company’s accounting treatment of the “Refer-a-Friend Program” described in the case. The controller expects you to research the case and have your written recommendations on her desk by November 12. Write a 1- to 2-page double spaced research paper which addresses the three required questions of the case. Explain the journal entries you recommend in the case requirements. Support your conclusions with citations from the Accounting Standards Codification and International Accounting Standards
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Accounting Standard Board Paper ACC/541 June 18, 2012 Accounting Standard Board Paper In the world of accounting there needs to be standards for all of the countries, whether they are in the United States of Overseas. The accounting boards will help with making sure that all of the information is done correctly and are reported in a consistent way so that investors can determine what company is better to invest in. The two types of accounting standards board that are being discussed is the
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Financial Accouting EXECUTIVE SUMMARY Accounting for intangible assets is a major issue within the accounting environment. The issue is identifiable when it concerns accounting for research and development costs, in particular, internally generated assets. With two imperative standards in practice today, one being the IASB’s selective capitalisation of expenses into an intangible asset once a specific criteria has been reached and the other being the FASB’s system of straight expensing of all
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International Accounting Standards Board Introduction Accounting plays a very significant role in the success of any business organization as it helps its users make decisions. Different accounting principles grew out of the divergent economic and social environments of various nations and regions. Difference among national accounting become more disconcerting when trade barriers between nations were reduced due to international cooperation developments. Efforts have increased during the
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The Financial Accounting Standard Board (FASB) is located in the United States and was formed in 1973 as a private sector to establish guidelines for financial accounting. These standards command the arrangement of financial reports by nongovernment bodies. The Financial Accounting Standard Board has only 5 members. The FASB standards are known by The American Institute of Certified Public Accountants and the Securities and Exchange Commission. The Financial Accounting Standard Board encourages
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issues are likely to affect SoftWarehouse Ltd. In January 2006, Isoft, a Manchester based supplier of software applications for the healthcare sector, announced that its profit would be below market expectations due to a required change in its accounting policy for revenue recognition. Isoft was forced to reverse revenue of approximately £70m in 2005 and £55m in 2004 – when Deloitte found that Isoft was recognizing revenue sooner than it should have been. The underlying principle of Isoft’s
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Failure – Harmonization Process – EU & IASB International business are no longer confronted only with Accounting problems, which ends at domestic borders. When companies, equity, or capitials cross borders they are confronted with new cultures, challenging new laws and differences in political systems. Besides that there are the differences in Accounting Standards abroad. For example there are the US gaap and IAS. The lack of similar Accounting Standard led to problems in comparing financial
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INTRODUCTION International Financial Reporting Standards (IFRS) In 2011, international financial reporting standards (IFRS) will replace generally accepted accounting principles (GAAP). This means Canadian publicly-traded companies will be required to present financial statements in accordance with IFRS. This change will not only affect those involved in the development of financial information but also those who use this information. Economic globalization brings increased demand for high quality
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Share Capital It is the amount of money contributed by the shareholders for the furtherance of objectives of the company for which it was created. * Equity / Preference Share * Par value * Number of Shares in each category * Total amount TYPES OF SHARE CAPITAL * AUTHORISED CAPITAL * ISSUED CAPITAL * SUBSCRIBED CAPITAL * CALLED UP CAPITAL * PAID-UP CAPITAL AUTHORISED CAPITAL * MAXIMUM amount of share capital that the company is authorised by its constitutional
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Revenue Recognition is regarded as one of the most important topic in accounting. However, it is most difficult issues that standard setters and accountants must deal with regularly because the accounting standards and rules are changing all the time for improving the quality of accounting, which also explains why there are so many changes over these two decades on Australian Accounting policy. This report will focus on some accounting policies regarding to recognition of revenue from the contracts with
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