JOINT ARRANGMENTS UNDER AASB11 I. New terminology * AASB11 introduces the term ‘joint arrangement’. A joint arrangement is an arrangement under which two or more parties have joint control. * A joint arrangement has the following characteristics: * The parties are bound by a contractual arrangement * The contractual arrangement gives two or more of those parties joint control of the arrangement. Difference: Under AASB 131 the term ‘joint venture’ was used to describe
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Assertions: Option2 =the reversal of an impairment loss on intangible assets and goodwill should be recognised in the current period if, certain conditions are met: •an external event caused the recognition of the impairment loss in previous periods, and subsequent external events clearly and demonstrably reverse the effects of that event in a way that was not foreseen in the original impairment calculations; OR •the impairment loss arose on an
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ACCOUNTING PERFORMANCE MEASURES Discuss the uses of accounting info in performance measurements. What are the limitations of accounting information? Accounting provides companies with various pieces of information regarding business operations. Management often reviews this information to determine how well their business is operating. A common use of such information is measuring the performance of various business operations. Financial ratios use the accounting information reported on the
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cash flow financial statements. Over the last three years Masimo has seen an increase in product revenue of more than 23% but has also experienced a decrease in royalty revenue by 42% since 2011. The income statement also shows a higher cost of production over a three year period. In 2011 the cost of goods sold was represented by 33%, however, two years later, the same cost of goods sold was 35% of revenue. Through the purchase of Spire Semiconductor, Masimo expects to see better production costs in
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Knowledge Checks: Multiple Choice Questions and Solutions FINANCIAL REPORTING Version 15b KNOWLEDGE CHECKS: MULTIPLE CHOICE QUESTIONS AND SOLUTIONS | i Contents Questions 1 Module 1 Question 1.1 Question 1.2 Question 1.3 Question 1.4 Question 1.5 Question 1.6 Question 1.7 Question 1.8 Question 1.9 Question 1.10 Question 1.11 Question 1.12 Question 1.13 Question 1.14 Question 1.15 Question 1.16 Question 1.17 Module 2 Question 2.1 Question 2.2 Question 2
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Relationship between the IASB and the FASB ACC 541 Relationship between the IASB and the FASB The United States plays an enormous influence on the accounting standards set forth throughout the world in the global economy. The United States follows the Financial Accounting Standards Board (FASB) which has created a large number of accounting standards that are interpreted and accepted by international companies and by the International Accounting Board (IASB). The IASB plays a similar role
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at fair value. Case 5-4 In this case, adapted from a CA exam, students are asked to provide advice in managing a new company providing warranties for new homes. Students must also recommend appropriate accounting policies relating to revenue recognition, warranty obligations and a business combination involving some unique factors in allocating the acquisition cost. Case 5-5 In this real life case, students are asked to provide advice in resolving a salary dispute for a hockey team. The
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purchasor. The software has never been sold without Laser for its functional necessity. In this memo, as explained below, we conclude that: 1. Eye Vision’s arrangement with Holland Hospital is not within the scope of ASC 985-605, Software: Revenue Recognition. 2. The deliverables in this arrangement are the Clear View Laser, embedded software, and maintenance plan, respectively. 3. The Clear View Laser together with embedded software and maintenance plan will be accounted for as separate units
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Basic Accounting Concepts and Business Structures Topic 1 Four organizations are involved in the production of accounting standard: Securities and Exchange Commission (SEC), American Institute of Certified Public Accountants (AICPA), Financial Accounting Standards Board (FASB), and Government Accounting Standards Board (GASB). SEC The SEC is a federal organization that helps develop standards for financial information presented to stockholders. SEC requirements are based on FASB and AICPA standard
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SCHAUM’S OUTLINE OF THEORY AND PROBLEMS OF INTERMEDIATE ACCOUNTING II Second Edition BARUCH ENGLARD, M.S., M.B.A., CPA Associate Professor of Accounting The College of Staten Island The City University of New York SCHAUM’S OUTLINE SERIES New York Chicago San Francisco Lisbon London Madrid Mexico City Milan New Delhi San Juan Seoul Singapore Sydney Toronto Copyright © 2007, 1992 by The McGraw-Hill Companies, Inc. All rights reserved. Manufactured in the United States of America
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