1. When talking about accounting methods, which of the following statements is false? a. The cash and accrual methods are the principal accounting methods. b. Subject to approval by the Commissioner of the IRS, the use of unspecified accounting methods is permitted. c. Section 453 of the Internal Revenue Code permits the use of the “installment method.” d. The “matching” concept of accounting is useful in understanding the IRS permitted methods of accounting. e. All of the preceding statements
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Statement of the problem: Trans-Share Inc is a marketer and operator of the fractional interest aircraft programs. The company is planning to issue initial public offering which enables the company to adapt new accounting practices and can also reevaluate the past financial reports to make it in line with the newly chosen methodology. The challenge for the company is how to account for the revenue it earned through sales and subsequent of fractional interest. Current revenue recognition method:
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Chapter 1 A Survey of International Accounting A brief description of the major points covered in each case and problem. CASES Case 1 In this case, students are introduced to the difference in accounting for R&D costs between IFRS and U.S. GAAP and asked to comment on whether one method is better than the other, as well as whether any part of R&D should be capitalized. Case 2 (prepared by Peter Secord, Saint Mary’s University) In this real life case, students are asked to discuss
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The first step is determining whether an investment is impaired. Basically, an investment is impaired if the fair value of the investment is less than its cost . According to ASC 320, the entities should assess whether an investment is impaired every reporting period . The second step is evaluating whether the impairment is other than temporary. The impairment is
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Decorus Dea Notes to Consolidated Financial Statements Notes 1 Summary of Significant Accounting Policies Nature of Operations: The Decorus Dea (the “Company,” “we” or “us”) business is focused on providing high end, off the runway clothing and beauty products of superior quality and value. Our stores are located in four different states, Georgia, Florida, California and New York and consist of 56 stores. Our stores are located inside traditional malls, outside shopping centers and through
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The Economic Substance of Accounting Treatment of Property, Plant and Equipment Related IASs and Faithful Representation April 03, 2010 Introduction Theoretical principles of conceptual framework help determine which events should take place and when. They aid professionals with development of new standards and principles. The users of financial statements of public companies depend on the faithful representation of the entity’s financial statements. The financial statements must be adjusted
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|FRAMEWORK | | |U.S. GAAP |IFRS |Similarities | |Purpose of Framework |The FASB framework resides lower in hierarchy. |Management is explicitly required to |Both the frameworks are similar in | | |Management
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accounted for in accordance with FAS Statement No. 141R which was codified under the “Business Combinations topic of the FASB ASC. Describe how the purchase price was allocated to assets acquired and liabilities assumed based on the estimated fair value at the date of acquisition. The allocation of purchase price included identifiable intangible assets and goodwill which was valued at the date of acquisition by an independent valuation firm, [Insert Valuation Firm Name Here] using generally accepted
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information that is useful to present and potential investors and creditors and other users in making rational investment, credit, and similar decisions. An accounting system is the means by which a company records and stores the financial and managerial information from its transactions so that it can retrieve and report the information in an accounting statement. A doubleentry system standardizes the method that a company uses to record changes in its accounts resulting from various transactions or events
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Analyzation of General Motors Financials Prepared by: Cynthia Servison April 14, 2015 The amount of property and equipment on the balance sheet for the two most recent years are (dollars in millions) $27,743 (2014) and $25,867 (2013). Depreciation expense is (dollars in millions) $4,187 (2014) and $3,959 (2013). Amounts on the cash flow statement for depreciation is $8,067 (2014). Expenditure incurred on purchase of property, plant and equipment is called capital expenditure. Such an expenditure
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