Unit principle: assumes a stable currency is going to be the unit of record. The FASB accepts the nominal value of the US Dollar as the monetary unit of record unadjusted for inflation. * The Time-period principle implies that the economic activities of an enterprise can be divided into artificial time periods. §Principles[edit] * Historical cost principle requires companies to account and report assets & liabilities acquisition costs rather than fair market value . This principle provides
Words: 522 - Pages: 3
Financial and Management Accounting Unit 6 Unit 6 Structure 6.1 Introduction Objectives 6.2 Meaning Self Assessment Questions 1 6.3 Objectives Self Assessment Questions 2 6.4 Methods of preparing trial balance: Total Method and Balance Method Self Assessment Questions 3 6.5 Preparation op Trial balance Self Assessment Questions 4 6.6 Errors and their rectification Self Assessment Questions 5 6.7 Errors disclosed by a Trial Balance Self Assessment Questions 6 6.8
Words: 6085 - Pages: 25
Answers Professional Level – Essentials Module, Paper P2 (INT) Corporate Reporting (International) 1 (a) Angel Group Statement of cash flows for the year ended 30 November 2013 Profit for the year (W1) Adjustments to operating activities Financial assets – profit on sale (W5) Retirement benefit expense (W7) Depreciation (W1) Profit on sale of PPE (W1) Associate’s profit (W3) Impairment of goodwill and intangible assets (26·5 + 90) (W6) Finance costs Movements in working capital Decrease in trade
Words: 5850 - Pages: 24
According to FASB (2012), “The FASB Accounting Standards Codification is the source of authoritative generally accepted accounting principles (GAAP) recognized by the FASB to be applied to nongovernmental entities” (FASB Accounting Standards Codification, Para. 1). The FASB accounting standards codification is basically a record of bookkeeping data that will allow clients to browse amongst thousands of GAAP proclamations that are put into about 100 issues. The system is planned to help lessen
Words: 402 - Pages: 2
| ACCOUNTING CHANGES | | | Sabrina Whitehead | Dr. M. Austin ZekenAccounting Undergraduate Capstone Acc 499 | 4/26/2012 | | Discuss the primary reason for the restatement and the impact to the financial results for the Company. Dell computers has delivered technology solutions for more than twenty-six years and has transformed countries, communities and the private sector to help achieve their goals at work, home and school. Michael Dell created PCs Limited but later changed
Words: 1261 - Pages: 6
accountant should just ignore them. Otherwise, the amount of profit will not be accurate. Part 1 : Learning Issues 1. What are credit sales? 2. What are warranty costs? 3. What are bad debts expenses? 4. What are the methods of accounting for bad debts expenses? 5. What are the methods to estimate bad debt expenses? 6. What are the significance of the estimation of bad debt expense and warranty cost to the financial statements? Introduction A sales promotion is an activity
Words: 1707 - Pages: 7
Canadian Press 2014). In 2007 the Securities Exchange Commission files a lawsuit against Nortel for accounting fraud. Nortel was accused of not following the Generally Accepted Accounting Principles. The two main principles that Nortel executives were accused of were going against the revenue recognition principle and the provisions principles. Nortel broke the revenue recognition principle for the sole purpose of meeting budgeted sales and revenues (Cullen 2007). What Nortel would do was
Words: 388 - Pages: 2
When people hear the word ethics they think about moral principles of an individual. Ethics is one of the word individual will hear constantly in their workplace. Unethical practices that are done the parties that are involved usually try to justify their actions. Employees will constantly feel the pressure of unethical and integrity in the accounting field. Individuals do unethical behaviors for personal gain or for fear of losing their jobs and they have been threatened by their supervisor and
Words: 362 - Pages: 2
safeguard your financial assets that will come under public scrutiny once you go public. Being a part of the accounting profession, I feel it is my obligation to inform you of the essential internal control requirements that you must implement within your company and uphold at all times. 1. It is the utmost importance for all companies to maintain adequate and accurate financial statements and accounting records within that financial year. These records help to safeguard your assets, increase the efficiency
Words: 938 - Pages: 4
”Corporate Governance Principles: 2004” May 2007 The Ethics of Earnings Management 3 Corporate Secrecy (OECD) “Disclosure Requirements are Not Expected to Place Unreasonable Administrative or Cost Burdens on Enterprises. Nor are Companies Expected to Disclose Information that May Endanger their Competitive Position Unless Disclosure is Necessary to Fully Inform the Investment Decision and to Avoid Misleading the Investor” OECD, ”Corporate Governance Principles: 2004” May 2007 The Ethics of Earnings
Words: 4111 - Pages: 17
