GAAP – This is the General Accepted Accounting Principles‚ it is the basic principles of accounting - http://www.investopedia.com/terms/g/gaap.asp Basic Accounting Formula- means that all balances and ledgers must match at all times. If it does not then something was entered wrong in a ledger -http://www.accountingtools.com/basic-accounting-formula Transaction T account – A term used for double entry book keeping‚ a ledger with 2 separate lines separating debits and credits -http://www.investopedia
Premium Double-entry bookkeeping system Generally Accepted Accounting Principles Bookkeeping
Implementing IFRS Extract from: IFRS compared with US GAAP and French GAAP Assurance Services The information contained herein is of a general nature and is not intended to address the circumstances of any particular individual or entity. Although we endeavour to provide accurate and timely information‚ there can be no guarantee that such information is accurate as of the date it is received or that it will continue to be accurate in the future. No one should act upon such information without
Premium Balance sheet Financial statements Generally Accepted Accounting Principles
FASB ASC Project 1. The inventory at your company consists of computer software that the company has developed and is selling. You capitalized (rather than expensed) the cost of duplicating the software‚ the instruction manuals‚ and training material that are sold with the software. FASB ASC CITATION: Product Masters 985-330-25-1 The costs incurred for duplicating the computer software‚ documentation‚ and training materials from the product masters and for physically packaging the
Premium Balance sheet Inventory Revenue
What is the prudence concept in accounting? Under the prudence concept‚ you should not overestimate the amount of revenues that you record‚ nor underestimate the expenses. You should also be conservative in recording the amount of assets‚ and not underestimate liabilities. Another way of looking at prudence is to only record a revenue transaction or an asset when it is certain‚ and to record an expense transaction or liability when it is probable. Another aspect of the prudence concept is that you
Premium Generally Accepted Accounting Principles Balance sheet
Whatever GAAP or IFRS‚ there are the rules accounts has to be followed. GAAP is an accepted set of rules‚ conventions‚ the standard framework of guidelines and procedures for reporting financial information‚ as defined by the Financial Accounting Standards Board. “It includes the standards‚ conventions‚ and rules accountants follow in recording and summarizing transactions‚ and in the preparation of financial statements” (American Institute of Certified Public Accountants‚ website). GAAP include
Premium International Financial Reporting Standards Financial statements Balance sheet
Outline Part 1 Background and Overview Part 2 US GAAP and IFRS Part 3 China GAAP and IFRS Part 4 Summary of Convergence Process Part 5 Pros & Cons of Convergence Part 6 The reasons for differences in accounting practice ww.ifrs.org + The International Accounting Standards Board + The International Accounting Standards Committee (IASC) Foundation + Objective – a single set of global financial reporting standards + Aim – convergence between national standards and international
Premium International Financial Reporting Standards Financial statements Balance sheet
Accounting Standards The Financial Accounting Standards Board (FASB) and the International Accounting Standards Board (IASB) are working on a joint venture known as the convergence project. With more business’s doing business globally financial reporting is an issue among the differing countries. Some countries report their financial differently‚ while the United States uses Generally Accepted Accounting Principles (GAAP) the convergence project aims at making a uniform set of international accounting
Premium International Financial Reporting Standards Financial Accounting Standards Board Financial statements
Date Instructor Accounting Analysis When a person reviews financial statements the format can be different for government and nongovernment businesses. The reason for this is the two types of businesses are regulated by different accounting standard boards‚ and choose accounting methods to meet their requirements. The Financial Accounting Standard Board (FASB) sets regulations for nongovernment entities and the Government Accounting Standard Board (GASB) is
Premium Generally Accepted Accounting Principles Balance sheet Financial statements
stolen wallet Victim: Officer‚ I’d like to report a crime. Police: Can you tell me what happened? Victim: I was in the market when somebody pick-pocketed me and stole my wallet. Police: Can you describe the person who stole your wallet? Victim: Yes‚ it was a slim man‚ about 180cm tall with short‚ brown hair. Police: What was in the wallet? Victim: A credit card‚ £65‚ my driving licence and my house keys. Police: What time did this happen? Victim: About 2pm. Police: Were there any witnesses? Victim: I
Premium Sales Shoe 2007 singles
costs incurred beyond the Research and Development stage can be capitalized when it is pertaining to the development of software that is to be sold‚ leased‚ or otherwise marketed to third parties. Standard 985-330-25-1 applies to these costs as the FASB ASC defines the Product Masters as "a completed version‚ ready for copying‚ of the computer software product‚ the documentation‚ and the training materials that are to be sold‚ leased‚ or otherwise marketed". The company has established technological
Premium Asset