matching as deferred costs are now expensed when incurred. It also better reflects the costs of employees as stock option compensation is now expensed. Question 2: Summarize the differences between Fiat’s key accounting methods under Italian GAAP and those under IFRS. What characterizes the differences between two sets of methods? From the perspective of
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Accounting and GAAP recognition of revenue under SAB 101 and SAB 104 for supermarket customer loyalty cards and points issued on airlines frequent flyer programs. Customer loyalty programs and rewards programs are structured marketing efforts that reward customers who are loyal and regularly buy products and services from the same company. Customer loyalty programs and rewards programs are used to incentivize customers‚ build customers’ allegiance to the company’s brand and increase sales of the
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GAAP / IFRS Fiat Group’s first-time adoption of IFRS Differences Between Key Accounting Methods Under Italian GAAP And IFRS What characterizes the differences between the two sets of methods? - Substance over form Example: Recognition of revenue - Less flexibility Example: Recognition of R&D cost - More transparent Main factors that affect management’s reporting incentives and strategy in fiscal year 2005 - Research & Development: Because Fiat main operations are based on the manufacturing
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I.Issues Why does net income not equal cash flows? Why do we need accrual accounting? (Why do not we fire all accountants and just publish summary bank statements) Why do the differences between owners’‚ players’‚ GAAP and truth number exist?(Can accounting numbers be neutral representations of what happened? What happens if a retired non-roster player (e.g. Joe Portocararo) returns to the active roster while continuing to earn the same money promised him in his guaranteed contract? Of what
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values Influenced by GAAP choices Backward looking Financial Ratios Strengths ◦ Adjusts for size differences (relative measure) ◦ Provides comparative measures of efficiency and growth Weaknesses ◦ Based on book‚ not market values ◦ Influenced by GAAP choices ◦ Iidentification of “norm” is problematic EPS and P/E Ratios Strengths ◦ Widely used and recognized ◦ Linked to market price of stock Weaknesses ◦ ◦ ◦ ◦ EPS influenced by GAAP choices EPS not
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income under Country A GAAP. SKD amortizes goodwill over a longer period (20 years) than is allowed in Country B (5 years)‚ so an additional amount of goodwill amortization expense must be recognized to determine income under Country B GAAP‚ which reduces Country B GAAP income. b. The goodwill adjustment affects the retained earnings in stockholders’ equity. The increase in Country A GAAP income results in an increase in retained earnings and the decrease in Country B GAAP income results in a decrease
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Principles (GAAP). According to GAAP‚ the recording of land value or any asset belonging to a company is to be reported based on the historical cost principle‚ which is the actual cost paid for the land and not fair market value (U. S. GAAP‚ n.d.). Jason P. Browning (2011)‚ an eHow contributor states that an asset can never be restated in a way that reflects appreciation in value (an increase in value due to inflation‚ supply and demand‚ improvements‚ etc.). When it comes to bad debt‚ GAAP has stipulated
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Solutions for some acct 400 cases here - http://novellaqalive2.mheducation.com/sites/dl/premium/0070930317/instructor/237732/ Chapter 10 Suggested Time Case 10-1 Good Quality Auto Parts 10-2 Canadian Wilderness Wonders Inc 10-3 Provincial Hydro 10-4 May Company 10-5 Canadian Energy Corporation Assignment 10-1 Amortization policy 10 10-2 Amortization policy 15 10-3 Amortization computation 15 10-4 Amortization computation (*W) 25 10-5 Amortization schedule 30 10-6 Analysis
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LATEST DEVELOPMENTS IN ACCOUNTING Accounting can be trace back some 7000 years to early civilizations of Egypt‚ Babylon‚ Greece and Rome. The first accounting record was found in Babylon‚ 3500 B.C. the records are made from stone‚ mud and leaves and introduction of the Arab-Hindu numerical system in 850 B.C had greatly enhanced accounting development. The pace of accounting development increased during the Industrial Revolution as the economics of developed countries began to mass-produce goods.
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accrual accounting in reflecting timing differences between cash receipts and product/service delivery‚ especially in situations where there are multiple deliverables. The case also enables students to reflect on (a) the use of supplementary non-GAAP disclosures‚ (b) the impact of accounting on firm value and (c) the role of companies in the standard setting process. Reading assignment: Pages 260 – 265 of the text Class notes handout. Assignment questions: 1. Complete the Oracle example
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