so that company accounts are understandable and comparable across international boundaries.” TABLE OF CONTENT 1. Introduction 2. Objectives of financial statements 3. IFSR and India’s response 4. GAAP 5. Certain clarifications on IFRS roadmap 6. TransitionIFRS methodology Page | 2 1. International Financial Reporting Standards International Financial Reporting Standards (IFRS) are designed as a common global language for business affairs so that company accounts are understandable
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percentage arise from Texas state saving failure. Saving and loans used to be banks that low interest rate to help people with limited income, at the same time the federal bank require these banks to funds mortgage by there saving account. In the 1980’s saving accounts became unpopular and the banks loss there costumers. The banks asked the Congress to remove the restriction on loans to value ratio, then they start rising their capital by investing in the commercial loans and speculative real estate
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pending patent infringement lawsuit. The possibility of loss is considered remote by its attorneys. 4. An officer of Ramirez Corp. purchased a new home computer for personal use with company money, charging miscellaneous expense. 5. A machine, that cost $40,000, is reported at its current market value of $45,000. 601_Assignment 1
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Accountants (SOCPA) which is adopted from U.S GAAP. eXtra use the historical cost (actual cost a company paid to get the item) to value its items in the financial statements. The historical cost is more reliable even if it is not relevant and timely (conformity) which could be misleading. 1. Account Receivable Account Receivable is set at net realizable value which account receivable after deduct the allowance for doubtful accounts
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limited to the amount that is not contingent on the delivery of additional items. * Utilizing a multiple element account model or an incremental cost model to account for customer loyalty program. * When there is a loss on the first element but a profit on the second element, the company may defer the remaining costs until delivery of the second element. * The use of cost-to-cost revenue service revenue recognition is prohibited. * The completed-contract method is allowed which includes gross-profit
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net realizable value. Additional disclosures about the basis of preparation must be made in the financial statements. Accounting entity or business entity assumption states that the business is considered separate and distinct from its owners. Accounts are kept for entities, as distinguished from the persons associated with these entities. For example the purchase of an asset for owner’s personal use should not be recorded in financial statements. This ensures transparency in ascertaining the return
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Discuss the differences between historical cost and current replacement cost basis of measurement as applied to assets Historical cost: This is the method of reporting assets /liabilities of an entity at the price at which they were originally acquired. The historical cost has the disadvantage of not necessarily representing the actual fair value of an asset, which is likely to diverge from its purchase cost over time. The historical cost concept is clarified by the cost principle, which states that
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Purchasing Power (CPP) Method CPP method is useful for finding out real financial position of organization. Following are the advantages of CPP method. 1. CPP method adopts the same unit of measurement by taking into account the price changes. 2. Under CPP method, historical accounts continue to be maintained. CPP statements are prepared on supplementary basis. 3. CPP method facilitates the calculation of gain or loss in purchasing power due to the holding of monetary items. 4. CPP method
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year-end. The pertinent exchange rates were as follows: 4. For what amount should Brisco’s Accounts Payable be credited on May 8? A. $2,500,000. B. $2,440,000. C. $1,600,000. D. $1,639,344. E. $1,666,667. 5. How much Foreign Exchange Gain or Loss should Brisco record on May 31? A. $2,520,000 gain. B. $20,000 gain. C. $20,000 loss. D. $80,000 gain. E. $80,000 loss. 6. How much US $ will it cost Brisco to finally pay the payable on June 7?
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resolving one of accounting’s ongoing problems—how to account for goodwill in an era where the unidentifiable intangible asset is often an entity’s largest value component. Despite the general recognition that, in practice, the two classes of goodwill are indistinguishable in terms of their ability to generate streams of revenue, a distinction is traditionally drawn between internally generated and purchased goodwill. The former should not be brought to account because it is impossible to do so within the
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