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Chapter 1 Financial Reporting And Accounting Standards

7652 words - 31 pages

Copyright © 2011 John Wiley & Sons, Inc. Kieso, IFRS, 1/e, Solutions Manual (For Instructor Use Only) 1-1
CHAPTER 1 Financial Reporting and Accounting Standards
Topics Questions Cases
1. Global markets. 1
2. Environment of accounting. 2, 3, 4 4, 5, 7
3. Objective of financial reporting. 5, 6, 7, 8, 9, 10 2 4. Standard-setting organizations. 11, 12, 13, 14,
15, 16, 17, 18 1, 3, 6
5. Financial reporting challenges. 19, 20, 21, 22, 23, 24, 25
8, 9, 10
6. Ethical issues. 26 11, 12, 16
*7. Authoritative U.S. pronouncements and policy-setting bodies.
27, 28, 29, 30, 31, 32, 33, 34, 35, 36, 37, 38
13, 14, 15
*These questions and cases address material in the appendix to the chapter.

1-2 Copyright © 2011 John Wiley & Sons, Inc. Kieso, IFRS, 1/e, Solutions Manual (For Instructor Use Only)
Item Description Level of Difficulty
Time (minutes)
CA1-1 IFRS and standard-setting. Simple 5-10 CA1-2 IFRS and standard-setting. Simple 5-10 CA1-3 Financial reporting and accounting standards. Simple 15-20 CA1-4 Financial accounting. Simple 15-20 CA1-5 Need for IASB. Simple 15-20 CA1-6 IASB role in standard-setting. Simple 15-20 CA1-7 Accounting numbers and the environment. Simple 10-15 CA1-8 Politicalization of IFRS. Complex 15-20 CA1-9 Models for setting IFRS. Simple 10-15 CA1-10 Economic consequences. Moderate 25-35 CA1-11 Rule-making Issues. Complex 20-25 CA1-12 Financial reporting pressures. Moderate 25-35
*CA1-13 GAAP terminology. Moderate 20-30 *CA1-14 Accounting organizations and documents issued. Simple 3-5 *CA1-15 Accounting pronouncements. Simple 5-7 CA1-16 GAAP and economic consequences. Moderate 25-35

Copyright © 2011 John Wiley & Sons, Inc. Kieso, IFRS, 1/e, Solutions Manual (For Instructor Use Only) 1-3
1. World markets are becoming increasingly intertwined. The tremendous variety and volume of both exported and imported goods indicates the extensive involvement in international trade. As a result, the move towards adoption of international financial reporting standards has and will continue in the future.
2. Financial accounting measures, classifies, and summarizes in report form those activities and that information which relate to the enterprise as a whole for use by parties both internal and external to a business enterprise. Managerial accounting also measures, classifies, and summarizes in report form enterprise activities, but the communication is for the use of internal, managerial parties, and relates more to subsystems of the entity. Managerial accounting is management decision oriented and directed more toward product line, division, and profit center reporting.
3. Financial statements generally refer to the four basic financial statements: statement of financial position, income statement, statement of cash flows, and statement of changes in equity. Financial reporting is a broader concept; it includes the basic financial...

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