Private corporations: Select one: a. must follow GAAP for private companies b. must follow IFRS c. do not use standards when creating financial statements d. have a choice of following GAAP for private companies or IFRS Feedback Explanation: Private corporations have a choice of following IFRS or the new GAAP specifically updated for private companies. The correct answer is: have a choice of following GAAP for private companies or IFRS Question 2 Correct Mark 1.00 out of 1.00 Flag question
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International Financial Reporting Standards (IFRS). The IASB was formed in 2001 to replace the International Accounting Standards Committee. Its mission is “to develop a single set of high quality‚ understandable‚ enforceable and globally accepted International Financial Reporting Standards”. The Financial Accounting Standards Board (FASB) is a private‚ not-for-profit organization whose primary purpose is to develop generally accepted accounting principles (GAAP) within the United States in the public
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CASE 11-6: LESSEE LTD Caleb Aytes Brayden Hudson Brian Laws Katie Vittetoe Topics To Be Discussed • • • • Relevant Facts of the Case IFRS US GAAP Real World Relevant Facts of the Case • Lessee Ltd. – British Company that applies IFRS – Leases equipment from Lessor Inc. – 3 years – No purchase or renewal options & equipment reverts back to Lessor when lease expires – Remaining useful life = 4 years – Guaranteed Residual Value of $20K Accountants Analysis Relevant Questions 1. Was the junior
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Introduction‚ Review of Accounting Process & Financial Statements Part I • Generally Accepted Accounting Principles (US GAAP) Generally Accepted Accounting Principles or U.S. GAAP refer to the standard framework of guidelines for financial accounting used in any given jurisdiction; generally know as Accounting Standards. GAAP includes the standards‚ conventions‚ and rules accountants follow in recording and summarizing‚ and in the preparation of financial statements (Wikipedia‚ n.d.). Although
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is the independent body that is responsible for the creation of GAAP. The board is the standard setting body in charge of standards for nongovernmental companies operating in the United States. Since 2002‚ the IASB and FASB have been working together to improve and converge U.S. GAAP and IFRS. The United States is not the only country working toward convergence‚ as of 2009‚ Japan and China were both working toward convergence of IFRS as well as their accounting standards. In February 2010 the Securities
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school research paper‚ nr. 10‚ 42p. Bollen L.‚ 1995‚ Financial reporting regulation for small and medium sized private firms‚ doctorate thesis Rijksuniversiteit Limburg‚ Maastricht‚ 235 pp. Eierle B.‚ 2004‚ the adaptation of German accounting rules to IFRS: a legislative balancing act‚ Accounting in Europe‚ 1‚ 27-50 Canibano L
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Statements Additional Information Balance Sheet President’s letter Income Statement Prospectuses Statement of Cash Flows Reports filed with governmental agencies Statement of Owners’ or Stockholders’ Equity Note Disclosures GAAP News releases Forecasts Environmental impact statements Etc. Financial Statements and Financial Reporting • Managerial accounting – Identification‚ measurement‚ analyzing‚ and communication of financial information to management for
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PREVIEW OF CHAPTER 4-1 4 Income Statement Usefulness Predicting future performance. 4-2 Evaluate past performance. Help assess the risk or uncertainty of achieving future cash flows. Income Statement Limitations Companies omit items that cannot be measured reliably. 4-3 Income is affected by the accounting methods employed. Income measurement involves judgment. Income Statement Quality of Earnings Companies have incentives
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to the the question 1‚ 2‚ and 3 change under IFRS? Explain your answer supported by the reference from IFRSs. Differences between U.S. GAAP and IFRS with regard to errors are that GAAP indicates a generally stricter interpretation of how the error should be handled. Regarding question #1‚ GAAP states that all prior periods affected should be re- stated and balances rolled forward accordingly. IFRS allows in statement IAS 8‚ para 49 for the
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Accounting Basics: Introduction Accounting is a glorious but misunderstood field. The popular view is that it’s mostly mind-numbing number-crunching; it certainly has some of that‚ but it’s also a rich intellectual pursuit with an abundance of compelling and controversial issues. Accountants are often stereotyped as soulless drones laboring listlessly in the bowels of corporate bureaucracies. But many accountants will tell you that it’s people skills‚ not technical knowledge‚ that are crucial to
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