General Instructions There are ten cases included in this packet (Cases #1 through #9). You are responsible for reading all nine cases prior to class on Monday, October 7th. In addition, your group is responsible for informally presenting the solution to one case on that date. The case assigned to each group corresponds to your group number. Your presentation should take the form of “teaching” the rest of the class the material related to the case. Keep in mind that for exam purposes all groups
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Sincerely. XXX CA 2-11 (Expense Recognition Principle) (a) The stakeholders should be considered as investors or creditors. (b) Honest of financial report (c) Whether apply the expense recognition principle during the plant’s period or not to apply. (d) I think the question is whether or not apply the recognition principle during the plant’s life. Applying the expense recognition principle will reduce the profits, make the expense
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manipulated both revenues and earnings in an effort to show itself in a more favorable light. 2. Why do you think that the SEC (and others) prefer GAAP-based measures (in spite of the known limitations), and recommend these to investors for decision-making? Groupon opted a revenue recognition procedure that presented Groupon as primary service provider instead of a broker or intermediary between its customer and merchant. It presented the amount it received from its customer as gross revenue while money
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report expenses and revenues in the time period in which they occur rather than when cash physically changes hands. The text, Financial Accounting: Tools for business decision making, describes accrual accounting as, “Accrual-basis accounting means that transactions that change a company's financial statements are recorded in the periods in which the events occur, even if cash was not exchanged. For example, using the accrual basis means that companies recognize revenues when earned (the revenue recognition
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subsidiary of LSL, the revenue from the transaction should be recognized in full according to Accounting Standard Statement 66, or the Accounting for Sales of Real Estate. The entire $14 million that AMCOR will receive should be recognized in accordance with the transaction. The $3.5 million should be placed in a cash account along with an increase in revenues. The $10.5 million note should be placed in a receivables account with revenues account once again increasing for a revenue increase of $14 million
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of accounting – IFRS 2010 • Manual of accounting – Financial instruments 2010 • Illustrative IFRS corporate consolidated financial statements for 2009 year ends Provides a summary of the IFRS recognition and measurement requirements. Including currencies, assets, liabilities, equity, income, expenses, business combinations and interim financial statements. IFRS news A practical guide to capitalisation of borrowing costs Monthly newsletter focusing on the business implications of the IASB’s
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E2-8 A. (Principle) Historical Cost B. ? C. (Principle) Full Disclosure D. (Principle) Matching E. Materiality F. Industry G. (Assumption) Economic Entity H. (Principle) Full Disclosure I. (Principle) Revenue Recognition J. (Principle) Full Disclosure K. (Principle) Matching L. (Assumption) Economic Entity M. (Assumption) Periodicity N. (Principle) Matching O. Materiality P. (Principle) Historical Q. Conservatism R. (Principle)
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Comparing IFRS to GAAP Michaela Lyons ACC/290 03/28/2016 Sharon Powers Comparing IFRS to GAAP This collaborative team experience has been quite motivating and has really pushed me to research the information extensively to ensure my personal understanding. My team didn’t exactly connect easily and it really pushed me to develop my understanding on my own. Although that isn’t the ideal outcome in a team setting, however in my opinion it actually helped
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primarily the balance sheet that summarises the assets, liabilities and shareholder’s equity at the end of a year or a specified period (quarter / half year etc.), the income statement also known as the profit and loss statement summarises the revenues and expenditures incurred during a specified period (year / half year / quarter) and statement of cash flows. There are various stakeholders who are interested in the financial statements. Stakeholders can be shareholders, trade creditors who
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of accounting – IFRS 2010 • Manual of accounting – Financial instruments 2010 • Illustrative IFRS corporate consolidated financial statements for 2009 year ends Provides a summary of the IFRS recognition and measurement requirements. Including currencies, assets, liabilities, equity, income, expenses, business combinations and interim financial statements. IFRS news A practical guide to capitalisation of borrowing costs Monthly newsletter focusing on the business implications of the IASB’s
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