Premium Essay

Special Topic in Accounting

In: Business and Management

Submitted By margebumagat
Words 4451
Pages 18
Learning Objectives:

At the end of the session, students should be able:

1) To define and differentiate significant influence, joint control and control.
2) To determine whether the investor can exert significant influence over an investee.
3) To determine when it is appropriate to use equity method in accounting for investments.
4) To understand the underlying principle of equity method.

Reference: IAS 28: Investments in Associate and Joint Ventures

I. Accounting for equity instruments from the point of view of the investor:

A. Based on management’s intention for acquiring the investment.

1. Passive investment

a. Fair value through profit or loss

b. Available for sale investments:

2. Active investment

Level of influence on investee’s management

|Level of control |Definition |Type of entity |
|Control |Power to govern |Subsidiary |
|Joint control | |Joint venture |
| | |Joint operation |
|Significant influence |Power to participate |Associate |

II. Existence of significant influence. Can the investor exert significant influence over the investee’s operating and financing decisions?

IAS 28.3 Significant influence is the power to participate in the financial and operating policy decisions of the investee but is not control or joint control over those policies.

IAS 28.5 There is a presumption that an investor can exert significant influence if he holds 20% or more of the voting power of the investee.

However, paragraph 5 merely states a presumption. It is possible that the 20% rule of thumb is not present and yet

Similar Documents

Premium Essay

Accounting for Government

...Introduction to Accounting and Financial Reporting for Governmental and Not-for-Profit Entities True / False Questions 1. Special purpose governments generally provide a wider range of services to their residents than do general purpose governments. True False 2. Examples of general purpose governments include cities, towns, and public schools that receive tax revenue to finance the services they provide. True False 3. The Governmental Accounting Standards Board (GASB) is the body authorized to establish accounting principles for all state and local governments, both general purpose and special purpose. True False 4. The Governmental Accounting Standards Board (GASB) is the body authorized to establish accounting principles for all government entities. True False 5. The Financial Accounting Standards Board (FASB) is the body authorized to establish accounting principles for all colleges and universities and health care entities. True False 6. Neither governmental nor not-for-profit entities have residual equity that can be distributed to owners. True False 7. A characteristic common to governmental and not-for-profit organizations is that they do not exist to provide goods or services at a profit or profit equivalent. True False 8. The needs of users of government financial reports are the same as those of users of business entity financial reports. True False 9. The Federal Accounting Standards...

Words: 6249 - Pages: 25

Premium Essay

Dsadsadsad

...Auditing and Professional Practice. This document provides you with information relevant to successful completion of this unit; including schedule of lecture topics, prescribed texts, assessment policies, assessment tasks, examinations, academic and administrative contacts and online learning support facilities. Student Handbook and Administration Office The Elite Student Handbook provides valuable general information for students and a printed copy will be provided to you. In addition, the Institute staff are available to assist you personally during office hours. Office Contact Details: Elite Education Institute 1 James Place, North Sydney, NSW 2060 Tel: 02 9212 2120 Unit Overview This unit introduces the major conceptual and technical aspects of auditing and assurance services. Accordingly, the unit provides critical insights into the auditor's legal and societal role, the underlying conceptual theory of auditing, professional auditing techniques, and contemporary auditing issues. The core theme of this unit is the external audit of corporations, from initial planning to final reporting in the context of a professional environment. Assumed Knowledge Prerequisite:    ACC101 – Fundamentals of Accounting I, ACC102 – Fundamentals of Accounting II, and ACC204 – Advanced Financial Accounting Student learning outcome After successfully completing this unit, a student will be able to: Graduate Attribute achieved A. Explain and analyse the...

Words: 2264 - Pages: 10

Premium Essay

Acct2522

...Australian School of Business Accounting ACCT2522 MANAGEMENT ACCOUNTING 1 Course Outline Semester 1, 2012 Table of Contents PART A: COURSE-SPECIFIC INFORMATION 1  1  STAFF CONTACT DETAILS 1  2  COURSE DETAILS 1  2.1  Teaching Times and Locations 2.2  Units of Credit 2.3  Summary of Course 2.4  Course Aims and Relationship to Other Courses 2.5  Student Learning Outcomes 1  2  2  2  3  3  4  LEARNING AND TEACHING ACTIVITIES 3.1  Approach to Learning and Teaching in the Course 3.2  Learning Activities and Teaching Strategies 4  4  4  ASSESSMENT 5  4.1  Formal Requirements 4.2  Assessment Details 5  5  5  COURSE RESOURCES 9  6  COURSE EVALUATION AND DEVELOPMENT 10  7  COURSE SCHEDULE 11  PART B: KEY POLICIES, STUDENT RESPONSIBILITIES AND SUPPORT 1  1  ACADEMIC HONESTY AND PLAGIARISM 1  2  STUDENT RESPONSIBILITIES AND CONDUCT 1  2.1  Workload 2.2  Attendance 2.3  General Conduct and Behaviour 2.4  Occupational Health and Safety 2.5  Keeping Informed 1  2  2  2  2  3  SPECIAL CONSIDERATION AND SUPPLEMENTARY EXAMINATIONS 2  4  STUDENT RESOURCES AND SUPPORT 4  PART A: COURSE-SPECIFIC INFORMATION 1 STAFF CONTACT DETAILS Position Name Lecturer/tutor Nicole Ang Lecturer/tutor Linda Chang Tutor Mandy Cheng Tutor Kar Ming Chong Tutor Truman Mak Lecturer-inYee Shih Phua charge Tutor Kevin Teo Tutor Angela...

Words: 6135 - Pages: 25

Premium Essay

Bitch

...Chapter 03 Balance of Payments   True / False Questions   1. Over half of all dollar bills in circulation are held outside American's borders.  True    False     Multiple Choice Questions   2. The current account balance, which is the difference between a country's exports and imports, is a component of the country's GNP. Other components of GNP include  A. consumption and investment and government expenditure. B. consumption and government expenditure and net exports. C. consumption and net exports and government expenditure. D. consumption less imports.   3. If the United States imports more than it exports, then this means that  A. the supply of dollars is likely to exceed the demand in the foreign exchange market, ceteris paribus. B. the demand for dollars is likely to exceed the supply in the foreign exchange market, ceteris paribus. C. the U.S. dollar would be under pressure to appreciate against other currencies. D. both b) and c) are correct   4. Balance of payments  A. is defined as the statistical record of a country's international transactions over a certain period of time presented in the form of a double-entry bookkeeping. B. provides detailed information concerning the demand and supply of a country's currency. C. can be used to evaluate the performance of a country in international economic competition. D. all of the above   5. If a country is grappling with a major balance-of-payment difficulty, it may not be...

Words: 11412 - Pages: 46

Free Essay

Noor

...Courses in Accounting/Tax Research and Analysis and Accounting/Business Communications September 3, 2014 The Texas State Board of Public Accountancy requires each candidate to complete a minimum of two semester hours in accounting research and analysis or tax research and analysis from a recognized college or university. The semester hours may be obtained through a discrete course or offered through an integrated approach. If the course content is offered through integration, the college or university must advise the Board which course(s) contain the research and analysis content. Courses identified through integration must dedicate 1 semester hour, or quarter hour equivalent, to research and analysis. Courses used to meet this requirement may not be used to meet the requirement for accounting or business communications described below. Course(s) identified by a university to meet the requirements for research and analysis in accounting or taxation should primarily address the identification, organization, and integration of diverse sources of information such as authoritative literature and pronouncements, to reach a conclusion or make a decision; and should analyze accounting and taxation issues by reviewing information, using empirical data and analytical methods, recognizing data in patterned activities, forecasting, and integrating data. CPAs may be asked to conduct research and analysis when providing attest services, professional accounting services, or...

Words: 3741 - Pages: 15

Premium Essay

Asdf

...Raffles UNIPREP - University Foundation Studies Stream : Commerce, Arts & Creative Industries and Engineering TRIMESTER 1 Monitoring Sheet Week 1 Date 18 - 22 July 2011 Topic COM201 (Commuication Skills I) Assessment & Due Date to Program Introduction to course Study Skills: Time management Listening & Learning styles Study skills: Paraphrasing Note-taking Academic Portfolio One: paraphrase (3%) July 2011 Portfolio Two: summary (3%) August 2011 Portfolio Three: paragraph (5%) August 2011 29 5 12 BUS100 (Accounting) Assessment & Due Date Topic Introduction to Accounting Elements of an Accounting System Balance Sheet Balance Sheet (continued) General Ledger (Assets, Liabilities, Owner's Equity) Trial Balance General Ledger (continue) Generaql Ledger (Revenue, Expenses) Mid Test (10%) Commence Specials : Sales Journals Cash Receipts Journals Special Journals (continue) Purchases Journals Cash Payments Journal Review on Special Journals and Ledgers Class Test 2 30 September 2011 Class Test 1 5 August 2011 BUS104 (Mathematics) BUS108 (Management) Assessment & Due Date to Assessment & Due Date Topic Topic Fundamental Concepts in Arithmetic Introduction to Management rounding, sf's, scientific notation Algebra - indices, surds Fundamental Concepts in algebra solving equations Linier Functions and Graphical Interpretation - gradient, equation Linier Optimisation - Model and solve Logarithms - to solve exponential equations Sequences and Series - arithmetic Sequences and Series -arithmetic...

Words: 638 - Pages: 3

Free Essay

Imba

...| (2) | | IMB 532 Portfolio Analysis and Management II: Fixed Income | (2) | | IMB 533 Portfolio Analysis and Management III: Derivatives and Financial Risk Management | (2) | | IMB 536 Global Macroeconomic Trends and Financial Institutions or CSB Elective | (1) | | IMB 534 International Real Estate Investment | (1) |   | IMB 539 Financial Management | (2) | | IMB --- CSB Elective | (2) | | Or | | | | | | IMB 595 Special Topics in International Business (to be completed at an IBSA partner school) | | C. Thesis or Extensive Written Case Analysis (12 semester hours): Term 3 (summer) |   |   | IMB 599 Thesis | (6) | | IMB 594 Capstone Project / Practicum | (6) | IMBA Course Descriptions (UNCW) The course descriptions shown below are only for courses offered by UNCW and the Cameron School of Business. See each alliance school for their course offerings. IMB 531. Cases in International Finance (1-2) This course will focus on international financial management cases. Cases will build on topics of international monetary systems, international investment decisions, portfolio diversifications, multinational capital structure, and foreign exchange risk and management. IMB 532. Portfolio Analysis and Management I (2) This course is designed to focus on tool and techniques of modern portfolio theory in a global context. Students will convert theory to practice through active management of a real dollar portfolio. IMB 533. Portfolio analysis...

Words: 797 - Pages: 4

Premium Essay

Case for Accounting Class

...INTRODUCTION Revenue recognition is one of the top causes for financial statement restatements. In addition, revenue recognition is an area commonly questioned by the Securities and Exchange Commission (SEC) staff in their review of public filings and resultant comment letter process. Furthermore, revenue recognition is often prey to financial fraud. Coverage of revenue recognition in intermediate accounting courses is typically limited to learning and applying the criteria for revenue recognition outlined in the Financial Accounting Standards Board’s (FASB) Statement of Financial Accounting Concepts No. 5, Recognition and Measurement in Financial Statements of Business Enterprises, to routine transactions and topics, such as long-term construction contracts and installment sales (FASB 1984). While these topics are important, there are literally hundreds of revenue-generating transactions that are not covered in the traditional financial accounting sequence. These are their stories (for any Law and Order fans): Case One: Facts Consumer Cleaning Products Corporation (CCPC) is a public company with a calendar yearend. CCPC manufactures detergent that is ultimately purchased (and used) by consumers. The supply chain consists of the following: * CCPC sells its detergent to a wholesaler; * The wholesaler sells the detergent to a retailer; and * The retailer sells the detergent to a consumer. CCPC launches a new detergent, Fresh & Bright, on September...

Words: 1413 - Pages: 6

Premium Essay

Consulting

...Economics (60 credits) Course code Course Credits Year 1 courses: 12 credits ECON1001 Introduction to economics I 6 ECON1002 Introduction to economics II 6 Year 2 and Year 3 courses: 48 credits ECON2101 Microeconomic theory or 6 ECON2113 Microeconomic analysis 6 ECON2102 Macroeconomic theory or Macroeconomic analysis ECON2114 ECONxxxx/ Year two/Year three courses listed in Economics 36 FINAxxxx or Finance electives Total: 60 2. Major in Finance (60 credits) Course code Course Year 1 courses: 18 credits BUSI1002 Introduction to accounting ECON1001 Introduction to economics I FINA1003 Corporate finance Year 2 and Year 3 courses: 42 credits ECON2101 Microeconomic theory or ECON2113 Microeconomic analysis FINA0301 Derivatives FINA2802 Investments and portfolio analysis ECONxxxx/ Year two/Year three courses listed in Economics FINAxxxx and Finance electives Total: Credits 6 6 6 6 6 6 24 60 Notes for Major in Finance:  BUSI1002 Introduction to accounting can be taken in the...

Words: 1346 - Pages: 6

Premium Essay

Micro Exercise

...restrictions on exit of firms. Answer: D Comment: Recurring Diff: 1 Page Ref: 368/368 Topic: Market Structures Objective: LO1: Explain what a perfectly competitive market is and why a perfect competitor faces a horizontal demand curve. AACSB: Reflective Thinking Special Feature: None 2) Which of the following is a characteristic of an oligopolistic market structure? A) There are few dominant sellers. B) Each firm sells a unique product. C) It is easy for new firms to enter the industry. D) Each firm need not react to the actions of rivals. Answer: A Comment: Recurring Diff: 1 Page Ref: 368/368 Topic: Market Structures Objective: LO1: Explain what a perfectly competitive market is and why a perfect competitor faces a horizontal demand curve. AACSB: Reflective Thinking Special Feature: None 3) Perfect competition is characterized by all of the following except A) heavy advertising by individual sellers. B) homogeneous products. C) sellers are price takers. D) a horizontal demand curve for individual sellers. Answer: A Comment: Recurring Diff: 1 Page Ref: 369/369 Topic: Characteristics of Perfectly Competitive Firms Objective: LO1: Explain what a perfectly competitive market is and why a perfect competitor faces a horizontal demand curve. AACSB: Reflective Thinking Special Feature: None 4) Which of the following is the best example of a...

Words: 3059 - Pages: 13

Premium Essay

Auditing a Publicly Traded Company

...Auditing a Publicly Traded Company ACC/541 June 8, 2015 MEMO TO: Manager FROM: DATE: SUBJECT: Auditing a Publicly Traded Company ________________________________________________________________________ An objective of any publicly traded corporation is to make a return. There are many influences, which can be contributed in completing this goal. The most significant factor is compliance with the accounting governing bodies, such as GAAP (Generally Accepted Accounting Principles). As an accounting firm, it is vital to examine your financial statements on a constant basis. You will need to look for the accounting handling of share-based payment and accounting consolidation theory, as it pertains to special purpose entities and consolidations (Schroeder, Clark, & Cathey, 2011). Share-Based Payments are another way for a publicly held company to offer compensation to his or her employees or other parties, without using the company’s assets. These compensation awards are usually a set number of stocks within the organization. There was already a system in place to account for these transactions, but a revision to the Statement No. 123 was made in 2004. This statement was geared toward Share-Based Payments and was released December 16, 2004, with the original Statement being published in 1995. This revision was created to provide more accurate financial information to users of publicly traded entities, such as our client. Costs incurred by share-based transactions...

Words: 772 - Pages: 4

Premium Essay

Accounting Standards Update (Asu) 2014-09

...Accounting Standards Update (ASU) 2014-09 Financial Accounting I - ACCT 600 Accounting Standards Update (ASU) 2014-09 The International Accounting Standards Board (IASB), responsible for the International Financial Reporting Standards (IFRS), and the Financial Accounting Standards Board (FASB), responsible for the U.S. Generally Accepted Accounting Principles (GAAP), are the two most prominent accounting entities in the world. However, there are accounting requirements between the two that are at times different and often end with conflicting results for economically similar transactions. This is most apparent in the area of revenue, prompting the FASB and IASB to collaborate for more than a decade to develop the Accounting Standards Update (ASU) 2014-09 on May 28, 2014 (FASB, 2014). Overview According to the ASU 2014-09, companies will be required to recognize revenue “to depict the transfer of goods or services to customers in amounts that reflect the consideration to which the company expects to be entitled in exchange for those goods or services.” (ASU, 2014-09) The new revenue standard will be included in the Codification as Topic 606, Revenue from Contracts with Customers as an amendment and replacement to Topic 605. Additionally, it will also be included in the IFRS as International Accounting Standard (IAS) 15, effectively replacing IAS 11 and 18 (Rossi, 2014). Both public and nonprofit companies will apply the new revenue standard for annual reporting...

Words: 808 - Pages: 4

Premium Essay

Cma Syllabus 2012

...Define Give the exact meaning of. Communicate the key features of. Distinguish Highlight the differences between. Explain Make clear or intangible/state the meaning or purpose of. Identify Recognise, establish or select after consideration. Illustrate What you are expected to know Definition Describe KNOWLEDGE Verbs used Use an example to describe or explain something. The Institute of Cost Accountants of India (Statutory Body under an Act of Parliament) Page 2 FOUNDATION COURSE - Syllabus 2012 Study Weightage : With a syllabus subject, a percentage weightage is shown against each section topic. This is provided as a guide to the proportion of study time each topic requires. The study weightage also indicate the approximate proportional distribution of marks that may be allocated to topics in any single examination. Summary of...

Words: 18528 - Pages: 75

Premium Essay

Series of Revenue Recognition Research Cases Using the Codification

...ISSUES IN ACCOUNTING EDUCATION Vol. 26, No. 3 2011 pp. 609–618 American Accounting Association DOI: 10.2308/iace-50029 A Series of Revenue Recognition Research Cases Using the Codification R. Mark Alford, Teresa M. DiMattia, Nancy T. Hill, and Kevin T. Stevens ABSTRACT: This series of four short cases is designed to help students develop the skills to research the Financial Accounting Standards Board’s (FASB) Accounting Standards Codification and other authoritative literature. It also is designed to help improve students’ ability to analyze and critique the complex issues that often surround the accounting for revenue recognition. The case scenarios describe transactions in which students must decide whether, when, and how much revenue to recognize. The issues analyzed involve bill-and-hold, multiple-element arrangements, gross versus net revenue reporting, and sales incentives. The cases are also designed to improve teamwork and communication skills. The sequence of cases is intended for use in an intermediate accounting class that covers revenue recognition, or in a capstone class that emphasizes critical thinking and research skills. Keywords: revenue; recognition; codification; research. INTRODUCTION evenue recognition is one of the top causes for financial statement restatements (Whitehouse 2010). In addition, revenue recognition is an area commonly questioned by the Securities and Exchange Commission (SEC) staff in their review of public filings and resultant comment...

Words: 4631 - Pages: 19

Premium Essay

Acct323

...Topics include: audit and other reports, statistical sampling in auditing, attestation standards, reporting on future-oriented information, accountant's legal liability, Securities & Exchange Commission practice, professional ethics and using technology in auditing. Catalog Description Prerequisites: Sophomore standing; minimum grade of "C-" in ACCT 311. Topics include: audit and other reports, statistical sampling in auditing, attestation standards, reporting on future-oriented information, accountant's legal liability, Securities & Exchange Commission practice, professional ethics and using technology in auditing. Course Overview Students will become familiar with issues under the AICPA Code of Professional Conduct, pronouncements of the Public Companies Accounting Oversight Board, the Sarbanes Oxley Act, federal securities laws, and cases relating to CPA malpractice. Students will have a thorough professional knowledge of CPA reports on financial statements and special reports. Students will also learn how to apply statistical sampling and technology in auditing. Course Overview Students will become familiar with issues under the AICPA Code of Professional Conduct, pronouncements of the Public Companies Accounting Oversight Board, the Sarbanes Oxley Act, federal securities laws, and cases relating to CPA malpractice. Students will have a thorough professional knowledge of CPA reports on financial statements and special reports. Students will also learn...

Words: 2718 - Pages: 11