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
ASSIGNMENT CLASSIFICATION TABLE
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)
ASSIGNMENT CHARACTERISTICS TABLE
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
ANSWERS TO QUESTIONS
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...

Find Another Essay On CHAPTER 1 Financial Reporting and Accounting Standards

CHAPTER 2 Conceptual Framework for Financial Reporting

9427 words - 38 pages as: (1) guiding the IASB in establishing accounting standards on a consistent basis. (2) determining bounds for judgment in preparing financial statements by prescribing the nature, functions and limits of financial accounting and reporting. (3) increasing users' understanding of and confidence in financial reporting. (b) The Framework identifies the most important quality for accounting information as usefulness for decision making. Relevance

uniform accounting standard produce uniform financial reporting

741 words - 3 pages together towards convergence. (1) Why did they take this approach? Why is it important to practise the same standard across firms and countries? It is said that uniform accounting standard produces uniform financial reporting. Hence, all financial information will be treated and presented in the same manner globally. The first advantage from this would be enhancing the comparability of high quality statements. For example, company A wishes to

Financial Reporting in an Accounting Environmnent

927 words - 4 pages Introduction/Overview of the first three weeks of the Module Week 1 provide background for the financial reporting module and refreshes basic accounting concept in Finance and accounting for manager module. It provides detailed differences between cash flow and accrual accounting and a critical analysis of preferred methods as well as examines the standard setting processes and challenges. Week 2 is a follow up to week1 as it dwells extensively

The Conceptual Framework for Financial Reporting: Bega´s Current Accounting Practice of Property, Plant and Equipment

2182 words - 9 pages Overview of the report This report analyses the disclosures of objective of general purpose financial reporting and the qualitative characteristics of useful financial information according to The Conceptual Framework for Financial Reporting. It investigates Bega’s current accounting practice of Property, Plant and Equipment in accordance with AASB 116 Property, Plant and Equipment, and how it satisfies the objective of general purpose financial

A Report on The International Financial Accounting Standards

1112 words - 5 pages highlight the current developments in the relationship between these major players in International Financial Reporting Standards. Many other major capital market standard settlers have since co-existed and cooperated with the stated goal of issuing converged standards. In conclusion this report will outline possible implications that may be taken into account when improving developments for the future of International Financial Accounting Standards

FRS 1(Cash Flow Statements) & FRS 3 (Reporting Financial Performance)

2098 words - 8 pages values, although both 'historical', are not comparable.REFERENCESBUSINESS SOURCE PREMIER (1996) ASB Proposes Improvements To Cash Flow Standards FRS 1 [Online] available at http://www.epnet.comCHOPPING, D. & STEPHENS, M. (2003) Applying GAAP 2003/2004 Surrey: CCH Group Ltd.BLACK, G. (2003) Students' Guide to Accounting and Financial Reporting Standards (9th ed.) London: FT Prentice HallDAVIES, M., PATTERSON, R., & WILSON, A. (1999) UK GAAP

Managerial accounting and financial accounting

742 words - 3 pages management accounting and finance professionals to drive business performance." (Institute of Management Accountants, 1997, Para 1). Management accountants have an obligation towards their company, the general public as well as towards themselves to serve in the best interest [Best interest of whom?] with the highest standards of ethical conduct. The four main categories are Confidentiality, Competence, Integrity and Objectivity.Management accountants

Accounting Reporting Criteria: Boeing and Airbus

1231 words - 5 pages Every business conforms to accounting reporting criteria. In the U.S., companies follow the Financial Accounting Standards Board. Elsewhere, companies follow the International Accounting Standards Board. While both of these boards use many of the same principles, they have many differences as well. With many companies now going global, the difficulty translating these criteria is growing. Boeing and Airbus are two such companies facing these

Managerial and Financial Accounting

1117 words - 4 pages Managerial and Financial Accounting PAGE \* Arabic 1 Running Head: Managerial and Financial AccountingManagerial and Financial AccountingACC 300Managerial and Financial AccountingAccounting is a large field of study which can be broken down into many different categories. Managerial and financial accounting is two main areas of the cost accounting system. Many similarities and differences lie between managerial and financial accounting, not

Ethical And Legal Obligations of Financial Reporting

1214 words - 5 pages decisions being made. Companies have an ethical and legal obligation to financial reporting. To ensure correct reporting is followed, several agencies are employed to regulate business. The Financial Accounting Standards Board, FASB, Securities and Exchange Commission, SEC and Public Company Accounting Oversight Board, PCAOB, are all agencies involved in promoting fair accounting principles for United States businesses. The most commonly known

Managerial and Financial Accounting

902 words - 4 pages merger/consolidation reports. On the other hand, financial accounting focuses on the production of financial reports, including basic reporting on profitability (this is of specific interest to potential investors). The last key difference between managerial and financial accounting is the regulation and standardization of the two. Financial accountants follow GAAP (generally accepted accounting principles). These principles are set by a

Similar Essays

International Financial Reporting Standards

1653 words - 7 pages The globalization of the world’s capital markets has created an increasing need for comparable, detailed and transparent system of financial reporting making it imperative to establish one set of high quality global accounting standards (Gornick-Tomaszewski, S., & Showerman, S.2010). Currently, there are two sets of accounting standards that are generally accepted for international financial reporting- The U.S. GAAP ( Generally Accepted

How International Financial Reporting Standards Affect The Quality Of Canadian Accounting Information

1846 words - 7 pages How would International Financial Reporting Standards affect the quality of Canadian accounting information? INTRODUCTION Globalization has a great impact on today’s economy. The differences of accounting regulations and practices in various countries have become a noteworthy obstacle to globalization and economic development. International Financial Reporting Standards (IFRS) mitigates global business barriers. In order to adapt to the

Fasb Financial Accounting Standards Board Essay

646 words - 3 pages 2009 The Financial Accounting Standards Board initiated the Codification System. The Codification Project was a result of a 5-year process that involved hundreds of professionals and several accounting boards (Financial Accounting Standards Board, p 4, 2009). The Codification System restructured the many topics of US GAAP pronouncements into a consistent structure that accounting professionals use in their daily decisions of a firms financial

Government Accounting Standards Board Versus Financial Accounting Standards Board

1295 words - 6 pages In accounting, private companies are treated differently than governmental and non-profit companies. However governmental and non-profit companies use different reporting requirements from the private sector. The requirements for governmental companies use the Government Accounting Standards Board (GASB), whereas profit and non-profit companies use the Financial Accounting Standards Board. This paper will explain the purpose, discus the