...Basic Accounting Standards and Business Structures Whereas there is a need for accounting and financial professionals in the day-to-day operation of businesses to preserve their financial health, there is also a need by individuals. Whether it is the manager of an organization or individuals at home, who depend on professionals, it is necessary to have at a minimum a basic knowledge Accounting and financial concepts. Sources for General Accepted Accounting Principles According to Kieso, Weygandt, and Warfield, “This common set of standards and procedures is called generally accepted accounting principles (GAAP). The term “generally accepted” means either that an authoritative accounting rule-making body has established a principle of reporting in a given area or that overtime a given practice” (2007, p .6).There are four such bodies. The Securities and Exchange Commission (SEC) is a federal agency charged with developing and standardizing financial information presented to stockholders. (Kieso, Weygandt & Warfield, 2007, p .6). The SEC does not work by itself even though it is independent, but in partnership with the private sector. The American Institute of Certified Public Accountants (AICPA) is the national professional organization of practicing Certified Public Accountants (CPAs) (Kieso, Weygandt & Warfield, 2007, p .7). Kieso Weygandt and Warfield stated, “The Wheat Committee’s recommendations resulted in the demise of the APB and the creation of a new...
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...amount of services and equipment that is acquired. Lighthouse is the only producer of the tracking equipment and it does not have competitors in the present market compatible with its service. Another factor is that the clients could cancel their services at any time. II. Issue Several factors as services and sale of equipment based on GAAP, entrances of accounting, mercantile right are due to consider. • How are due to recognize the sales and income of Lighthouse, like sale equipment or sale service? • Is the tracking equipment independent of the service? • Is due to consider the income of Lighthouse like a hybrid between equipment and service, like a single package? • Which is the effect to have two contracts? II. FSAB Applicable to Lighthouse Case. At the moment there are several FASB (Financial Accounting Standard Board) ansd its ASC (Accounting Standard Codification) applicable to the presented situation. Also settle down some SEC (Staff Accounting Bulletin) and EITF (Emerging Issues Task Force) applicable to the controversy....
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...Contents Contents Page………………………………………………………………………………………………………………………………………….1 Main Body……………………………………………………………………………………………………………………………………………….2 1. Harmonisation – what it means……………………………………………………………………………………………….…2 2. IASB’s reasoning for financial reporting harmonisation…………………………….………………………………..3 3. Approaches to harmonisation………………………………………………………………………..…………………………..4 4. Obstacles in harmonisation………………………………………………….……………………………………………………..6 5. The convergence between IASB and FASB today and the Changes within the IASB towards achieving their goal ……………………………………………………………………………………………………………………7 Conclusion ………………………………………………………………………………………………………………………………………………8 References & bibliography………………………………………………………………….…………………………………………………..9 1. Harmonisation – what it means Harmonisation is the process which aims to converge the accounting practices around the world and to increase the compatibility between countries in regards to financial statements. However, we must keep in mind that this process does not target uniformity in the accounting practice, but to reduce the differences over time. Standardising the accounting practices around the world comes as a boomerang effect of capitalisation. We have companies that trade in different countries and thus they must oblige with each of the accounting practices of every country where the company produces financial statements. This leads to the situation where you have a company reporting a shareholders’...
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...An Examination of LBJ Distribution Company Internal Controls Infrastructure Pre IPO ACCT 504: Financial Accounting Keller Graduate School of Management Professor Ganesh Pandit Date: February 9, 2014 Pre IPO Examination of LBJ Distribution Company Internal Controls Infrastructure Prepared for: President, LBJ Distribution Company Prepared By: Véron S.A. Lake Company: LLMCO Date: 9 February 2014 Table of Contents Introduction 3 Purpose 4 Legal Requirement of Internal Controls 5 IPO Readiness: Financial Internal Controls 5 IPO Readiness: Recommendations 6 Reliable Monthly Reports 6 Adequate Staffing of Financial Departments 6 Implementation of Audit Infrastructure 6 IPO Readiness: LBJ Internal Control Strengths 7 Pre-numbered Invoices 7 Recommendations: Indelible Ink Machine 7 IPO Readiness: LBJ Internal Control Weaknesses 7 Staffing: Accounting Department 7 Staffing: Human Resource Department 8 Recommendations: Handling Petty Cash 8 Recommendations: IT Department Physical Controls 9 Conclusion 9 Works Cited 10 Introduction A company going public today is different than what it was in the dot com era; this is because the IPO landscape has changed significantly in the last decade (KPMG, 2013). Recently experts has seen compression in the markets, decreasing or shifting mergers and acquisition activity, faltering businesses and more scrutiny on balance sheets and company cash as well as access to capital (KPMG, 2013; Morgan...
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...Accounting Standards for Business Combinations Heather Blanchette Ashford University ACC407: Advanced Accounting Rick Kwan October 27, 2014 Accounting Standards for Business Combinations In the competitive world that exists today, it is only natural for the market to be just as competitive. It is all too common for businesses to merge with other businesses in order to succeed and gain more control of their existing markets. Because of the distinctive rivalry between known companies within these competitive markets, such as Coca-Cola Company and Pepsi Co., these companies need to expand business to the most amount of profit possible. This method of thinking applies to all companies within any market. The largest reason to think about expansion to extension of ownership is to seek additional profit. The Financial Accounting Standards Board (FASB) is one of the leading officials that represent the accounting concepts and regulations related with business combinations in the United States. Business Combinations are an essential part of expansion. Businesses may find that entering into new product areas or branching out into new potential sales areas can be a bit daunting when these products and new areas are virtually inaccessible without the right tools or accessibility. However, by acquiring or combining with other companies, more opportunities may arise if these other companies have knowledge of these new product areas or sales areas. For example, telecommunications...
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...An Examination of LBJ Distribution Company Internal Controls Infrastructure Pre IPO ACCT 504: Financial Accounting Keller Graduate School of Management Professor Ganesh Pandit Date: February 9, 2014 Pre IPO Examination of LBJ Distribution Company Internal Controls Infrastructure Prepared for: President, LBJ Distribution Company Prepared By: Véron S.A. Lake Company: LLMCO Date: 9 February 2014 Table of Contents Introduction 3 Purpose 4 Legal Requirement of Internal Controls 5 IPO Readiness: Financial Internal Controls 5 IPO Readiness: Recommendations 6 Reliable Monthly Reports 6 Adequate Staffing of Financial Departments 6 Implementation of Audit Infrastructure 6 IPO Readiness: LBJ Internal Control Strengths 7 Pre-numbered Invoices 7 Recommendations: Indelible Ink Machine 7 IPO Readiness: LBJ Internal Control Weaknesses 7 Staffing: Accounting Department 7 Staffing: Human Resource Department 8 Recommendations: Handling Petty Cash 8 Recommendations: IT Department Physical Controls 9 Conclusion 9 Works Cited 10 Introduction A company going public today is different than what it was in the dot com era; this is because the IPO landscape has changed significantly in the last decade (KPMG, 2013). Recently experts has seen compression in the markets, decreasing or shifting mergers and acquisition activity, faltering businesses and more scrutiny on balance sheets and company cash as well as access to capital (KPMG, 2013; Morgan...
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...Qklhokn 1 Accounting Theory Paper-8 M. Com. (Final) Directorate of Distance Education Maharshi Dayanand University ROHTAK – 124 001 2 jktuhfr foKku Copyright © 2004, Maharshi Dayanand University, ROHTAK All Rights Reserved. No part of this publication may be reproduced or stored in a retrieval system or transmitted in any form or by any means; electronic, mechanical, photocopying, recording or otherwise, without the written permission of the copyright holder. Maharshi Dayanand University ROHTAK – 124 001 Developed & Produced by EXCEL BOOKS PVT. LTD., A-45 Naraina, Phase 1, New Delhi-110028 Qklhokn 3 Contents Chapter 1 Accounting-An Intoduction Chapter 2 The History and Evolution of Accounting Thoughts 23 Chapter 3 Approaches to Accounting Theory 56 Chapter 4 Accounting Postulates, Concepts and Principles 88 Chapter 5 Income Concepts 107 Chapter 6 Revenues, Expenses, Gains and Losses 139 Chapter 7 Valuation of Assets 158 Chapter 8 Liabilities and Equity 177 Chapter 9 Depreciation Accounting and Policy 192 Chapter 10 Inventories and their Valuation 238 Chapter 11 Financial Reporting 277 Chapter 12 Specific Issues in Corporate Reporting 302 Chapter 13 Harmonization of Financial Reporting 323 Chapter 14 Accounting for Price Level Changes 339 Chapter 15 Human Resource Accounting 397 Chapter 16 Financial Engineering:...
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