Financial Accounting Theory (BBAC502) Group Assignment (Group of Four) 25% (Due Session 5.2) “Australia has long recognised that its accounting standards need to be harmonised with standards elsewhere in the world. To ensure consistent application of IFRSs‚ CLERP No. 9 recommended that Australia adopt‚ from January 2005‚ official interpretations of IFRSs issued by the IASB’s International Financial Reporting Interpretations Committee (IFRIC). As noted by CLERP No. 9‚ the comparability
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Finance Leases Organization does normally decide to lease long-term assets instead of buying them. The choice to lease is mostly because of evident factors such as necessity‚ better financial terms‚ maintain the assets off the balance sheet‚ or the absence of available funding. Operating lease and capital lease are the two types of accounting methods for leases. Warning‚ equally‚ the two kinds of leases are used for diverse reasons and marks in opposing usage in the books of accounting. Leasing
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CHAPTER 21 Accounting for Leases ANSWERS TO QUESTIONS **1. The major lessor groups in the United States are banks‚ captives‚ and independents. Captives have the point of sale advantage in finding leasing customers; that is‚ as soon as a parent receives a possible order‚ a lease financing arrangement can be developed by its leasing subsidiary. Furthermore‚ the captive (lessor) has the product knowledge which gives it an advantage when financing the parents’ product. The current trend is for captives
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FASB Accounting Standards Codification (ASC) Section 958-605-25 requires that not-for-profits wait to recognize a contribution until they are satisfied that the likelihood is remote that the conditions that accompany the contribution will not be met (Tysiac‚ 2017). According to FASB ASC 958-605-8‚ pursuant to paragraph 958-605-25-2‚ an unconditional promise to give shall be recognized when it is received. There must be satisfactory confirmation that a promise was made and received in the form
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customer is requested to make the payment. An invoice has invoice lines corresponding to ordered products. Each invoice line shows product code‚ description‚ and price. The ordered products will be shipped from a certain branch in Saudi Arabia‚ and a shipment slip will be generated from the branch and attached to the shipped package. Develop an entity relationship diagram model for this application. Do the following tasks when developing your ERD model: 1. Write the business rules 2. Determine
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classifying a lease as operating or capital? Why is there a difference between the two? What are the implications of an operating lease versus a capital lease on an entity’s financial statements? The criteria and characteristics of operating lease is that operating lease usually a shorter-term lease under which the lessor is responsible for insurance‚ taxes‚ and upkeep. May be cancelable by the lessee on short notice. The criteria and characteristics of capital lease is that capital lease is typically
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“Current Issues in Accounting” ONLINE DAILY SALES REPORT Table of Contents Introduction ----------------------------------------------------- 3 Discussion ---------------------------------------------------- 4 Conclusion ------------------------------------------------------ 5 References ------------------------------------------------------ 6 Introduction AE Stream Resources Inc. is an authorized ticketing agent for Cebu Pacific; it does not only sell ticket‚ but it also Answer
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To: Supervisor From: Frank Mattair Date: April 20‚ 2015 Subject: FASB Research Results and Recommendations The Financial Accounting Standards Board (FASB) website contains accounting information and is a good source for data pertaining to any issue. Answers to the information in question to leases and lease structure issues were found on the FASB website. Research was primarily focused on three lease types‚ direct financing‚ sales type‚ and operating leases. The information recovered
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Dealing with Operating Leases in Valuation Aswath Damodaran Stern School of Business 44 West Fourth Street New York‚ NY 10012 adamodar@stern.nyu.edu Abstract Most firm valuation models start with the after-tax operating income as a measure of the operating income on a firm and reduce it by the reinvestment rate to arrive at the free cash flow to the firm. Implicitly‚ we assume that the operating expenses do not include any financing expenses (such as interest expense on debt). While this assumption
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accounting standards accounting standards Introduction to Accounting Standards Accounting is the art of recording transactions in the best manner possible. Accounting Standards are the policy documents issued by recognized expert accountancy bodies relating to various aspects of measurement‚ treatment and disclosure of accounting transactions and events. Every country has its own standards. Accounting Standards in India are issued by the Institute of Chartered Accountants of India (ICAI)
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