with the possibility of a loss or gain to a company that will be a result from future events failing to occur. The chances of winning the case are remote which means Camp Industries is not likely to win the law suit. According to the standards of financial accounting and reporting states “An estimated loss from a loss contingency shall be accrued by a charge to income if both of the following conditions are met: The amount of loss can be reasonably estimated and it is implicit in this condition that
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Continuing Education Exam Prep Quizzer FAQs Calculators Tweet 1 Disqus Email Print Feedback Frequently Asked Question November 18 2009 | Filed Under » Accounting, Consumer Goods, Electronics Should computer software be classified as an intangible asset or part of property, plant and equipment? In accounting terms, an intangible asset is something of value that is not of physical nature. On the other hand, property, plant and equipment (PPE) are just as the name suggests. PPE
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Cookie Jar Reserves and Conservative Accounting ACCT 495 Professor Jastrzebski Fall 2013 Cookie Jar Reserves and Conservative Accounting SUMMARY O'Brian Software, a multimillion dollar software company, provides custom software systems, maintenance, support and training. Nick, a recent college graduate, just began working for the family run software company. After being hired to the firm's accounting department, Nick began to suspect unintentional
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1.Background introduction International accounting standards advance with the times. Here, changes in accounting standards again: The International Accounting Standards Board (IASB) first issued IFRS 9 Financial Instruments in November 2009, which dealt with the classification of financial assets and aspects of their measurement (Anna-Maija Lantto, Petri Sahlstrom, 2009). Consequently, the AASB first issued AASB 9 Financial Instruments in December 2009. After that, the IASB re-issued IFRS
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Acct 883/483 International Accounting Sample Exam Multiple Choice 1. How is the term “stocks” used on the balance sheet of a British company? A) Capital stock in the Owners' Equity section B) Shares of another company owned as marketable securities. C) Fixed assets D) Inventory Answer: D Level: Medium LO: 1 2. A study conducted by the SEC in 1993 illustrated that U.S. GAAP was more conservative for most of the foreign entities listed on U.S. exchanges. What
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Nature of IASB: The International Accounting Standards Board (IASB) is a Londonbased organization which seeks to set and enforce standards for accounting procedures. Over 100 countries currently require or permit companies to comply with IASB standards. It is responsible for maintaining the International Financial Reporting Standards (IRFS). The organization was preceded by the International Accounting Standards Committee (IASC). The IASB's Role: Under the IFRS Foundation Constitution, the IASB has complete responsibility for all technical
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Running head: THE IASB AND FASB The IASB and FASB Amber Lynch ACC/541 Week 1 Paper March 10, 2014 The IASB and FASB Although the concept of the convergence of accounting standards is a new concept to some the idea has existed since the 1950’s. This idea came about as a solution for economic integration and the uptick in international business operations. When the project was first constructed it focused mainly on harmonizing the differences in principles that existed across many different
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Paper #2: Rules-based vs. Principles-based Accounting Standards Convergence efforts in international accounting and the prevalence of globalization in the world markets has continued to indicate that worldwide financial statement comparability will continue to become more necessary. In light of this, it’s important to determine whether a principles-based or rules-based system would be more appropriate for harmonization. Although most current accounting systems can be primarily defined as rules-based
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Functions and powers of the FRC (s. 225 of ASIC Act )---Provide broad oversight of the process for setting accounting standards//Appoint members of the AASB//Approve and monitor the AASB’s priorities, business plan, budget and staffing//Give the AASB directions, advice or feedback on matters of general policy//No power to direct AASB regarding development of particular standards//No power to veto a standard//Powers expanded in 2003 to include overseeing the activities of AUASB (ASIC) is responsible for administering
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Research Case “Velocity Cellular” Objectives: • The main objective of the case is to expose students to an accounting reporting situation where they have to search, identify, interpret and apply official accounting pronouncements. • The research case enhances the students’ ability to look for and evaluate relevant information. • Students should also improve their ability to organize ideas in written communication. Requirement: Assume the role of a staff accountant who has been asked to research
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