Ethics Ethics at its simplest form is a set of principles of right conduct to be followed in an organisation.[1] If the principles are not followed, there are repercussions to the person who fails to follow the rules. Personally, the word which describes ethics best is trust. When a profession follows a set of ethics, clients are more willing to trust the profession to do there job to the highest standard. This is because the profession gains a good reputation of being on the whole an honest
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paid is first allocated to the fair values of assets that can be kicked, picked up or painted. Any excess paid for the company beyond these "fair values” becomes goodwill, which Blockbuster labels "intangible assets relating to acquired businesses." APB Opinion 17 requires that goodwill be amortized to income (expensed) over 40 years or less. In the past, many companies automatically adopted 40 year amortization. Current practice (which is usually required by the SEC) is to relate the amortization
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Required: How should revenue be recognized for sales of both the Ship Finder devices and service? According to FASB's Codification of Accounting Standards, a company should not recognize revenue until 1.“it has performed under the terms of the arrangement” and 2. “unless it will indeed receive and retain payment in a form that has value to the company,” (accountingresearchmanager.com) This means that the company has to perform the duty that they have agreed to in their contract and will receive
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Discussion1 Is Fast Eddie required to accrue a liability as of March 31, 2011, financial statements related to the ongoing government investigation? If so, how much? Yes. Fast Eddie is required to accrue a liability of $3.7 million. Subsequent Events are Events or transactions that occur after the balance sheet date but before financial statements are issued or are available to be issued. There are two types of subsequent events: a. The first type consists of events or transactions that
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prepared by private organization. Generally Accepted Accounting Principle has authoritative support. The hierarchy that define the meaning of GAAP included FASB standards and interpretation and staff positions, Accounting Principle Board Opinions (APB), which determines appropriate accounting practices and the AICPA accounting Research Bulletin. These standards identify the sources of the accounting principle and the framework for the selection of the principle to be used in the preparation of the
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Framework Development in United States Development in United States * 1961 & 1962: accounting practice should be practice based on current values. * 1965: develop theory based on existing practice. * Lead to the release of APB statement no.4 but got critic for lack of real framework. * 1971: Lead to formation of Trueblood committee: *
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Tax season is just around the corner, and no other name incites more fear in people’s hearts than that of the Internal Revenue Service. America has long been funded by its citizen’s hard earned tax dollars. It has been the main source of funding for several wars and government-funded programs. Taxes affect every person, business, and property. This environment of constant change is a challenge for most accountants or anyone for that matter. This paper seeks to explore the history of the Federal Income
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An analysis of various parliamentary reports, statutes such as case law, journals and annual reports will provide a basis for considering the claim that audit independence is a central element to the external auditor's role. It can be seen through APB ethical standards govern issues relating to the integrity, objectivity and independence of auditor. The vital of auditors’ independence can be seen through in the case of Enron. The auditors who were Arthur Andersen received fees for audit and non
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sources of accounting principles and the framework for selecting the principles to be used in the preparation of financial statements. The standard categorizes the major sources of GAAP as follows: FASB Standards, Interpretations, and Staff Positions; APB Opinions; and AICPA Accounting Research Bulletins (Kieso,D.E., pp.12) As stated in FASB Concepts Statement No.2, “the qualities that distinguish better” (more useful) information from “inferior” (less useful) information are primarily the qualities
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Hierarchy The main sources of GAAP fall into four main categories; A, B, C, and D, with category A as the most authoritative, then B, C, and the least authoritative being D. Category A includes FASB Standards, Interpretations, and Staff Positions, APB Opinions, and AICPA Accounting Research Bulletin Category B contains FASB Technical Bulletins, which are no longer issued, AICPA Industry Audit and Accounting Guidelines, and AICPA Statements of Position. Category C incompasses FASB Emerging Issues
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