Intermediate Accounting E2-1 a. True b. False – General-purpose financial reports also assists other people who don’t have the authority to demand financial information they need and so must rely on the information in financial reports. c. False – standards that are based on individual conceptual framework will result in different conclusions being drawn on similar issues‚ and thus would not be consistent and comparable. d. False – General purpose financial reports are also beneficial
Premium Generally Accepted Accounting Principles International Financial Reporting Standards Income statement
Introduction Assumptions‚ principles‚ and constraints are the operational guidelines set by the FASB. These principles where put in place to provide a foundation‚ with specific rules on how to report economic events‚ while allowing for constraints or relaxation of the principles under certain circumstances. Assumption of accounting There are two assumptions in accounting that provide a solid foundation for accounting‚ the monetary unit assumption and the economic entity assumption. The monetary
Premium Financial Accounting Standards Board International Financial Reporting Standards Generally Accepted Accounting Principles
of operation while in existence‚ and the reasons for the demise of the first two indicate an increasing politicalization (as the term is used in the broad sense) of accounting standard setting? Explain you answer by indicating how the CAP‚ APB‚ and FASB operated or operate. Cite specific developments that tend to support your answer. b) What arguments can be raised to support the politicalization of accounting standard setting? c) What arguments can be raised against the politicalization
Premium Financial Accounting Standards Board
activities‚ Securities and Exchange Commission (SEC) which is an independent federal agency that is responsible for regulating securities market in which stocks and bonds of the major companies is traded‚ Financial Accounting Standards Board (FASB) which is the largest independent US body that is responsible for establishing and interpreting the accounting standards and practices known as the Generally Accepted Accounting Principles‚ Financial Accounting Foundation (FAF) which is a private
Premium Financial Accounting Standards Board Finance Certified Public Accountant
International Accounting Standards Board (IASB) (Ruth‚ P et al‚ 2006). In the past‚ Australian Accounting Standard Board was responsible for the development of a conceptual framework of accounting. It aim to define the nature‚ subject‚ purpose and broad content of general purpose financial reporting. Later‚ in 2002‚ Financial Reporting Council (FRC) made a decision that Australia would adopt accounting standards issued by the International Accounting Standard Board (IASB) from 2005. Since then‚ the related
Premium International Financial Reporting Standards Financial statements
functioning of capital and other markets by promoting the efficient and equitable allocation of scarce resources in the economy. Each of the primary leaders of accounting standards‚ the International Accounting Standard Board (IASB) and Financial Accounting Standard Board (FASB)‚ developed its conceptual framework for financial reporting‚ which is a coherent system of concepts that flow from an objective. The objective identifies the purpose of financial reporting. The concepts provide guidance for
Premium International Financial Reporting Standards Decision making Financial statements
the resolution of problems as they became evident and to do substantive research on individual issues before pronouncements were issued. 16. Rule 203 of the Code of Professional Conduct prohibits a member of the AICPA from expressing an opinion that financial statements conform with GAAP if those statements contain a material departure from an accounting principle promulgated by the FASB‚ or its predecessors‚ the APB and the CAP‚ unless the member can demonstrate that because of unusual circumstances
Premium Financial statements Balance sheet Financial Accounting Standards Board
cash flows to be derived from the asset on an undiscounted basis” (FASB‚ ASC 360-10). In the Property Solutions Inc. case‚ the carrying value of the building on 10/1/2017 was $1‚650‚000 and the expected future cash flows are $1‚214‚940. Per the definition of impairment loss stated above‚ the asset is impaired. In calculating the loss‚ we must compare the carrying value to the fair value of the asset. Under both ASC 820-10 of the FASB codification and SFAS No. 157‚ fair value is defined as “The price
Premium Generally Accepted Accounting Principles Asset Balance sheet
dates no later than 1 January 2012. Amendments with an effective date later than 1 January 2012 MFRS 3 has been amended by: MFRS 9 Financial Instruments* (IFRS 9 Financial Instruments issued by IASB in November 2009) MFRS 9 Financial Instruments* (IFRS 9 Financial Instruments issued by IASB in October 2010) MFRS 10 Consolidated Financial Statements* MFRS 13 Fair Value Measurement* Those amendments have an effective date after 1 January 2012 and are therefore not included in this
Premium International Financial Reporting Standards Balance sheet Asset
PhD‚ CFA‚ FRM 3 IASB‚ IAS NO. 18‚ REVENUE Conditions for recognizing revenue 21/5/2013 Transfer the risk and rewards of ownership of goods No retention of Managerial involvement and effective control Amounts can be measured reliably Probability of flow of economic benefits Cost incurred or to be incurred can be measured reliably Kumail Rizvi‚ PhD‚ CFA‚ FRM Goods sold on consignment should not be recognized when transferred 4 IASB‚ IAS NO. 18‚ SERVICES
Premium Financial statements International Financial Reporting Standards Revenue