Financial Accounting Essay

You are a recent accounting graduate working for the Indonesian Financial Accounting Standards Board (the “Board”). Your manager has asked you to prepare a report, which is to be presented to the Board. This report should: Executive Summary 1. Advantages As the development of globalization in economics in recent years, there is increasing popularity of IFRS. Based on the research(Shima and Yang 2012), there are more than 100 countries adopting the IFRS for their accounting standards. As IFRS

The primary difference between financial and managerial accounting is that financial accounting is used for external members of the company; they do not control or run the businesses’ operations. An example of external members would be customers and shareholders of the business. On the other hand, managerial accounting is used for internal members in the company such as managers and officers. The internal members use managerial accounting to increase efficiency and effectiveness within their company

(A) In the following analysis, we choose profit margin ratio for to analyze profitability and debt to equity ratio to analyze financial structure. CCA and RGP are two companies in the beverage industry; both companies have reported an increase in profit during the 2014 financial year. The profit margin ratio can helps us to compare how efficient does the two companies use their resources. The debt to equity ratio helps us to measure the use of leverage and risks of the two companies. (B) CCA

CHAPTER 1 Financial Accounting and Accounting Standards ASSIGNMENT CLASSIFICATION TABLE | | | | |Topics |Questions |Cases | |1. |Subject matter of accounting. |1 |1

When it comes to the rules of accounting, the Financial Accounting Standards Board, or FASB, is in charge mostly. Their main responsibilities include making changes to the rules of accounting they think is crucial for key people and businesses as well as inform them of the changes made. To make sure the rules are understandable by the people and businesses, FASB change and update them to fit what is in today’s capabilities. One of the most important recent changes happened in the first month of twenty-sixteen:

Legality and Ethicality of Financial Reporting Accounting professionals consider standard practices of accounting and board of accountancy rules when creating ethical standards. Accountants also consider state and federal laws. Ethics and the law works hand-in-hand therefore should be on the minds of those considering the commission of fraud. The Chief Financial Officer (CFO) of Excello, Terry Reed, was considering doing such by posting a $2.1 million transaction to raise year-end earnings.

Every business has to prepare its financial statements for its investors and making its business decisions. Company’s financial conditions are of major concern to the investors and creditors. As capital providers they rely on the financial statement for safety and profitability of their investments. They are also interested in knowing where and for what purpose their money is being used. Financial statements present the financial health of the entity. What are Accounting Standards? A principle that

The Financial Accounting Standards Board has issued for public comment two Exposure Drafts related to its disclosure framework project. The first exposure draft proposes amendments to Statement of Financial Accounting Concepts - Conceptual Framework for Financial Reporting, Chapter 3 – Qualitative Characteristics of Useful Financial Information. The purpose of this proposed amendment is to clarify the concept of “materiality”. FASB defines materiality as, information is material if omitting it or

The financial report as organized by the accountant is as per the accounting principles. The way the accounts manager wants the accounts to be prepared is against the reporting standards that are used in many nations. In this case, the standards ensure uniformity in the reporting framework and encourage international trade. In this case, this event is a post balance sheet event that has to be adjusted in the current financial year. It is an amount that has to be taxed in the current financial year

ownership of the subsidiary. When the differential is assigned to identifiable assets or liabilities of the subsidiary, both the consolidated balance sheet and consolidated income statement are likely to provide information not available in the financial statements of the individual companies. The consolidated statements are likely to provide a better picture of the assets actually being used and the resulting income statement charges that should be reported. Q4-10   Consolidated