GAAP stands for Generally Accepted Accounting Principles. The common set of accounting principles, standards and procedures that companies use to compile their financial statements. GAAP are a combination of authoritative standards (set by policy boards) and simply the commonly accepted ways of recording and reporting accounting information. GAAP are imposed on companies so that investors have a minimum level of consistency in the financial statements they use when analyzing companies for investment purposes. GAAP cover such things as revenue recognition, balance sheet item classification and outstanding share measurements.
Internal Control and Risk Evaluation of Kudler ACC 542 4/1/2013 In this brief, the internal controls and risks evaluation of Kudler will be analyzed. The risks from Kudler’s system will be analyzed; internal controls will be designed to mitigate risks in Kudler; evaluation of internal controls will analyzed; and other controls will be recommended for Kudler that are outside of their AIS. Attached to this brief there will be extended flow charts from the “Automated Process of Accounting Information Systems” brief that will display risk and internal control points. The order of the flowcharts will be as follows: Accounts Receivable, Accounts Payable, Inventory, and Payroll. Analysis of Risks in Kudler Fine Foods There are a lot of risks that are associated with any type of business regardless of how big or small it may be.
What’s more, company stock in the form of stock options can be offered to employees and contractors as a meaningful form of incentive compensation. There is a strong point to consider is that the increased capitalization for the issuing business, since a market value is created by a public offering on a company's stock. The directors and shareholder of Al Hadharah Boustead REIT company can retain their stock and use it for varied activities. In additional, the greater access of business will take place to the capital markets for future capital inflow. In general terms, a Al Hadharah Boustead REIT company's valuation and debt to equity ratio will improve after going public, and at the same time, it will make it possible for Al Hadharah Boustead REIT company to receive much better terms from lenders.
FASB & IASB: Benefits of Convergence Mohammad F. Ibrahim Keiser University Professor Diann Ferrell Introduction Today’s environment has turned business leaders towards looking at their organization in a global perspective. Every company has to either compete or participate in the global market. Competition is about the position of the organization comparing to other organizations performing the same activity. Financial statement is one of the main facilitators to the comparison process, according to IAS 1.1 financial statements presentation used for promoting the comparability with other entities financial statements (2010). Financial statements describe the organizations financial position, and should be prepared in a manner that the investors, which are the most important external users of the financial statements, could make a better understanding and comparability with other financial statements; to be comparable financial statements should be set in accordance with a set of standards such as IFRS and GAAP.
Basis of Preparation The financial statements are prepared in accordance with the applicable law and under the convention of Historical cost. The preparation is governed by the Generally Accepted Accounting Principles (GAAP) rules and the regulations from the Association of Chartered Certified Accountants and Chartered Institute of Management Accountants (CIMA) 3. Basis of Consolidation The following financial statements are those of the company and its subsidiaries up to the end of the 2011 financial year. Results of subsidiaries disposed or acquired in the course of the year are included in the income statement up to the disposal date or from the acquisition date. Joint ventures are the undertakings that the company has a long term interest and shares its control jointly with another entity (Kones 2009, 45).
To do this, I feel that I should explain to you some of the differences and similarities between managerial accounting and financial accounting as well as show you an example or two of what you should expect to have to do to create a managerial report. This memorandum is for this purpose. Financial Accounting As financial accounting has been your area of expertise for a significant amount of time now, you are already aware of what financial accounting does and is. However, in light of explaining what managerial accounting is, I feel it necessary to explain financial accounting as well. This is not because I think your knowledge in this area is in any way faulty but I feel it necessary to be thorough.
Managerial Accountants should calculate net income or loss in a manner that accurately reflects the closest true costs and profits as determined by the International Federation of Accountants (IFA). To effectively help Management Accountants do this, the IFA has set in place a code of conduct that should regulate the integrity, competence, confidentiality, and credibility of a corporation. Introduction To fully understand the ethical issues of Managerial Accounting, you must first assess the difference between Managerial Accounting and Financial Accounting. Financial accounting is used for to present the status of the company to external sources such as board of directors, investors, auditors, and for reporting purposes as well. The financial side of accounting is used to represent the company’s current standing based on the past profits, net income, bad debts, and current ratio of assets to liabilities.
What additional alternative audit procedures do you believe the Hanauer auditors should have applied to those accounts that the client did not want confirmed? 4. Define a material audit scope limitation in general terms. Do you agree with the SEC that Hanauer’s management imposed a material scope limitation on its annual audits? 5.
The disclosure shows the loss contingency and states the estimate of loss. Before the company issues the financial statement and after the enterprise’s financial statement is done, the company can impair an asset or incur the liability. Disclosure of loss contingencies helps the company to keep its financial statements not being misleading. When the disclosure is necessary, the company must report the loss contingency in financial statements with a given estimate of the mount of loss. Reference Financial Accounting Standards Board (2010).Statement of Financial Accounting Standards No.
There are several issues to consider when comparing the financial ratios of a public company to the industry averages. It is important to allow for any material differences in accounting policies between the specific company and the industry norms. It is also important to determine whether ratios were calculated before or after adjustments were made to the balance sheet or income statement. (Atrill & McLaney, 1997) It is also extremely important that one make sure that the financial data was developed using comparable accounting methods, classification procedures, and valuation bases. I have chosen to analyze Branch Banking & Trusts financial ratios and compare them to industry averages.