Accy 510 Framework for Financial Reporting

Accy 510 Framework for Financial Reporting - financial...

Info iconThis preview shows pages 1–2. Sign up to view the full content.

View Full Document Right Arrow Icon
Accy 510 A Framework for Financial Reporting ˛ Recognition (and de-recognition) vs. disclosure – When should an organization generally record items instead of simply disclosing them? - When the organization exchanges value with an external party - When the organization or external party meets part or all of its contractual obligations - When the organization uses or earns a resource through action or over time - When an (expected) event makes a potential value-changing impact on the organization ˇ Classification – If an organization records an item, which account types should the organization use to represent faithfully the effects on the organization? - Asset - Liability - Equity - Contribution of / return of capital - Revenue - Expense - Gain - Loss
Background image of page 1

Info iconThis preview has intentionally blurred sections. Sign up to view the full version.

View Full DocumentRight Arrow Icon
Initial measurement – How should an organization represent faithfully the magnitude of the
Background image of page 2
This is the end of the preview. Sign up to access the rest of the document.

Unformatted text preview: financial impact on the firm on the particular date?- Acquisition cost- Fair value (if different from acquisition cost)- Net realizable value- Present value Ñ Subsequent treatment – How should an organization’s recognition and measurement treatments change over time to faithfully represent changes to the organization?- Recognition, de-recognition, and classification $ use rules in ˛ and ˇ- Re-measurement- Accretion- Amortization- Expectations-based adjustment Ò Disclosure of information in notes to financial statements - What, and how much, information should an organization report to users in addition to what the financial statements reflect?- Sufficiently material to make a difference in users’ relevance-related judgments- Initial measurement and re-measurement $ use rules in — and Ñ...
View Full Document

This note was uploaded on 02/16/2012 for the course ACCY 510 taught by Professor Staff during the Fall '08 term at University of Illinois, Urbana Champaign.

Page1 / 2

Accy 510 Framework for Financial Reporting - financial...

This preview shows document pages 1 - 2. Sign up to view the full document.

View Full Document Right Arrow Icon
Ask a homework question - tutors are online