Ifrs Accounting Solution

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Solutions to Problems and Exercises

TABLE OF CONTENTS
* Chapter 11
Concepts for Analysis 1-51
Concepts for Analysis 1-62
Concepts for Analysis 1-103
Concepts for Analysis 1-113
* Chapter 24
Brief Exercise 2-34
Brief Exercise 2-44
Brief Exercise 2-54
Exercise 2-35
* Chapter 36
Exercise 3-66
Exercise 3-96
Exercise 3-118
Exercise 3-1410
Exercise 3-1510
Exercise 3-1610
* chapter 412
Exercise 4-212
Exercise 4-413
Exercise 4-516
Exercise 4-1217
Exercise 4-1318
Exercise 4-1519
Problem 4-119
Problem 4-721
* Chapter 523
Exercise 5-223
Exercise 5-423
Exercise 5-1325
Exercise 5-1525
Problem 5-227
* Chapter 729
Exercise 7-529
Exercise 7-730
Exercise 7-1330
Exercise 7-1531
Exercise 7-1631
Exercise 7-2432
Problem 7-834
Problem 7-1135
Problem 7-1536
* Chapter 838
Exercise 8-138
Exercise 8-1538
Exercise 8-2539
Exercise 8-2640
* chapter 942
Brief Exercise 9-242
Brief Exercise 9-442
Brief Exercise 9-742
Brief Exercise 9-843
Exercise 9-243
Exercise 9-744
Exercise 9-1245
Exercise 9-1446
Exercise 9-1947
Problem 9-447
* Chapter 1849
Exercise 18-249
Exercise 18-450
Exercise 18-751
Exercise 18-1152
Exercise 18-1553
Exercise 18-1954
Problem 18-755
Problem 18-857
* Chapter 2359
Exercise 23-159
Exercise 23-559
Exercise 23-660
Exercise 23-1160

CHAPTER 1
CA 1-5

(a)One of the committees that the AICPA established prior to the establishment of the FASB was the Committee on Accounting Procedures (CAP). The CAP, during its existence from 1939 to 1959, issued 51 Accounting Research Bulletins (ARB). In 1959, the AICPA created the Accounting Prin-ciples Board (APB) to replace the CAP. Before being replaced by the FASB, the APB released 31 official pronouncements, called APB Opinions.

(b)Although the ARBs issued by the CAP helped to narrow the range of alternative practices to some extent, the CAP’s problem-by-problem approach failed to provide the well-defined, structured body of accounting principles that was both needed and desired. As a result, the CAP was replaced by the APB.

The APB had more authority and responsibility than did the CAP. Unfortunately, the APB was beleaguered throughout its 14-year existence. It came under fire early, charged with lack of productivity and failing to act promptly to correct alleged accounting abuses. The APB also met a lot of industry and CPA firm opposition and occasional governmental interference when tackling numerous thorny accounting issues. In fear of governmental rule making, the accounting profession investigated the ineffectiveness of the APB and replaced it with the FASB.

Learning from prior experiences, the FASB has several significant differences from the APB. The FASB has: (1) smaller membership, (2) full-time, compensated membership, (3) greater autonomy, (4) increased independence, and (5) broader representation. In addition, the FASB has its own research staff and relies on the expertise of various task force groups formed for various projects. These features form the bases for the expectations of success and support from the public. In addition, the due process taken by the FASB in establishing financial accounting standards gives interested persons ample opportunity to make their views known. Thus, the FASB is responsive to the needs and viewpoints of the entire economic community, not just the public accounting profession.

(c)The AICPA has supplemented the FASB’s efforts in the present standard-setting environment. The issue papers, which are prepared by the Accounting Standards Executive Committee (AcSEC), identify current financial reporting problems for specific industries and present alternative treat-ments of the issue. These papers provide the FASB with an early warning device to insure timely issuance of FASB standards, Interpretations, and Staff Positions. In situations where the FASB avoids the...
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