accounting are compared. The four ways to organize a business – proprietorship‚ partnership‚ limited – liability company‚ and corporation‚ are discussed. An introduction and contrast of the Financial Accounting Standards Board (FASB) and the International Accounting Standards Board (IASB) is done. The Entity Assumption‚ Continuity (Going Concern) Assumption‚ Historical Cost Principle‚ and Stable – Monetary – Unit Assumption are explained. The accounting equation – Assets = Liabilities + Stockholder’s
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Introduction The globalisation of business and commerce has become an increasingly significant reality worldwide: in 2000‚ the global trade in goods and services reached 25% of world GDP (Govidarajan & Gupta 2000)‚ while in terms of manufactured goods‚ international trade has multiplied by more than 100 times since 1955 (Schifferes 2007). The rise of globalisation posits a number of important challenges to a business seeking international presence. Numerous strategic aspects must be taken into
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1. Several types of entities provide financial information to a variety of external users. Our primary focus in this book is on the financial information that profit-oriented companies provide to present and potential investors and to creditors. These profit-oriented companies also provide financial information that is used by financial intermediaries such as financial analysts‚ stockbrokers‚ mutual fund managers‚ and credit rating agencies. Not-for-profit organizations also provide financial
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Cited: "Financial Statement Presentation Staff Draft of an Exposure Draft." FASB. Financial Accounting Standards Board‚ July 2010. Web. 04 Nov. 2012. <http://www.fasb.org/>. "IAS 1." IAS Plus. Global Services Limited‚ June 2011. Web. 04 Nov. 2012. <http://www.iasplus.com/standard/ias01.htm>. "IFRS vs. GAAP Financial
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“recent developments”‚ and nothing major came up in regards to the individual organizations. However‚ on expert-comptables.fr‚ I came across a press release that was released in regards to the IASB and FASB giving an update to the Memorandum of Understanding. This press release shows how the IASB and the FASB have plans to commit to a common set of high quality standards. It also laid out several projects over the next few years to reach this common goal of a higher quality‚ better consistency‚ and
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Example Test Questions Chapter 1 Multiple Choice: 1. Which of the following bodies has the ultimate authority to issue accounting pronouncements in the United States? a. Securities and Exchange Commission b. Financial Accounting Standards Board c. International Accounting Standards Committee d. Internal Revenue Service Answer a 2. What historical evidence of the business operations of the private estate of Apollonius was discovered early inthe20th century? a. The Iliad b. Plato ’s Republic
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Authoritative accounting bodies in the USA such as Financial Accounting Standard Board (FASB)‚ Securities and Exchange Commission (SEC)‚ General Accounting Office (GAO)‚ American Institute of Certified Public Accountants (AICPA) and in the international arena‚ The International Accounting Standards Committee (IASC) have contributed to clarify the materiality concept. FASB Concepts Statement No. 2‚ Qualitative Characteristics of Accounting Information (1980) defines materiality
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why it is needed. The CF can be described as a “coherent system of inter-related objectives and fundamentals that should lead to consistent standards that prescribe the nature‚ function and limits of financial accounting and financial statements” (FASB‚ 1976). This suggests that the CF has a very important role in attempting to maintain domestic and international standards of practice. The CF also provides structure to the process of creating financial reporting standards and ensures that standards
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Lecture 2: Study Week 2 The Accounting Equation & the Double Entry System Objectives for today 1. Analyzing transactions using the Accounting Equation 2. Next Week: How do firms actually measure Income?: Accrual vs. Cash Accounting g 3. Next Week: Determine when a company should record revenues and Expenses: The Matching Principle The Operating Cycle Start with cash and end with more cash Collect cash from customers Purchase inventory Make sales to customers The Recording
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10/13/2014 Brian Friedel Comparing IFRS to GAAP Essay In the Accounting industry‚ there are various principles and guidelines by which financial accountants‚ analysts‚ and organizations need to abide by. The International Accounting Standards Board (IASB) issues standards (IFRS) that have been adopted by the United States and several countries outside of the U.S. (Kimmel‚ Weygandt & Kieso‚ 2010). The IFRS along with Generally Accepted Accounting Principles (GAAP)‚ professionals in the accounting industry
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