Chapter 4 The economics of Financial Reporting Regulation The case for unregulated markets for accounting information * Support for unregulated marketing all relate to the incentives for a firm to report information about itself to owners and to the capital market. * Agency theory explains why incentives exist for voluntary reporting to owners. * Wider voluntary reporting to the capital market is explained by signaling theory * The arguments supporting unregulated markets for
Words: 3948 - Pages: 16
Dilemma U.S. GAAP Authoritative Guidance Accounting Standards Codification (ASC) 605-10-25-1 The recognition of revenue and gains of an entity during a period involves consideration of the following two factors, with sometimes one and sometimes the other being the more important consideration: a. Being realized or realizable. Revenue and gains generally are not recognized until realized or realizable. Paragraph 83(a) of FASB Concepts Statement No. 5, Recognition and Measurement in Financial
Words: 1914 - Pages: 8
I. Succinct The case present a company named Lighthouse that it business specializes as a provider of locating services for the shipping industry. The services comprise of a one-way messaging service that routes messages from the ships at sea to the shipping company’s offices. The messages provide the shipping company detailed information regarding to ship location, speed and current local weather. The way the system works for gathering the ships data is, by installing a device as a dedicated
Words: 4085 - Pages: 17
The Home Depot, Inc. ACC/497 The Home Depot, Inc. Management, board of directors, and potential investors gain crucial information on the status of a company by reviewing and analyzing the different financial statements. A financial statement allows users a peek into its financial well-being in order to make informed decisions in relation to that company. One of the most common financial statements is the income statement and is frequently referred to as the profit and loss statement
Words: 980 - Pages: 4
1. | Question : | (TCO A) The Financial Accounting Standards Board employs a "due process" system, which | | | Student Answer: | | has all CPAs in the United States vote on a new statement. | | | | enables interested parties to express their views on issues under consideration. | | | | identifies the accounting issues that are the most important. | | | | requires that all accountants receive a copy of financial standards. | | Instructor Explanation: | General Feedback:
Words: 2112 - Pages: 9
should not amortize the trademark. In order for the trademark to be amortized; it would need a finite useful life. (FASB ASC 350-30-35-1) The useful life of the trademark is considered to be indefinite because Express plans on renewing it and cash flows are expected to continue indefinitely. (FASB ASC 350-30-35-4) Impairment is defined by the FASB Accounting Standards Codification as occurring when the carrying amount of a long-lived asset is greater than its fair value. An impairment loss is measured
Words: 511 - Pages: 3
To assist students in completing the assignment, sample cases with solutions were posted. Students would need to use FASB Codification database (the same one used by accounting firms). You can access the database through: http://aaahq.org/ascLogin.cfm Userid: AAA52120 Password: 6HxBPpx The main purposes of the cases are: 1. Provide hands-on experience in using FASB Codification to research for accounting solutions. 2. Encourage team effort to examine possible solutions and come to a consensus
Words: 657 - Pages: 3
to the creditor. Another way to extinguish liabilities is to transfer assets. This idea of extinguishing liabilities is meant for use by the SEC. There are many different industries that consider industry guidance in the FASB, Financial Accounting Standards Board, Codification and they include agriculture, contractors, entertainment, financial services and health care entities. The agriculture industry has many different characteristics represented in accounting. Those characteristics include type
Words: 944 - Pages: 4
states that, “On page 6 of the annual reports of your (SPI) annual report, you (chief decision maker) identify seven product lines.” Finally, all the information is available because they are in the annual reports. According to FASB Accounting Standards Codification 280-10-50-11: Two or more operating segments maybe aggregated into a single operating segment if they have similar economic characteristics and if they are similar in all of the following: Nature of products and services. Nature of
Words: 525 - Pages: 3
below. • Trueblood cases from Deloitte. Available at: http://www.deloitte.com/view/en_US/us/About/university-relations/Deloitte-Foundation/0ac1264f0b0fb110VgnVCM100000ba42f00aRCRD.htm • FASB codification—password to be handed out in class. You may log in at http://aaahq.org/ascLogin.cfm Objectives This course examines: • How accounting principles are established and monitored by standard setters. • The
Words: 8209 - Pages: 33
