Accounting and GAAP recognition of revenue under SAB 101 and SAB 104 for supermarket customer loyalty cards and points issued on airlines frequent flyer programs. Customer loyalty programs and rewards programs are structured marketing efforts that reward customers who are loyal and regularly buy products and services from the same company. Customer loyalty programs and rewards programs are used to incentivize customers‚ build customers’ allegiance to the company’s brand and increase sales of the
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GAAP / IFRS Fiat Group’s first-time adoption of IFRS Differences Between Key Accounting Methods Under Italian GAAP And IFRS What characterizes the differences between the two sets of methods? - Substance over form Example: Recognition of revenue - Less flexibility Example: Recognition of R&D cost - More transparent Main factors that affect management’s reporting incentives and strategy in fiscal year 2005 - Research & Development: Because Fiat main operations are based on the manufacturing
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matching as deferred costs are now expensed when incurred. It also better reflects the costs of employees as stock option compensation is now expensed. Question 2: Summarize the differences between Fiat’s key accounting methods under Italian GAAP and those under IFRS. What characterizes the differences between two sets of methods? From the perspective of
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constraints and industry practice‚ GAAP principles are not always applied strictly but are modified as necessary. The following are some commonly observed modifying conventions: Materiality convention - a modifying convention that relaxes certain GAAP requirements if the impact is not large enough to influence decisions. Users of the information should not be overburdened with information overload. Cost-benefit convention - a modifying convention that relaxes GAAP requirements if the expected cost
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values Influenced by GAAP choices Backward looking Financial Ratios Strengths ◦ Adjusts for size differences (relative measure) ◦ Provides comparative measures of efficiency and growth Weaknesses ◦ Based on book‚ not market values ◦ Influenced by GAAP choices ◦ Iidentification of “norm” is problematic EPS and P/E Ratios Strengths ◦ Widely used and recognized ◦ Linked to market price of stock Weaknesses ◦ ◦ ◦ ◦ EPS influenced by GAAP choices EPS not
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I.Issues Why does net income not equal cash flows? Why do we need accrual accounting? (Why do not we fire all accountants and just publish summary bank statements) Why do the differences between owners’‚ players’‚ GAAP and truth number exist?(Can accounting numbers be neutral representations of what happened? What happens if a retired non-roster player (e.g. Joe Portocararo) returns to the active roster while continuing to earn the same money promised him in his guaranteed contract? Of what
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income under Country A GAAP. SKD amortizes goodwill over a longer period (20 years) than is allowed in Country B (5 years)‚ so an additional amount of goodwill amortization expense must be recognized to determine income under Country B GAAP‚ which reduces Country B GAAP income. b. The goodwill adjustment affects the retained earnings in stockholders’ equity. The increase in Country A GAAP income results in an increase in retained earnings and the decrease in Country B GAAP income results in a decrease
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Principles (GAAP). According to GAAP‚ the recording of land value or any asset belonging to a company is to be reported based on the historical cost principle‚ which is the actual cost paid for the land and not fair market value (U. S. GAAP‚ n.d.). Jason P. Browning (2011)‚ an eHow contributor states that an asset can never be restated in a way that reflects appreciation in value (an increase in value due to inflation‚ supply and demand‚ improvements‚ etc.). When it comes to bad debt‚ GAAP has stipulated
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investor and a debt investor and understand the difference * Discuss the role of the Securities and Exchange Commission * Name the Big Four accounting firms and define the term “independent auditor” * Define corporate governance * Discuss GAAP and IFRS and the concept of rules-based versus principles-based * Discuss the roles of the board of directors and the audit committee * Discuss the basics of Sarbanes-Oxley * ------------------------------------------------- Discuss how
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change for companies and accountants but there are a few similarities between the IFRS and US GAAP. When it comes to financial statement presentation‚ they both include a statement of financial position‚ an income statement‚ a statement of comprehensive income‚ and a
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