Homework Answers
1) Cautious prudence as defined by IASB is the exercise of caution when making judgements under conditions of uncertainty”. The conservative prudence concept states do not overestimate the amount of revenues recognized or underestimate the amount of expenditure.
2) The International Accounting Standards Board’s (IASB) conceptual framework rejects the conservative prudence because it is not consistent with neutrality, which encompasses freedom from bias. Under International Financial Reporting Standards (IFRS) companies are required to consider both quantitative and qualitative factors while determining whether an item is material
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The IASB has decided to reinstate "prudence" into the Conceptual Framework. In deciding this, the IASB...
Refer to the following issues regarding the conceptual framework and answer the questions below. The conceptual...
Refer to the following issues regarding the conceptual framework and answer the questions below. The conceptual framework includes a discussion of the constraints of cost effectiveness. Assume that the International Accounting Standards Board (IASB) is considering revising an important accounting standard. Discuss and explain the desired benefit from revising an accounting standard, and some of the possible costs that could result from such a revision. Discuss what the IASB will do to assess the possible benefits and costs of a...
The Case The FASB has been working on a conceptual framework for financial accounting and reporting...
The Case The FASB has been working on a conceptual framework for financial accounting and reporting and has issued several statements of financial accounting concepts. These SFACs are intended to set forth objectives and fundamentals that will be the basis for developing financial accounting and reporting standards. The objectives identify the goals and purpose of financial reporting. The fundamentals are the underlying concepts of financial accounting – concepts guide the selection of transactions, events, and circumstances to be accounted for;...
I want to discuss the FASB's conceptual framework. Let's start with this: what is the FASB's...
I want to discuss the FASB's conceptual framework. Let's start with this: what is the FASB's conceptual framework? Why should we care? What specific items are in this framework that might be of use to us as practitioners? what specifically within the framework might be of use to us as practitioners? Pei mentioned SFAC 8 -- anything else as we let our eyes run through the various sections of the framework? I would like for us to look at Concept...
Based on: 1. IFRS 13, Fair Value Measurement REQUIRED 1. Explain the main reasons why IASB...
Based on:
1. IFRS 13, Fair Value Measurement REQUIRED 1. Explain the main reasons why IASB issued the new or revised Standard (Hint: You could look for journal articles on this subject). 2. Compare the standard with the conceptual framework and evaluate whether the changes have led to greater or less consistency with the framework (Hint: You could consider issues like definitions] Discuss some of the challenges and implications of adopting the new standard. Consider this from a global perspective...
Questions 1. How do conceptual frameworks of accounting attempt to create a theory of accounting? Describe...
Questions 1. How do conceptual frameworks of accounting attempt to create a theory of accounting? Describe the components of the IASB Framework and how it contributes to a theory of accounting. 2. Some people argue that there is no need for a general theory of accounting as established in a conceptual framework. They say there is no overall theory of physics. biology, botany or psychology, so there is no need for an overall theory of accounting. Furthermore, attempts to develop...
QUESTIONS 1. What is a conceptual framework? Why is a conceptual frameworke ry in financial accounting?...
QUESTIONS 1. What is a conceptual framework? Why is a conceptual frameworke ry in financial accounting? 2. What is the primary objective of financial reporting? 3. What is meant by the term qualitative characteristics of accounting informat "? 4. Briefly describe the two fundamental qualities of useful accounting information 62 Chapter 2 Conceptual Framework for Financial Reporting 5. How is materiality for immateriality) related to the proper presentation of financial statements? What factors and mesures should be considered in essing...
In February 2012, the Australian Accounting Standards Boards decided at its meeting to propose the withdrawal...
In February 2012, the Australian Accounting Standards Boards decided at its meeting to propose the withdrawal of AASB 1031 Materiality. There were several reasons for this proposal which includes: there is no International Reporting Standard equivalent and it does not look like there will be, since 2005 there has been the gradual withdrawal of additional Australian guidance from a number of Australian Accounting Standards, and there is now an updated guidance on materiality in the IASB Conceptual Framework. The major...
Financial statements of Target are available at: http://www.annualreports.com/Company/target-corp I. Conceptual Framework: For this part of the...
Financial statements of Target are available at: http://www.annualreports.com/Company/target-corp I. Conceptual Framework: For this part of the assessment, you will prepare a financial analysis paper addressing various topics about Target Corporation, supporting your answers and claims with quantitative data where applicable. You will need to research Target Corporation and obtain its latest audited financial statements (information that is available to the public online) in order to answer the following: A. Explain how the conceptual framework and accounting standards apply to Target...
I am having trouble understanding the questions blank. 1. Conceptual Framework Matching: Full-Disclosure A. The long...
I am having trouble understanding the questions blank.
1. Conceptual Framework Matching: Full-Disclosure A. The long life of a company can be broken into a series of shorter time periods H Revenue B. The assumption that a company will continue to operate indefinitely. Periodicity Transactions of the business are separate from transactions of the owners. B Going Concern D. All relevant information should be provided to users. 6 E. Consensus among different measurers. Historical Cost Verifiability Small amounts unlikely to...
Supppose a firm has decided to invest in a project which has the following cash flow...
Supppose a firm has decided to invest in a project which has the following cash flow structure. The project has annual costs of $10 starting today and growing by 3% each subsequent year. The project also generates revenues of X starting 10 years from today, and these cash flows grow by 2% each year after that. Both revenue and costs are perpetuities. a. Suppose X=$30 and the discount rate is 6%. i. What is the NPV of the project? (Note...
Based on:
1. IFRS 13, Fair Value Measurement REQUIRED 1. Explain the main reasons why IASB issued the new or revised Standard (Hint: You could look for journal articles on this subject). 2. Compare the standard with the conceptual framework and evaluate whether the changes have led to greater or less consistency with the framework (Hint: You could consider issues like definitions] Discuss some of the challenges and implications of adopting the new standard. Consider this from a global perspective...
Questions 1. How do conceptual frameworks of accounting attempt to create a theory of accounting? Describe the components of the IASB Framework and how it contributes to a theory of accounting. 2. Some people argue that there is no need for a general theory of accounting as established in a conceptual framework. They say there is no overall theory of physics. biology, botany or psychology, so there is no need for an overall theory of accounting. Furthermore, attempts to develop...
QUESTIONS 1. What is a conceptual framework? Why is a conceptual frameworke ry in financial accounting? 2. What is the primary objective of financial reporting? 3. What is meant by the term qualitative characteristics of accounting informat "? 4. Briefly describe the two fundamental qualities of useful accounting information 62 Chapter 2 Conceptual Framework for Financial Reporting 5. How is materiality for immateriality) related to the proper presentation of financial statements? What factors and mesures should be considered in essing...
I am having trouble understanding the questions blank.
1. Conceptual Framework Matching: Full-Disclosure A. The long life of a company can be broken into a series of shorter time periods H Revenue B. The assumption that a company will continue to operate indefinitely. Periodicity Transactions of the business are separate from transactions of the owners. B Going Concern D. All relevant information should be provided to users. 6 E. Consensus among different measurers. Historical Cost Verifiability Small amounts unlikely to...
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