• Financial Porting
    and then presents the components of other comprehensive income Although U.S. generally accepted accounting principles (U.S. GAAP) indicate a preference for this type of presentation when a single statement of comprehensive income is not presented, they permit companies to present the components of...
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  • Mari
    historical or purchase cost of an asset across its useful life, roughly corresponding to normal wear and tear.[1] It is of most use when dealing with assets of a short, fixed service life, and which is an example of applying the matching principle per generally accepted accounting principles. Depreciation...
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  • Regulatory Framework
    application of the definitions of the IASB Framework Perform simple calculations to demonstrate the difference between the accrual basis, cash accounting and the break-up basis Explain the different concepts of capital maintenance 4 CONCEPTUAL AND REGULATORY FRAMEWORK 1 1 Financial...
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  • Accountancy
    by the tax authorities.[5] History Originally, federal law required all taxpayers to use the cash basis accounting.[15] However, many businesses used the accrual basis, as most generally accepted accounting principles ("GAAP") were based thereon, and objected to the new law.[16] Less than a year...
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  • financial REPORTING
    they relate. The accrual basis assumption is also addressed in IAS 1, Presentation of Financial Statements, which explain that when the accrual basis of accounting is used, items are recognized as assets, liabilities, equity, income, and expenses. Going Concern When financial statements are...
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  • Issues in Financial Statements.
    be careful and rational in selection of policies in the choice of accounting policies use. c. Substances over form This principle states that generally the legal form of every transaction is a base for recording its commercial status in the books of accounts, but there are instances whereby...
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  • Chapter 1-11 Reviews.
    procedures known as generally accepted accounting principles (GAAP). These principles serve as a general guide to the accounting practitioner in accumulating and reporting the financial information of a business enterprise. Securities and Exchange Commission (SEC) 8. (S.O. 6) After the...
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  • Accounting Standards
    payments account" in case of clubs, societies, hospitals etc., is the example of cash basis of accounting. ▪ Accrual or mercantile basis Is the method of recording transaction by which revenues; costs, assets and liabilities are reflected in accounts in the period in which they accrue. This basis...
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  • Pifra Guidelines Pakistan
    accounting framework consists of accounting principles, policies and procedures for the GoP. The framework prescribes a particular basis of accounting, which is relevant and applicable to Pakistan, but also adopts, where applicable, the accounting concepts laid down in Generally Accepted Accounting...
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  • Introduction to Managerial Finance
    generally accepted principles, the accountant prepares financial statements that recognize revenue at the time of sale (whether payment has been received or not) and recognize expenses when they are incurred. This approach is referred to as the accrual basis. The financial manager, on the other...
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  • Commercial Accounting and (Gaap)
    cash basis accounting, this is imposed on businesses so that investors have a minimum level of consistency in the financial statements they use when analyzing businesses for investment purposes. The accrual basis of accounting over the cash basis of accounting in commercial accounting and...
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  • International Financial Statement Analysis Workbook
    Learning Outcomes, Summary Overview, and Problems • Compare and contrast the key differences in cash flow statements prepared under international financial reporting standards (IFRS) and U.S. generally accepted accounting principles (U.S. GAAP). • Explain the difference between the direct and...
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  • Bhargav
    dealing with assets of a short, fixed service life, and which is an example of applying the matching principle per generally accepted accounting principles. Depreciation in accounting is often mistakenly seen as a basis for recognizing impairment of an asset, but unexpected changes in value, where...
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  • Borland Software Corporation-goodwill and other intangible assets
     External Factors and Earnings Quality 2-4 Chapter 02 - Financial Reporting and Analysis ANALYSIS OBJECTIVES  Explain the financial reporting and analysis environment  Identify what constitutes generally accepted accounting principles (GAAP)  Describe the objectives of financial...
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  • Accounting 1-4 Chapter
    recognition principle), even if cash was not paid. An alternative to the accrual basis is the cash basis. Under cash-basis accounting, companies record revenue only when cash is received. They record expense only when cash is paid. The cash basis of accounting is prohibited under generally accepted accounting...
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  • Tap Article
    to explain and predict the validity / logical process of the theory’s construction, and the implication of the theory. 1. Deductive method • Begins with basic accounting premises and proceeds to derive by logical means accounting principles that serve as guides and bases for the development of...
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  • Belot
    objective of a review of interim financial information is to provide the accountant with a basis for communicating whether he or she is aware of any material modifications that should be made to the interim financial information for it to conform with generally accepted accounting principles...
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  • Finance
    Changes in Net Worth. 13- 8. No. 13- 9. No. Generally accepted accounting principles as they apply to personal financial statements require the accrual basis. 13-10. No. Assets and liabilities are not classified as current and noncurrent. Assets and liabilities are classified in order...
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  • Financial Accounting
    ; periodicity. A number of concepts relate to accounting principles or ethics: consistency; prudence; substance over form. A number of concepts relate to how data should be measured and recorded: accruals; separate valuation; money measurement; historical cost; realisation; materiality; dual...
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  • Financial Accounting Theory Textbook
    for income taxes. Both account for (1) taxes currently payable (or receivable) arising from current taxable income and (2) future (deferred) taxes payable (or receivable) due to differences in U.S. generally accepted accounting principles (GAAP) (or IFRS) and tax bases of assets and liabilities.49...
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