Intermediate Accounting I Week 1

According to the Notice to Constituents (v4.7), the FASC superseded all previous level (a)-(d) US GAAP (refers to the previous accounting hierarchy) standards by a standard setter. This means that all other accounting literature not included in the Codification is non-authoritative.

The Financial Accounting Standards Board (FASB) sets the Generally Accepted Accounting Principles in the United States. The FASB Accounting Standards codification implements a system for organizing non-governmental generally accepted

1.4 Do the financial statements include: a. b. c. balance sheet; an income statement; a statement showing either: i) ii) all changes in equity; or changes in equity other than those arising from capital transactions with equity holders acting in their capacity as equity holders

Generally accepted accounting principles ("GAAP") of the People’s Republic of China ("PRC") come from a number of sources, majority of which represent the laws and regulations issued by the Ministry of Finance ("MOF"), and, listed company disclosures issued by the China Securities Regulatory Commission ("CSRC").

2 Consolidated interim statement of changes in equity ............................................................................................................................. 3 Consolidated interim cash flow statement

In this week we are turning our attention towards the remaining major component of the balance sheet – owners’ equity. Like liabilities, owners’ equity represents another form of financing for a business. At first glance, liabilities (capital provided by creditors) and owners’ equity (capital provided by owners or shareholders) may look very different. As we delve deeper into the topic, however, you will

An enterprise shall establish a policy concerning which short-term, highly liquid investments that satisfy the said definition of cash equivalents. For example, an enterprise having banking operations might decide that all investments that qualify except for those purchased for its trading account will be treated as cash equivalents, while an enterprise whose operations consist largely of investing in short-term, highly liquid investments might decide that all those items will be treated as investments rather than cash equivalents. An enterprise shall disclose its policy for determining which items are treated as cash equivalents. Any change to that policy is a change in accounting principle that shall be affected by restating financial statements for earlier years presented for comparative purposes.

|27, but in revising IAS 27 in December 2003 the IASB concluded that these restrictions, in themselves, do not | |

The mutual set of accounting criteria used to develop medical centers financial statements are known as generally accepted accounting principles (GAAP). GAAP are a mixture of respected criteria created by Securities and Exchange Commission (SEC) and accountants. The SEC has authority granted by The Securities Act of 1933 and the Securities Exchange Act of 1934, to determine reporting and disclosure requirements. Oversight is the general functions of the SEC, granting the Governmental Accounting Standards Board (GASB) to determine the standards. Generally accepted accounting practices are required for accountant to follow and medical centers to use so medical centers and provide investors with a minimal

* May refer to Balance Sheet on company position and Income Statement on company performance.

• Going Concern. The financial statements presume that an enterprise will continue in operation indefinitely or, if that presumption is not valid, disclosure and a different basis of reporting are required.

Adoption by the Board gave the SSAPs the status of "accounting standards" within the terms of Part VII of the Companies Act 1985. The Board reviews these SSAPs individually as appropriate opportunities arise during the course of its work: so far, of the 22 SSAPs adopted in 1990, four have been withdrawn and superseded by FRSs. For example the statement that talk about the disclosure of accounting policies is now called FRS 18. Five more are in the process of withdrawal. Are accounting standards mandatory?

Basically, these include all those procedures as well as standards recommended by the Financial Accounting Standards Board (FASB) and utilized by entities as they seek to draft their financial statements. These standards can hence be seen as a compilation of agreed upon procedures that govern not only the reporting but also the recording of information contained in financial statements. According to Edwards and Hermanson (2007), "Generally Accepted Accounting Principles (GAAP) set forth standards or methods for presenting financial accounting information." Adherence to these standards enhances the standardization of financial accounting information. This standardization in one way or the other enables those interested in the information contained in financial statements to compare financial statements from different entities in a more straightforward way. Further, by ensuring that firms embrace consistency in the preparation of financial statements, GAAPs ease the work of investors as the performance of a company over the years can be

Part I. The system by which American companies compiled and present their financial accounting standards is the generally accepted accounting principles (GAAP). This system is "a common set of principles, procedures and standards" to ensure that there is a high level of consistency in accounting statements in the country (Investopedia, 2013). The IFRS (international financial reporting standards) is a similar set of standards that is widely used internationally, in over 100 countries including most of continental Europe.

In contrast GAAP financial statements are usually prepared on a going concern basis unless immediate liquidation is required. If immediate liquidation is required then there are specific requirements and guidelines that must be followed for disclosers and recognitions. Assessment periods are prohibited from exceeding past 1 year past the financial statement that are being audited. Also