unit of accounting and both should be recognized as the service is provided. The second alternative is that the devices and services represent two separate earnings processes which need to be recognized separately. Alternative 1. According to FASB 605-25-25-5, there are three criteria that need to be met in order for an arrangement with multiple deliverables to be considered separate accounting units. First, the items need to have standalone value to the customer. Second, there needs to be
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CHAPTER 1: INTRODUCTION TO ACCOUNTING AND FINANCIAL REPORTING FOR GOVERNMENTAL AND NOT-FOR-PROFIT ENTITIES OUTLINE |Number |Topic |Type/Task |Status | | | | |(re: 15/e) | |Questions: |
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Understandability The quality of information that lets reasonably informed users see its significance is understandability. “It is a qualitative characteristic that enables users to comprehend the information and therefore make it useful for making decisions” (FASB, 2010, p. 30). It creates a link between the users and the decisions they make. Effective accounting information must be useful and understandable so a decision maker can determine which alternative provides the most useful information to make a decision
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Ch.1 [FINANCIAL ACCOUNTING AND ACCOUNTING STANDARDS] I. Essential characteristics of accounting are: a. The identification, measurement, and communication of financial information i. Financial statements b. Economic entities ii. Financial information c. Interested parties II. What is the purpose of information presented in notes to the financial statements? d. To provide disclosure required by GAAP III. Capital Allocation e. Financial
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Getting Started with Research Cases (Case #1): 1. WHAT IS THE PURPOSE OF THE RESEARCH CASES THAT YOU WILL COMPLETE IN THIS COURSE? The purpose of these cases is to provide you with experience solving an unstructured problem that requires searching accounting standards and financial statements. In your future careers in public accounting or in financial reporting, you will encounter financial accounting problems for which there may not be a clear-cut accounting treatment. Instead, you will
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determined that the equity method is, in fact, appropriate for Major Motors’ interest in NGR under FASB ASC 323, Investments—Equity Method and Joint Ventures. According to accounting literature, Major Motors meets the requirements for applying the equity method. If an investor holds significant influence in an investee, then using the equity method to account for the investment would be the most appropriate. FASB ASC 323-10-15-6 outlines the criteria for significant influence: a. Representation on
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Standards (IFRS), and the Financial Accounting Standards Board (FASB), responsible for the U.S. Generally Accepted Accounting Principles (GAAP), are the two most prominent accounting entities in the world. However, there are accounting requirements between the two that are at times different and often end with conflicting results for economically similar transactions. This is most apparent in the area of revenue, prompting the FASB and IASB to collaborate for more than a decade to develop the Accounting
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warranted. The subject of this review is to research whether P&P’s treatment of manufacturing overhead is in accordance with generally accepted accounting principles (GAAP). In performing our research we used the FASB Accounting Standards Codification (the Codification). Within the Codification we identified relevant guidance in paragraph 330.10.30.1, which indicates, in part: “The primary basis of accounting for inventories is cost, … As applied to inventories, cost means in principle the
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regions of the globe, and resulted in an increased demand for global financial reporting. In this research paper, we will analyze the relationship between the International Accounting Standards Board (IASB) and Financial Accounting Standards Board (FASB). The research paper will discuss also how the Master’s of Science in Accounting (MSA) at University of Phoenix prepares students for a successful carrier within the accounting profession. The increasing number of multinational companies, especially
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standards (IFRSs) have been required or permitted in over 100 countries, including the European Union ("What Have IASB And FASB Convergence Efforts Achieved?", 2013). The IASB aims to make the entire world follow guidelines for financial reporting to make use and comparability of financial reports more consistent across all geographical areas. The Financial Accounting Standards Board (FASB) is the independent body that is responsible for the creation of GAAP. The board is the standard setting body in charge
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