Financial Accounting Standards Board (FASB) has been working for ten years to bridge the gap between the United States’ Generally Accepted Accounting Principles (GAAP) and the International Accounting Standards Board (IASB). As part of this movement‚ Russell Golden‚ the chairman of the FASB‚ indicated that he would like to focus on making corporate disclosures more consistent. By doing so‚ it would be easier for investors to compare companies from different sectors. The FASB is “working on a framework to
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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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Week 2 Exercise E1-1 SEC – K Audit – G Sole Proprietorship – I Corporation – E Accounting – A Accounting Entity – D Audit Report – J Cost Principle – F Partnership – C FASB – L IASB – H Unit of Measure – B GAAP – N IFRS – M E1-2 Accounts receivable – Asset Cash and cash equivalents – Asset Net sales – Revenue Notes payable – Liability Taxes payable – Liability Retained earnings – Stockholders’ Equity Cost of products sold – Expense Marketing‚ administrative and
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1 Financial Accounting and Accounting Standards CHAPTER STUDY OBJECTIVES 1. 2. 3. 4. 5. 6. 7. 8. 9. 10. Describe the essential characteristics of accounting. Identify the major financial statements and other means of financial reporting. Explain how accounting assists in the efficient use of scarce resources. Identify some of the challenges facing accounting. Identify the objectives of financial reporting. Explain the need for accounting standards. Identify the major policy-setting bodies and their
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used. These standards are decided by the Financial Accounting Standards Board (FASB) and are called generally accepted accounting principles (GAAP). International Financial Reporting Standards (IFRS) is a set of international accounting standards stating how particular types of transactions and other events should be reported in financial statements. IFRS are issued by the International Accounting Standards Board (IASB). The goal with IFRS is to make international comparisons as easy as possible
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discounts‚ the allowance method to account for bad debt and factoring are basically the same between IFRS and GAAP. However‚ the FASB (Financial Accounting Standards Board) and IASB (International Accounting Standards Board) are taking steps by working to implement fair value measurement‚ the amount they currently could be sold for‚ for financial instruments. “The FASB and IASB are facing opposition from various factors thus have adopted a piecemeal approach. Step one is to disclose the fair value information
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to come from a super national organization and combine principals of many different countries. 4. What is the role of each of the following supra-national organizations? a. International Accounting Standards Board (IASB) -Developed as a parent entity of the IASB‚ it is an independent standards setter that assumes accounting standards setting responsibilities from IASC. b. International Federation of Accountants (IFAC) -Organizational accounting organization that represents
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willing to provide a second set of standards. Now‚ for the first time‚ there may be an answer for small firms desiring relief from the onerous reporting requirements of GAAP. The AICPA now recognizes the International Accounting Standards Board’s (IASB) recently released International Financial Reporting Standard for Small and MediumSized Entities (IFRS for SMEs)‚ as an official set of accounting standards to be audited against. Now that separate accounting principles designed specifically for
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Foreign companies use foreign currencies for their expenditures‚ hedging strategies‚ and investing and financing activities. As a result these business activities must be reflected on the financial statements in the corporation’s reporting currency. FASB 52 and IAS 21 provide the appropriate guidance on the consideration of which functional currency should be implemented by the foreign subsidiaries. This case focuses in Sparkle a Nigerian subsidiary of a joint venture formed by U.S. – based companies
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contain fewer standards‚ but applying the two main standards to complex transactions were difficult and needed improvement (Australian Accounting Standards Board‚ 2010). Accordingly‚ the International Accounting Standards Board (IASB) and the Financial Accounting Standards Board (FASB) initiated a joint project to clarify the revenue recognising principles and to establish a common revenue standard that would: (a) remove inconsistencies in existing standards; (b) provide a sturdier
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