QUESTION 1 a. Outline the objective and the principles of a theory that prescribes fair value accounting. Fair value accounting is to measure selected assets at fair value. Fair value is the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants. The objective of fair value accounting is linked with the objective of ‘decision usefulness’ of general purpose financial reporting. That is‚ to provide relevant information that
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Acknowledgement I would like to pay my sincere thanks to‚ University of Delhi‚ South Campus for endowing me with the precious insights needed for working out this Project. He has been very instrumental in communicating the core of this project study and thus without his direction‚ the very inception of this work would not have been possible. Q1. Whether a country’s capital market is debt –oriented or equity oriented has a significant impact on the financial reporting that develops in the
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Accounting concepts and conventions [pic] Going concern This concept is the underlying assumption that any accountant makes when he prepares a set of accounts. That the business under consideration will remain in existence for the foreseeable future. In addition to being an old concept of accounting‚ it is now‚ for example‚ part of UK statute law: reference to it can be found in the Companies Act 1985. Without this concept‚ accounts would have to be drawn up on the ’winding up’ basis
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check no. 389 for rent: check was written in the amount of $1‚320‚ but was recorded improperly in the accounting records as $1‚230. • Outstanding checks‚ $???? What is the total amount of outstanding checks at January 31? a. $1‚048 b. $868 c. $1‚900 d. $1‚720 5. Assuming a single journal entry is made to adjust Quinn Company’s accounting records at January 31‚ the journal entry includes: a. A debit to Rent Expense for $90.
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Accounting Standards and Their Importance AS-1: DISCLOSURE OF ACCOUNTING POLICIES The following is the text of the Accounting Standard (AS) 1 issued by the Accounting Standards Board‚ the Institute of Chartered Accountants of India on ’Disclosure of Accounting Policies’. The Standard deals with the disclosure of significant accounting policies followed in preparing and presenting financial statements. AS-2: VALUATION OF INVENTORIES A primary issue in accounting for inventories is the determination
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(a) | Qualitative characteristic being employed when companies in the same industry are using the same accounting principles. | Comparability | (b) | Quality of information that confirms users’ earlier expectations. | Feedback value | (c) | Imperative for providing comparisons of a company from period to period. | Consistency | (d) | Ignores the economic consequences of a standard or rule. | Neutrality | (e) | Requires a high degree of consensus among individuals on a given measurement.
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Chapter 2 Worldwide accounting diversity Chapter 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
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Interpreting Financial Results Camila Walton FIN 571 May 18‚ 2015 Dr. Adkins Interpreting Financial Results The financial statement of a business provides details of a company and if they are successful or if they are failing financially. The calculation of financial rations is use to determine the numbers and percentages that can affect the business profitability. The following
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share some similarities in their accounting systems. Being strongly influenced by the individualism culture‚ both countries exercise a high level of professionalism among accountants. There is a common tendency to follow accounting standards bodies in both countries. In the UK this would be the Accounting Standards Board (ASB) which helps to set the Financial Reporting standards (FRS) used in the UK‚ whereas in the Netherlands the Dutch Generally Accepted Accounting Polices (GAAP) are provided by the
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ARIGNAR ANNA COLLEGE(ARTS & SCIENCE) KRISHNAGIRI. INTERNAL ASSESSMENT-I CLASS: I B.COM/B.COM(CA) FINANCIAL ACCOUNTING-II TIME: 1.50 HOURS PART- A 5X2=10 ANSWER ALL QUESTIONS 1. What is Branch account? 2. What are the main objectives of Branch account? 3. What is Departmental accounts? 4. What is “Stock Reserve”? 5. What is ’Direct expenses’? PART-B
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