What impact may the change of accounting standards have on the accounting profession and annual report? How to solve these problems? Write at least three.
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What impact may the change of accounting standards have on the accounting profession and annual report? How to solve these problems? Write at least three.
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Solved in 3 steps
- Assume you are employed as the chief financial officer of a corporation and are responsible for preparation of the financial statements, including the adjusting process and preparation of the adjusted trial balance. The company is facing a slow year, and after your adjusting entries, the financial statements are accurately reflecting that fact. However, as you are discussing the matter with your boss, the chief executive officer (CEO), he suggests that you have the power to make further adjustments to the statements, and that you should use that power to adjust the profits and equity into a stronger position, so that investor confidence in the companys prospects will be restored. Write a short memo to the CEO, stating your intentions about what you can and/or will do to make the financial statements more appealing. Be specific about any planned adjustments that could be made, assuming that normal period-end adjustments have already been reflected accurately in the financial statements that you prepared.What impact will creative accounting have on the accounting profession and annual statements?Give five specific limitations (scenarios) of accounting information in the business context and the possible solution you would suggest to resolve or mitigate the said limitations to affect the Annual Financial Reports.
- what are the three different types of accounting for changes. Give suitable examples. Do you find any company that has reported an accounting change in the recent years?Which fundamental characteristic of accounting requires that financial statements are prepared in a similar way year after year?A number of significant issues face the accounting profession and annual reporting. Select with justification what you consider to be the three (3) most important issues, and for each detail the issue, comment on its current and potential impact and discuss ways that it can be managed.
- Choose the correct.Which of the following does not accurately describe a requirement that a company must fulfill when adopting IFRS for the first time?a. The company must prepare an opening IFRS balance sheet at the beginning of the year for which the company is preparing its first set of IFRS financial statements.b. At the IFRS transition date, the company must select IFRS accounting policies based on those that will be in effect for the accounting period that will be covered by the first set of IFRS financial statements.c. At the IFRS transition date, the company must derecognize assets and liabilities that were recognized under previous GAAP that are not allowed to be recognized under IFRS.d. The company must provide a reconciliation of net income and stockholders’ equity under previous GAAP to net income and stockholders’ equity under IFRS in its first set of IFRS financial statements.Name five important significant issues face the accounting profession and annual reportingWhich of the following does not accurately describe a requirement that a company must fulfill when adopting IFRS for the first time?a. The company must prepare an opening IFRS balance sheet at the beginning of the year for which the company is preparing its first set of IFRS financial statements.b. At the IFRS transition date, the company must select IFRS accounting policies based on those that will be in effect for the accounting period that will be covered by the first set of IFRS financial statements.c. At the IFRS transition date, the company must derecognize assets and liabilities that were recognized under previous GAAP that are not allowed to be recognized under IFRS.d. The company must provide a reconciliation of net income and stockholders’ equity under previous GAAP to net income and stockholders’ equity under IFRS in its first set of IFRS financial statements.
- What do you understand by a financial year as used in accounting and reporting? How would you explain the meaning of ''accounting cycle'' to someone with no accounting background?Financial statements may be prepared for which time period? Select one: a. Any time period. b. One year. c. Less than one year. d. More than one year. In comparison with a financial statement prepared in conformity with generally accepted accounting principles, a management accounting report is more likely to: Select one: a. Be used by decision makers outside of the business organization. b. View the entire organization as the reporting entity. c. Focus upon the operation results of the most recently completed accounting period. d. Be tailored to the specific needs of an individual decision maker. The accounting principle that assumes that a company will operate in the foreseeable future is: Select one: a. Going concern. b. Liquidity. c. Objectivity. d. Disclosure. The cash account of Grande Home Improvement Store shows the following: a debit on June 1 for $25,000; a credit on June 5 for $10,000, a debit on June 16 for $14,000, and a credit on June 27 for $8,000. What is the…Discuss the types of accounting changes and the accounting for changes in accounting principles.