Running head: Accounting Assumptions‚ Principles and Constraints Accounting Assumptions‚ Principles and Constraints Axia College Basic assumptions accounting consists of four assumptions; monetary unit assumption‚ economic entity assumption‚ time period assumption‚ and going concern assumptions. The monetary unit assumption states that only transaction data that can be expressed in terms of money be included in the accounting records. Economic entity assumption is the activities of the
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UK experts www.CompetitiveIntelligence.co.uk Government Each state and federal government has labor laws that affect both management and workers within its jurisdiction. Each of them regulates the relationship between labor and management and promulgates laws in support of unity between the two parties. In the United States‚ there is the National Labor Relations Board (NLRB) that mediates disputes between labor and management. Inherent Adversarial Positions There will always be conflicting points
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Why is IFRS so strong in using Fair Value instead of Historical Cost for its valuations of Property‚ Plant and Equipment? IFRS defines Fair value as the amount for which an asset could be exchanged or a liability settled between knowledgeable willing parties in an arms length transaction. Whereas Historical cost ignores the amount the asset could be sold for in the open market‚ called fair value‚ until the asset is actually sold. For Historical Cost the company carries the asset on the balance
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payment reporting and SPE reporting individually. Write a 700- to 1‚050-word executive memo as a team that includes a description of what you will look for to see if the client is consistent with the generally accepted accounting principles (GAAP). Pay particular attention to accounting treatment of share-based payment and accounting consolidation theory as it relates to special purpose entities. Keep the memo as brief as possible while fully exploring the issues. Format your paper
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responsibility of managers to maintain certain qualities & standards. The Financial Accounting Standards Advisory Board (FASB) establishes and maintains generally accepted accounting principles (GAAP) that set forth the qualities and standards of accounting information. Unless a company’s accounting records meet GAAP standards‚ an auditor cannot certify the company’s records. Introduction “Earning Management” refers to those accounting practices that may follow the letter of the rules of fundamental
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Green’s new client will not submit to an audit of internal financial controls. With all of the issues that Green and Associates are encountering the four types of auditor’s opinions‚ if their inventory valuation methods are legal and supported by GAAP‚ and if ABC’s refusal to permit an internal controls audit is within federal law need to be investigated. Lastly‚ an opinion must be written to address the situation and detail the ethical problems involved for both ABC and Green and Associates. The
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entities reporting under US GAAP and those under IFRS; however the standard has received just criticism in reference to a particular requirement as well. The standard’s most notable change requires “entities to present items of net income and other comprehensive income either in one continuous statement – referred to as the statement of comprehensive income – or in two separate‚ but consecutive‚ statements of net income and other comprehensive income” (Doran 2). Previously‚ GAAP allowed entities to report
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with incidents of financial fraud‚” [Carmichael 1999]. In a bill-and-hold transaction‚ after the customer says they will purchase goods‚ the seller bills the customer and holds the goods until the customer requests delivery. Even though this is not a GAAP violation‚ the SEC does have a checklist stating requirements that a transaction must fulfill in order to recognize the
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maintained a very unfamiliar accounting method with regard to store opening costs that the company accumulated to asset accounts that were amortized over twelve month period. According to GAAP‚ such costs must be expensed within the month that a new store is opened (Georgiades‚2008).The management’s deliberate violation of GAAP and the negative figures for the company cash flows could have been a clear warning and as such was not expected to record profits as it happened. The management through Harold‚ his
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ASC 450-20-25-2‚ a provision needs to be recognized in reporting to its U.S.-based lender in accordance with U.S. GAAP as of December 31‚ 2011. However‚ in the case that Energy Inc. cannot reasonably estimate the cost of the cleanup‚ a provision should not be recognized but disclosed provision in reporting to its U.K. parent under IFRSs and U.S.-based lender in accordance with U.S. GAAP (ASC 450-20-50-5). Scenario 2 FuelSource Co. causes contamination and operates in Dirty Country where there
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