2259 words - 10 pages
international reporting standards (IFRSs) for general purpose financial statements”
The Standard Setting Process in Canada — Parties Involved
• Financial Accounting Standards Board (FASB) and the Securities and Exchange Commission (SEC) – FASB is the major standard setting body in the U.S. – SEC has the final authority over accounting standards in the U.S • Provincial Securities Commission (e.g. Ontario Securities Commission) – To oversee and monitor capital marketplace – Ensure strict adherence to securities law/legislation
The Canadian Financial Reporting Environment
Role of Financial Reporting • Financial statements and financial reporting • Accounting and capital
344 words - 2 pages
The mission and goal of IASB was to provide a sustainable framework in that members of different nations can follow called the IFRS. IFRS is presented to profit-oriented entities whiter private or public; which is the development of a single set of high quality, understandable and enforceable global accounting standards. In doing so, financial reporting will be leveled, and international transactions as well as investors can assure their decisions and provide statements under fair value measurement. The collaboration of FASB and IASB, will be one of the most important changes in financial reporting to take place in years; best of both worlds as I would like to call it. The convergence
1166 words - 5 pages
According to AASB, the financial reporting about a reporting entity that provide to users who lack knowledge about information and the it also reflect an entity perspective focussing on the needs of all capital provides, not just equity investors. The financial statement must truly reflect the qualitative characteristics of information (Leo et al, 2009). However, IASB and FASB try to develop a new conceptual framework recently. The project's objective is tried to create a new sound foundation for future accounting standards that are principles-based, internally consistent and also internationally converged. This assignment is about if Australia accepted the
815 words - 4 pages
The basic cause of international difference in financial reporting practice is the different degree of interference by governments in accounting.
It is understood that “International Financial Reporting Standards (IFRS)” has been adopted in many countries around the world, as a minimum for the companies that are obliged for financial reporting. IFRS has been implemented in nearly one hundred and fifteen countries around the world, whilst phasing out the previous standard of rules of Generally Accepted Accounting Practice or more commonly known as GAAP. The United States is the only large major country to holdout and not adopt IFRS. IFRS is increasing its widespread backing from all over
3695 words - 15 pages
rulings. Therefore, through this evolution this report will take into account its most recent modifications through the Sarbanes-Oxley Act, the FASB codification, and the even newer attempt to streamline certain specific pieces with the international standards.
We will pay special attention within the body of this paper as to what these standards mean for our analyses and reports as we move toward global standards in an attempt at the transparencies in financial reporting desired by the investors. In so doing we will be better able to decide a course of action for our company and management will be able to understand the changes ahead and hoe our company can cope with them. However, in
705 words - 3 pages
many dissimilarities when comparing both accounting standards, IFRS and GAAP. The differences can affect a company in one way or another. It was really interesting to learn between the differences and understand how each works.
International Accounting Standards and Committee. A Guide through International Financial Reporting Standards. London Publication,2011.
US GAAP versus IFRS: The Basics- Ernst And Young
IS IFRS different from GAAP-IFRS.Com
Accounting Principles, Wikeipedia
1970 words - 8 pages
Rules vs. Principles Based Accounting Standards in the United States
Elsie M. Powell
Liberty University Online ACCT 301-D01
December 7, 2014
Rules vs. Principles Based Accounting Standards
The United States of America is under a great decisional debate, should the United States adopt a more principles-based accounting standard or stay with the more rules-based standard that is currently used. The two standards offer differing views on how a company should approach their accounting needs. The United States continues its discussion about whether to change from the U.S. Generally Accepted Accounting Principles (U.S. GAAP) to the International Financial Reporting Standards (IFRS) and
1732 words - 7 pages
investors, customers, and people or companies looking to purchase swimwear may be interested in this data.
a. Congress: Can enact legislation that changes regulation for audit firms. This can lead to additional reporting and increased oversight.
b. Public Company Accounting Oversight Board (PCAOB): Private firm that oversees audit firms to make sure fair and accurate audit reports are being made and therefore helping investors. They establish and enforce auditing standards, and investigate possible violations.
c. Securities and Exchange Commission (SEC): They regulate the capital market system, and establish GAAP. They look over all publicly traded companies and also the PCAOB.
2420 words - 10 pages
increased expenditure resulting from R&D expenditure distorts earnings on the income statement. In the event of a merger or an acquisition (M&A), in accordance with APB Opinion 17, any excess amount paid over the book value for a firm would be listed under the catch-all term goodwill which was amortized over 40 years. As a result of these regulation standards, the gap between the market value of technology firms and their book value became ever larger.
Efforts to Improve Financial Reporting
The dangers of this ineffective accounting for intangibles were brought into a stark light in 2001 following the collapse of energy giant Enron, which once had been widely considered to be one of
2351 words - 10 pages
A-52 Several sources of U.S. GAAP consulted by an auditor are in conflict as to the application of an accounting principle. Which of the following should the auditor consider the most authoritative? A. B. C. D. FASB Accounting Standards CodificationTM. International Financial Reporting Standards (IFRS). FASB Statements of Financial Accounting Concepts. AICPA Issues Papers. Answer (A) is correct. The sources of authoritative U.S. GAAP recognized by the FASB as applicable by nongovernmental entities are (1) the FASB’s Accounting Standards CodificationTM and (2) (for SEC registrants only) pronouncements of the SEC. All guidance in the codification is equally authoritative. SEC pronouncements
769 words - 4 pages
Accounting Standards Boards
June 27, 2011
Accounting Standards Boards
The IASB (Internal Accounting Standards Board) set standards dealing with international accounting and FASB (Financial Accounting Standards Board) has standards dealing with international accounting but they mainly focus on accounting within the United States. The purpose of the convergence is to eliminate the differences
7130 words - 29 pages
financial statements, the way the elements of these statements are measured, and the concepts underlying these measurements and related disclosures.
LO1–1 Describe the function and primary focus of financial accounting.
LO1–2 Explain the difference between cash and accrual accounting.
LO1–3 Define generally accepted accounting principles (GAAP) and discuss the historical development of accounting standards, including convergence between U.S. and international standards.
LO1–4 Explain why the establishment of accounting standards is characterized as a political process.
LO1–5 Explain factors that encourage high-quality financial reporting.
495 words - 2 pages
CFA LEVEL 1 SYLLABUS
I. Ethical and Professional Standards
A. Professional Standards of Practice
B. Ethical Practices
II. Quantitative Methods
A. Time Value of Money
C. Probability Distributions and Descriptive Statistics
D. Sampling and Estimation
E. Hypothesis Testing
F. Correlation Analysis and Regression
G. Time Series Analysis
H. Simulation Analysis
I. Technical Analysis
A. Market Forces of Supply and Demand
B. The Firm and Industry Organization
C. Measuring National Income and Growth
D. Business Cycles
E. The Monetary System
G. International Trade and Capital Flows
H. Currency Exchange Rates
I. Monetary and
9328 words - 38 pages
ISSUES IN ACCOUNTING EDUCATION Vol. 22, No. 4 November 2007 pp. 685–708
China Eastern Airlines: People’s Republic of China Accounting Standards, International Financial Reporting Standards, or U.S. Generally Accepted Accounting Principles?
John L. Haverty
ABSTRACT: China Eastern Airlines, headquartered in the People’s Republic of China, has been listed and traded on the New York Stock Exchange since 1997. In its 2005 annual report, China Eastern Airlines presents two sets of ﬁnancial statements: one prepared under People’s Republic of China accounting regulations, and a second set prepared under International Financial Reporting Standards. In addition, as a listed company on the New
6334 words - 26 pages
different laws/regulations are dealt with by accounting and reporting standards
1.4.1. Financial Reporting Standards (FRSs)
Financial Reporting Standard (FRS) is any of a series of standards issued by the Accounting Standards Board. Many of the more recent FRSs have the aim of harmonizing UK practice with the standards published by the International Accounting Standards Board. See box on p. XYZ.Financial Reporting Standards (Anon, 2012).
Since 1 August 1990, UK accounting standards have been issued by the Accounting Standards Board (ASB). All accounting standards developed and issued by the ASB are known as Financial Reporting Standards (FRSs). The standards include the FRSSE (Financial
1538 words - 7 pages
events and changes from various economic and financial crises. The complexities and debates that arise from the causes of a financial crisis result in revisions to accounting regulations and standards that seem to be quickly implemented in order to prevent future disasters.
THE SECURITIES ACTS OF 1933 AND 1934
The Securities Act was Congress' opening shot in the war on securities fraud with Congress primarily targeting the issuers of securities. Companies which issue securities (issuers) seek to raise money to fund new projects or investments or to expand; thus, companies have an incentive to present the company and its plans in the rosiest light possible. The Securities Act serves the
808 words - 4 pages
to reveal how they are complying with SEC regulations. “Wal-Mart’s Chief Executive Officer and Chief Financial Officer have filed their certifications as required by the Securities and Exchange Commission (SEC) regarding the quality of the company’s public disclosure for each of the periods ended during Wal-Mart’s fiscal year ended January 31, 2011, and the effectiveness of internal control over financial reporting as of January 31, 2011 and 2010. Wal-Mart’s CEO has certified to the New York Stock Exchange (NYSE) that he is not aware of any violation by the company of the NYSE corporate governance listing standards, as required by Section 303A.12(a) of the NYSE listing standards” (Wal-Mart
3340 words - 14 pages
Table of Contents
So what is financial intermediation? 2
a) The brokerage function: 2
b) The asset transformation function 2
c) The Risk evaluation and management function 3
Why are financial intermediaries important? 3
THEORIES OF FINCANCIAL INTERMEDIATION 3
Informational Asymmetries 3
Transaction Costs Theory 4
HISTORICAL DEVELOPMENT 5
Origin of Financial Intermediation 5
EVOLUTION OF FINANCIAL INTERMEDIATION 6
THE FUTURE OF FINANCIAL INTERMEDIATION 7
TRENDS IN FUTURE FINANCIAL INTERMEDIATION 8
Regulation (Deregulation) 8
Revised regulatory framework 8
Revised reporting standards and accounting 8
417 words - 2 pages
in banks in Bangladesh. 9. Contents a. Concept, Evolution, Functions, Benefits, Policies, Regulations, Types, Environmental Issues, Local, National, Private and Global Initiatives and Participation, CSR and Green Banking. b. International Conventions, Treaties, Guidelines and Standards, Kyoto Protocol and Climate Change, Equator Principles (EPs), UN Principles for Responsible Investment (UNPRI), UN Global Compact, UNEP Finance Initiative Statements, etc. c. Policy and Regulatory Environment for Green Banking in Bangladesh, BB Policy Guidelines for Green Banking, Environmental Risk Management Guideline of BB. d. In-house Environment Management in Banks, Online Banking and Green Banking, Energy
376 words - 2 pages
Without trust, financial markets cannot function efficiently. Trust and
integrity depend to an important degree on the reputation of financial
markets to generate reliable valuations of companies and business ventures.
This perspective makes clear why the integrity of the gatekeepers of the public
trust to vouch for accurate and reliable information about public companies
is at the heart of the proper functioning of financial markets. And since
the ‘garbage in, garbage out’ principle also prevails in financial markets, public
trust in the functioning of financial markets has declined as a result of
major financial reporting scandals involving Enron, Tyco, WorldCom,
1166 words - 5 pages
It is a requirement that, if an entity is defined as a reporting entity, it is required to release financial reports that comply with the Australian Accounting Standards Board (AASB) (Deegan 2008:83).
Two companies have been chosen to analyse their reports, in particular the disclosures made in their respective reports. The two companies chosen to analyse are Commonwealth Bank of Australia (CBA) and Macquarie Bank Limited (MBL).
The Commonwealth Bank is one of Australia’s leading providers of integrated financial services including retail, business and institutional banking, funds management, superannuation, insurance, investment and broking services.
It is one of
2566 words - 11 pages
of care for any loss arising from any action taken or not taken by anyone in reliance on the information in this publication or for any decision based on it. Service provision within the international BDO network of independent member ﬁrms (‘the BDO network’) in connection with IFRS (comprising International Financial Reporting Standards, International Accounting Standards, and Interpretations developed by the IFRS Interpretations Committee and the former Standing Interpretations Committee), and other documents, as issued by the International Accounting Standards Board, is provided by BDO IFR Advisory Limited, a UK registered company limited by guarantee. Service provision within the BDO
1285 words - 6 pages
my role is to focus on determining whether recorded information properly reflects the economic events that occurred during the accounting period that I will be reviewing. Because GAAP provides our company with the criteria for evaluating whether the accounting information is properly recorded or not, I will check if the information is in compliance with criteria of GAAP. In addition as an auditor I will report on the effectiveness of your company’s internal controls over financial reporting, in addition to reporting on the results of your audit of your company’s financial statements.
Anderson, Olds & Watershed‘s standards of service adhere to the following criteria defined by Public
1418 words - 6 pages
Prepare a 1,050- to 1,400-word paper in which you compare and contrast auditing, attestation, and assurance services. In your paper, address the following:
An example of each type of service
Who might request such a service?
What standards apply to each service and who establishes those standards?
Format your paper consistent with APA guidelines.
ACC 490 Week 3 Individual Assignment Chapter 5, 6, & 7 Textbook Exercises
Resources: Ch. 5, 6, & 7 of Modern Auditing: Assurance Services and the Integrity of Financial Reporting
Prepare written answers to the following assignments from Modern Auditing: Assurance Services and the Integrity of Financial Reporting.
2508 words - 11 pages
discussing the financial aspect of globalization, it is hard to avoid the two major methods of financial reporting. GAAP (Generally Accepted Accounting Principles) are the guidelines for financial reporting in the United States. On the other hand, IFRS (International Financial Reporting Standards) are a set of guidelines that regulate how transactions and other events are reported in international financial statements. Despite a lot of aspects that make the two similar, there are subtle differences that virtually set them a world apart. ARTICLES International Convergence of Accounting Standards: IFRS vs. GAAP GAAP VS IFRS: What's the Difference? GAAP Vs. IFRS GAAP and IFRS: How Different Are They
5970 words - 24 pages
Aert, W, Cormier, D &Magnam, M (2006). Intra-Industry imitation in corporate environmental reporting: An international perspective. Journal of Accounting andPublic Policy, 25(3), May/June, 2006, New York, ESEVIER.
Bailey, P.E (1991). Full Cost Accounting for Life Cycle Costs, A guide for Engineers and Financial Analysts, Environmental Finance, Spring 1991
Enahoro, J.A. (2004). Environmental Accounting for sustainable environmental values and virtues.In Accountancy; Management Companion, edited by Ezejelue, A.C and Okoye, A.E; Nigeria; Nigerian Accounting Association (NAA).
Fagg, B.F; Smith, J.K; Weitz, K.A & Warren, J.L, (1993).Life-Cycle Cost Assessment (LCCA
1088 words - 5 pages
provided (see the attached reference list) from at least two articles. (25 marks)
4. The fraudulent activity at CA centred on issues of earnings management concerning revenue recognition. On 14 November 2011 the International Accounting Standards Board (IASB) and the US Financial Accounting Standards Board (FASB) issued for public comment a revised draft standard to improve and converge the financial reporting requirements of International Financial Reporting Standards (IFRSs) and US General Accepted Accounting Principles (GAAP) for revenue (and some related costs) from contracts with customers. The objectives of the project are to:
. To remove inconsistencies and weaknesses in
2303 words - 10 pages
standards. 2.5 Evaluate the ethicality of financial reporting activities. | | |
Readings | Read Ch. 6 & 7 of Ethical Obligations and Decision Making in Accounting. | | |
Participation | Participate in class discussion. | 4 out of 7 days | 2 |
Discussion Questions | Respond to weekly discussion questions. | Day 3 | 2 |
Learning Team Weekly Reflection | Discuss the previous week’s objectives with your team. Your discussion should include the topics you feel comfortable with, any topics you struggled with, and how the weekly topics relate to application in your field.Prepare a 350- to 1,050- word paper detailing the findings of your discussion
536 words - 3 pages
prospective investors, which in turn makes me, the industrial portfolio manager, look more successful.
19. Who is responsible for earnings management? Is it top management that instigates the practice? Or, is it the accountants, who may go along with recording and reporting such transactions? Or is it the auditors, who do not discover or look the other way and ignore the effects of transactions on the financial statements? Be sure to discuss the ethical obligations of each group in answering the question.
I believe that the accountants and auditors are responsible for earnings management because the public relies on the integrity and strong ethical values of accounts and auditors to
1251 words - 6 pages
Earlier this year there were some updates made regarding comprehensive income. Amendments to the current GAAPs regarding this topic were released as an FASB Accounting Standards Update No. 2011-05, in June of 2011. The update addresses how a business entity reports its comprehensive income. The update eliminated a business entity’s option to report changes to other comprehensive income as changes to stockholder’s equity on financial reports. The amendments to Topic 220 provide two reporting options. The business entity may report the total of comprehensive income, the components of net income, and the other comprehensive income in one statement or in two consecutive statements
7464 words - 30 pages
. Boston, MA: Warren, Gorham & Lamont. Divided and overruled? (2009). Economist, 393(8657), 88. Retrieved from EBSCOhost. Edward Nusbaum. (2007, March). Lease accounting rules need to be changed. Accounting Today, 21(5), 6, and 8. Retrieved January 28, 2011, from Accounting & Tax Periodicals. Ethiopis, Tafara. (2005, December) International financial reporting standards and the US capital market. Retrieved from http://www.sec.gov/news/speech/spch120105et.htm Feldman, Amy. (2002, April) Off balance. Money, 31(4), 46-47. Retrieved January 24, 2011, from Accounting & Tax Periodicals.
OFF-BALANCE SHEET FINANCING Flegm, E.H. (2004). Accounting: How to meet the challenges of relevance and regulation
948 words - 4 pages
Audit committees are part of the company board of directors. They must be composed of independent directors with no personal, financial, or family ties to management. They act to protect investor interests overseeing, financial reporting, audit activities, and compliance with applicable laws, regulations, and the company ethical standards, assuring integrity of financial reports. The board is ultimately accountable to investors for the company’s performance, affairs, and business. The audit committees are responsible to hire expertise in the areas of financial reporting, internal controls, risk management, and audit activities. Management is responsible to communicate with the
4659 words - 19 pages
equity, statement of cash flows and so on.
* Director’s responsibility for the financial statements
Directors are responsible to prepare financial statements in accordance with the International Financial Reporting Standards (IFRS) and the requirements of Companies Act 2001. Their responsibility includes: designing, implementing and show a true and fair presentation of the financial statements.
2.4 Statement of financial position
This refers to a written report which describes the financial position of a company. This statement provides information to the users about assets, liabilities, equity, gains and losses as well as contributions by and distributions to owners.
3059 words - 13 pages
value accounting: More transparency, more clarity, it accounts properly for derivatives and it provides additional information. An SEC report in 2005 recognises two main benefits of FVA :
• It alleviates the use of accounting-motivated transaction structures created by a mixed attribute model. For example it gets rid of the incentive to utilise asset securitisation to achieve gain on sale accounting.
• It reduces reporting complexity. For example, without FVA, the hedge accounting model for derivatives would have to be abandoned. It could also decrease the cost of record-keeping.
Transparency is of huge importance in financial statements; they must portray a true and accurate view of the
2176 words - 9 pages
IFRSs. IFRS is a set of accounting standards developed by the International Accounting Standards Board (IASB).
Two major topics make up the report: 1) the background of adoption 2) Advantages and disadvantages if the SEC support adoption
The Background of Adoption
In 2010 the International Accounting Standards Board (IASB) changed its constitution to emphasize the adoption of International Financial Reporting Standards (IFRSs), rather than simply convergence of those standards with standards issued by individual countries. The SEC followed the step of IASB to make adjustment, but it faced the issue whether it should support adoption of IFRSs.
Advantages and Disadvantages
267 words - 2 pages
Generally Accepted Accounting Principles in Healthcare
Generally Accepted Accounting Principles (GAAP) are the accounting standards used in the United States that provide an outlet for organization to record and report their financial information in a standardized manner (Richards, n.d.). This has proven to be of particular importance in the healthcare arena where many areas of finances can be ambiguous or gray. Additionally, the principles guide the reporting systems to prove or disprove the financial viability of the organization. This again is important in the healthcare industry related to achieving the goal of providing quality care to patients (Cleverly, Song, & Cleverly, 2011
9786 words - 40 pages
Garrett, S., and J. Adler. 2009. Amendment to H.R. 3817 offered by Mr. Garrett and Mr. Adler [amendment
to IPA Discussion Draft of October 1, 2009. Available at: http://www.house.gov/apps/list/speech/
Knapp, M. C. 2010. Contemporary Auditing: Real Issues and Cases, Updated Seventh Edition. Mason, OH:
South-Western Cengage Learning.
Public Company Accounting Oversight Board (PCAOB). 2007. An Audit of Internal Control over Financial
Reporting that is Integrated with an Audit of Financial Statements. Auditing Standard No. 5.
Available at: http://pcaobus.org/Standards/Auditing/Pages/Auditing_Standard_5.aspx
Securities and Exchange Commission (SEC
1131 words - 5 pages
appearance of such growth. This led to Callmate recognizing revenue when the sale transaction of the prepaid calling card was completed as opposed to when the calling cards were utilized. Though the auditors advised them that the approach wasn’t in compliance with the international financial statement reporting, they refused to change the accounting method and make revisions. Their primary concern was based on the effect the change would have had on reported revenue for that half of 2005 and thus the market price/ valuation of the company's stock which traded on the Karachi Stock Exchange (KSE).
MANAGEMENT & BOARD OF DIRECTORS APPROACH TO ISSUES
The tone at the top was one that
1377 words - 6 pages
Excello. The financial crunch has provided Mr. Reed with an urgency to log the sale in the current year. However, logging the sale without shipping the material is a breach in protocol and financial regulations.
The accounting staff was tasked to find a way to log the sale of equipment in the current business year instead of the next year. The staff did recognize that the Generally Accepted Accounting Principles should not be violated. However, they still contemplated violating the Sarbanes-Oxley Act by reporting sales that did not occur and going against reported financial controls. Not to mention the potential misleading financial information reported to the shareholders and
1052 words - 5 pages
particular by creating employment opportunities and facilitating training opportunities for employees.
1. Enterprises should ensure that timely, regular, reliable and relevant information is disclosed regarding their activities, structure, financial situation and performance.
2. Enterprises should apply high quality standards for disclosure, accounting, and audit. Enterprises are also encouraged to apply high quality standards for non-financial information including environmental and social reporting where they exist.
3. Enterprises should disclose basic information showing their name, location, and structure, the name, address and telephone number of the parent
796 words - 4 pages
AICPA and generally accepted auditing standards include: prospective financial statements, agreed upon procedures, management’s discussion and analysis, pro forma financial information, and reports on internal controls over financial reporting for private companies. These engagements focus on a narrow scope of review and are intended for use by a limited audience and purpose (Arens, Elder & Beasley, 2012). The conclusion reached as a part of these engagements is focused only the specific area review and provide assurance surrounding the specific findings of the procedures followed during the attestation engagement. These engagements would provide Apollo Shoes with limited assurance
369 words - 2 pages
costs, costs directly related to production planning, inspection costs and raw material handling facilities are included in cost of sales.
D) The Financial Accounting Standards Board (FASB) amended its guidance on accounting for business combinations to improve, simplify and converge internationally the accounting for business combinations. The new accounting guidance continues the movement toward the greater use of fair value in financial reporting and increased transparency through expanded disclosures. The new accounting guidance changes how business acquisitions are accounted for and will impact financial statements both on the acquisition date and in subsequent periods. Additionally, under
5988 words - 24 pages
information on the level and credit rated see the Unit specification.
Scottish Qualifications Authority Assessment Exemplars for Higher National Units
DE5G 35: Financial Reporting and Analysis
How to generate evidence
The Scottish Qualifications Authority’s system of assessment measures the evidence of a candidate’s attainment of knowledge, understanding and skills against defined criteria. The assessment process must allow for evidence of each candidate’s performance to be generated and collected. This evidence must then be judged against the standards set out in the Unit specification. To achieve the Unit the candidate must successfully meet the
1983 words - 8 pages
financial system. Capital requirements for offbalance sheet items should reflect their market risk and simply not their credit risk. Derivatives markets, both exchange traded and over-the-counter must become more transparent by reporting requirements for transactions, open interest, and collateral and margin standards. Overall, the implication for regulatory policy is that derivatives regulations must contain provisions that shape the structure of the incentives for derivatives trading so that they will be used in proper ways to facilitate capital flows without their being used in destructive ways to increase risk-to-capital and out maneuvering government safeguards.
1707 words - 7 pages
returns (good news) evidently affirm the existence of conservatism in financial reporting.
Factors that affect accounting conservatism are also widely analyzed. Ball and Shivakumar (2005) proposed that conservatism helps to address agency problems. Lafoud and Roychowdhury (2008) found a negative correlation between managerial ownership and conservatism. Chi et al. (2009: 57) complemented their arguments by indicating that “conservative accounting serves as a substitute for other governance mechanisms in alleviating agency problems”.
From other perspectives, Bushman (2006) investigated the influence of legal and political institutions as incentives for conservative financial reporting
2545 words - 11 pages
accountants, but it's a major change for the sales, marketing and communications people. Traditionally, in many product categories, the sales force has been charged with selling units, or volume of something. All sales were booked at list price to determine total sales and then the discounts were taken as an expense, creating a high top line and a small bottom line with lots of accounting legerdemain in between.
4. The most obvious thins that complicates an independent audit of a multinational company is determining what accounting standards should be used when evaluating the company. As stated in the case, there is a kind of tension between international and US standard makers, so deciding on
1823 words - 8 pages
the balance sheet. The balance sheet will help the organization to find out various important things. The balance sheet provides the information about liabilities of the organization, the equity capital of the organization and the assets available to the restaurant. All these accounts will help the organization to make sure that, it will disclose the correct picture of its financial statements in a proper manner in the future.
Applicability of GAAP
In the present situation, the business form selected by the organization is partnership form of business. Generally accepted accounting standards and the International Financial Reporting standards are applicable only for the corporations
2896 words - 12 pages
management, and that “the audit committee should recommend to the board the appointment and dismissal of a chief internal audit executive.” 2 If we look to the financial services industry, we also find that the Basel Committee makes no distinction in its guidelines as to the natural reporting line for the internal audit function except to note that “…the principle of independence entails that the internal audit department operates under the direct control of either the organisation’s CEO or the board of directors or its audit committee”. 3 Before deciding the reporting lines for internal audit, it is critical to consider the fundamental distinction between the respective roles of the board (oversight
3122 words - 13 pages
monetary impact from the negative environmental effects resulting from the choices company make. This topic will be discussed further in terms of Environmental Cost in Management Accounting and Environmental cost in Accounting itself.
However, before that we will discuss about the reason why Environmental Costing becomes one of the topics in Management Accounting and Financial Reporting.
WHY MEASURE ENVIRONMENTAL COST?
They arise of reporting Environmental Cost comes from new legislation and government regulations, market pressures from the ‘green customer’, the interests of stakeholders such as investors and employees, and general public awareness, focused by the activities of