been purchased by the current owners. The first footnote is probably labeled “Summary of Significant Accounting Policies”. What do you think is the main objective of this footnote? This was actually the second footnote (the first was titled "Nature of Business"). If the company has inventory, what cost flow assumption are they using (FIFO, LIFO, etc)? How do you know? This company currently uses FIFO (the company's predecessor had used LIFO). They tell me this in the second footnote
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Question 1: Case analysis There are many similarities between IFRS and pre-IFRS Canadian GAAP, however there are also significant differences. They are both similar in terms of style and the form of the individual standards because they are based on similar conceptual frameworks. The main objective of both IFRS and pre-IFRS Canadian GAAP is for financial statements to give a fair presentation. When there is a choice of accounting policies, the one that can reflect the most accurate economic portrait
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FINANCIAL ACCOUNTING INFORMATION AND THE RELEVANCE/IRRELEVANCE ISSUE (Global Business & Economics Review Volume 5 No.2 December 2003 pp:140-175) Stanley C. W. Salvary, Canisius College ABSTRACT Some current research conclude that the numbers in financial statements are not relevant for three basic reasons. The numbers: (1) are not isomorphic with capital market values, (2) do not have a future orientation, and (3) are un-interpretable since they are based upon five different measurement attributes
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United States and International Financial Reporting Standards, adopted by nearly 100 countries worldwide, continue to use fair value extensively—for example, in accounts concerning derivatives and hedges, employee stock options, financial assets, and goodwill impairment testing. One explanation for the rise of fair value
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STUDIES- XII-NOTES ________________________________________________________________ MARKETING MANAGEMENT CONCEPT MAPPING: 1. Market, Consumer, Seller / Marketer – meaning 2. Marketing – meaning, Features – Role 3. Marketing Management – Measuring Nature and Objectives 4. Difference between marketing and selling 5. Marketing Functions 6. Marketing Mix – product, price, place and promotion 7. Advertising – meaning, features, merits and limitations. 8. Various media of Advertising and Media selection
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self-insure the health care costs of their employees and employee’s dependents. Cash, Cash Equivalents and Investments: Cash and cash equivalents, because of their high liquid and short term nature are valued at their carrying value. But investments are classified into several categories based on the nature on the instrument. They can either be classified based on their held to maturity or available or sale. Investments with maturities less than one year are classified as short-term. The investments
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Intangible assets- practical approach An asset that is not physical in nature. Corporate intellectual property (items such as patents, trademarks, copyrights, business methodologies), goodwill and brand recognition are all common intangible assets in today's marketplace. An intangible asset can be classified as either indefinite or definite depending on the specifics of that asset. A company brand name is considered to be an indefinite asset, as it stays with the company as long as the company
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.................................................13 Long-lived assets ...........................................................14 Intangible assets ............................................................16 Impairment of long-lived assets, goodwill and intangible assets ............................................................18 Financial instruments .....................................................20 Foreign currency matters ...............................................28 Leases
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Definition of 'Goodwill' An account that can be found in the assets portion of a company's balance sheet. Goodwill can often arise when one company is purchased by another company. In an acquisition, the amount paid for the company over book value usually accounts for the target firm's intangible assets. Investopedia explains 'Goodwill' Goodwill is seen as an intangible asset on the balance sheet because it is not a physical asset such as buildings and equipment. Goodwill typically reflects the
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Chapter 2 Worldwide accounting diversity Chapter Outline I. Considerable differences exist across countries in the accounting treatment of many items. These differences can result in significantly different amounts being reported in the financial statements prepared by companies using different GAAP. II. A variety of factors influence a country’s accounting system. A. Legal system – in code law countries, accounting rules tend to be legislated; common law countries tend to have
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