Typical coverage of US GAAP
Definition and scope
Perpetual vs. periodic systems
Physical goods and costs included in inventory
Effects of inventory errors
Cost flow assumptions
Average cost methods
First-in, first-out met
US GAAP versus IFRS
Table of contents
Financial statement presentation.4
Interim financial reporting .6
Consolidation, joint venture accounting and equity
method investees .7
Business combinations .11
Chapter 3 Class Problems
a. Games Revenue
b. Sales Revenue
Amount of Revenue Earned in July
No revenue earned in July; cash
collections in July related to earnings in
No revenue earned in
Chapter 4 Class Problems
(a) 1. Rent revenue is now earned.
2. Cash was received in the past a deferred revenue was
3. Amount: $1,000 4 months = $250 earned
Unearned rent revenue (L) . 250
Rent revenue (+R, +SE) .
What is it?
Does it matter?
The Big Picture
Managerial vs. Financial Accounting
Accounting is about INFORMATION
Pricing the firm
Running the firm
Accounting for Investors
Chapter 1 Class Problems
Honda Motor Corporation
as of March 31, 2009
(in billions of Yen)
Cash and cash equivalents
Trade accounts, notes, and other receivables
Net property, plant and equipment
Chapter 2 Class Problems
+ Stockholders Equity
Notes Payable (+L)
Chapter 11 Class Problems
200,000 shares = $400,000
Total to Preferred
No change in assets
No change in assets
No change in liabilities
Chapter 7 Class Problems
To record the purchase of 90 new shirts in accordance with the cost principle
(perpetual inventory system):
Inventory (+A) .
Cash (A) .
Cost: $2,250 + $185 + $165 = $2,600.
The $135 interest expense is not a prope
Chapter 10 Class Problems
$ 24,000 13.5903
*Issue price should be exactly $600,000. The $7 difference is the result of
rounding the present value factors at four digits.
Chapter 9 Supplement
Test Bank 9-104
Wolf Company borrowed $5,000 on an 8% note payable on March 1, 2010. The maturity date of
the note (and payment of all interest) is September 1, 2011. The accounting period ends
December 31. Assuming no adjusting entri
Chapter 9 Class Problems
+ $129,000 0.9524
+ $ 27,500 5.0757
It is much better to save $16,250 for 10 years.
Present value of an
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Introduction to IFRS
Accounting in the international spotlight
The movement toward International Financial Reporting Standards (IFRS) represents
an exciting development unprecedented in the world of financial accounting.
Its time to see what is going on i