NON-FINANCIAL AND Current liabilitieS SOLUTIONS TO EXERCISES EXERCISE 13-1 (10-15 minutes) (a) Classifications on balance sheet prepared under ASPE: |1. |Current liability; financial liability. | |2. |Current asset. | |3. |Current liability or long-term liability depending
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sheet includes the entity’s assets, liabilities and shareholders’ equity. The balance sheet has many components and is used to help portray the company’s financial position. ”Of all the financial statements issued by companies, the balance sheet is one of the most effective tools in evaluating financial health at a specific point in time.” (Schmidt, 2013) The balance sheet is also called the statement of financial position. It includes the assets, liabilities and shareholders’ equity for the entity
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impacted by the IFRS’ practice for measuring contingent (accrued liabilities). IFRS offers criteria to account for and disclose gain and loss contingencies. For example, BWC’s potential litigation matter and warranty costs were not recognized under GAAP. Converting to IFRS, the probability of a loss in the legal case and the likely hood of computer chip defects met IFRS’ measurement criteria and were recognized as accrued liabilities. Furthermore, BWC’s method for inventory will change under IFRS
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received, merchandise sold, expenses chargeable to the consignment, and the cash remitted. Account, 68 A systematic arrangement that shows the effect of transactions and other events on a specific element (asset, liability, and so on). Companies keep a separate account for each asset, liability, revenue, and expense, and for capital (stockholders' equity). accounting cycle, 73 Standard set of accounting procedures to record transactions and prepare financial statements. accounting information system
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Disclosure of Contingencies One of the most significant differences between GAAP and IFRS is the disclosure of potential liabilities. U.S. GAAP would like to increase the standard for disclosure of loss contingencies, such as lawsuits that are pending. The IFRS position on this is that they are still studying its current requirements. However, when this is implemented more disclosures of liabilities will have to be recorded. An example of this would be
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Becker CPA Review, PassMaster Questions Lecture: Financial 6 CPA PassMaster Questions–Financial 6 Export Date: 10/30/08 1 © 2009 DeVry/Becker Educational Development Corp. All rights reserved. Becker CPA Review, PassMaster Questions Lecture: Financial 6 Pension Plans CPA-00679 Type1 M/C A-D Corr Ans: D PM#1 F 6-01 1. CPA-00679 FARE R02 #8 a. b. c. d. Page 19 Which of the following disclosures is not required of companies with a defined-benefit pension plan? A description of
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NARRATIVE The Current Ratio measures a company’s ability to cover its short-term debt obligations. It is the most commonly used measure of short-term solvency. It is calculated by dividing the Current Assets by Current Liabilities. The Industry Average for 2012 was 4.30. While Under Armour, Inc. is only slightly below the Industry Average, with a Current Ratio of 3.58. It has remained stable over the past 3 years. They are still considered to be a smaller company, so their Current Ratio should
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AC 410B Intermediate Accounting II Final Exam Topics Chapter 11: Depreciation, Impairments, and Depletion Questions 1. Explain the meaning of depreciation. 2. Describe factors involved in the depreciation process. 3. Describe the different methods of depreciation. 4. Identify the conditions for impairment of fixed assets. 5. Explain the treatment of impairments for different kinds of assets. 6. Describe the full cost vs. successful efforts concepts for depletion
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the funding is a liability to repay the PEI or an obligation to perform contractual services. In order to prove that a liability does not exist there must be a transfer of risk from Pharmagen to the PEI that is substantive and genuine (ASC 730-20-25-4). To determine whether risk has been transferred and several factors must be taken into consideration. ASC 730-20-25-6 gives four conditions that lead to the presumption that Pharmagen will repay, and thus creating a liability. Based on the fact
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shares or net assets, mergers, reverse acquisitions). A business combination must be accounted for by applying the acquisition method. In general, after the date of a business combination an acquirer measures and accounts for assets acquired, liabilities assumed or incurred and equity instruments issued in accordance with the
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