CGA-CANADA ADVANCED MANAGEMENT ACCOUNTING [MA2] EXAMINATION March 2011 Marks 30 Time: 3 Hours Question 1 Select the best answer for each of the following unrelated items. Answer each of these items in your examination booklet by giving the number of your choice. For example‚ if the best answer for item (a) is (1)‚ write (a)(1) in your examination booklet. If more than one answer is given for an item‚ that item will not be marked. Incorrect answers will be marked as zero. Marks will not be awarded
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Case 3-6 Accounting Standards A. Given the income statement effects of LIFO versus FIFO‚ how will the balance sheet inventory amounts differ between General Motors and Ford versus Honda and Daimler-Benz? In other words‚ will inventory be reported amounts representing recent costs or older historical costs? In your opinion‚ which balance sheet amounts would be more useful to financial statement users in making decisions to buy or sell shares of a company’s stock? Inventory is an asset that
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business may use to record their transactions; cash basis accounting and accrual basis accounting. While both are effective‚ most businesses choose accrual basis accounting because cash basis accounting is not an acceptable form of accounting under Generally Accepted Accounting Principles (GAAP). However a small business may still elect to use this method. (Nobles‚ Mattison‚ Matsumura. 134) Cash basis accounting only records cash transactions‚ which gives little insight to the true financial position
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based on net realizable value or lower cost and debt according to nominal value not present value. Under U.S GAAP ( Generally Accepted Accounting Principles) most assets are recorded at historical cost except for certain financial instruments like trading securities‚ available for sale securities‚ derivatives. Under IFRS (International financial Reporting Standards) historical cost is acceptable but not required for property plant and equipment but intangible assets‚ property‚ plant and equipment‚ and
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manufacturing overhead attaches to the units being made and is carried in inventory until the product is sold. * Absorption costing results in the preparation of a traditional income statement. * Absorption costing is considered GAAP and is acceptable for tax reporting. * Under variable costing‚ product cost is comprised solely of variable manufacturing costs. Fixed manufacturing overhead is viewed as a cost of being ready to produce‚ not
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Studies‚ Dharmsinh Desai University‚ Nadiad. Contents Page 1. Introduction Indian Accounting Standards 1 Need for Universal GAAP 4 2. Overview What is IFRS? 6 Why IFRS? 6 Benefits of Adopting IFRS 7 IFRS Challenges 8 List of IFRS 9 List of IAS 10 3. IFRS and Indian GAAP 12 4. IFRS -A Comparison with Indian GAAP (Detail) 15 Agenda for Discussion 15 General Approach 15 Accounting Policy Change 16 Consolidation Policy
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ACCOUNTING AND THE BUSINESS ENVIRONMENT Chapter 1A Class Preparation Assignment (Rev 1-08) Checklist: __x____ I have obtained a copy of the textbook from the LLC & then purchased the Course Outline for BUACT- 206 (Bookstore) for use everyday in class. __x____ I read Chapter 1 in text‚ and found it to be a fulfilling experience. __x_ __ I reviewed the outline for Chapter 1 __x____ I know the Accounting Equation __x____ I understand how to analyze a transaction. __x____ I know
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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 a non-legislative organization that develops accounting standards
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U. S. Generally Accepted Accounting Principles (U. S. GAAP) and International Financial Reporting Standards (IFRS) There are numerous companies that use different types of accounting standards or rules. International Financial Reporting Standards (IFRS) and U.S. Generally Accepted Accounting Principles the most popularly used by companies. IFRS is a set of accounting standards that provides a global framework for how public companies prepare and disclose their financial statements. The U.S. Generally
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accepted accounting principles (GAAP)? In the U.S.‚ generally accepted accounting principles‚ commonly abbreviated as US GAAP or simply GAAP‚ are accounting rules used to prepare‚ present‚ and report financial statements for a wide variety of entities‚ including publicly-traded and privately-held companies‚ non-profit organizations. (b)What bodies provide authoritative support for GAAP? The bodies that provide authoritative support for GAAP are the Securities and Exchange
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