Return on investment are realized through a sale of their product. Thus, it has been said that to appraise the asset accurately the value of its future contribution to production must be discounted to present worth. Uncertainty of future demand and market value would make such a procedure useless. Therefore, due to an inclination toward conservatism in the statement of values, and because of the convenience of the convention, most accountant will represent fixed asset upon the balance sheet at historical
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Question 1 Date | Account Name | Dr | Cr | 1-Apr-12 | No entry required until shares are allotted | | | | | | | 30-Apr-12 | Cash Trust | 1,700,000 | | | Application | | 1,700,000 | | | | | 5-May-12 | Application | 1,700,000 | | | Share Capital | | 1,500,000 | | Allotment | | 200,000 | | Cash at Bank | 1,700,000 | | | Cash Trust | | 1,700,000 | | | | | 8-May-12 | Cash at Bank | 550,000 | | | Allotment |
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Accounting theory and conceptual frameworks After studying this chapter you should be able to: & explain what accounting theory is & describe the main attempts at constructing an accounting theory & appraise current developments in the area & describe and discuss the contents of the IASB Framework & appraise the quality and usefulness of the IASB Framework in the context of its self-declared purposes & describe and discuss the parts of IAS 1 relating to accounting concepts and policies & appraise
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8 Accounting theory and conceptual frameworks After studying this chapter you should be able to: & explain what accounting theory is & describe the main attempts at constructing an accounting theory & appraise current developments in the area & describe and discuss the contents of the IASB Framework & appraise the quality and usefulness of the IASB Framework in the context of its self-declared purposes & describe and discuss the parts of IAS 1 relating to accounting concepts and policies & appraise
Words: 14566 - Pages: 59
8 Accounting theory and conceptual frameworks After studying this chapter you should be able to: & explain what accounting theory is & describe the main attempts at constructing an accounting theory & appraise current developments in the area & describe and discuss the contents of the IASB Framework & appraise the quality and usefulness of the IASB Framework in the context of its self-declared purposes & describe and discuss the parts of IAS 1 relating to accounting concepts and policies & appraise
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75% of the estimated economic life of the asset, or the present value of the minimum lease payments is 90% or more of the fair value of the asset less investment tax credit held by the lessor. Capital Leases | Requirements of the Lessee The lessee should report the asset and liability on the balance sheet or in footnotes at the present value of the minimum lease payments at the beginning of the lease unless the fair value of the leased asset at lease inception is lower (FASB ASC 840, n
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PROJECT REPORT (Submitted for the Degree of B.com Honours in Accountancy and Finance under the University of Calcutta.) A Survey on Accounting & Reporting of Intangible Assets in some selected Indian companies Submitted by Name: MAITREYEE MUKHERJEE Registration no: 043-1221-0272-10 Roll no: Name of the
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Objective of IAS 21 The objective of IAS 21 is to prescribe how to include foreign currency transactions and foreign operations in the financial statements of an entity and how to translate financial statements into a presentation currency. [IAS 21.1] The principal issues are which exchange rate(s) to use and how to report the effects of changes in exchange rates in the financial statements. [IAS 21.2] (IASPlus, Deloitte) Key definitions [IAS 21.8] -Functional currency: the currency of the primary
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However, if the value of the inventory decreases below the original cost, then when valuing inventory the historical cost principle must not be used in this case. The reason for such a decrease in value could be for many reasons such as price level changes in the market, obsolescence, or a natural disaster such as a flood or fire. In lieu of such events the value of the asset must be adjusted because the assets future utility has negatively been affected. Therefore, the value of such inventory
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March 2012 This Auditing and Assurance Bulletin has been prepared by Auditing and Assurance staff. It has not been issued under the authority of the Auditing and Assurance Standards Board (AASB). This Auditing and Assurance Bulletin is intended to help raise practitioners’ awareness in a timely manner of significant new or emerging issues or other noteworthy circumstances related to engagements addressed by the AASB pronouncements. It is also meant to direct practitioners to relevant requirements
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