make their views known CA1-3.) 1. D 2. A 3. D 4. B 5. A 6. B 7. A 8. B E2-5.) Assets- F Liabilities- B Equity- I Investment by owners- C Distribution to owners- D, K Comprehensive Income- L, G, E, C Revenue- J, H Expenses- H Gains- A Losses- A E2-7.) a. Fair value changes are not recognized in the accounting records. HISTORICAL COST PRINCIPLE b. Financial information is presented so that investors will not be misled. FULL DISCLOSURE PRINCIPLE
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in selecting the key accounting policies. 3.1 Property, Plant and Equipment The PPE of BLD has high flexibility. As PPE is the major part of the total asset, it will affect the total asset strongly when it has any change. Hence the depreciation expenses of these assets have also significant proportion to the total costs of enterprise. According to the final report of BLD, the PPE which include buildings and leasehold property but exclude freehold land are depreciated using the straight-line method
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Question 1 Date | Account Name | Dr | Cr | 1-Apr-12 | No entry required until shares are allotted | | | | | | | 30-Apr-12 | Cash Trust | 1,700,000 | | | Application | | 1,700,000 | | | | | 5-May-12 | Application | 1,700,000 | | | Share Capital | | 1,500,000 | | Allotment | | 200,000 | | Cash at Bank | 1,700,000 | | | Cash Trust | | 1,700,000 | | | | | 8-May-12 | Cash at Bank | 550,000 | | | Allotment |
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those relating to income and expenses are recognized and recorded in the books the moment the substance of the transaction has been perfected. Generally Accepted Accounting Principles (GAAP) prefers that financial statements are based entirely on the accrual basis accounting instead of the cash basis accounting. In its simplest terms, the accrual basis accounting assumes that income is recognized when earned regardless of the date of payment. On the other hand, expenses are recorded when incurred regardless
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construction and mining equipment purchased from Kobe Steel, Ltd. (later resold by the Corporation) in net sales If the Corporation continued with the prior recognition, which was to recognize gross margin, a loss of $5.7 million would be reflected in net sales. However, under the new recognition method no loss would be recorded, instead, revenue increased by $28 million arising from such sales. No impact would be on pre-tax profits as the cost of purchase of the equipment would be recorded in Cost
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15-18 Cost of inventories of a service provider 19 Cost of agricultural produce harvested from biological assets 20 Techniques for the measurement of cost 21-22 Cost formulas 23-27 Net realisable value 28-33 RECOGNITION AS AN EXPENSE 34-35 DISCLOSURE 36-39 APPENDICES A. References to matters contained in other Indian Accounting Standards 1. Comparison with IAS 2, Inventories Indian Accounting Standard (Ind AS) 2 Inventories (This Indian Accounting
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a. SINGH COMPANY’S JOURNAL ENTRIES FOR 2011 |Date |Entry number | |Amount debited |Amount credited | | | |Names of accounts debited and credited | | | |Jan. 1 |1 |Cash (A) |250,000 | | | |
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Accounting Final 1. Matching Principle – requires that expenses be matched with revenues. When revenue is recorded you should also record at the same time any expenses that are related to the revenue. Accrual basis of accounting is typically required for the matching principle; it is a type of accounting that records the impact of a business transaction as it occurs. 2. Salvage Value – also known as the estimated residual value or scrap value. It is the expected cash value of an asset at
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Comparing IFRS to GAAP In financial reporting the U.S uses the generally accepted accounting principles, to record and report. The international financial reporting standards have been used in over 110 countries all over the world. The have similarities but are very different in structure as well, the GAAP is rules based and the IFRS is more principle based when it comes to financial reporting. I will cover some of these difference and similarities in this essay. In what ways does the format of
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Part A Question 2.12 A) Total cash outlay = 500 000 x $6.10 + 4 300 = $3 104 300 Pimento Ltd General Journal Contingencies Reserve 700 000 Retained Earnings 1 000 000 Share Capital 1 404 300 Cash at bank 3 104 300 (Buy back of 500 000 ordinary shares at $6.20 per share and buy back costs of $4 300) B) Total cash outlay = 500 000 x $1.50 + 4 300 = $754 300 Pimento Ltd General Journal Retained Earnings 70 000 Share Capital 684
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