ACCOUNTING CONCEPT AND CONVENTIONS In drawing up accounting statements‚ whether they are external "financial accounts" or internally-focused "management accounts"‚ a clear objective has to be that the accounts fairly reflect the true "substance" of the business and the results of its operation. The theory of accounting has‚ therefore‚ developed the concept of a "true and fair view". The true and fair view is applied in ensuring and assessing whether accounts do indeed portray accurately the business
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serve two purposes: to identify and vote on proposed modifications and exceptions to U.S. GAAP for private companies as well as advise the Financial Accounting Standards Board (FASB) on private company considerations for the FASB’s projects. The overarching intent of the PCC is improve the process of setting accounting standards for private companies by modifying Generally Accepted Accounting Principles (GAAP) to better accommodate private companies and the users of their financial statements.
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above 3. The accounting for fair value hedges records the derivative at its a. amortized cost. b. carrying value. c. fair value. d. historical cost. e. None of the above 4. Which of the following is a financial instrument under U.S. GAAP? a. a consolidated investee b. an equity method investment c. buildings and land d. treasury stock e. None of the above 5. How are derivative financial instruments valued on the balance sheet? a. historical cost b. amortized cost
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Activity-based costing (ABC) is a costing method that assigns value to each activity resource to all products and services according to the cost of its usage. it gives indirect costs (overhead) into direct costs so that an organization can correctly estimate the cost of its individual products and services to identify and eliminate the unprofitable and lower the prices of the overpriced. Normally‚ it is used as a tool for understanding product and customer cost and profitability. But ABC has also
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Background Smooth Sailing is a private company that operates one cruise ship. Recently‚ pirate activity in the area where the cruise ship operates has increased‚ thus affecting the cruise ship’s potential future cash flows. The cash flow decline has directly contributed to a decline in the overall fair value of the cruise ship. Smooth Sailing has determined three possible options for its future‚ along with the probabilities of occurrence and estimated cash flows (ECF): 1. Continue operating
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what is an intangible asset? An intangible asset is an asset that does not have physical substance. Some examples include patents‚ copyrights‚ and goodwill. ii. Which intangible assets appear on a company’s balance sheet under U.S. GAAP? Describe how U.S. GAAP determines whether an intangible asset is included in the balance sheet. iii. Briefly describe how the accounting for intangibles differs under IFRS. To answer this question‚ you might use the Internet and search for IAS 38‚ the standard
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Journal of Accounting and Public Policy 26 (2007) 328–375 www.elsevier.com/locate/jaccpubpol Investor relations‚ reputational bonding‚ and corporate governance: The case of Royal Ahold Abe de Jong a‚ Douglas V. DeJong b‚*‚ Gerard Mertens a‚ Peter Roosenboom a b a Department of Financial Management‚ RSM Erasmus University‚ Netherlands Tippie College of Business‚ University of Iowa‚ Iowa City‚ IA 52242‚ United States Abstract Royal Ahold (Koninklijke Ahold NV) was one of the major
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business world throughout the integration of U.S Generally Accepted Accounting Principle (GAAP) and International Financial Reporting Standards (IFRS). The purpose of the following research is to evaluate the project being conducted on financial accounting theory: Investment Property Entities. The FASB project serves as the mediator and as an attempt to resolve the differences being presented between U.S. GAAP and IFRS as it relates to operating leases. Historical Development The Federal
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has been determined that the issuance of an unqualified audit report would be appropriate. There were errors or deviations discovered during the audit involving financial statements ending December 31‚ 2006‚ and 2007‚ but it was not a departure from GAAP and therefore unnecessary to provide an explanatory paragraph. Because the audit evidence is deemed sufficient‚ the audit report will follow the standard unqualified audit report. The purpose of this audit report is to primarily communicate the findings
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What Is the History of the Accounting Profession? By an eHow Contributor ? Accounting has been around for centuries. The Romans had a modern tax system complete with sales tax‚ land tax and a flat rate citizen tax. The Roman Empire employed tax collectors that kept track of collections through a rudimentary accounting system. Today‚ accounting is a career. Most U.S. colleges and universities offer tax or accounting degrees at the bachelor’s‚ masters and doctorate levels. Double-Entry
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