FIN_520_Module_1_Discussion2

A friend asks you about whether GAAP requires companies to disclose forecasts of financial variables to external users. She thinks that information could be very useful to investors.Required:1. What are the two primary qualitative characteristics of accounting information?2. Does GAAP routinely require companies to disclose forecasts of financial variables to external users? Indicate yes or no and explain how your answer relates to the qualitative characteristics of accounting information.

Define the phrase “earnings management.” Under what conditions, if any, is earnings management acceptable? Do auditors’ responsibilities include actively searching for instances of earnings management by clients? Defend your answers.

A company reports accounting data in its financial statements. This data is used for financial analyses that provide insights into a company’s strengths, weaknesses, performance in specific areas, and trends in performance. These analyses are often used to compare a company’s performance to that of its competitors or to its past or expected future performance. Such insight helps managers and analysts improve their decision making. Consider the following scenario: You work as an analyst at a credit-rating agency, and you are comparing firms in the construction and engineering sector. One company in the portfolio of companies you are analyzing is a Chinese firm. This firm stands out in the ratio analysis, because the company’s financial ratios are substantially lower than identical financial ratios of the other firms in the sector. You do not dissect the results of the ratio analysis and report this firm as an under-performing company.   Which of the following statements about…

How are financial accountants pressured when they need to make ethical decisions in their work? Is having technical mastery of GAAP enough to practise financial accounting?

Evaluate the following statements from an ethical perspective:“Earnings management in a narrow sense is the behavior of management to play with the discretionary accrual component to determine high or low earnings.”“Earnings are potentially managed, because financial accounting standards still provide alternative methods.”

Briefly explain the overall objective of a financial manager.  Include in your response any one of the three fundamental decisions a financial manager would be faced with.   You may want to refer to the fundamental accounting equation in your response.

Indicate whether the following statements about the conceptual framework are true or false. If false, provide a brief explanation supporting your position. a.    Accounting rule-making that relies on a body of concepts will result in useful and consistent pronouncements. b.    General-purpose financial reports are most useful to company insiders in making strategic business decisions. c.    Accounting standards based on personal conceptual frameworks generally will result in consistent and comparable accounting reports. d.    Capital providers are the only users who benefit from general-purpose financial reporting. e.    Accounting reports should be developed so that users without knowledge of economics and business can become informed about the financial results of a company. f.    The objective of financial reporting is the foundation from which the other aspects of the framework logically result.

answer these questions: step 1; Why do managers/accountants need to behave ethically? Explain. Step 2: Describe thestrengths and weaknesses of an accountant for icecream business. would they be good accountants?step 3:Compare and contrast manual accounting with computerized accounting, How are theydifferent?

You are approached to comment on a company’s accounting disclosure quality. As an accounting analyst, what are the factors will you consider in your assessment and why?

give an example of how management accounting reports would be incorporated into financial accounting reports. describe how accounting information helps shareholders and lenders to make decisions concerning the operations and performance of the entity. explain what challenges face business in relation to ethical behaviour? and if such challenges are the same for accountants

Examining the quality of accounting information is one of the key aspects of financial analysis.Required:a) Critically discuss procedures that can be used to assess the degree of accounting quality (define accounting quality as part of your answer).b) Discuss FIVE organisational circumstances that motivate manager to manipulate financial performance.

Discuss the role of ethics in accounting. What ethical considerations do accountants need to keep in mind while performing their duties? What are some common ethical dilemmas that accountants face, and how should they address them?

Why is accounting quality important in financial analyst. Provide an example showing one of the concepts provided in lesson 3

In the context of accounting conservatism, explain how accountants should handle uncertain events and estimates when preparing financial statements. Consider the impact of this principle on asset valuation and revenue recognition timing. What safeguards does this principle provide against overly optimistic financial reporting?

What is the role of accounting and accountants? Include answers to the following two questions in your explanation: What is the difference between financial and managerial accounting? What is the difference between public and private accounting? Provide specific examples from your experience and/or this week's readings to support your ideas.

An enhancing qualitative characteristics of financial accounting information is that: Information must be decision-useful to all potential users of financial reporting. General-purpose financial reporting is the primary source of information for users. Users need reasonable knowledge of business and financial accounting matters to understand the information contained in the financial statements. All of the choices are correct.

An ethical problem may arise for a company expert who is trying to address the needs of people who are interested in financial information.

Analysts gather additional information to provide insight about management’s financial statements. Discuss the importance of doing the following:   considering the financial reporting history of the company. investigating large and unusual changes in reported items.

Ethical conduct and professional judgment each play important roles in the accounting process.a. In general terms, explain why it is important to society that people who prepare accountinginformation act in an ethical manner.b. Identify at least three areas in which accountants must exercise professional judgment, ratherthan merely relying on written rules.

TRUE or FALSE. Write on the table provided above the word “TRUE” if the statement is correct and write the word “FALSE” if the statement is incorrect. 1. Published financial statements show costs classified by behavior. 2. Generally accepted accounting principles govern financial accounting but not managerial accounting 3. Economic events are the raw data for both financial and managerial accounting. 4. Internal financial statements must be prepared using generally accepted accounting principles. 5. The form and content of reports can influence decisions made by managers. 6. Management-by-objectives and management-by-exception are two names for the same general management principle. 7. "Pro forma" is the name given to an income statement that classifies costs by function. 8. Some managerial accounting reports contain costs not incorporated in the basic accounting system. 9. A professional examination exists to test the competence of financial accountants, but not…

Case study: accounting

Generally Accepted Accounting Principles, or GAAP, is a set of accounting procedures, standards, and procedures that companies use to compile their financial statements. Select THREE of the following items that demonstrate why GAAP is important for accounting and finance professionals. it allows CPAs to make a good salary the consistent use of methods and procedures allows for fair comparisons between companies it allows persons reading the financial statements to rely on them it ensures that audits are completed in a standard manner