Chapter 1 A Survey of International Accounting A brief description of the major points covered in each case and problem. CASES Case 1 In this case‚ students are introduced to the difference in accounting for R&D costs between IFRS and U.S. GAAP and asked to comment on whether one method is better than the other‚ as well as whether any part of R&D should be capitalized. Case 2 (prepared by Peter Secord‚ Saint Mary’s University) In this real life case‚ students are asked to discuss
Premium Balance sheet Financial statements International Financial Reporting Standards
Issues With Revenue Recognition within the Software Industry The Isoft Example Financial Controller-SoftWarehouse Ltd This report has been prepared for the Board of Directors of SoftWarehouse Ltd for elucidation about the contentious issues that have given rise to the publication of the article concerning Isoft’s issues with revenue recognition. Finally‚ it will also assess whether or not these issues are likely to affect SoftWarehouse Ltd. TABLE OF CONTENTS Executive Summary: 3
Premium International Financial Reporting Standards International Accounting Standards Board
SATYAM SCANDAL I. Analyze the case and respond to the following questions: (a) Discuss the earnings management techniques employed by the management of Satyam. In this case of Satyam‚ I can conclude that the obvious technique employed by the said management are: 1. “Big Bet on The Future”. When an acquisition occurs‚ the company acquiring the other is said to have made a big bet on the future. As refer to this case‚ Ramalingam Raju the Chairman of Satyam Computer Services Ltd
Premium Audit Auditing Generally Accepted Accounting Principles
Background Smooth Sailing is a private company that operates one cruise ship. Recently‚ pirate activity in the area where the cruise ship operates has increased‚ thus affecting the cruise ship’s potential future cash flows. The cash flow decline has directly contributed to a decline in the overall fair value of the cruise ship. Smooth Sailing has determined three possible options for its future‚ along with the probabilities of occurrence and estimated cash flows (ECF): 1. Continue operating
Premium Generally Accepted Accounting Principles Depreciation
Health Care Financial Management: Reporting Practices and Ethics Marvin Dumlao HCS/405 April 6‚ 2010 Lisa Sanders Health Care Financial Management: Reporting Practices and Ethics Whether operating as for-profit or non-profit‚ organizations must pay close attention to accounting practices and adhere to sound financial management procedures to remain solvent. This applies to health care organizations as well
Premium
In today’s unpredictable stock markets‚ it is extremely important for investors to expand investments to minimize risk and earn reasonable returns on funds. The diversification does not have to be restricted to domestic companies because of opportunities available in foreign markets. On the other hand‚ securities analysis becomes more complex because of supplementary variables such as foreign exchange risk‚ political‚ economic‚ cultural diversities‚ etc. that need to be taken into deliberation in
Premium Investment Finance Economics
“Generally Accepted Accounting Principles (GAAP) is the methods‚ rules‚ practices and other procedures that have evolved to govern the preparation of financial statements” Justify the statement with suitable examples. Accounting is the language of business and it is used to communicate financial information. In order for that information to make sense‚ accounting is based on some fundamental concepts. Transactions are recorded in accounts‚ following certain fundamentals concepts and conventions
Premium Generally Accepted Accounting Principles Balance sheet
Mercedes Benz had a total of $27‚964 in current assets and current liabilities of $27‚579 (Daimler AG‚ 2010). To determine the current liquidity ratio‚ we divide current assets into current liabilities‚ which is a total of $1.013. This represents an acceptable liquidity ratio that means if Mercedes Benz had to pay off their liabilities‚ they could do so without running into financial trouble. To calculate the Quick Ratio‚ we subtract current assets from stock and then divide by current liabilities. This
Premium International Financial Reporting Standards Generally Accepted Accounting Principles Financial statements
Module 1 – 3 (Chapter 1 – 4) Chapter 1 Survey of International Accounting * Purposes for financial statements: comparability‚ information usefulness -> accounting harmonization * Factors that influence a country’s accounting standards: 1. Role of Taxation 2. Level of Development of Capital Markets – fairly sophisticated investors demand current and useful information from those who have received their capital 3. Different Legal Systems 4. Ties between Countries 5. Inflation
Premium Generally Accepted Accounting Principles Subsidiary Asset
the world . Below are some major bodies that has unified the accounting world. The accounting principles that are generally recognized by accountants and represents accepted accounting practices are called generally accepted accounting principles (GAAP). They are general guidelines for ensuring fair presentation of financial statements. They make financial statements relevant‚ objective‚ comparable and dependable. At present recognized accounting institutions of different countries have come forward
Premium Balance sheet Generally Accepted Accounting Principles Financial statements