Presented below are three models for setting GAAP.
1. The purely political approach, where national legislative action decrees GAAP.
2. The private, professional approach, where GAAP is set and enforced by private professional
The following comments were made at an Annual Conference of the Financial Executives
There is an irreversible movement toward the harmonization of financial reporting throughout
the world. The international capital markets requi
What is the benefit of a single set of high-quality accounting standards?
Operating retail stores (clothing, home, and food).
Operations are primarily in the UK, China, Czech Republic, Greece, Hungary, India,
Indonesia, Jersey, K
The following letter was sent to the SEC and the FASB by leaders of the business community.
Dear Sirs: The FASB has been struggling with accounting for derivatives and hedging for many
years. The FASB has now developed, over the last few weeks,
The financial statements of Marks and Spencer plc (M&S) are available at the books companion
website or can be accessed at
Presented below are comments made in the financial press.
Prepare responses to the requirements in each item.
(a) Rep. John Dingell, at one time the ranking Democrat on the House Commerce Committee,
threw his support behind the FASB
As a newly enrolled accounting major, you are anxious to better understand accounting
institutions and sources of accounting literature. As a first step, you decide to explore the IASBs
Framework for the Preparation and Presentation of Financial
What might explain the fact that different accounting standard-setters have developed accounting
standards that are sometimes quite different in nature?
The standards issued by these organizations are sometimes principles-based, rules-ba
Who are the two key international players in the development of international accounting
standards? Explain their role.
The two organizations involved in international standard-setting are IOSCO (International
Organization of Securities
Wayne Rogers, an administrator at a major university, recently said, Ive got some CDs in my
IRA, which I set up to beat the IRS. As elsewhere, in the world of accounting and finance, it
often helps to be fluent in abbreviations and acronyms.
When the FASB issues new pronouncements, the implementation date is usually 12 months from
date of issuance, with early implementation encouraged. Karen Weller, controller, discusses with
her financial vice president the need for early implement
Presented below is abbreviated testimony from Troy Normand in the WorldCom case. He was a
manager in the corporate reporting department and is one of five individuals who pleaded guilty.
He is testifying in hopes of receiving no prison time when
The U.S. Securities and Exchange Commission (SEC) were created in 1934 and consist of five
commissioners and a large professional staff. The SEC professional staff is organized into five
divisions and several principal offices. The primary objec
A press release announcing the appointment of the trustees of the new Financial Accounting
Foundation stated that the Financial Accounting Standards Board (to be appointed by the
trustees) . . . will become the established authority for setting
One of the major groups that has been involved in the standard setting process is the American
Institute of Certified Public Accountants. Initially, it was the primary organization that
established accounting principles in the United States. Sub
Omar Morena has recently completed his first year of studying accounting. His instructor for
next semester has indicated that the primary focus will be the area of financial accounting.
(a) Differentiate between financial accounting
Briefly describe FASB/IASB convergence process and the principles that guide their
A single set of high quality accounting standards ensures adequate comparability. Investors are
able to make better investment decisi
Describe the main elements of the link labeled Help, FAQ, Learning Guide, and About the
The information at this link describes the elements offered in The FASB Accounting Standards
Codification. As indicated, the website of
Briefly describe the purpose and content of the Whats New link.
The Whats New page provides links to Codification content that has been recently issued.
During the verification phase, updates may result from either the issuance of Codifi
Principles of Good Writing
Have a Clear Purpose
Literary writing expresses the writers feelings. Business writing, on
the other hand, is utilitarian, aiming to serve any one of many purposes
To explain or justify actions already taken
To convey informatio
Never ever ask questions that lead to Attack & Defend
Its the worst thing you can do sitting at a negotiation table.
For e.g. if two partners are negotiating on who takes how much profit ? and
Dont you agree my strategy yielded profits for both u
What factors affect the demand of the product positively or negatively?
There are many direct and indirect key competitors of Daewoo in the public transport sector of
Pakistan which affect the demand of Daewoo Bus Service.
Direct Competitors Affecting Dem
Q1 FREE CASH FLOW: Southwest Airlines would have been able to take advantage of a $1 billion
opportunity during (2011 / 2010 / 2009 / 2008).
Q2 CASH FLOW ADEQUACY: Southwest Airlines had adequate cash for capital expenditures and