...Financial Accounting Standards Board ORIGINAL PRONOUNCEMENTS AS AMENDED Statement of Financial Accounting Standards No. 157 Fair Value Measurements Copyright © 2010 by Financial Accounting Foundation. All rights reserved. Content copyrighted by Financial Accounting Foundation may not be reproduced, stored in a retrieval system, or transmitted, in any form or by any means, electronic, mechanical, photocopying, recording, or otherwise, without the prior written permission of the Financial Accounting Foundation. FAS157 Statement of Financial Accounting Standards No. 157 Fair Value Measurements STATUS Issued: September 2006 Effective Date: For financial statements issued for fiscal years beginning after November 15, 2007, and interim periods within those fiscal years Affects: Amends APB 21, paragraphs 13 and 18 Deletes APB 21, footnote 1 Amends APB 28, paragraph 30 Amends APB 29, paragraphs 18 and 20(a) Deletes APB 29, paragraph 25 and footnote 5 Amends FAS 13, paragraph 5(c) Amends FAS 15, paragraphs 13 and 28 Deletes FAS 15, footnotes 2, 5a, and 6 Amends FAS 19, paragraph 47(l)(i) Amends FAS 35, paragraph 11 and footnote 5 Deletes FAS 35, footnote 4a Amends FAS 60, paragraph 19 Deletes FAS 60, footnote 4a Amends FAS 63, paragraphs 4, 8, and 38 through 40 Amends FAS 65, paragraphs 4, 6, 9, 10, 12, and 29 Amends FAS 67, paragraphs 8 and 28 Deletes FAS 67, footnote 6 Amends FAS 87, paragraphs 49 and 264 and footnote 12 Deletes FAS 87, footnote...
Words: 59304 - Pages: 238
...The two types of accounting are Financial and Managerial. Financial accounting provides information for external users to help in the decision making process. These external users would include analysts, creditors, investors, and regulators. As for the creditors and investors, they utilize this information to base their decision of lending money or not. As for managerial accounting this information is provide to senior management to help them make a better assessment when making decisions regarding the company’s business activities and future plans. When referring to managerial accounting, there are different types of accounting information. For example, a budget report will used to compare actual performance against budgeted performance. According to Answers.com (2011), in a budget report there are columns for actual performance and for budgeted performance and the difference between the two is a variance. Senior management will review a break even analysis on a new product. The break even analysis informs management the required unit sales or dollar sales that the company needs to not suffer a loss on a product. According to Holland (1998), the break even analysis is one of the most common tools used by management to evaluate the feasibility of a new product or enterprise. The next piece of accounting information is the manufacturer’s balance sheet. The balance sheet informs management of the business’s assets, liabilities and owner’s equity. Stated by Huey (n.d.), the...
Words: 549 - Pages: 3
...A) “I work for a non-profit organization, so all this talk of the full cost of your product or service really isn’t applicable to me.” I would have to disagree with the statement, as full cost of product or service is applicable; however, the majority of the time people or companies will donate or give a discount if asked. For example, if you work for a non-profit organization and are in need of office supplies, why not buy locally from people who support you such as Staples or Office Depot, if these stores are around your area. Local store managers at these stores, when approached, have the authority to donate items to nonprofit organizations. One way you might try this is to have your list of items you need and tell the manager up front that you plan to purchase the items at their store, but you would love their help and support if he could donate any portion of these items. Regardless if anything is donated, a thank you note should be sent to thank the manager at least for their time and/or for their donation. B) “Why would anyone use target costing? It is just too risky if you don’t cover your costs.” I would have to disagree with the statement, as target costing provides a decent amount of advantages for some companies that would help them overlook the risk. Obviously a primary reason why companies use target costing is to plan or project the costs of products before they are introduced, and to ensure that low-margin products are not introduced which do not bring...
Words: 972 - Pages: 4
...Realistic Standards 8 * Controllability of Costs 8 * Multiple Measures of Performance 8 * Conclusion 8 * References 9 Executive Summary: The following Accounting report contains information related to budgets, different types of budgets and how this all leads to change in different aspect of human behaviour. The objective of this report is to promote a reasonable amount of positive behaviour in an organization. There are five factors which are being discussed in this report, Participative budget, and frequent feedback on performance, Monetary and Nonmonetary incentives, Realistic Standards, Controllability costs. Under participative budget there are two levels of management the first one is top level management and the second is bottom level management. Participative budget also creates a slack which is known as budgetary slack for management. Introduction:- A budget is a list of all planned expenses and revenues and budget is a plan for saving and spending. Budget is an important concept in an organization because it uses a budget line to illustrate the trade-offs between two or more goods. It is impossible for managers to work without information because it is important for management process, and accounting is the major information systems...
Words: 2060 - Pages: 9
...Financial Accouting EXECUTIVE SUMMARY Accounting for intangible assets is a major issue within the accounting environment. The issue is identifiable when it concerns accounting for research and development costs, in particular, internally generated assets. With two imperative standards in practice today, one being the IASB’s selective capitalisation of expenses into an intangible asset once a specific criteria has been reached and the other being the FASB’s system of straight expensing of all expenditure. This subject plays a vital role in the accounting world due to the large amount of money invested into research and development activities, with the Australian Bureau of Statistics 2010 reporting that Business expenditure on R&D (BERD) in Australia alone increased 15% to $14, 380 million up from 07-08. In discussing the different styles taken by the Boards it is easier to identify the impact these standards have on a corporation and its performance, with particular reference being made to Clinuvel Pharmaceuticals Limited, an Australian listed company that is currently undertaking research and development to develop a UV medical protection of the skin from UV and light for sun-related ailments. 1. Clinuvel Activities of R&D Clinuvel Pharmaceuticals Limited (CUV) is a listed Australian biopharmaceutical company based in Melbourne. The focus of CUV is to further research and develop, and eventually commercialise, its leading drug candidate afamelanotide as “a preventative...
Words: 2203 - Pages: 9
...Content 1.0 Executive summary………………………………………………………………..…………3 2.0 Introduction………………………………………………………………………..…………4 3.0 Company profile……………………………………………………………………..……….4 3.1 Google………………………………………………………………………..……….4 3.2 Market performance…………………………………………………………..………4 3.3 Yahoo…………………………………………………………………………………5 3.4 Market performance………………………………………………………………..…5 4.0 Financial ratios………………………………………………………………………………..6 5.0 Interpretation of ratios…………………………………………………………………….….7 5.1 Profitability ratio………………………………………………………………...……7 5.1.1 Return on asset…………………………………………………………...…7 5.1.2 Return on equity…………………………………………………………....7 5.2 Efficiency ratio…………………………………………………………………….....8 5.2.1 Gross profit margin………………………………………………………….8 5.2.2 Net profit margin…………………………………………………………….8 5.3 Liquidity ratio…………………………………………………………………………9 5.3.1 Current ratio…………………………………………………………………9 5.3.2 Quick ratio…………………………………………………………………10 5.4 Leverage ratio………………………………………………………………………..10 5.4.1 Debt to equity ratio………………………………………………………...10 5.4.2 Debt ratio………………………………………………………………..…11 5.5 Investment ratio……………………………………………………………………...11 5.5.1 Price/earnings ratio………………………………………………………...11 5.5.2 Price/book value ratio……………………………………………………...12 6.0 Cash flow statement analysis………………………………………………………………...
Words: 4059 - Pages: 17
...Financial Accounting: • Communicates economic information to individuals and organizations that are external to the direct operations of the company • Stresses the form in which it is communicated • Is based on historical information It is about the balance sheet, the income statement, the financial statement of the company (the notes). The stakeholders (shareholders, clients, suppliers, the government, employees, etc.) are interested by the financial statements. Financial accounting is mainly developed for external users. What can we find in a balance sheet? What does it tell us? The past financial performance of the company. The income statement gives us an overview of the expenses and revenues of the companies, their use, and more generally, what is the wealth of the organization. Another aspect, when we prepare a balance sheet, an income statement, there are legal constraints, rules, general principles that have to be followed. Everything is strictly regulated, there are very strict rules. I.e.: the Generally Accepted Accounting Principles (GAAP): Belgian GAAP, etc. Management Accounting: Assumption: a CEO must decide whether or not he’ll produce a new product. Where will he find the required information (the price of the product, etc. and more generally, all the necessary information)? Are the financial statements helpful in this case? No, they don’t. Other example: are we going to outsource part of our production in another country...
Words: 603 - Pages: 3
... Financial Accounting ATLANTIC INTERNATIONAL UNIVERSITY TABLE OF CONTENTS Introduction ………………………………………………………….3 History ……………………………………………………………….3 Description………………………………………………………….....4 Financial Reporting …………………………………………………..5 Accounting Principles…………………………………………………6 Balance Sheet…………………………………………………………7 Income Statements……………………………………………………8 Other Financial Statements…………………………………………..9 Bookkeeping Cycle…………………………………………………….9 Regulations and Standards…………………………………………..11 Accounting Reforms…………………………………………………..12 Biological Assets Research…………………………………………...13 Literatures Review……………………………………………………..14 Methodology and Model…………………………………………….... 16 Findings………………………………………………………………….18 Conclusion……………………………………………………………….19 References………………………………………………………………20 Financial Accounting INTRODUCTION Financial accounting refers to information describing the financial resources. Obligation and activities of an economic entity (either an organization or an individual). Accountants use the term financial position to describe an entity’s financial resources and obligations at appoint in time and the term results of operations to describe its financial activities during the year. Financial Accounting encompasses the record-keeping aspect of accounting and therefore provides much of the...
Words: 7526 - Pages: 31
...Name: Instructor: Course: Date: Financial Accounting Scenario 1 Sources of Finance There are a number of equity sources of finance. They include help from family and friends, public stock sale, venture capital, and funds from angel investors. A businessperson can get money from family to start up a business. The advantage with obtaining funds from family and friends is that they may be lenient with repayment terms (Leach and Ronald 34). They might also offer low interest rates and longer repayment duration. The problem is friends and family members might not have the amount of money one needs. This can make it hard for one to raise the needed capital. A businessperson can raise money from public stock offerings which involves selling shares of the stock of the business. This means that one has to register the business as a public company. Selling of equity shares is a good way of raising capital because it does not require the business to repay the money to the public investors. The disadvantage, however, is that this process requires disclosure of some information that might be helpful to competitors. The owner also losses control of the business, the privacy of the business, and will also be under pressure to perform. Venture capital is capital raised from venture companies. Venture capital companies invest money into businesses for profit. These companies normally put money into businesses that have a high growth potential. Because of the risk involved, venture...
Words: 3466 - Pages: 14
...Higher National Diploma in Business Part time UNIT 10: Financial Accounting and Reporting Unit Learning Outcomes 1 2 3 4 Understand the regulatory framework for financial reporting Be able to prepare financial statements from complete or incomplete records Be able to present financial information in accepted formats for publication Be able to interpret financial statements. BUSINESS SCENARIO You are a newly appointed consultant in XYZ Financial Consultant Company. You provide financial consultancy to multiple different companies. One of your clients is a very successful retail company that has a partnership company structure. The board is contemplating an adaption of IFRS and more formal reporting as they are expanding the business. The company is in retail business in the UK and has shops that sell food, clothing and house hold items. TASK 1: LO1 Individual Report – submission due: 30th January 2016 The senior management of the company have requested you to provide a report on the following 1.1 describe the different users of financial statements and their needs 1.2 Explain the legal and regulatory influences on financial statements 1.3 Assess the implications for users. What are the advantages for this global harmonisation? 1.4 Explain how different laws/regulations are dealt with by accounting and reporting standards. Please provide examples. M2 to Achieve a Merit Grade, you should be able to: M2 -- The discussion should indicate that...
Words: 634 - Pages: 3
...Yomaira Fernandez Project General Electric I have chosen this company for the financial analysis because of few important and obvious reasons. First of all it is announced as one of the five most active companies of US by volume. This information is given in Bloomberg. Another reason for taking this company for analysis is that it is one of popularly known companies of the world and information and data of this company is easily available on internet for correct and desired access of information. After the financial analysis of General Electric, I have compared the performance of the companies with its close competitors. Major competitors with whom we will compare the performance of General Electric are Citigroup Inc, Koninklijke Philips Electronics, Siemens AG American Depositary, etc. Analysis of the profitability measures, liquidity measures, activity measures, and financial leverage measures will assist in determining the GE’s performance. Beginning with the profitability measures, the remainder of items that show profitability will be discussed along with stock analysis. Using the DuPont model, GE's Return on Investment (ROI) is 3.07 percent compared to the 4.6 percent industry ROI. Although this number is low compared to normal ROI ranges, it is only slightly below the industry standard. The industry standard Return on Equity (ROE) is 18.20 percent compared to GE’s that is 11.08 percent. Accordingly the ROE for GE appears to be on target for the industry and well...
Words: 652 - Pages: 3
...FFA PAPER F3 FINANCIAL ACCOUNTING BPP Learning Media is the sole ACCA Platinum Approved Learning Partner – content for FIA and ACCA qualifications. In this, the only FFA/F3 study text to be reviewed by the examiner: We highlight the most important elements in the syllabus and the key skills you will need We signpost how each chapter links to the syllabus and the study guide We provide lots of exam focus points demonstrating what the examiner will want you to do We emphasise key points in regular fast forward summaries We test your knowledge of what you’ve studied in quick quizzes We examine your understanding in our exam question bank We reference all the important topics in our full index I N T E R A C T I V E T E X T BPP’s Practice & Revision Kit, i-Pass and Interactive Passcard products also support this paper. Note FIA FFA and ACCA Paper F3 are examined under the same syllabus and study guide. FOR EXAMS FROM FEBRUARY 2013 TO JANUARY 2014 FFA/F3 FINANCIAL ACCOUNTING First edition March 2011 Second edition September 2012 ISBN 9781 4453 9966 9 Previous ISBN 9781 4453 7305 8 eISBN 9781 4453 9242 4 British Library Cataloguing-in-Publication Data A catalogue record for this book is available from the British Library Published by BPP Learning Media Ltd BPP House, Aldine Place 142-144 Uxbridge Road London W12 8AA www.bpp.com/learningmedia Printed in the United Kingdom by Printers Polestar Wheatons Hennock Road Marsh Barton Exeter EX2 8RP Your...
Words: 166751 - Pages: 668
...|JOB TITLE: Financial Accountant (12 months contract) | |TEAM/PROGRAMME: Finance |LOCATION: London | |GRADE: (please leave this blank) |Type of Contract: | | |Fixed Term | |CHILD SAFEGUARDING: (select only one) | | | |Level 1 – No CRB check is required as you will not have contact with children or young people or access to data | |ROLE PURPOSE: | |To support the Finance Manager Financial Accounts on all aspects of member funding streams to Save the Children International (SCI). | |Preparation of accurate and timely expenditure claims, quarterly reconciliations and reporting to members. In addition, assisting with the | |preparation and analysis of SCI balance sheet reporting...
Words: 693 - Pages: 3
...SOM 630 FINANCIAL ACCOUNTING End-of–Course Project Fall 2010 Semester After you have chosen a company and obtained a copy of its published financial statements, please answer the questions posed below in the spaces provided. If you cannot answer a given question, please explain why not (data not available, you do not understand the question, etc.). Are the financial statements consolidated financial statements? How do you know? Yes. It says "Consolidated "Consolidated "Consolidated "Consolidated so in the titles of each of the statements. Balance Sheets" Statement of Operations" Statement of Changes in Stockholders' Equity" Statement of Cash Flows" Are the financial statements comparative financial statements? What periods (years) are presented? Yes. They compare the periods ending 03Jan2009 & 02January2010. They also show a period from 06Feb2007 - 29Dec2007 & then a short period (31Dec2006 - 05Feb2007) before the company had been purchased by the current owners. The first footnote is probably labeled “Summary of Significant Accounting Policies”. What do you think is the main objective of this footnote? This was actually the second footnote (the first was titled "Nature of Business"). If the company has inventory, what cost flow assumption are they using (FIFO, LIFO, etc)? How do you know? This company currently uses FIFO (the company's predecessor had used LIFO). They tell me this in the second footnote titled "Summary of Significant Accounting...
Words: 689 - Pages: 3
...Journal Entry Assignment (5% of Final Mark for course) Principles of Financial Accounting 0470-151 Prof. Yvette St Pierre Due date: June 11, 2015 Required: Windsor-Essex Tool is a manufacturing company. It is organized as an Ontario corporation. Journal entries for the month of December 2013 for each of the following transactions and events are to be prepared in proper form including explanation. In addition, any adjusting journal entries required at the end of December 2013 should also be prepared. If a journal entry is not required for certain items noted below you are to provide an explanation as to why you did not make an entry. You should cross-reference each of your journal entries with the corresponding letter below that applies to the particular transaction or event you are journalizing. Each journal entry is worth 1.5 marks (1/2 mark for fully correct debit entry, 1/ 2 mark for fully correct credit entry, 1/ 2 mark for reasonable explanation). You are to assume that all journal entries made prior to December were properly prepared and that all adjustments needed on November 30 were properly prepared. All amounts are in Canadian dollars. The company uses the straight line method of depreciation. The following general ledgers accounts should be used as required. You may not need to use all of the general ledgers accounts. List of general ledger accounts for journal entry exercise Accounts payable, accounts receivable, accumulated amortization...
Words: 759 - Pages: 4
