MEMORANDUM TO: Professor John Eckroth DATE: 12/03/2013 SUBJECT: Project #2 – PPP Fashions, Inc. The purpose of this memo is to address the accounting issues related to how PPP Fashions should record the $25 Referral Credit on the books. The Financial Accounting Standards Board’s Accounting Standards Codification (ASC) Topic No. 605-50 (Revenue Recognition/Customer Payments and Incentives) provides guidance pertaining to sales incentives including discounts on future purchases. The general
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INTRODUCTION For more than a decade now, there has been a movement around the world to develop a common set of high-quality accounting standards that can be applied globally. Comparable accounting around the world, if high standards are instilled and application was consistent, would make markets more efficient by letting investors compare companies from different countries. In particular, the issue of American adoption of International Financial Reporting Standards (IFRS) is of importance because
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Property, Plant and Equipment Property, Plant and Equipment I- Nature of Accounting Issues Businesses purchase and use a variety of fixed assets, such as equipment, furniture, tools, machinery, buildings, and land. These fixed assets are long-term or relatively permanent assets. Also, they are tangible assets because they exist physically. They are owned and used by the business and are not offered for sale as part of normal operations. Perhaps the most descriptive titles these assets are
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when studying Advanced Financial Accounting topics. 7 Chapter 2 : Regulation in Financial Accounting 2.1 Advanced Financial Accounting the FunCtion oF FinanCial aCCounting and reporting The International Accounting Standards Board (IASB) in their Conceptual Framework for Financial Reporting state that ‘the objective of general purpose financial reporting is to provide financial information about the reporting entity that is useful to existing and potential investors, lenders and
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continues with OCI entries or by presenting OCI as an independent statement, starting with net income. However, in 2011 FASB issued Accounting Standards Update (ASU) 2011-05 that eliminates the option of a separate statement to report OCI. Since respondents demonstrated concerns saying that users can get confused with the information if presented in the same statement, FASB and IASB allows the use of “two-statement presentation” approach. Through the research discussed by Charles E. Jordan and Stanley
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“Why is accounting for construction contracts and for leases often perceived to be contentious, difficult and a source of opportunity for the manipulation of financial statements. To what extent do IAS 11 and IAS 17 resolve these issues? What can you tell us about any anticipated changes to International Accounting Standards in respect of construction contracts and leases and about how such changes may impact upon Brick to Brick PLC?” In order to explore the reasons companies distort their financial
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ACCOUNTING THEORY (FAR 600) Teaching and Learning Arrangements (SEMESTER: SEPT 2013 – JAN. 2014) COURSE CODE : FAR 600 PROGRAM : BACHELOR OF ACCOUNTING (HONS) CREDIT HOURS : 3 CONTACT HOURS : 3 STATUS : CORE TEACHING LECTURER : Prof Dr Rohana Othman OFFICE & PHONE NO. : Room 419 (Off. Tel: 03-55444987) E-MAIL : rohana799@gmail.com SYNOPSIS This course is designed to further enhance the students’ understanding of the concepts
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Trident University International ACC501 Case Assignment #1 Core Faculty: Dr. Timothy Brown Introduction The purpose of the following paper is to address common terms used in accounting, to include Generally Accepted Accounting Principles (GAAP), double entry accounting, historical cost, accrual basis vs. cash basis accounting and current assets and liabilities vs. non-current items. I will also describe the general organization of the following three companies; Apple,
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it affects the true and fair concept of financial reporting. Another problem with the lack of a conceptual framework has become apparent in the USA. The large number of highly detailed standards produced by the Financial Accounting Standards Board (FASB) has created a financial reporting environment governed by specific rules rather than general principles. This would be avoided if a cohesive set of principles were in place. A conceptual framework can also bolster standard setters against political
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1.0) INTRODUCTION 1.1) Background and Overview “All families are alike, and all families are different” said Wayne Upton, Director of International Activities for the International Accounting Standards Board (IASB). It means that every country have their own accounting standards. There are many accounting standards in the world, with each country using a version of their own generally accepted accounting principles, also known as GAAP. Dissimilar financial reporting and accounting practices
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