global accounting standards. In doing so, financial reporting will be leveled, and international transactions as well as investors can assure their decisions and provide statements under fair value measurement. The collaboration of FASB and IASB, will be one of the most important changes in financial reporting to take place in years; best of both worlds as I would like to call it. The convergence of US GAAP to IFRS will bring have a major impact in our financial system. Accountants and regulatory bodies
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taken on the basis of financial statements Abuses of the materiality concept are more likely to have serious legal consequences in accounting, than in business case analysis. For accountants, GAAP and FASB have resisted putting precise quantitative value on the size of misstatement or omission that qualifies as an error in materiality. Nevertheless, in reaching judgment on specific cases, auditors and courts have utilized several "rules of thumb." * On an income statement, an omission or error
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Review Of Financial Statements Category: Miscellaneous Autor: anton 26 June 2011 Words: 1546 | Pages: 7 Introduction It is said that companies will come and go, and those that survive and left standing will teach other companies, how their survived. We will take two companies; UPS and Ebay, Inc break them down and show you how they got their start. In our paper, it will also be discussed and show a review of their financial statements from each one. The point is to get a better picture of where
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to ask why this happens. Many brilliant minds have been doing research into what motivates or de-motivates an investor when it comes to making a purchasing decision. Over time one thing has become clear, full disclosure of any significant enough financial facts that may influence the judgment of an informed reader must be made known to the public. The reason stems from the fact that in order for all markets to operate efficiently, its participants must be able to do the same and that is only possible
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Financial Statements In accounting there are four basic financial statements that are considered standard practice by the generally accepted accounting principles (GAAP). These are the income statement, the retained earnings statement, the balance sheet and the statement of cash flows. While each of these reports is very important in its own regard, they are also intermingled and depend on each other to represent a complete unbiased view of an organizations financial situation. The income
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DO ACCOUNTANTS NEED TO CONSIDER THE ECONOMIC CONSEQUENCES OF FINANCIAL STATEMENTS? Table of Contents Introduction……………………………………………………………………...................1 Accountants and the Statements They Produce…………………………………………...1 Users of Financial Statements……………………………………………………………..2 A Key Starting Point for Users……………………………………………………………4 Economic Consequences through Adopting New Accounting Standards…………………6 Accounting Regulation and Its Purpose……………………………………………………7 Conclusion…………………………………………………………………………………8
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Othman Wan Nordin Wan Hussin Faudziah Hanim Fadzil School of Accountancy Universiti Utara Malaysia Sintok, 06010 Kedah Malaysia. Abstract Cooking the books refers to fraudulent accounting activities undertaken by a business to falsify its financial statements. Thus, the objectives of this study are to investigate what the cooking-the-books activities carried out by businesses consist of, how they conduct them, and what the impact is on the business and its shareholders. The case study sample companies
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competitors is an unethical action. When a CPA is hired by a company to review the financial statements of a company, which is their only job they must do. Preparing income tax refund papers, giving tax advice, or any other information to the management of the company is against the scope of practice what the CPA was hired for. When misstatements, errors, or misclassifications are found in the financial statements, the CPA is responsible for making note of the adjustments to be made and turn the
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prepare financial information for internal and external users. Accounting standards play a key role in financial reporting and help users to make informed decisions. Levitt (1998) highlighted the importance of accounting standards as ‘educated investors need relevant, useful information to make their investment decisions’ and he emphasises that this can be achieved by high quality accounting standards. Up to 1970s, there was no uniform system for the preparation of financial statements and different
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International Financial Reporting Standards. This paper will provide a history of IFRS and discuss the time frame of the conversion, along with is effects on U.S in the accounting perspective. Over the past few years, much talk of U.S adopting the IFRS as the basis for accounting principles has circulated amongst the accounting and business world. Although many may resent the conversion from U.S Generally Accepted Accounting Principles (GAAP) to the London-based International Financial Reporting
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