IFRS and GAAP Convergence Mercy Hudson Strayer University I have read and understand Strayer University’s Academic Integrity Policy. I promise to conduct myself with integrity in the submission of all academic work to the University and will not give or receive unauthorized assistance for the completion of assignments, research papers, examinations or other work. I understand that violations of the Academic Integrity Policy will lead to disciplinary action
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IFRS vs U.S. GAAP Victoria Harris American Public University Acct 610 There are two sets of accounting standards that are used worldwide. One is the International Financial Reporting Standards (IFRS) and the U.S. Generally Accepted Accounting Principles (GAAP). There is a huge desire for there to one set of accounting standards worldwide with the increase of companies performing business in many different countries and global expansion. The International Financial Reporting Standards
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taxes on their net income, and their stockholders must pay income taxes on their dividends. D. A sole proprietorship must pay income taxes to both the state government and the federal government. 2. Which of the following is not considered an advantage of the corporate form of business organization? A. Ability to raise capital. B. Government regulation. C. Ease of transferability of ownership. D. Continuity of existence. 3. Which of the following entities would have the “Paid-in Capital in
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only quarterly or once a ye ar, Target uses the last-in, first out (LIFO) method. The inventory is stated at the lower of LIFO cost or market meaning if the cost of the replacing inventory is lower than its recorded purchase cost, this method is used to value the inventory. Cost includes purchase price as reduced by vendor income. Target’s inventory is also reduced for estimated losses related to shrink and markdowns. The LIFO method is calculated based on the inventory levels, markup rates and
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discussing how the various financial decisions made by each company cause influence the common size statements and financial ratios to determine if the difference is valid. These decisions include Bicycles Inc’s choice to use a bad debt allowance, LIFO, straight line depreciation for building, accelerated depreciation for equipment, capital lease. Two-Wheelers Inc’s decided to write off bad debt as they become aware of them, FIFO, straight line depreciation for the building and equipment and not
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Financial Report Analysis 1. Ford uses a single-step format in its income statement because it is broken into only two divisions, revenues and expenses. The expenses are deducted from the revenue to arrive at net income 2. Net income: 2013 – 7,155,000,000 Earnings per common share: 7,155,000,000 – 1,574,000,000 / 3,913,000,000 = $1.42 3. Gross profit: 2013: 146,917,000,000 – 141,478,000,000 = 5,439,000,000 2012: 133,559,000,000 – 127,678,000,000 = 5,881,000,000 4. Interest expense: 2013:
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1 (TCO A) Which one of the following is an advantage of corporations relative to partnerships and sole proprietorships? (Points : 5) Reduced legal liability for investors Harder to transfer ownership Lower taxes Most common form of organization 2. (TCO A) The Dividends account _____. (Points : 5) is increased with a debit is decreased with a credit is not an expense account All of the above 3. (TCOs A, B) Below is a partial
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Executive Summary Recommendation: BUY Statoil ASA is a Norwegian energy company that specializes in the extraction and production of oil and natural gas in Norway and internationally. The globally integrated company focuses its business on the exploration, production, transportation, refining, and marketing of petroleum-based products. As the largest supplier of natural gas from the Norwegian Continental Shelf and across Western Europe, boasting a prominent position
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Chapter 3 ANSWERS TO QUESTIONS Q31 A primary objective of financial reporting is to provide information that is useful to present and potential investors and creditors and other users in making rational investment, credit, and similar decisions. An accounting system is the means by which a company records and stores the financial and managerial information from its transactions so that it can retrieve and report the information in an accounting statement. A doubleentry system standardizes the method
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IAS 2 International Accounting Standard 2 Inventories This version includes amendments resulting from IFRSs issued up to 17 January 2008. IAS 2 Inventories was issued by the International Accounting Standards Committee in December 1993. It replaced IAS 2 Valuation and Presentation of Inventories in the Context of the Historical Cost System (originally issued in October 1975). The Standing Interpretations Committee developed SIC-1 Consistency—Different Cost Formulas for Inventories, which was
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