Chapter 1 A Survey of International Accounting A brief description of the major points covered in each case and problem. CASES Case 1 In this case‚ students are introduced to the difference in accounting for R&D costs between IFRS and U.S. GAAP and asked to comment on whether one method is better than the other‚ as well as whether any part of R&D should be capitalized. Case 2 (prepared by Peter Secord‚ Saint Mary’s University) In this real life case‚ students are asked
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1.In general‚ ending inventory is stated at historical cost (what was paid to obtain it) but what if when the original cost of the ending inventory is greater than the cost of replacement? Thus the inventory has lost value. If the inventory has decreased in value below historical cost then its carrying value is reduced and reported on the balance sheet. The criterion for reporting this is the current market value. Any loss resulting from the decline in the value of inventory is charged to cost of
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accounting concepts. Within this chapter we covered revenue and expense recognition principle‚ adjusting entries‚ the purpose of adjusted trial balances‚ accruals‚ cash accounting‚ etc. We will be going over the accrual‚ cash accounting and cash basis accounting. Accruals/Cash Accounting The difference between accruals and cash accounting is the timing when the revenue and expense are recognized. Accrual accounting basis of accounting revenues are reported on the income statement when they are
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Jeremy Barker Accounting 201-001 Prof Abavana 9/17/12 CA1-18 a) The ethical issue is the corporate reporting department is not recording the late entries and reporting incorrect numbers on purpose. b) Troy Normand is acting immorally because as a manager he is not making sure that the numbers are being recorded correctly. c) I would have done what a manager supposed to do and make sure the numbers and late entries are being recorded correctly. d) The major stakeholders are the
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Student Attendance System Based On Fingerprint Recognition and One-to-Many Matching A thesis submitted in partial fulfillment of the requirements for the degree of Bachelor of Computer Application in Computer Science by Sachin (Roll no. 107cs016) and Arun Sharma (Roll no. 107cs015) Under the guidance of : Prof. R.C. Tripathi Department of Computer Science and Engineering National Institute of Technology Rourkela Rourkela-769 008‚ Orissa‚ India 2 . Dedicated to Our
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amount even if it is hard to estimate‚ (2) Raise the prices and do not record the estimated returns considering it would be immaterial‚ and (3) Revenue recognition should be deferred until the payment is made. We have searched FASB codification by using the key work “right of return”. In addition‚ we have researched Codification topics 605 Revenue Recognition. Four relevant hits have been found. FASB ASC 605-15-15-2 states that sales in which a product may be returned‚ whether as a matter of contract
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BUSINESS ANALYSIS AND VALUATION REPORT Scheduled Class: Monday 2:00pm to 5:00pm 1. Introduction Harvey Norman is now a public company that is listed on the stock exchange‚ whose principal activities primarily consist of an integrated franchising‚ retail and property entity. It is one of Australia’s most successful retail groups‚ operating more than 150 franchised department stores‚ which focus on selling computers‚ home entertainment equipment and home appliances
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1. Both criteria of basis revenue recognition are confirmed: Entity has substantially performed what is required in order to earn income and the amount of income can be reliably measured. Because of the problem which occurs by reading out the customers meters the company should estimate the revenues for the month December. It has many historical data about the electricity usage of its customers. For example it could relay on the experiences of the last December. Normally there are no high fluctuations
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related to the measurement of financial position? a. Assets‚ liabilities‚ income b. Revenues and expenses c. Assets‚ liabilities‚ equity‚ revenues and expenses d. Assets‚ liabilities and equity 3. Which of the following statements is correct? a. Assets and capital accounts are debited for increases. b. Assets‚ expenses‚ and drawing accounts are debited for increase. c. Revenues and drawing accounts are credited for increases d. The word ‘debit’ means increase and
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concerning issue is the way Live Well Inc. deal with consignment and the recognition of revenue. As Live Well Inc. sells products through another party‚ being the sales coordinators‚ they cannot recognize revenue as the consignment of goods does not constitute a sale. They can only identify the revenue when the consignee sells the goods to a third party. This rule applies to both ASPE and IFRS standards. They currently recognize revenue upon shipment‚ however under the new IFRS 15 guidelines‚ this approach
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