and US GAAP The IASB and the US Financial Accounting Standards Board (FASB) have been working together since 2002 to achieve convergence of IFRSs and US generally accepted accounting principles (GAAP). A common set of high quality global standards remains a priority of both the IASB and the FASB. In September 2002 the IASB and the FASB agreed to work together‚ in consultation with other national and regional bodies‚ to remove the differences between international standards and US GAAP. This
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opposed to following a list of rules. True False 8. Under federal securities laws‚ the SEC has the authority to set accounting standards in the United States. True False 9. The primary responsibility for properly applying GAAP when communicating with investors and creditors through financial statements lies with a firm ’s auditors. True False 10. Auditors play an important role in the resource allocation process by adding credibility to financial statements
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31‚ 2010. Of the three options the best alternative seems to be offering a discount if the customer takes the product by December 31‚ 2010. Giving discounts to a buyer is not an uncommon practice and is not an illegal practice that is defined by the GAAP or the SEC. If the product is delivered to the buyer by the December 31‚ 2010 deadline the sale will be legitimate and the $1.2 million dollars can be appropriately recorded in 2010. Transferring the product to the buyer before January in order to
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Solutions for some acct 400 cases here - http://novellaqalive2.mheducation.com/sites/dl/premium/0070930317/instructor/237732/ Chapter 10 Suggested Time Case 10-1 Good Quality Auto Parts 10-2 Canadian Wilderness Wonders Inc 10-3 Provincial Hydro 10-4 May Company 10-5 Canadian Energy Corporation Assignment 10-1 Amortization policy 10 10-2 Amortization policy 15 10-3 Amortization computation 15 10-4 Amortization computation (*W) 25 10-5 Amortization schedule 30 10-6 Analysis
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for secondary format. The US GAAP use the management approach whereby segments are determine based on how information is presented to the decision maker for allocation of resources. The product revenue‚ assets‚ and location are required‚ regardless by the decision of management. IFRS 8 converges international accounting with US GAAP by utilizing the management approach to determine reportable segments. The two major differences will remain under IFRS 8. Firstly‚ US GAAP requires companies with a matrix
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opinion‚ was this a proper accounting practice? Explain. Though this may not be out of the ordinary for WorldCom‚ this is not a correct accounting practice. The way the entries were made does not comply with the proper account practice according to GAAP. Detailed support is an important part of providing support to a journal entry and it explains the reason or purpose as to why the journal entry was created. 2. Based on GAPP‚ describe the propriety or impropriety of releasing of $150 million in
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Chapter 1 BE1-1 Briefly define accounting. What are the three main characteristics of accounting? Is accounting static or dynamic? Accounting collects‚ analyzes‚ measures and records financial information about an organization and reports that information to stakeholders and decision makers. Accounting has 3 essential characteristics. Accounting is the (1) identification‚ measurement‚ and communication of financial information about economic entities to interested persons. Like social
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Revenue recognition on FASB and IASB convergence process I. CONVERGENCE OF U.S. GAAP AND IFRS Since 2002‚ Financial Accounting Standards Board (FASB) and International Accounting Standards Board’s (IASB) have been working toward “convergence” of US General Accepted Accounting Principles (GAAP) and International Financial Reporting Standards (IFRS). They have made significant progress in efforts to converge critical accounting standards such as those dealing with revenue recognition‚
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the Securities and Exchange Commission. The information contained in the forward looking statements is provided as of the date of such oral statements and the company disclaims any obligation to update such statements. This document includes the non-GAAP financial measure of “Adjusted EBITDA” which we define as net income/loss excluding: provision for income taxes; interest and other income
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and continuance. Lowering audit risk. Lowering materiality. Engagement risk cannot be eliminated. The achieved (actual) level of audit risk Can always be accurately assessed by the auditor. Should be greater than or equal to acceptable audit risk. Can never be known with certainty. Is the same for all audit clients. An auditor knows that an audit client operating in an industry in which common stock is valued based on the price-earnings ratio will soon make an initial
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