Accounting has been around since the beginning of civilization. ¡§Accountants participated in the development of cities‚ trade‚ and the concepts of wealth and numbers.¡¨ (Giroux) The importance of accounting cannot be overemphasized. Equally important are the standards used to guild the application of accounting practice. Without principles and standards‚ financial reporting would not fairly present the financial position of a company. Accounting has changed and evolved vastly over time and continues
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general-purpose financial statements are geared is the shareholder. True False 13. Canadian corporations are prohibited from using U.S. GAAP. True False 14. A company’s functional currency is the currency in which it conducts most of its business. True False 15. The disclosed basis of accounting (DBA) refers to the use of Non-GAAP accounting policies by private companies. True False 16. A wholly-owned subsidiary of a multinational corporation is essentially a private
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Another important factor that stands out is the lack of ethical values portrayed by the founders of L&H. The top management did not set code of ethics‚ but instead wanted to maximize their future software value. Mr. Hauspie’s creative but legally acceptable financing plans help him to retain control of the company by selling minority interests. The desperate ambition to succeed together with the accounting knowledge‚ the company was in a prime position to engage in fraudulent practices. Engage in
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Honesty and generosity are two personal values that are an extension of ones self. Parents are the first teachers of honesty and integrity. As a child grows and learns‚ so does the child ’s integrity. Values are what society uses to distinguish acceptable from unacceptable‚ and right from wrong. Employers need employees who hold high personal values. Important decisions have to be made in companies each day. Without employees with high values‚ the financial success of the company can teeter away
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| Financial data | LEVEL OF AGGREGATION | Local info on subunits of the organization | Global info on company as a whole | REGULATION | No regulation‚ limited only by the value-added principle | Regulation by SEC‚FASB‚ and other determiners of GAAP | TIME HORIZON/INFORMATION CHARACTERISTICS | Past‚ present‚ future / estimates that promote relevance and enable timeliness | Past only‚ historically based / Factual info that is characterized by objectivity‚ reliability‚ consistency‚ and accuracy
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GAAP vs IFRS Diffen › Economics › Business › Business Finance › Accounting GAAP (US Generally Accepted Accounting Principles) is the accounting standard used in the US‚ while IFRS (International Financial Reporting Standards) is the accounting standard used in over 110 countries around the world. GAAP is considered a more “rules based” system of accounting‚ while IFRS is more “principles based.” The U.S. Securities and Exchange Commission is looking to switch to IFRS by 2015. What follows
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accounting principles (GAAP). Accounting Standards GAAP is considered to be collection of methods used to prepare‚ process and present accounting information. GAAP is a general method‚ overall‚ is applicable to many different types of industries. The methods of using GAAP can be specific or principle based requirements. The use of GAAP can be flexible and general in the United States and are expected to follow GAAP principles. Many organizations contribute to GAAP‚ however‚ the Financial
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ENRON: A FINANCIAL REPORTING FAILURE? Anthony H. Catanach Jr.1 Associate Professor 610-519-4825 anthony.catanach@villanova.edu and Shelley Rhoades-Catanach Associate Professor Both at Villanova University College of Commerce and Finance Department of Accountancy INTRODUCTION The dramatic collapse of Enron Corporation‚ following a series of disclosures of accounting improprieties‚ has led many to question the soundness of current accounting and financial reporting standards. Within Enron’s reported
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The HK Exchange discusses the listing requirements of an IPO for two types of issuers‚ Growth Enterprise Market (GEM) and the Main board‚ this report will focus on the requirement for main board only: The Profits/Revenue/Cash Flow requirement of a main board company: For a company to be listed in HK exchange‚ the company should have at least three years trading financial records as well as meet one of the following three financial criteria: 1. Profit test: the profit attributed to shareholders
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‘Uniform Accounting Standards Produce Uniform Financial Reporting’ Inro Why is the question important? In an increasingly interconnected world‚ the operations of international corporations are transnational. In addition‚ more and more investing takes place on a global level. Historically‚ different countries have developed their own national accounting standards. Before the introduction of the IFRS‚ the accounting principles of neighbouring countries were similar in many respects but used different
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