diversification does not have to be restricted to domestic companies because of opportunities available in foreign markets. On the other hand‚ securities analysis becomes more complex because of supplementary variables such as foreign exchange risk‚ political‚ economic‚ cultural diversities‚ etc. that need to be taken into deliberation in making investment judgment. A significant variable in the analysis of foreign securities is various accounting standards. The accounting standard of United States (US)
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are accounting standards necessary and to what extent? Do you agree with the view that mandatory regulations stifle innovation ? why? Give reasons? * Accounting standards are necessary to promote high quality financial reporting. The fundamental role of accounting is to communicate economic information about businesses and other organization to various stakeholders (government‚ investors‚ shareholders‚ suppliers‚ lenders‚ customers and the general public). * These stakeholders use such
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Presentation of Financial Statements Indian Accounting Standard (Ind AS) 1 Presentation of Financial Statements Contents Paragraphs OBJECTIVE SCOPE DEFINITIONS FINANCIAL STATEMENTS Purpose of financial statements Complete set of financial statements General features Presentation of True and Fair View and compliance with Ind ASs Going Concern Accrual Basis of Accounting Materiality and Aggregation Offsetting Frequency of reporting Comparative Information Consistency of Presentation STRUCTURE
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RESEARCH: Accounting Standard Codification (ASC) 1. FASB had four primary goals in developing the codification. List these four goals: 1. Simplify user access to all authoritative U.S. GAAP by putting them all in one place with codification 2. Assist FASB with the research and international convergence efforts required during the standard-setting process 3. Become the authoritative source of literature for the completed extensible business reporting language (XBRL) taxonomy 4. Clarify that
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Accrual Method Nonprofit organizations are required to produce financial statements based on the accrual method of accounting. How is this different from the cash basis of accounting? With accrual accounting it is easy to recognize when revenues are earned and expenses are incurred. Under the cash accounting method an non profit agency would not have any revenues because everything is recorded on a cash in and cash out transactions under cash accounting. There is never any
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‘Uniform Accounting Standards Produce Uniform Financial Reporting’ Inro Why is the question important? In an increasingly interconnected world‚ the operations of international corporations are transnational. In addition‚ more and more investing takes place on a global level. Historically‚ different countries have developed their own national accounting standards. Before the introduction of the IFRS‚ the accounting principles of neighbouring countries were similar in many respects but used different
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Accounting 610-32 28 October 2013 Do Stock Prices Fully Reflect Information in Accruals and Cash Flows About Future Earnings? The main purposes of the article is to examine whether information contained in accruals and cash flows of current earnings helps to predict future earnings. This paper is different in respect to other papers on the topic in that it focuses more on the accounting processes instead of statistical models. Also‚ this paper uses a less narrow-focused model‚ which allows for
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INDIAN ACCOUNTING STANDARDS - A PERSPECTIVE The paradigm shift in the economic environment in India during last few years has led to increasing attention being devoted to accounting standards as a means towards ensuring potent and transparent financial reporting by corporate. Further‚ cross-border raising of huge amount of capital has also generated considerable interest in the generally accepted accounting principles in advanced countries such as USA. Initiatives taken by International Organisation
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Accrual Method Accrual accounting is more accurate on the “timing” of reported revenue and expenses. In cash basis accounting for instance‚ when you have shipped out the goods out of your warehouse to the customer and they have receipt‚ but haven’t received the cash‚ you didn’t book the revenue. However‚ when it comes to Accrual‚ providing you satisfy the revenue recognition principles‚ you can already book the revenue. In accrual accounting you have non-cash items on the books for a particular
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assignment‚ I will discuss why I think Shop Rite grocery store use the accrual based accounting method rather than cash based accounting. Here are some facts about grocery stores that contributed to my decision to choose a shop rite supermarket store as my example. Shop Rite a (co-op) super markets has many stores in the Northeastern United States. Let’s look at some facts about Grocery stores‚ and why I think they use accrual based accounting. Just the sheer size of Shop Rite grocery stores coupled
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