Transactions and events in accounting are considered to be extraordinary items when they are of material effect that are not expected to repeat frequently and would not be seen as repetitive factors in any assessment of the ordinary operating procedures of the business. Extraordinary items are not new to financial statements in fact they have been around since the early to mid-1900. Events and transactions that are considered extraordinary items are constantly changing with everyday occurrences and
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assets. While the need for valuation or accounting of goodwill does not arise in the normal course of a business or in its growth on a periodic basis, (because of the absence of physical assets to back it up), it becomes an extremely important aspect when a running business goes up for sale, or changes ownership, through mechanisms like mergers, or acquisitions. Goodwill can be considered from two different points of view: an economic and an accounting approach. The economic approach regards goodwill
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Financial and accounting professionals must follow the ethical standards that regulate the type of business they conduct, who they conduct business with, and how they use their skills to conduct their business. These ethical standards are defined by professional finance organizations and the Financial Accounting Standards Board. This article will discuss reporting and ethical practices for any financial and accounting organization. It will include a summary of generally acceptable accounting principles
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How to measure the quality of voluntary disclosure in annual reports The goal of voluntary disclosure is to give more information than required of reporting standards. This to create more disclosure (Scott, 2009, p.109). Although voluntary disclosure provides more information than required, the earnings quality can be questionable. Earnings quality can be defined as the extent to which reported earnings faithfully represent Hicksian income (Schipper and Vincent, 2000). The Hicksian income
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Proposal to Board of Directors [Team’s chosen name for the corporation – TBD in Unit 10] By Terra Allen, Accounting/Finance Manager, Michael Argentino, Marketing/Sales Manager, George Dickson, Operations/Production Manager, Doris Toliver, HR Assistant Manager, Felicia Parris, IT Assistant Manager March 14, 2014 Introduction to the Proposal’s Purpose and Content [Team’s chosen name] Corporation is a medium-sized manufacturing company with 250 employees. It directly markets one
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compare the financial statements of companies in different countries. Therefore, a standardised accounting standard should be introduced and follow by the companies all around the world in recording their financial statements in order to facilitate the investors in doing their business. International Financial Reporting Standards (IFRS) and US generally accepted accounting principles (GAAP) are two main accounting principles that is widely used in the majority of the companies. However, there will be still
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founded in 1887. The AICPA founded accounting as profession, which is distinguished by high professional standards, strict educational requirements, a detailed code of professional standards, and a commitment to serving the public interest. In the early years of the organization rules and regulations were drafted. During the 1970s the responsibility of setting generally accepted accounting principles (GAAP) was transferred to the Financial Accounting Standards Board (FASB). The AICPA provides training
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Costs associated with the issuance of debt Ryan Milliron ACC 311 Every established company will require additional capital at some point. They may choose to sell equity, obtain loans, or sell corporate bonds. When they sell bonds they incur an obligation to repay a certain amount, whether with interest or without, as well as administrative costs with the actual sale. The costs associated with either method of issuing bonds are recorded separately and amortized over the contractual life of the
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Governmental and Nonprofit Accounting: Theory and Practice, 10e (Freeman) Chapter 1 Governmental and Nonprofit Accounting—Environment and Characteristics 1. Which of the following would not be considered a government or nonprofit organization? A. A software company that sells software exclusively to state and local governments. B. A public elementary school. C. A church. D. A private trust organized for charitable purposes. (Answer: A; Easy; LO1) 2. Which of the following
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shall not accept a commission for a referral to a client of products of service of others. 5. A member’s fee may vary depending on the complexity of the service rendered. 6. A member is not precluded from responding to an inquiry by a trial board of the AICPA 7. A member may not serve as a trustee for any pension trust of the client during the period covered by the financial statements. 8. A member shall adequately plan and supervise an engagement. 9. A member may not have or be
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