accountants and financial experts, but over the years they have grown to become a powerful tool in analyzing the financial health of organizations for anyone who is interested. According to Ruhl & Smith (2013), the motivation behind the joint FASB/IASB conceptual framework was to make accounting information useful and the two most important components of usefulness are faithful representation and relevance (p. 11). Below the 2013 Procter & Gamble Annual Report will be used to analyze the financial
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globalization, almost a hundred countries have adopted IFRS. Approximately 120 nations and reporting jurisdictions permit or require IFRS for domestic listed companies, although approximately 90 countries have fully conformed with IFRS as announced by the IASB and include a statement acknowledging such conformity in audit reports. Motivations for convergence include the belief that it will result in increased comparability between financial statements, which will benefit a variety of stakeholders. One
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The IASB and FASB both of these two have a conceptual framework. The IASB’s conceptual framework is described in the document, “Framework for Preparation and Presentation of Financial Statements.” Numerous published their own conceptual framework, but no single framework was universally accepted and relied on the practice. In 1976 the FASB began to develop a conceptual framework that would be a basis for setting accounting rules and for resolving financial reporting controversies. The FASB issued
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areas and a better overall understanding of the Codification. First, what is the Accounting Standards Codification (ASC)? The ASC, cited as the FASB Accounting Standards Codification® (Codification), is a subscriber based website which provides useful tools for researching authoritative GAAP related material. It was made authoritative by SFAS 168, The FASB Accounting Standards Codification™ and the Hierarchy of Generally Accepted Accounting Principles. The intent is to make available an up to date
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How Fair Value Measurement Changes Risk Management Behavior in the Insurance Industry JANUARY 2013 SPONSORED BY Financial Reporting Section Society of Actuaries PREPARED BY Bruce B. Rosner, FSA, MAAA Ernst & Young LLP Mark J. Freedman, FSA, MAAA Ernst & Young LLP The opinions expressed and conclusions reached by the authors are their own and do not represent any official position or opinion of the Society of Actuaries or its members. The Society of Actuaries makes no representation or warranty
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1. | Which tax is calculated on the transfer of property and is normally determined by multiplying the value of the property transferred by a tax rate? Choose 1 answer | | A. | | progressive tax | B. | | excise tax | C. | | income tax | D. | | FICA tax | | 2. | Which two statements describe how taxes influence decisions made when filing a return for an individual taxpayer? | | Choose 2 answers | | A. | | Changes in tax structure may allow taxpayers to have more
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of the literature. • Provide accurate information with real-time updates as Accounting Standards Updates are released. • Assist the FASB with the research and convergence efforts. 2. Briefly describe the purpose and content of the “What’s New” link. It aims to provide descriptions of recent modifications and enhancements to the FASB Accounting Standards Codification website. The existing already-issued content has been moved to the “Recently Issued” section, therefore one
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Striking the right balance • The FASB and IASB (the Boards) have proposed that substantially all leases be reported on a company’s balance sheet. In the income statement, the results of lease transactions would be recognized under a dual model—as either a financing (i.e., expense would be front-loaded) or ratably over the lease term (i.e., straight line expense). The recognition pattern generally would depend on whether the asset being leased is property (e.g., a building) or non-property (e.g.
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separately from its owners and from any other entity Common stock- Corporations basic ownership share aka capital stock Conceptual framework- system of interrelated objectives and fundamentals, disseminated by accounting regulators such as the FASB or IASB intended to guide consistent standard setting ad aid accounting practitioners Contributed capital- Total amount of cash and other assets received from stockholders in exchange for stock aka paid in capital Corporation- Business that is a separate
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Theory February 14,2012 Should economic consequences be considered by the FASB in the accounting standard setting process? Yes, the FASB should consider economic consequences in the accounting standard setting process. Ever since the creation of the FASB in 1973, it was charged with establishing standards of financial accounting and reporting in the most efficient and complete manner possible. The goal of the FASB is to maintain a neutral stance and set standards that will be helpful in predicting
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