Many corporations struggles, to align the financial statements prepared by foreign branches with that of the parent company’s statement’s due to differences in rules followed by accounting standards such as IFRS and gaap.Explain few comparison examples on companies which adhere to those standards

Many corporations struggles, to align the financial statements prepared by foreign branches with that of the parent company’s statement’s due to differences in rules followed by accounting standards such as IFRS and gaap.Explain few comparison examples on companies which adhere to those standards

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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nots : (with resources please) Describe the accounting concepts and principals and explain what are the two most important concepts without which financial statements can never present true and fair view of the Company’s financial position?
2.Explain the environmental factors that lead to national differences in accounting. 3.What are the two main legal systems operating worldwide? How might these affect accounting? Countries that rely on capital markets for finance, as opposed to banks and governments, are likely to expect greater levels of public disclosure in their accounting systems. Evaluate this argument and provide examples. 5.Outline and discuss three cultural aspects that can differ across countries. How do these cultural differences relate to differences in accounting systems? 6.What does accounting harmonisation mean? Differentiate harmonisation from convergence or adoption. 7.Explain the benefits of global adoption of IFRSs. 8. Outline the key challenges of US GAAP and IFRS convergence.
State the accounting principle or assumption that is most applicable in the following situations: 1. A company prepares consolidated financial statements for a subsidiary that it owns. 2. The decision to remove an asset from the balance sheet 3. A large sale on account is not recognized as revenue because collectability is an issue. 4. Disclosure of the liability from a lawsuit in the financial statements 5. Preparation of monthly financial statements 6. Using the Canadian dollar in financial statements 7. An energy company includes detailed information about its reserves in its notes to the financial statements.
What are the basic code of ethics for an Accountant working in a Multinational Company? Whatcould be possible non- compliance factors for the Accountant, compromising on code of ethics.
Which of the following is correct criticism on the positive accounting theory? O a. It gives prescriptions for accounting practice of the company. O b. It misleads the stock market by manipulating the earnings. O c Its earnings numbers prepared according to a single basis. O d. It says something about good or bad accounting policy of the company.
The Sarbanes–Oxley Acta. requires the SEC to establish a federaloversight board for the accounting industry.b. requires CEOs to certify periodic financialstatements.c. subjects auditors, accountants, andemployees to imprisonment for destroyingfinancial documents.d. prohibits many types of consulting servicesby accounting firms.e. All of the above are true.
At its recent general meeting, a shareholder asked the board to explain how it decides whether certain financial instruments are classified as equity whereas other seemingly similar financial instruments are classified as debt. The shareholder suggested that the directors do not understand the impact of the classification on investors and their analysis of the financial statements. Required(i) Explain the key classification differences between debt and equity under International Financial Reporting Standards (IFRSs).(ii) Explain why it is important for entities to understand the impact of the classification of a financial instrument as debt or equity in the financial statements.
Please answer the following question(s): Sometimes a business entity will change its method of accounting for certain items. The change may be classified as a change in accounting principle, a change in accounting estimate, or a change in reporting entity. Listed below are three independent, unrelated sets of facts relating to accounting changes. Situation I: A company determined that the depreciable lives of its fixed assets are presently too long to fairly match the cost of the fixed assets with the revenue produced. The company decided at the beginning of the current year to reduce the depreciable lives of all of its existing fixed assets by five years. Situation II: On December 31, 2020, Gary Company owned 51% of Allen Company, at which time Gary reported its investment on a nonconsolidated basis due to political uncertainties in the country in which Allen was located. On January 2, 2021, the management of Gary Company was satisfied that the political uncertainties were resolved…
While comparing the performance of all the affiliates of an American Multinational company, the CEO of the parent company producing electronic products, notices a translation loss in the Omani affiliate. Which among the below scenarios do you think is the most probable reason for that loss? O a. Exposed assets exceed exposed liabilities and USD depreciates. O b. The OMR depreciates. OC. The subsidiary's balance sheet shows a loss. d. Exposed liabilities exceed exposed assets and USD appreciates.
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