|Term-Concepts |Definition | |Purpose of Accounting |Communicating financial information to end users so they can make informed decisions. | |Accounting Entity |The financial affairs of the business are separate and distinct from the financial affairs of the owner. | |Monetary Concept |All transactions are recorded in
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The lecture last night discussed accrual accounting concepts such as timing issues‚ and the basics of adjusting entries. The discussion went into more detail on periodicity assumption and how accounting divides the economic life of a business into artificial time periods. These time periods are generally a month‚ a quarter‚ or a year‚ now whether it is a fiscal year or a calendar year that is determined by the company itself. The lecture then reviews the revenue recognition principle which expects
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Nature of Accounting and the Accounting Standard Background Accounting is an important part for business and it is dubbed “language” of business activities conducted by firms. People think it is used to communicate business transactions per se to all stakeholders. However‚ some people argue that the functions of accounting are not that easy. Except the communication tool‚ accounting acts as many other difference roles in business. When doing accounting‚ different standard may be used. There are
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INTRODUCTION The accounting concepts are rules and guidelines which the accountant follows and uses when deciding between differing options to make. They help to ensure the accounting information is presented accurately and consistently. All formal accounting statements should be created‚ preserved and presented according to the concepts and conventions’. The following will look at each of the concepts and conventions and relate them to the profit and loss account for a sole trader. GOING
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The historical cost concept means expenses and assets must be recorded with their original cost according to its representation cost of things from the past. CITATION Wil09 \l 17417 (Wild‚ Shaw‚ & Barbara‚ 2009) For example‚ APPLE Company bought equipment at the price of RM 10‚000 and after few months‚ the equipment is then estimated to drop in value. The cost of the purchase RM 10 000 would be recorded in the financial report because there is official receipt and documents supporting the value
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Accounting Concepts Underlying Assumptions‚ Principles‚ and Conventions Assumptions The following are basic financial accounting assumptions: Separate entity assumption - the business is an entity that is separate and distinct from its owners‚ so that the finances of the firm are not co-mingled with the finances of the owners. • Going concern assumption - the business is going to be operating for the foreseeable future. Stable monetary unit assumption - e.g. the U.S. dollar • Fixed
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Abstract Discussion on harmonization is started quite long time ago. Its impact on the countries economy is good or bad is the central idea of this essay. This essay is written specifically on the accounting standard used in Australia. This essay starts with introduction on various topics such as conceptual framework‚ IASB‚ Sacs then it discussed the issue of harmonization. Harmonization will have positive impact on the economy because it attracts overseas investors to invest in Australia. This
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Accounting rate of return The accounting rate of return (ARR) is a way of comparing the profits you expect to make from an investment to the amount you need to invest. The ARR is normally calculated as the average annual profit you expect over the life of an investment project‚ compared with the average amount of capital invested. For example‚ if a project requires an average investment of £100‚000 and is expected to produce an average annual profit of £15‚000‚ the ARR would be 15 per cent. The
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Accounting in the USA The following report will describe and discuss the major elements of accounting in the USA. It will show that the US Generally Accepted Accounting Principles (GAAP) are set by the Financial Accounting Standards Board (FASB)‚ where as the International Accounting Standards (IAS) are set by the International Financial Reporting Standards (IFRS). This report will also state the similarities and differences between these standards. In addition‚ the following report will use
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309 Accounting Standard (AS) 17 (issued 2000) Segment Reporting Contents OBJECTIVE SCOPE DEFINITIONS IDENTIFYING REPORTABLE SEGMENTS Primary and Secondary Segment Reporting Formats Business and Geographical Segments Reportable Segments SEGMENT ACCOUNTING POLICIES DISCLOSURE Primary Reporting Format Secondary Segment Information Illustrative Segment Disclosures Other Disclosures APPENDICES The following Accounting Standards Interpretations (ASIs) relate to AS 17: Revised ASI 20 - Disclosure
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