Project Similarities and Differences between U.S.GAAP and iGAAP – Intangible Assets The global economy is regulated by two main accounting systems: (1) United States Generally Accepted Accounting Principles, also known as U.S. GAAP, and the (2) International Generally Accepted Accounting Principles, also known as iGAAP. As the abbreviations dictate, U.S. GAAP are the standards that regulate U.S. accounting procedures and iGAAP are standards that regulate international organizations. Both standards
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Introduction Accounting is a system, and its practice is a workmanship or art created to individuals screen their monetary exchanges. Accounting gives individuals a money related photo of their undertaking. Its unique - and continuing – crucial reason for existing is to give data about the financial dealings of a man or association. At first, just the individual or association required the data. The legislature required the data. As the economy turn out to be more intricate and controlled, the quantity
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CHAPTER 1 Governmental and Nonprofit Accounting: ENVIRONMENT AND CHARACTERISTICS ANSWERS TO QUESTIONS QUESTION 1-1 a. The similarities of accounting for profit-seeking and G&NP organizations include: 1. Double-entry system of accounts. 2. Most accounting mechanics, e.g., basic transaction documents, journals, ledgers, charts of accounts. 3. Where a G&NP organization has a business-type activity, e.g., a municipal electric utility, the accounting largely parallels that
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relevant. Over 120 countries currently use IFRS (AICPA, 2011). It is anticipated that more countries will begin encouraging it as global competition becomes more prevalent. The SEC is also allowing companies that trade stock within the US to report under IFRS. This is largely due to IFRS sharing many common principles with US GAAP. The main difference is that GAAP provides specific guidelines in how to report, while IFRS is principle based. This allows creators to adapt the standards in
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primary focus of financial accounting. Level of Learning: Medium 31. Which of the following was the first private sector entity that set accounting standards in the United States? A. Accounting Principles Board B. Committee on Accounting Procedure C. Financial Accounting Standards Board D. AICPA AACSB: Reflective thinking Bloom's:
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creditors, and governmental agencies. However, prior to reporting any information to external users, financial accounting must be completed according to Generally Accepted Accounting Principles guidelines. Identify the hierarchy of sources for generally accepted accounting principles. Generally accepted accounting principles, or GAAP for short, are the accounting rules used to prepare and standardize the reporting of financial statements, such as balance sheets, income statements and cash flow statements
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accounting will be addressed along with the three business structures. Generally Accepted Accounting Principles The framework of guidelines on standards and rules for financial accounting are referred to as the generally accepted accounting principles (GAAP). The American Institute of Certified Public Accountants (AICPA) issued the hierarchy of generally accepted accounting principles as an auditing standard. It has four categories ranging from most authoritative, Category A to least
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ch10 Student: ___________________________________________________________________________ 1. An advantage of issuing a bond relative to stock is that the bond interest payments are tax deductible. True False 2. Issuing bonds dilutes the voting power of the common shareholders because bonds have preferential voting rights. True False 3. The major disadvantages of issuing a bond are the risk of bankruptcy and the negative impact on cash flow because debt must be repaid at a specified
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accounting principles: * a.American Institute of Certified Public Accountants The AICPA’s mission is to provide members with the resources, information and leadership that enable them to provide valuable services in the highest professional manner to benefit the public, employers and clients. In fulfilling its mission, the AICPA works with state CPA organizations and gives priority to those areas where public reliance on CPA skills is most significant. To achieve this mission, the AICPA develops
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space in their warehouse to accommodate such a large order. Mr. Reed wants to be able to record this sale for the year ending 2010. This would violate the revenue recognition principle according to GAAP guidelines and would be looked at as an earnings management tactic, which is viewed as an unethical practice by the AICPA and GAAP. The CFO approaches his accounting department with the expectation that they come up with a solution to this problem. The accounting department is well aware of the
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