Advance Issues In Accounting

Course Overview: A manager needs a general understanding of accounting which is the process of recording, classifying, reporting and interpreting the financial data of an organization. Discussion, case examples and analysis of double-entry bookkeeping techniques lead to a foundation for analysis of basic financial statements. Managerial accounting concepts then provide the analytical tools necessary for day-to-day management of the business enterprise. Ideally, the student will learn how to evaluate current accounting information and how to make the accounting system a better contributor to the management process.

B. An examination of financial statements and underlying records for conformance with generally accepted accounting principles (GAAP).

The purpose of this paper is to define accounting, and identify the four basic financial statements. The paper also explains how the different financial statements are interrelated to each other and why they are useful to managers, investors, creditors, and employees.

The purpose of accounting is to record the financial information, such as transactions and performance, related to a business. The accounting profession has been in existence for as long as business transactions have occurred. It wasn’t until 1494, however, when Luca Pacioli, a Venetian merchant, wrote Summa de Arithmetica, Geometrio, Proportioni et Proportionalita. His writings described a two-entry system of debits and credits, which became the basis for modern accounting systems. Three centuries later, with the emergence of the Industrial Revolution and the development of corporations, the profession of being an accountant became a necessity to keep track of the rising costs and cash flows. As a result, the American Association of Public

The field of accounting is constantly evolving. This is true not only for the theory of accounting itself but also the entities that govern its theory and practice. Presently, the Financial Accounting Standards Board (FASB) and the International Accounting Standards Board (IASB) are faced with some of the biggest challenges to date. To understand the significance of these two boards, it is necessary to understand their histories, relations between the boards, and the standards that they set. Also how the knowledge of these boards and the field they lead, gained through the masters of science in accountancy

For as long as businesses have existed, so has accounting. With time, it has become more complicated and detailed, but it is still a process of keeping financial accounts in order. Through accounting, or financial reporting, a system is set up to keep track of, maintain and audit the financial proceedings. Because accounting and financial reporting of a business is so important for its accuracy and in general, a lot of ethical, technological and legal concerns are involved. In this paper, we will look identify and explore the concerns of each of these.

19. The accounting assumption that requires every business to be accounted for separately from other business entities, including its owner or owners is known as the:

Similarly as showed in the FAS 141R and FAS 160, the Financial Accounting Standards Board (FASB) gave out the gauges that were intended to enhance the equivalence, unwavering quality, and additionally importance of the money related proclamations (Mary et al, 2006). Also, the FAS 141R and FAS 160 and the reassessment to IFRS 3 were segments of the FASB and IASB joint tasks intended to quicken conjunction in this field of

• It is designed to enable you to become an informed preparer and user of

Financial accounting is a subjective area that strives to provide complete and accurate information for the end user. Before the class discussion, I felt accounting was more of a science than an art – if you tested items and they fell into a certain parameter, it was an accurate representation of the facts and figures under review. The class discussion and another person’s experience has caused me to rethink this perspective because when one considers the variables incorporated into financial accounting, it is not as simple and clear cut as some would like to think. Hines (1988, p. 252-253) states “having the full picture – a true, a fair view of something – depends on people deciding that they have the full picture. Sometimes, they later decide they did not have the

The IASB and FASB are working on a joint project to develop a common conceptual framework which based on the existing conceptual framework underlying FASB and IASB. The objective of the measurement phase “is to provide guidance for selecting measurement bases that satisfy the objectives and qualitative characteristics of financial reporting” (FASB, 2009b). In fact, the IASB’s framework defines measurement as the process of determining the monetary amounts that are recognized in financial statements (IASB, 2001) whereas FASB’s framework separates measurement into selection of the monetary unit and choice of attribute (SFAC 5, 2008). This indicates that both framework do not provide identical measurement, neither provide much guidance on measurement (IASB, 2004a). Thus measurement is the most challenging components that which has not been reached

|1a) |  |  |  | | | | |Colton Company Sales | |300,000 | | | | | |Mota Company Sales | |172,000 | | | | | | | |472,000 | | | | | |2008 Colton Sales |-50,000 | | | | | |

The concepts in the conceptual framework are being created in an orderly manner which makes the financial reporting consistent and logical. There is also increased comparability of standards from company to company or from year to year. The conceptual framework also ensures that there is consistency internally in the accounting standards. In addition the framework also establishes precise definitions that facilitate discussion of accounting issues and it also helps preparers and auditors in resolving financial problems in the absence of an accounting standard. Since a theory of accounting that can be applied on specific problems is provided in the conceptual framework, the volume of accounting standards is

For financial information to be practical, the essential requirement is to be relevant and must faithfully represent what it purports to represent. In Discussion Paper (DP) Section 6, it discusses about Measurement, the DP 's fundamental view is that the objective of measurement is to contribute to the faithful representation of relevant information about the resources of the entity. In DP S6.20, it is stated that relevance has more implications for measurement compared to faithful representation but it does have some implications. S6.21 notes that a perfectly faithful representation is free from mistake but that does not imply that measurements have to be perfectly accurate.

ACC307 INDIVIDUAL ASSIGNMENT TASK 1: Contemporary Issues of Accounting Theory Fair Value Measurement Overview After the International Accounting Standards Board (IASB) released the IFRS 13 Fair Value Measurement in May 2011 for the purpose of completing its joint project with the US Financial Accounting Standards Board (FASB) on fair value, the Australian Accounting Standard Board (AASB) released the Australian equivalent - AASB 13 Fair Value Measurement in the September of the same year. This standard permitted early adoption but generally started to take effect for the financial reporting periods beginning from 1 January 2013. This new standard requires no new requirement for the adoption and but it was accompanied with the issuing of AASB 2011-8 Amendments to Australian Accounting Standards arising from the AASB 13 which has made consequential changes to 32 standards and 9 interpretations for the adoption in Australia. The new standard attempts to unify IFRS and US GAAP by specifying how entities should apply the fair value measurements that applied in previous IFRS standards. It clarifies and redefines fair value as “the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date”, sometimes referred to as an “exit price”. It also sets out a single source guidance for a robust measurement framework to ensure that the requirements are applied consistently and have clear