From 2011‚ Canadian publicly accountable entities will cease to report under Canadian GAAP and instead use IFRS. This paper discusses three accounting topics to compare Canadian GAAP with IFRS. The three topics cover (1) conceptual framework‚ (2) property‚ plant and equipment‚ and (3) financial statement presentation. Conceptual Framework Both IFRS and Canadian GAAP are based on similar conceptual frameworks. Many of the basic concepts in IFRS (e.g.‚ the going concern assumption‚ accrual accounting)
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Plan Analysis: Although Blaine’s current financial situation is sound with no debt‚ its current balance sheet is under levered and over liquid compare to its peers. The current financial structure earns little return on the short-term assets while does not allow the firm to benefit from any debt interest tax shield. The proposed capital structure will benefit the company by levering its balance sheet. It will provide an interest tax shield for the income thus increasing the value of the firm for
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emergency services. Unfortunately‚ in 2009‚ due to declines in stock and real estate markets‚ Patton- Fuller Community Hospital began to see significant changes in the overall financial decision making of the organization. Financial statements and balance sheets from 2008 and 2009 were drawn to examine the comparable changes that resulted in reassessing company investments. Favorable decisions made by the Board and the CFO‚ which despite the uneven economy provided this organization the confident to be
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difference among current assets and noncurrent assets is the time it takes for them to liquidate when needed. The order of liquidity is presented on the balance sheet in the order of the amount of time it takes to convert each one into cash‚ from least to greatest. Cash and cash equivalents are the first current assets that are listed on the balance sheet‚ followed by the remaining current assets‚ and finished with noncurrent assets. Current and noncurrent assets are equally as important. Current assets
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the bank balance of $18‚900 at March 31. This is not valid for determining income because it only shows the change in cash between to points in time. b) Using the balance sheet to conclude the net income is not valid because there is no net income on the balance sheet. You get the net income from the income statement and it goes on the balance sheet when you close the books for the year. Then it moves to the retained earnings segment in the balance sheet. At March 31 the balance sheet does not
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concern‚ at the end of its financial period‚ prepares Income Statements and Balance Sheet. Income Statements show the net result‚ Net Profit‚ of the business operations and contains various expenses incurred and losses and revenue earned during that period. Balance Sheet gives a summary of assets and liabilities as on a particular date and shows the financial position of the business. The liabilities side of a balance sheet shows the sources from where funds are raised and the assets side shows how
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loan for the remaining balance. | + | - | - | f) Received $11‚000 cash from the owner as an investment in the business. | + | - | + | g) Returned a new computer and printer purchased earlier in the month on account. The bill had not as yet been paid. | - | - | + | h) Paid the utility bill recorded previously in (b) | + | + | - | 3. Balance sheet preparation. The following data relate to Preston Company as of December 31‚ 19XX: Preston Company Balance Sheet December 31‚ 19XX
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1. a) b) c) d) A firm has the following items on its balance sheet: Cash $20‚000‚000 inventory 134‚000‚000 Notes Payable to bank 31‚500‚000 common stock ($10 par; 1‚000‚000) 10‚000‚000 Retained earnings 98‚500‚000 Describe how each of these account would appear after: A cash dividend of $1 per share Cash will decrease by $1‚000‚000. Retained earnings will decrease by $1‚000‚000. All other accounts are not affected. A 10 percent stock dividend (fair market value of stock is $13 per
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positive net income for the three years prior to year 14‚ the cash that the company had on the balance sheet was much lower than the net income. In year 14 the company showed cash on the balance sheet of $159‚000 but net income was negative $3.83 million. Companies have a way of manipulating net income but it is much harder to manipulate cash on the balance sheet. Looking at a company’s cash on a balance sheet is a greater indicator of financial health over net income. The company‚ in order to avoid
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value and confirmatory value b. Comparability‚ consistency‚ and confirmatory value c. Understandability‚ predictive value‚ and reliability d. Completeness‚ neutrality‚ and freedom from error 2. The amount reported as “Cash” on a company’s balance sheet normally should exclude a. Postdated checks that are payable to the company b. Cash in a payroll account c. Undelivered checks written and signed by the company d. Petty cash 3. Which of the following reconciling items would require an adjusting
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