Top PDF Introduction to Financial Accounting: U.S. GAAP Adaptation

Introduction to Financial Accounting: U.S. GAAP Adaptation

Introduction to Financial Accounting: U.S. GAAP Adaptation

Financial statements are focused primarily on the needs of external users. To provide informa on to these users, accountants make cost-benefit judgments. They use materiality considera ons to decide how par cular items of informa on should be recorded and disclosed. Accountants build limita ons into the process of iden fying whether an expenditure should be expensed or recorded as an asset. For example, a business might have a materiality policy for the purchase of office equipment whereby anything cos ng $100 or less is expensed immediately instead of recorded as an asset. In this type of situa on, purchases of $100 or less are recorded as an expense instead of an asset to avoid having to record deprecia on expense, a cost-benefit considera on that will not impact decisions made by external users of the business’s financial statements. Another company determined limita on example is to expense immediately unless the asset has a useful life (the period of me the company expects to use the asset) of one year or greater.
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Introduction to Financial Accounting 3

Introduction to Financial Accounting 3

Financial Accounting 3 [FA3] is the third in a sequence of five courses in the financial accounting stream in the CGA program of professional studies. It is an intermediate financial accounting course that builds on the basic understanding of financial accounting that you have acquired in previous financial accounting courses. The primary aim of FA3 is to assist you in developing professional competence and skills that will enable you to

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Effect to introduction of IAS/IFRS on the derivation principle of corporate income to financial accounting

Effect to introduction of IAS/IFRS on the derivation principle of corporate income to financial accounting

322 M. D AMIANI , Sostituzione dei principi contabili alle regole fiscali e possibile reinterpretazione degli organi verificatori, in Dial. Trib., n.5/2008, pp. 29 ss., in relazione all'applicazione del principio della prevalenza della sostanza sulla forma, sostiene che «E' questa la più pericolosa tra le possibili reinterpretazioni che possono eseguire gli organi di controllo fiscale, i quali potrebbero procedere alla (ri)qualificazione dei fatti di gestione valutati in termini sostanziali e quindi degli effetti economici che essi determinano, con il rischio che non sia dispiegata la giusta attenzione alla correlazione fra i fenomeni economici, che implica una sensibilità notevole. E' allora legittimo nutrire il timore di sommarie ipotesi ricostruttive a carattere pseudo-sostanziale, fondata però su appigli di tipo formalistico, eseguita dagli organi di verifica o da quelli che presiedono l'accertamento, possano, di fatto, implicare una sorta di inversione dell'onere della prova sui soggetti IAS ed aprire a contenziosi i cui contenuti nulla hanno a che vedere con l'evasione vera, che implica la ricerca della sottrazione di ricavi o della dissimulazione di costi». 323 G. S CIFONI , Derivazione rafforzata, ma non troppo: le rettifiche fiscali al bilancio "IAS/IFRS compliant", in Corr. Trib., n.14/2011, pp. 1132 ss., sostiene che «È appena il caso di rilevare che non esiste in ambito IRES una disposizione di tenore analogo a quella dell'art. 5, ultimo comma, del D.Lgs. 15 dicembre 1997, n. 446 che, ai fini IRAP, sancisce il potere dell'Amministrazione finanziaria di verificare la corretta contabilizzazione delle poste di bilancio («Indipendentemente dalla effettiva collocazione nel conto economico, i componenti positivi e negativi del valore della produzione sono accertati secondo i criteri di corretta qualificazione, imputazione temporale e classificazione previsti dai principi contabili adottati dall'impresa»). Non è un caso che la norma IRAP non richiami le valutazioni di bilancio tra i fenomeni la cui correttezza può essere sindacata dal Fisco. Fermo restando che, in ambito IRES, una previsione di analogo tenore potrebbe considerarsi implicitamente discendente dal principio di "derivazione rafforzata" affermato dall'art. 83 del T.U.I.R., si ritiene che il sindacato del Fisco non possa esplicarsi senza limiti nei confronti dei fenomeni valutativi, pena l'ingiustificata e inammissibile ingerenza in un contesto per sua natura discrezionale».
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The course includes Introduction to financial accounting, nature and definition of

The course includes Introduction to financial accounting, nature and definition of

This course aims to identify the accounting standards of local and international relating to the merging of companies, to address accounting problems resulting from the expansion in the size of companies through or control of the corporation, and the ability to understand and deal with transactions involving between holding companies and affiliates, and on the preparation of the data financial statements.

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Introduction to Financial Accounting: Assets [FA2]

Introduction to Financial Accounting: Assets [FA2]

These module notes, and the textbook that accompanies them, use the term "income statement." However, the term "statement of income," which is used in practice and in the Model Financial Statements produced by CGA-Canada, is also acceptable. Either term will be acceptable in assignments and examinations. Handbook amendments

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Introduction to Financial Accounting

Introduction to Financial Accounting

GAAP in Canada, as well as in many other countries, is based on Interna onal Financial Repor ng Standards (IFRS) for publicly accountable enterprises (PAE). IFRS are issued by the Interna onal Accoun ng Standards Board (IASB). The IASB’s mandate is to promote the adop on of a single set of global accoun ng standards through a process of open and transparent discussions among cor- pora ons, financial ins tu ons, and accoun ng firms around the world. Private enterprises (PE) in Canada are permi ed to follow either IFRS or Accoun ng Standards for Private Enterprises (ASPE), a set of less onerous GAAP-based standards developed by the Canadian Accoun ng Stan- dards Board (AcSB). The AcSB is the body that governs accoun ng standards in Canada. The focus in this book will be on IFRS for PAEs 2 .
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INTRODUCTION TO ACCOUNTING

INTRODUCTION TO ACCOUNTING

types– financial accounting and management accounting. Financial accounting is primarily concerned with the preparation of financial statements mainly for outsiders. It is based on certain well-defined concepts and conventions and helps in framing broad financial policies. However, it suffers from certain limitations which are taken care of by the other branch of accounting, viz.; management accounting. Management accounting is meant to help in decision-making by analyzing and interpreting the information generated by financial accounting. As such, management accounting is futuristic and decision-oriented. The methods of management accounting are not very exact as they have to be varied according to the requirements of the decision. Cost accounting is an important aspect of management accounting. It emphasizes on cost determination, aiding the planning and control process and supplying information for short- and long-run decisions. The basic differences between financial and management accounting arises due to differences in users of information, differences in time frame and type of reports generated. The criterion for decision making and the behavioural implications of both types of accounting are also different.
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NEW JERSEY COMPREHENSIVE FINANCIAL SYSTEM INSTRUCTIONAL MANUAL INTRODUCTION TO GOVERNMENTAL ACCOUNTING

NEW JERSEY COMPREHENSIVE FINANCIAL SYSTEM INSTRUCTIONAL MANUAL INTRODUCTION TO GOVERNMENTAL ACCOUNTING

A fund is an independent fiscal and accounting entity with a self-balancing set of accounts. A fund is established to achieve specified objectives and to ensure that monies collected are spent for the intended purpose. Each fund has operating transactions and financial statements prepared in accordance with Generally Accepted Accounting Principles (GAAP). The fund most NJCFS users will be working with is the General Fund, which is defined as the fund where all State revenues not otherwise restricted by statute are deposited and from which appropriations are made. The majority of the State’s financial operations are accounted for in the General Fund and the Property Tax Relief Fund (PTRF). The gross income tax is dedicated to the PTRF, whereas other tax revenues, most federal revenue, and certain miscellaneous revenue items are recorded in the General Fund.
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A s s u r a n c e and A dv i s o ry B u s i n e s s Serv i c e s. U.S. GAAP v. IFRS: The

A s s u r a n c e and A dv i s o ry B u s i n e s s Serv i c e s. U.S. GAAP v. IFRS: The

While the sources of guidance under U.S. GAAP and IFRS differ significantly, the general recognition criteria for provisions are similar. For example, IAS 7 Provisions, Contingent Liabilities and Contingent Assets provides the overall guidance for recognition and measurement criteria of provisions and contingencies. While there is no equivalent single standard under U.S. GAAP, FAS 5 Accounting for Contingencies and a number of other statements deal with specific types of provisions and contingencies (for example, FAS 14 for asset retirement obligations and FAS 14 for exit and disposal activities). Further, the guidance provided in two Concept Statements in U.S. GAAP (CON 5 Recognition and Measurement in Financial Statements of Business Enterprises and CON Elements of Financial Statements) is similar to the specific recognition criteria provided in IAS 7. Both GAAPs require recognition of a loss based on the probability of occurrence, although the definition of probability is different under U.S. GAAP (where probable is interpreted as “likely”) and IFRS (where probable is interpreted as “more likely than not”). Both U.S. GAAP and IFRS prohibit the recognition of provisions for costs associated with future operating activities. Further, both GAAPs require information about a contingent liability, whose occurrence is more than remote but did not meet the recognition criteria, to be disclosed in the notes to the financial statements.
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Hierarchy Of GAAP vs. IFRS The Case Of Bankruptcy Accounting

Hierarchy Of GAAP vs. IFRS The Case Of Bankruptcy Accounting

onvergence of accounting principles between the U.S. and other countries has become a major topic of discussion for accounting practitioners and academics in the last few years, mainly because the SEC is pushing U.S. GAAP toward harmony with IFRS. Among the major justifications for convergence is comparability between the financial statements of different countries. Most major differences between GAAP and IFRS are being addressed by joint projects between the FASB and the IASB. However, there are many accounting issues that are not being addressed by joint efforts of the FASB and the IASB and are not on the agenda for future projects. Among these omitted issues are such important topics as insurance, extractive industries, debt restructuring and bankruptcy. This paper is concerned with future accounting for reorganization-type bankruptcies as accounting standards are converged. In the United States, the accounting for Chapter 11 bankruptcy under U.S. GAAP is governed by SOP 90-7 (now ASC 852 under the new codification), but there is no comparable accounting rule under IFRS. A question arises about the accounting treatment of companies undergoing Chapter 11 reorganization and equivalent reorganization under bankruptcy laws in other countries. Will financial statements of companies under reorganization in the U.S and countries where IFRS is required be comparable?
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Essays on the U.S. GAAP-IFRS Convergence Project, the Nature of Accounting Standards, and Financial Reporting Quality

Essays on the U.S. GAAP-IFRS Convergence Project, the Nature of Accounting Standards, and Financial Reporting Quality

argue that they more effectively reflect economic reality and that rules-based standards are susceptible to manipulation. The extant literature is inconclusive in this respect. Some studies have found that principles-based standards allow preparers to issue more informative financial reports (Folsom et al. 2016; Jamal & Tan, 2010) while others have found that the principles-based standards are susceptible to manipulation which decreases the quality of financial reports (Cuccia, 1995; Nelson et al. 2002). Yet, others find that financial reporting decisions are not influenced by the nature of accounting standards (Henderson & O’Brien, 2014). Following, Folsom et al. (2016) I use textual analysis of keywords related to each IFRS to calculate a standardized measure a firm’s reliance on principles-based standards. I combine this with the RBC score calculated in the first part of this dissertation to arrive at the PSCORE, a firm level instrument that measure the extent to which a firm relies on principles-based standards. Using a sample of 268 firm (906 firm years) that used IFRS and cross-listed in U.S. capital markets from 2000-2004 and 2008-2012, I investigate the relation between principles-based standards and
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Exploring the Financial and Accounting Reporting Standards and Principles under U.S.

GAAP

Exploring the Financial and Accounting Reporting Standards and Principles under U.S. GAAP

Two Colorado companies who specialize in selling home heating units are curious as to which company is the more attractive to invest in from an outside perspective. The two companies at hand, Eads Heater, Inc. and Glenwood Heating, Inc. both operate in Colorado and share similar economic conditions and have seemingly ran identical operations during the year. However, each company’s respective manager appears to make opposing accounting choices and estimates when applying generally accepted accounting principles in preparing their Financial Statements. The main differences between the approaches were the methods of allowance for doubtful accounts, recording cost of goods sold, accounting for depreciation, paying for equipment, and allocating finances for tax reporting purposes.
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The influence of specific accounting differences on the choice between IFRS or US GAAP.

The influence of specific accounting differences on the choice between IFRS or US GAAP.

Results from the univariate tests are presented in Table 6. Non-parametric Mann- Whitney tests 21 are performed on the continuous variables, while the dichotomous variables are tested using a χ²-test. On average, we find that IFRS firms (1) spend significantly more on research and development activities (RD, p=.07) and (2) are less frequently quoted on foreign equity markets (FOREIGN, p=.01) compared to US GAAP firms. Furthermore, we also see that relatively more IFRS firms award their employees with share priority rights (EMPRIOR, p=.07) and engage in large equity offerings (INCSTOCK, p=.04) as opposed to firms applying US GAAP. Finally, the results also show a choice difference between industries (INDUSTRY, p=.05) where firms that are characterized as non-traditional more frequently choose for US GAAP compared to more traditional firms. No significant differences are found between the two groups with regard to their engagement in acquisitions, size, percentage of unknown shareholders, debt structure and performance (respectively ACQ, SALES, FLOAT, DEBT, PERF).
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How the U S  financial crisis could have been averted

How the U S financial crisis could have been averted

The differences between these two methods of funding are key to the understanding of the financial crisis. Households took up the full $1.112 trillion in new mortgages in 2003. Their income growth could only support $325 billion in new mortgage debt. Their future “negative” income impact was $787 billion, or $43,211 per each new home built in 2003. It also happens to be equal to a full year’s income based of the median nominal income for 2003. Furthermore this phenomenon of supplying the housing market with a higher level of funds than income growth could absorb, started already in 1999. In 1999 $219 billion was the overfunded amount, in 2000 $229 billion, in 2001 $369 billion and in 2002 $589 billion. The total negative income impact for the years 1999-2003 was $2.19 trillion. On a nominal median income of $43,318 in 2003, every mortgage borrower had a negative future income impact $253,091, which nearly represents 6 years of average earnings. The $2.19 trillion represented 31.7% of all mortgage debt outstanding per end of 2003. To express this in other terms, if mortgagors would have been kept on the mortgage payments according to the income based funding method, their maturity of their mortgage would have to be extended by 9.5 years to 39.5 years, due to this asset based mortgage funding system. These facts are based on data from 1999 to 2003. The asset based funding cycle did not stop in 2003 and went on well into 2007.
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FINANCIAL ACCOUNTING AND ACCOUNTING STANDARDS

FINANCIAL ACCOUNTING AND ACCOUNTING STANDARDS

The AICPA’s Code of Professional Conduct requires that members prepare financial statements in accordance with generally accepted accounting principles. Specifically, Rule 203 of this Code prohibits a member from expressing an opinion that financial statements conform with GAAP if those statements contain a material departure from a generally accepted accounting principle, unless the member can demonstrate that because of unusual circumstances the financial statements would otherwise have been misleading. Failure to follow Rule 203 can lead to loss of a CPA’s license to practice. The meaning of generally accepted accounting principles is defined by Statement on Auditing Standards (SAS) No. 69, "The Meaning of ’Present Fairly in Conformity With Generally Accepted Accounting Principles’ in the Independent Auditor’s Report." Under this standard, generally accepted accounting principles covered by Rule 203 are construed to be FASB Standards and Interpretations, APB Opinions, and AICPA (CAP) Accounting Research Bulletins.
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A contemporary and comparative review of the relationship between the global financial crisis, financial crime and white collar criminals in the U S  and the U K

A contemporary and comparative review of the relationship between the global financial crisis, financial crime and white collar criminals in the U S and the U K

A contemporary and comparative review of the relationship between the global financial crisis, financial crime and white collar criminals in the.. U.S.[r]

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1. INTRODUCTION. u yy. u yx

1. INTRODUCTION. u yy. u yx

Another concept of weak Hessian is classically introduced for defining generalized solutions of the Monge-AmpeÁre equation, see [9] and references therein; see also [18] for further developments. Now, we assume that V R n is a convex set and u is a real-valued convex function defined on V. We denote by @u the subdifferential (also called normal mapping) of u and by @u(E) the image by this multifunction of the subset E V:

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TEEKAY CORPORATION RECONCILIATION OF NON-GAAP FINANCIAL MEASURES

TEEKAY CORPORATION RECONCILIATION OF NON-GAAP FINANCIAL MEASURES

(1) Net revenues represents revenues less voyage expenses, which comprise all expenses relating to certain voyages, including bunker fuel expenses, port fees, canal tolls and brokerage commissions. Net revenues is included because certain investors use this data to measure the financial performance of shipping companies. Net revenues is not required by accounting principles generally accepted in the United States and should not be considered as an alternative to revenues or any other indicator of the Company's performance required by accounting principles generally accepted in the United States.
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Private sector balance, financial markets, and U S  cycle: A SVAR analysis

Private sector balance, financial markets, and U S cycle: A SVAR analysis

2) The cyclical patterns of household and corporate balances are determined by cyclical patterns of financial markets. Stock prices, 10-year Treasury-Note (T-N) yields, and the spread between BAA- corporate bond yields and 10-year T-N yields (BAA-spread) are the financial variables used in our empirical study. For example, a rise in stock prices implies that households feel richer (the equity wealth effect) and corporate bodies are more optimistic about their future returns on capital. The effect is a rise in their spending. When long term interest rates reduce, households will refinance their mortgages and corporate bodies will be more willing to borrow capital. Also in this case, the effect is a rise in their spending. BAA-spread is a measure of the cost of external finance for corporate bodies. Higher BAA-spread discourages debt-financed spending by firms discouraging investment spending.
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INTRODUCTION TO ACCOUNTING AND BUSINESS

INTRODUCTION TO ACCOUNTING AND BUSINESS

Because generally accepted accounting principles impact how companies report and what they report, all stakeholders are interested in the setting of these princi- ples. For example, the setting of accounting standards for stock-based compensa- tion or stock options has been especially controversial. Even the United States Senate has been involved in the debate. Many managers opposed an initial proposal by the FASB that would record the value of such options as a reduction of profits because doing so would negatively impact their financial results. The FASB issued a revised proposal, but investors, analysts, and other stakeholders criticized manager stock op- tions in light of the poor financial performances of many companies and the finan- cial failures of Enron, Tyco, and WorldCom. As the debate continues, some companies are voluntarily treating stock options as a reduction of profits.
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