Laux; Shiva Rajgopal; George Vrana. Summary: FASB organizes the discussion of these conditions: users of financial reports‚ primary use of financial statements- management and investment decisions‚ cash flow as the objective of financial reporting‚ limitations of external financial reporting‚ relevance and trustworthiness‚ auditing and trustworthy numbers‚ conservatism bias‚ balance-sheet and income-statement approach‚ and the function of the FASB/ IASB. For example‚ the use of financial statements
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rights 1-4) The standard setting bodies for establishing accounting and reporting standards are as follows: state and local governments: GASB (Governmental Accounting Standards Board) business organizations: FASB (Financial Accounting Standards Board) not-for-profit organizations: FASB for non-government not-for-profit GASB for governmental not-for-profit 4. federal government/agencies: FASAB (Federal Accounting Standard Advisory
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CHAPTER 1—INTRODUCTION TO FINANCIAL REPORTING MULTIPLE CHOICE 1. Charging off equipment that cost less than $20 would be an example of the application of: a.|going concern| b.|cost| c.|matching| d.|materiality| e.|realization| ANS: D 2. The going concern assumption: a.|is applicable to all financial statements| b.|primarily involves periodic income measurement| c.|allows for the statements to be prepared under generally accepted accounting principles| d.|requires that accounting
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employees‚ such as pension and profit sharing trusts that are managed by or under the trusteeship of the enterprise’s management; (d) an enterprise and its principal owners‚ management and the members of their immediate families; and (e) affiliates” (FASB 57‚ 1982). a
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iPhone at Apple‚ Inc.: The case provides students with an understanding of the criteria for revenue recognition and the role of accrual accounting in reflecting timing differences between cash receipts and product/service delivery‚ especially in situations where there are multiple deliverables. The case also enables students to reflect on (a) the use of supplementary non-GAAP disclosures‚ (b) the impact of accounting on firm value and (c) the role of companies in the standard setting process
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the Principles of Accounting. The Financial Accounting Standards Board (FASB) using the groundwork of principles and guidelines has formulated these rules. They lay the foundation for sound and ethical accounting practices. The GAAP (Generally accepted accounting principles or "GAAP") consists of three important sets of rules: • The underlying accounting principles • The rules and standards in more detail as issued by FASB and its predecessor the Accounting Principles Board (APB)‚ and • General
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Required Texts 1. Scott‚ W.R.‚ Financial Accounting Theory‚ 5th edition‚ Prentice Hall (Pearson Education Canada‚ Ltd) 2009 (ISBN 978-0-13-207286-1) 2 Concepts Statement #7‚ Using Cash Flow Information and Present Value in Accounting Measurements‚ FASB‚ February 2000. 3. Optional; The Wall Street Journal. You are expected to read the financial pages of the news media and to generate discussions on current topics as they develop. Term: Fall 2009 Contents of this document Section A: Contact information
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Financial Instruments and Hedging: Measurement Challenges Page 5.11-9 (c) These pre-tax earnings resulted from a transaction with an LJM1 affiliate related to Enron’s equity investment in Rhythms Netconnections‚ Inc. As previously stated‚ Enron now believes‚ based on current information‚ that the financial activities of the LJM1 affiliate should have been consolidated into its financial statements in 1999 and 2000 and will be restating prior years’ financial statements to reflect this change
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After reviewing the FASB Codification references‚ the following information can be used to make a decision regarding the accounting for the investments of Teton Co.’s 5-year revenue bonds. The following information refers to when the fair value of the security is “readily determinable”‚ impairments‚ and different issues regarding being classified as held-to-maturity. The securities are “readily determinable” because it is in the over-the-counter market. An impairment should be accounted for with
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Barnes & Co. Date: 11/17/2015 Note: KCN is currently developing networking software products to sell and started capitalizing costs in FY 20X5. The accounting procedures are described under FASB ASC 985-20-25 Costs of software to be sold‚ leased‚ or marketed. https://law.resource.org/pub/us/code/bean/fasb.html/fasb.985.2011.html All costs incurred when establishing computer software are charged to the expense account until the technological feasibility has been established for the product. See (25-1)
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