confirmatory value 47, conservatism 49, consistency 51, cost constraint 61, economic entity assumption 54, elements 52, basic 52, expense recognition principle 58, fair value 56, fair value option 57fair value principle 57, faithful representation 49, financial statements 60, free form error 49, full disclosure principle 60, general purpose financial reporting 45, going concern assumption 55, historical cost assumption 55, historical cost principle 56, matching principle 59, materiality 47, monetary
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year 12. Another decline was shown in gross profit and selling expenses in year 13 of 6.44% and then increased in year 14 by 1.28%. This is directly related to the sales figures. This demonstrates to the banker that the company managed to maintain its cost of goods sold and its selling expenses during those years. One area that does not show as favorably is the area of general and administrative expenses. These increased by 7.24% in year 13 and by 6.5% in year 14. From these figures, the banker will
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Dissecting the biases present in the political and literary perspectives regarding partition of 1947: A holistic approach incorporating an analysis of the State account to understand the political agendas, and deconstruction of Manto’s writings to comprehend the biases present in the literary arena. The history of the partition of India has been viewed, contemplated and constructed with a variety of perspectives, each differing according to a large number of variables. These variables include the
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(CAPM) is an important tool to identify the expected return of a portfolio. This model takes into account market expected rate of return, the risk-free rate and the beta of a particular investment or portfolio (Investopedia, n.d.). Beta represents the investment or portfolio sensitivity to the market fluctuation. The CAPM is based on few assumptions: * There are no transaction and taxation costs. * Investors are assumed to invest in diversified portfolios. * Investors are rational.
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Vulcan Manufacturing Limited Users: * Shareholders * Chief Financial Officer * VML Management Objectives of the users: * Shareholders: – Make sound decisions about investments based on true value of the net worth of the firm. They also want to evaluate financial and managerial performance without exchange rate biases. Also, they want to assess the value added of the subsidiary for VML and the entity as a whole. * CFO: – Firstly, to be able to make informed decisions
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Canada use the nominal dollar. While IFRS supports Constant dollar as well as Productive capacity dollar. A2-8 1. Not allowed to do this because it would be fraud.This is against the Historical concept. This is because the company haven’t sold it at that price yet, so the value would be the same like cost price. 2. This is against the timeliness concept. There could be books at different periods of production during the year. Making financial statements every three years will not keep proper
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become CPA’s. 2. Specialized accounting fields/ branches There are several specialized fields in accounting. The two most common are financial accounting and managerial accounting ( this is based on user’s point of view). Other fields include:- Cost accounting, Environmental accounting, Tax accounting, Social accounting, etc. 3. Management Accounting – Management accounting is concerned with the provision of appropriate financial information to people within the organization (management and
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esACTG3110 Chapter 5: Statement of Cash Flows Introduction Objectives of the SCF •Companies are required to include statement of cash flows (SCF) as part of their F/S. •Historical CF are often used as indicator of amount, timing, and uncertainty of future CF. •The objective of the SCF is to disclose the historical cash flows of the enterprise during the reporting period for both feedback and predictive purposes. Classification and Organization The SCF is classified on the basis of the type
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The Effects of Changes in Foreign Exchange Rates By: Benjamin T. Givens INTRODUCTION Over the past few decades, different generally accepted accounting principles (GAAP) have been developed in various countries. These differences have arisen in response to the unique legal, regulatory, litigious, social, economic, religious, and cultural environments of the countries they were created in (Wiecek and Young, 1-2). The increase in globalization coupled with related regulations has given rise
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profit, residual income, economic value added * Ratio terms: ROI, ROE, ROA Economic profit-focused system: Economic profit = adjusted net operating profit after taxes – capital* cost of capital Two adjustments are made in the new systems: advertising expense and amortization * Consider intangibles and cost of capital * Managers’ interest will be aligned with those of shareholders + Objectivity * A reasonable choice. Question 2: Evaluate the Berkshire Industries’ new incentive
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