accounting principles (GAAP). These standards make it easier for users to understand and use the financial records of both state and local governments. The Government Accounting Standards Board (GASB) is funded and monitored by the Financial Accounting Foundation (FAF). The GASB was created in 1984 to succeed the National Council on Governmental Accounting (NCGA) by agreement. Although the GASB does not have the power to enforce compliance with the standards it promulgates‚ the authority for its
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In today’s unpredictable stock markets‚ it is extremely important for investors to expand investments to minimize risk and earn reasonable returns on funds. The diversification does not have to be restricted to domestic companies because of opportunities available in foreign markets. On the other hand‚ securities analysis becomes more complex because of supplementary variables such as foreign exchange risk‚ political‚ economic‚ cultural diversities‚ etc. that need to be taken into deliberation in
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Troy University ABSTRACT The accounting profession is on the precipice of one of the biggest changes to face it since the 1930s. In the very near future‚ there is a strong possibility that United States generally accepted accounting principles (GAAP)‚ as it is known today‚ will cease to exist. In its place will be a global standard encompassed by the International Financial Reporting Standards (IFRS). This paper will provide a history of IFRS and discuss the timeline of convergence‚ along with
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Abstract Have you ever wondered how not-for-profit organizations are not-for-profit? Or how not-for-profit organizations can operate at an accounting profit but still be considered a not-for-profit organization? Over the year’‚ not-for-profit organizations have had many changes in rules and regulations set forth for not-for-profit organizations to abide by. There are three major financial statements involved with not-for-profit organizations and one voluntary financial statement‚ plus four key governmental
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information that has been gathered over a period of time. This will show the companies assets and liabilities. The auditor will examine these entries and see if everything is accurately presented. The auditor will verify that the company is following the GAAP.
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general-purpose financial statements are geared is the shareholder. True False 13. Canadian corporations are prohibited from using U.S. GAAP. True False 14. A company’s functional currency is the currency in which it conducts most of its business. True False 15. The disclosed basis of accounting (DBA) refers to the use of Non-GAAP accounting policies by private companies. True False 16. A wholly-owned subsidiary of a multinational corporation is essentially a private
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CHAPTER 1 FINANCIAL ACCOUNTING AND ACCOUNTING STANDARDS IFRS questions are available at the end of this chapter. TRUE-FALSE—Conceptual Answer No. Description F 1. Definition of financial accounting. T 2. Purpose of financial statements. T 3. Definition of financial accounting. T 4. Capital allocation process. F 5. Financial reports. F 6. Fair value information. F 7. Objectives of financial reporting. F 8. Accrual accounting. T 9. Generally accepted accounting principles. T 10. Users
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Decision-Usefulness approach. Users of financial statements. Committee on Accounting Procedure. Passage of FASB standards. Financial Accounting Concepts. Creation of Accounting Principles Board. FASB Codification. Code of Professional Conduct. GAAP and political action. Public Company Accounting Oversight Board. Expectations gap. Financial reports. Fair value information. International Financial Reporting Standards. Ethical issues. MULTIPLE CHOICE—Conceptual Answer a d d a d b
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Force. b 20. Purpose of GASB. c 21. Domain of GASB. c 22. Standard setting organizations. d 23. Identification of standard setting organizations. d 24. Nature of GAAP. d 25. Body which promulgates GAAP. d 26. Authoritative category of GAAP. d 27. Publications which are not GAAP. d 28. Publications which are not GAAP. a 29. Political environment of standard setting. c 30. International Accounting Standards Committee. Exercises Item Description E1-31 Objectives of financial
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Comparison of United States‚ United Kingdom‚ and Chinese Accounting Systems‚ Accounting Standards‚ Accounting Practices This report discusses the accounting practices of the following countries U.K‚ U.S.A and China. An analysis of these different accounting systems will be conducted on issues such as the growth and background‚ social‚ economic and fiscal pressures that have led to each nations current characteristics. Concluding on the direction each nations accounting systems and practices seem
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