standards bodies in both countries. In the UK this would be the Accounting Standards Board (ASB) which helps to set the Financial Reporting standards (FRS) used in the UK‚ whereas in the Netherlands the Dutch Generally Accepted Accounting Polices (GAAP) are provided by the council for annual reporting and the influential Dutch accounting profession the Royal Nederlands Institut van Register accountants (NIVRA). Sharing the tradition of public ownership‚ they both present a true and fair view in their
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1. Sources of GAAP and basic framework and concepts ........................................................... 3 2. Reporting net income ................................................................................................... 14 3. Income statement: Income from continuing operations ................................................................................ 17 Discontinued operations ...............................................................................
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Solutions Ch 3 Balance Sheet 3.22 (Nestlé; asset recognition and measurement.) a. Both U.S. GAAP and IFRS would recognize Investment in Bond (noncurrent asset)‚ CHF800 million. Nestlé would record the bond at acquisition cost‚ not the amount it will receive at maturity. b. Both U.S. GAAP and IFRS would recognize Prepaid Insurance (current asset); CHF240 million would be recorded initially. At Nestlé’s year-end‚ the balance in the Prepaid Insurance account would reflect the two months usage of
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would be able to boost the earnings for that year. According to the generally accepted accounting principles‚ Excello must record the sale in accordance with the revenue recognition principle. When the transaction has been recorded correctly by the GAAP‚ the accounting department must post the sale to accounts receivable until the product has been shipped. At that time‚ the transaction is posted to earned revenue. By recording the transaction in 2010‚ Reed is deceiving internal and external users
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CASE 11-6: LESSEE LTD Caleb Aytes Brayden Hudson Brian Laws Katie Vittetoe Topics To Be Discussed • • • • Relevant Facts of the Case IFRS US GAAP Real World Relevant Facts of the Case • Lessee Ltd. – British Company that applies IFRS – Leases equipment from Lessor Inc. – 3 years – No purchase or renewal options & equipment reverts back to Lessor when lease expires – Remaining useful life = 4 years – Guaranteed Residual Value of $20K Accountants Analysis Relevant Questions 1. Was the junior
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CHAPTER 1 FINANGIAL ACCOUNTING AND ACCOUNTING STANDARDS OVERVIEW Accounting is the language of business. As such‚ accountants collect and communicate economic information about business enterprises or other entities to a wide variety of persons. To be useful‚ financial statements must be clearly understandable and comparable so that users may compare the performance of one business with the performance of the same business for a prior period or with the performance of another similar business
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accounting standards in use through out the world in the next five years? The SEC (Securities and Exchange Commission) which oversees the accounting practices of publicly traded corporations. Is currently implementing plans for the convergence of GAAP into the IFRS as the standard for the U.S. and the world. Currently 110 developed‚ mid level‚ and developing countries use the IFRS as their accounting standard. The SEC has stated that they would like to converge to the IFRS by the end of 2014 but
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chart that includes business units‚ divisions‚ product lines‚ etc.) 2. Based on the form of your business‚ analyze whether or not you will be required to use Generally Accepted Accounting Principles (GAAP) or International Financial Reporting Standards (IFRS) accounting methods and how the IFRS / GAAP convergence will impact your business. Suggest how you will incorporate any changes into your books and records. (Note: You need to demonstrate to the
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Journal of Accounting and Public Policy 26 (2007) 328–375 www.elsevier.com/locate/jaccpubpol Investor relations‚ reputational bonding‚ and corporate governance: The case of Royal Ahold Abe de Jong a‚ Douglas V. DeJong b‚*‚ Gerard Mertens a‚ Peter Roosenboom a b a Department of Financial Management‚ RSM Erasmus University‚ Netherlands Tippie College of Business‚ University of Iowa‚ Iowa City‚ IA 52242‚ United States Abstract Royal Ahold (Koninklijke Ahold NV) was one of the major
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Which Standard: The statement ‘Uniform accounting standards produce uniform financial reporting’ is ideal but untrue. The standard referred to in this essay will be the International Financial Reporting Standards (IFRS). Adoption of IFRS‚ which include old and revised IAS‚ was the approach selected by Europe and many other countries. More than 100 countries have agreed to require or allow adoption of IFRS‚ or have established timelines for the adoption of IFRS. However‚ not all 122 jurisdictions
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