deals with disclosure of Accounting Principles and policies used for preparation of financial statements of the companies. 2. AS 2: Valuation of Inventories- * It deals with determination of amount of inventory to be shown in financial statements. It is not applicable to shares‚ debentures‚ stock etc. The cost formulae prescribed are FIFO‚ weighted average. 3. AS 3: Cash Flow Statements- * It standard requires companies to report cash generation and utilization. Cash flow is
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Ethics Case 4-7 – Income Statement Presentation of Unusual Loss Requirement The Cranor Corporation suffered $10 million in expenses linked to a product recall. The company had endured product recalls in the past and they still occur in the business. To show revenue from continuing operations‚ Jim Dietz‚ the controller‚ wishes to describe the $10 million as an extraordinary loss‚ instead of an expense included in operating income. He states to the CEO that the company has never had a product
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This document ACC 205 Week 5 Discussion Question 2 Current Liabilities comprises solution of this task: "There are two types of current liabilities that must be estimated. Describe them and explain why they must be estimated. How are the financial statements affected if they are not estimated? Respond to at least two of your classmates Deadline: ( )‚ Business - Accounting Week1 D1: As you have learned in this week’s readings the Accounting Equation is + Owners’ Equity. Is the accounting equation
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accounts affect the income statement and the balance sheet? Balance Sheet: When the Allowance for Uncollectible Accounts‚ a contra asset account‚ is reported on the balance sheet‚ the company expects that some of its accounts receivable will not be collected. It will debit Bad Debt Expense and credit Allowance for Uncollectible Accounts. This will result in reduction of “Current Assets” on balance sheet. Income Statement: This will also result in an expense on the income statement (Earlier than it
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ended 31 March 2011. UNAUDITED CONSOLIDATED INCOME STATEMENT 1ST QUARTER ENDED 31/3/2011 RM Million 31/3/2010 RM Million FINANCIAL PERIOD ENDED 31/3/2011 RM Million 31/3/2010 RM Million OPERATING REVENUE OPERATING COSTS - depreciation‚ impairment and amortisation - other operating costs OTHER OPERATING INCOME (net) OTHER GAINS (net) OPERATING PROFIT BEFORE FINANCE COST FINANCE INCOME FINANCE COST FOREIGN EXCHANGE GAIN ON BORROWINGS NET FINANCE (COST)/INCOME ASSOCIATES - share of results (net of tax)
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What are some of the key differences between IFRS and U.S. GAAP? The International Financial Reporting Standards (IFRS) - the accounting standard used in more than 110 countries - has some key differences from the U.S. Generally Accepted Accounting Principles (GAAP). At the conceptually level‚ IFRS is considered more of a "principles based" accounting standard in contrast to U.S. GAAP which is considered more "rules based." By being more "principles based"‚ IFRS‚ arguably‚ represents and captures
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explaining what EFN is. EFN is external funds needed and is calculated as the difference between the projected total assets and the projected total liabilities and equity. To calculate the EFN‚ we start with the income statement to get the amount of net income. To make the income statement‚ were supplied with a revenue growth of 8% for the next three years. Also‚ there is extra revenue from new initiatives from consulting and warehousing. All this gives us total revenues. To estimate expenses‚ we
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1. Week 8 / Checkpoint The differences between direct and indirect that they involve the way Cash Flow are from operations of activities. This I do recall is the first part of the Cash Flow Statement. The differences are to each are to follow. Direct Presentation: involves the cash flows in which analyze the company results and uses of cash. There are three parts that report cash receipts and cash payments. These parts are operations‚ investments‚ and finance transactions. Operating transactions
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Group Case Study “Microsoft’s Financial Reporting Strategy” Microsoft’s Financial Reporting Strategy ABSTRACT 2 This case study examines the factors explaining the difference between Microsoft’s market value of equity to book value of equity and overall financial reporting strategies employed at the firm. We analyzed financial information dating from 1985 to 1999 and 2011 annual report provided by Microsoft. We found factors explaining market value of equity are perceived risk and future cash
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balance of $900. After analyzing the accounts in the accounts receivable subsidiary ledger‚ the company’s management estimates that uncollectible accounts will be $15‚000. What will be the amount of uncollectible accounts expense reported on the income statement? 1/11/2011 | Accounts Receivable | a | $ 900.00 | | | Sales revenue | a | | $ 900.00 | | Uncollectable-Account expense | b | $ 15‚000.00 | | | Allowance for uncollectible accounts | b | | $ 15‚000.00 | |
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