Financial Reporting(Measurement Bases for Financial Accounting-Measurement on Initial Recognition)

States. Companies should report income, liability, equity, and assets. Many people (stockholders, investors, etc.) who have a stake in the company want to know this information before providing a service. In this paper, International Financial Reporting Standards (IFRS) and the Generally Accepted Accounting Principles (GAAP) will be compared for

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:

Direct costs for the Ruger Clinic of Toledo, Ohio totaled $100,000 in 2007 and represents the total cost pool. The Ruger's uses direct cost allocation of expenses in the cost pool to three revenue-producing patient services. Drivers under consideration for the allocation of costs are patient service revenue (a direct dollar for dollar allocation) and hours of housekeeping services used (a volume-based activity for allocation). Drivers amounted to the following activity in dollars and volume, respectively:

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

External users of accounting information (especially investors) use accounting information like annual and quarterly reports to base their investing decisions on, and to compare different companies with one another. Internal users of accounting (mostly

it provides a better indication of ability to generate cash flows than the cash basis.

Conceptual framework is a theory of accounting prepared by a standard setting body against which practical problems can be tested objectively. In addition the business dictionary states that conceptual framework is a theoretical structure of assumptions, principles and rules that hold together the ideas compromising a broad concept. Other sources state that a conceptual framework can be viewed as a set of interrelated objectives and theoretical principles, which forms a reference for the underlying discipline. On the other hand, financial reporting is the process of producing statements that disclose an organization's financial status to management, investors and the government. Therefore, in financial reporting the framework provides information

Accountants have used whatever tactics they could to place a positive spin on the financial statements. Over the years, there was a need for improvements in financial reporting. In 1999, the Governmental Accounting Standards Board (GASB) issued Statement No. 34; which caused a major change in the reporting requirements of the government (Fischer, Cheng, & Taylor, 2009). This also led to a very comprehensive accounting process. GASB 34 made big improvements in how the government views their financial statements.

In October 2004 at their mutual meeting, the IASB and the US FASB chose to add to personal plans a combined task to create a typical theoretical structure, based on both the current IASB and the FASB Conceptual Framework, both Boards would use as a premise for their accounting standards. The process of measurement determines the monetary amounts at which the elements of the financial statements are to be recorded and carried in the financials book. This report pays the concerns to the three major trends of Measurement systems, which are:

Financial statements are the lifeblood of publicly traded companies, investors use the information provided on all these statements to determine whether they should place their money and trust in this company or a competitor. The information on these statements, by law, must be truthful and precise for the given reporting periods; this means that a silver-tongued executive can only have so much of an effect on investor confidence. Investors are encouraged to review all financial statements thoroughly to understand the way a firm manages its assets and liabilities prior to investing their money in the firm.

The analysis of a firm’s financial statements, whether it is for credit, investment, or any number of other potential purposes, relies heavily on the accounting data/information supplied by the firm in its financial reports. The presentation of such data falls under the auspices of generally accepted accounting principles (GAAP) as prescribed in the U.S. by the SEC and the FASB (Financial Accounting Standards Board) and globally by the IASB (International Accounting Standards Board) through its IFRS (International Financial Reporting Standards). The accounting principles describe the proper procedures for recording and reporting economic activities undertaken by various entities. In

The paper is to discuss some of the major types of statements that are typically used within business firms to keep track of finances. To further explore these statements, the major components will be identified. Different accounts that make up an owner’s equity section on a corporate balance sheet will also be analyzed. Furthermore three categories of ratios that firms use in analysis and their benefits will be examined.

Under the economic globalization and the rapid development of Islamic finance in recent years, the business activities with Islamic countries became a worldwide focus. However, it is notable that the conventional accounting system would face a challenge with the compliance of Shariah. Therefore, the Islamic accounting standards AAOIFI were developed due to of the existing problem with the adoption of the convention accounting standards (IFRS). In this chapter, to illustrate the difference among IFRS and AAOIFI, the general description of these two accounting standards will be presented, followed by the distinguishing between the adoption as well as the comparison of some specific accounting treatments. At the

A non-profit organization is an organization exempted from making tax payments and its main objective is to offer the public with services without making any profits. It can be classified as a charitable, religious, educational or scientific organization (Strydom & Stephen, 2014). Its excess funds are not shared among its stakeholders as cash dividend; rather they are reinvested back to the organization in the pursuance of its objectives. On the other hand, the sole purpose of the for-profit organizations is literally to make profits, share the dividends among the stakeholders or reinvent it back into the business. . As such, all its business objectives are geared towards raising more capital while considering the ethical issues that may arise in the pursuance of these goals.

Accounting is the art of measuring and communicating financial information. To maintain uniformity and consistency in preparing and maintaining books of accounts, certain rules or principles have been evolved. These rules or principles are classified as concepts and conventions. One of the important concept in accounting is “Measurement” (Mattessich, 1977)