Deegan & Unerman – Financial Accounting Theory 2e Chapter 4 Answer 4.1: Chapter 4 has provided a number of factors which have been suggested to explain why different countries use different systems of accounting. These include: o The extent of economic development within a country. It is argued that as countries become more ‘wealthy’ they tend to develop their own accounting standards (which can be costly). Less developed countries often adopt accounting standards issued by the IASC (which
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Cash Flows at Amazon.com Abstract: This instructional case illustrates how Amazon.com’s strategy has evolved over time and how these characteristics are reflected in the financial statements. A particular emphasis is placed on the cash flow statement. Students evaluate the cash flow statement and examine its articulation with the other financial statements. Students create a direct method cash flow statement in the year of Amazon.com’s initial public offering using the information available
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Chapter 11 Intangibles Intangibles Contents Contents • 1. Introduction to intangibles • 2. Identifiable intangible assets • 3. Measurement of intangible assets subsequently to initial recognition • 4. Disposal/ retirement of intangible assets 2 Contents Contents • 5. Unidentifiable intangible assets － goodwill • 6. Disclosure of intangible assets • 7. Other non-current assets 3 1. 1. Introduction Introduction to to intangibles intangibles • Intangible assets‚ which generally result form legal
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known as FAF‚ has a function of creating standards for financial accounting. They are responsible for the standards created for nongovernmental‚ and state and local levels. The major regulatory body Financial Accounting Standards Boards‚ also known as FASB‚ has a function of developing accounting standards that are in the best interest for the public. They are there to also improve accounting standards. The major regulatory body Governmental Accounting Standards Board‚ also known as GASB‚ has a function
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Financial Statements have to provide high quality financial reporting information with regards to economic entities‚ primarily financial in nature‚ which are useful for economic decision making (FASB‚ 1999; IASB‚ 2008). International Accounting Standards Board (IASB) and Financial Accounting Standards Board (FASB) have been extremely involved in making IFRS the international Accounting Standard. The Securities and Exchange Commission (SEC) has been working on evaluating the implications of incorporating
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References: 2. Cultural Influences on Financial Reporting and Disclosure Practices in Mexico Culture refers to “a set of common ideas‚ beliefs and values that shared by the members of a group of individuals” (Anis 2012) 3.1.1 Harmonisation in North America In the late 1980s‚ North American Free Trade Agreement (NAFTA) emphasized the movements toward the globalization of investment and trade (Quigley 1997) Reference IFRS Adoption by Country n.d.‚ Retrieved April 10th‚ 2012‚ from http://www
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the most recent example of the political process at work in standard setting is the heated debate that occurred on the issue of accounting for business combinations especially in the amortisation of the goodwill in 1996. During the years later‚ the FASB undertook several steps which include open hearing‚ deliberations‚ and requests for written comments from interest party to reach a satisfactory compromise between the preferred method of accounting and the anticipation of adverse economic consequences
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and a conceptual framework of accounting? 3. What advantages or benefits have been advanced by standard setters to support the development of conceptual framework project? Do you agree in practice such benefits will be achieved? 4. The IASB/AASB Conceptual Framework states that the fundamental qualitative characteristics of useful information are relevance and representational faithfulness. Must both of these qualitative characteristics be satisfied before particular information is included in a final report
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Introduction Schipper (2003) who is a member of FASB conducted a study on the rules-based and principles-based accounting standards. The aim of this article is to discuss the attributes and potential effects of transferring from rules-based standards to principles-based standards. To some extent this article is critical‚ but several limitations need to be discussed‚ such as implementation guidance. Summary Schipper (2003) demonstrated that there was a long-running debate on whether U.S. GAAP
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in 1973‚ the International Accounting Standards Committee (IASC) began issuing guidance that was largely voluntary. – Goal: To harmonize global accounting standards. – Took on a new momentum in 2000‚ when EU announced plans to adopt. – In 2001‚ the IASB replaced the IASC. • Today‚ nearly 120 countries require or permit the use of IFRS. – Notably‚ some significant economies have not yet (fully) adopted IFRS: for example‚ Japan‚ China‚ and the U.S. – Some countries have adopted IFRS but retained their
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