CASE STUDY: MARCH 2012 SEMESTER I. Analyze the case and respond to the following questions: a) Discuss the earnings management techniques employed by the management of Satyam. Earning management or creative accounting is referred to the manipulation or misrepresentation of the company’s financial earnings in order to achieve stable and positive financial position. This was achieve through directly or indirectly use of the accounting methods. Even though the manipulation may follow all
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(c) Wayne Terrago should try to report the financial condition and results of operations fairly and in accordance with the generally accepted accounting principles. As controller‚ Wayne should inform management and understand what is acceptable according to the GAAP. Wayne Terrago should know where properly to report all financial expenses and income the company deals with. As controller it is part of his duty to express to the board the correct expensing of the advertising expense. He should know
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Chapter One Introduction to International Accounting Learning Objective 1. Understand the nature and scope of international accounting. 2. Describe accounting issues created by international trade. 3. Explain reasons for‚ and accounting issues associated with‚ foreign direct investment (FDI). 4. Describe the practice of cross-listing on foreign stock exchanges. 5. Explain the notion of global accounting standards. 6. Examine the importance of international trade‚ FDI‚ and
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Advantages…………………………………………………………………………4 2.2. Disadvantages………………………………………………………………………………..5 3. Similarities and Differences between IFRS and U.S.GAAP......6 3.1. Similarities between IFRS and U.S. GAAP.......................................7 3.2. Differences between IFRS and U.S. GAAP……………………………………..10 4. International Accounting Harmonization…………………………...11 4.1. Why International Accounting Harmonization………………11 5. Adoption of IFRS around the world…………………………………….12 6. Progress
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recording of its leases. The amounts involved are immaterial. 1 3. A company valued its inventory at current replacement cost. While the auditor believes that the inventory costs do approximate replacement costs‚ these costs do not approximate any GAAP inventory valuation method. 7 4. A client changed its depreciation method for production equipment from the straight-line method to the units-of-production method based on hours of utilization. The auditor concurs with the change. 2 5.
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probable that the judgment of a reasonable person relying on the information would have been changed or influenced. Misstatement: An instance where a financial statement assertion is not in accordance with the criteria against which it is audited (e.g. GAAP). Misstatements may be classified as fraud (intentional)‚
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several sections. To what Commission is SOX referring? SOX is referring to the Securities and Exchange Commission (SEC). This Commission is has the " authority to determine GAAP ( Generally Accepted Accounting Principles)‚ and to regulate the accounting profession ( Gibson‚ 2013‚ p. 2)." Because the SEC has the authority over GAAP it also has authority over what is implicated in SOX. B). Describe the responsibility of the " Commission" in relation to the board. The Commission has oversight of the
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Office hours: Thursday 4:30-5:30: as announced in class; and by appointment. (NOTE: I am typically in most weekdays‚ and appointments—face-to-face or telephone—are typically easy to arrange. I am also available by e-mail.) Required texts: • Chapters 10 and 11 from Advanced Accounting‚ 11th edition Fischer‚ Taylor and Cheng. You can purchase these chapters as PDFs from: http://www.cengagebrain.com Here is some specific information about the book to help you find the chapters:
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References: Deloitte. (2004‚ June 22). IAS PluS. Key Differences Between IFRSs and US GAAP. Retrieved November 28‚ 2012‚ from http://www.iasplus.com/iasplus/0406ifrsus.pdf. Harrison‚ W.‚ Horngren‚ C.‚ & Thomas‚ W. (2010). Financial Accounting (8th edition). Upper Saddle River‚ NJ: Pearson Prentice Hall. Jae‚ J. (2011‚ March 27). FIFO
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examine the adoption of IFRS‚ its challenges and to proffer solutions that would ensure seamless transition in Nigeria. Keywords: Investors‚ international standards‚ globalization and financial statements. Introduction The move towards developing an acceptable global high-quality financial reporting standards started in 1973 when the International Accounting Standards Committee (IASC) was formed by 16 professional accounting bodies from Canada‚ United States of America‚ United Kingdom‚ Germany‚ France
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