one to make their views known. CA1-3 1. D 2. D 3. C 4. A 5. A 6. A 7. C 8. A E2-5 1. Liabilities 2. Expenses 3. Equity 4. Distributions to Owners 5. Expenses 6. Assets 7. Revenues 8. Comprehensive Income 9. Losses 10. Gains 11. Investments by Owners 12. Revenues E2-7 * (a) Fair value changes are not recognized in the accounting records. Fair value principle * * (b) Financial information
Words: 338 - Pages: 2
Earnings Management The issue of earnings management is one of the most controversial topics in accounting. There isn’t one universal agreed upon definition for earnings management and different views tend to perceive it in different ways. What makes earnings management such a provocative topic is its direct link to earnings quality. Earnings quality is such an important factor to investors when coming to make their investment decisions because it reflects the integrity of the firm. The higher
Words: 675 - Pages: 3
FASB undertakes a series of elaborate information gathering steps before issuing an accounting standards update to determine consensus as to the preferred method of accounting, as well as to anticipate adverse economic consequences. //(Internal Revenue Service, Financial Executives International, American Institute of CPAs, International Accting Standards Boards, Governmental Accting Standards Board, Securities & Exchange Commission, American Accting Association) -( GAAP //GAAP (generally accepted
Words: 1052 - Pages: 5
IFRS VS. GAAP Gregory Abraham ACC/290 August 17, 2015 Sherrick Johnson IFRS VS. GAAP In accounting, there are sets of standards, accounting principles, and procedures that businesses use to assemble their financial statements. IFRS and GAAP are two common sets that companies use to comply their statements. IFRS, International Financial Reporting Standards, are a set of accounting standards established by the IASB, the International Accounting Standards Board, which is becoming
Words: 1069 - Pages: 5
Accounting Terms Chapter 1 Accounting- Information and measurement system that identifies records and communicates relevant information about a company’s business activities Accounting equation- equality involving a company’s assets liabilities and equity, assets equal liability plus equity/ aka balance sheet equation Assets- resources a business owns or controls that are expected to provide current and future benefits to the business Auditors- An individual who checks the accuracy, fairness
Words: 2015 - Pages: 9
Chapter 1 Environment and Theoretical Structure of Financial Accounting EXERCISES Exercise 1-1 Requirement 1 | | Haskins and Price | | | |Operating Cash Flow | | | | |
Words: 326 - Pages: 2
A1129 IFRIC 15 CONTENTS paragraphs IFRIC INTERPRETATION 15 AGREEMENTS FOR THE CONSTRUCTION OF REAL ESTATE REFERENCES BACKGROUND SCOPE ISSUES CONSENSUS Determining whether the agreement is within the scope of IAS 11 or IAS 18 Accounting for revenue from the construction of real estate Disclosures AMENDMENT TO THE ILLUSTRATIVE EXAMPLES ACCOMPANYING IAS 18 EFFECTIVE DATE AND TRANSITION 1–3 4–5 6 7–21 10–12 13–19 20–21 22–23 24–25 FOR THE ACCOMPANYING DOCUMENTS LISTED BELOW, SEE PART B OF THIS
Words: 1820 - Pages: 8
September 9, 2013 Accounting is the information system which records, summarizes, and reports the underlying economic conditions of an entity. Financial accounting is used to report this information to external parties [managerial accounting is to use this information internally]. Financial statements are management’s report to owners. 3 profit-seeking entities: Sole proprietorship simple to establish, owner controlled Unlimited liability (no legal separation). All profits and
Words: 3631 - Pages: 15
concepts and principles to be used in preparing financial statements SAC 1 – Definition of a Reporting Entity SAC 2 – Objective of General Purpose Financial Reporting SAC 3 – Qualitative Characteristics of Financial Information SAC 4 – Definition and Recognition of the Elements of Financial Statements Now, SAC 3 and SAC 4 is replaced with “Framework for Preparation and Presentation of Financial Statements” FYI: Difficulties that face accounting and managers by GAAP Difference
Words: 3857 - Pages: 16
to revalue your revenues and expenses in the following statements. Inappropriate revenue recognition criteria and policies (should change revenue recognition method or change the allowance estimation, 2011 allowance amount should be larger than 2010 due to larger AR and the difficulty that the artist been through) WAG records revenue from artwork sales when the Company and customer agree upon a selling price. This criterion does not conform to U.S. GAAP, which requires revenue be recognized when
Words: 1809 - Pages: 8
