‚ breaking our analysis down into four (4) key areas‚ efficiency‚ financial leverage‚ liquidity and profitability. Attached you will find our financial analysis summary matrix
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