words‚ Include the following: * The basic assumption of accounting * The constraints of accounting * A conclusion stating how you think sound financial reporting depends on principles‚ assumptions‚ and constraints. Refer to the U.S. GAAP in your response. The basic assumptions of accounting = separate entity assumption- finances from the company finance so that they don’t get intertwined with the owner or shareholders finance. Going concern assumption= the business will be operating
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Running head: Similarity and Difference Similarities and Differences Comparisons between the iGAAP and U.S. GAAP There happens to be important resemblances and dissimilarities between International GAAP and the United States GAAP in the accounting for intangible assets. Resemblances as well as dissimilarities should not come at a surprise to the accounting profession. U.S. GAAP compared to any other entity has similarities and differences‚ so therefore the iGAAP is no different. It is estimated
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constraints and industry practice‚ GAAP principles are not always applied strictly but are modified as necessary. The following are some commonly observed modifying conventions: Materiality convention - a modifying convention that relaxes certain GAAP requirements if the impact is not large enough to influence decisions. Users of the information should not be overburdened with information overload. Cost-benefit convention - a modifying convention that relaxes GAAP requirements if the expected cost
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finances‚ of the FASB. The GAAP has many organizations that exist through the history of rule-making‚ including GASAC. http://www.ask.com/question Three organizations developed‚ or influenced the development of‚ the GAAP in the United States: the SEC‚ the AICPA‚ and the FASB. A separate but similar set of rules and principles govern state and local government reporting‚ as determined by the Governmental Accounting Standards Board (GASB). Accountants generally apply GAAP through the use of FASB pronouncements
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ii Abstract My paper is about the GAAP (General Acceptance of Accounting Principles) which were created by the Accounting Principles Board (APB). The board was created by American Institute of Certified Public Accountants (AICPA) in 1959. APB issued 31 Opinions from 1959 to 1973 and those Opinions created GAAP. I think GAAP is interesting due to how many companies think they can get away with financial dealings but get caught. I also think that GAAP is a system that really needs a good looking
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change for companies and accountants but there are a few similarities between the IFRS and US GAAP. When it comes to financial statement presentation‚ they both include a statement of financial position‚ an income statement‚ a statement of comprehensive income‚ and a
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financial reporting standards for small businesses‚ but regulators have not been willing to provide a second set of standards. Now‚ for the first time‚ there may be an answer for small firms desiring relief from the onerous reporting requirements of GAAP. The AICPA now recognizes the International Accounting Standards Board’s (IASB) recently released International Financial Reporting Standard for Small and MediumSized Entities (IFRS for SMEs)‚ as an official set of accounting standards to be audited
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revised in 2007? a. It should be expensed in the period incurred. Selected: b. It should be added to the other costs of acquiring fixed assets to determine the amount for the balance sheet.This answer is correct. c. Both methods are acceptable. d. Neither method is acceptable under IASB rules. The cost of borrowing funds to acquire or construct property‚ plant‚ and equipment accounted for under IASB rules should be added to the other costs of acquiring fixed assets to determine the amount for the balance
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Green’s new client will not submit to an audit of internal financial controls. With all of the issues that Green and Associates are encountering the four types of auditor’s opinions‚ if their inventory valuation methods are legal and supported by GAAP‚ and if ABC’s refusal to permit an internal controls audit is within federal law need to be investigated. Lastly‚ an opinion must be written to address the situation and detail the ethical problems involved for both ABC and Green and Associates. The
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process to determine the organization next move. Making good financial decisions is in the best interest of the organization‚ but this where the questions arises‚ are the financial decisions made by some organization financial experts ethically acceptable if justifiable or are those decisions unethical? If so are they in interest of the financial expert? There are four elements of financial management that all healthcare organizations must followed. They include planning‚ controlling‚ organizing
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