International Financial Reporting Standards

According to AU-C 200 & AU-C230, GASS requires that the auditor should obtain a reasonable assurance “Not absolute assurance” about whether the financial statements are free from material misstatement. To reach that the auditor needs to collect evidences that have reasonable quantity and quality “sufficient appropriate audit evidence”. In AU-C 230, the objective of the auditor is to plan and perform the audit work in order to obtain sufficient appropriate audit evidence to reduce the audit risk.…

3. Recognize the transaction price. The transaction price mostly refers to the amount of consideration that an entity expects to receive from the customers or contract. It includes the estimate of consideration with the following variables, such as rebates and bonus, that by using a “probability-weighted” measure on the expected transaction price, the amount can be identified. It is affected by the time-value of money and non-cash consideration in order measure the fair amount of the…

I will be looking at the Tesco Plc Annual Report and Financial Statements 2014 in this week’s learning journal since it is the company I chose in my week 1. Before I delve into discussing whether I think they use accrual-based account or cash-based accounting I will like to define the terms. Accrual basis accounting simply means the process of recording revenue and expenses as they take place even though there has not been an exchange of cash, while, cash basis accounting as the name typifies is…

is when there are multiple items included in a contract, some of which are goods, some are services, and others are rights to goods or services. ASC 606 strives to clarify how contracts should be classified in order to improve the accuracy of financial statements. An example given on FASB/IASB Joint Transition Resource Group for Revenue Recognition…

Define financial accounting and managerial accounting. What are the characteristics of financial accounting and managerial accounting? Financial Accounting is define as the art of recording, categorizing, summarizing and reporting a business transaction in a trivial fashion and in regards to money, the summary of this transactions are in the preparation of financial statement, which includes, income statement, balance sheets and cash flow statement, that sum up and interpret the operations…

STATEMENT OF THE PROBLEM After a thorough reading and understanding of the case of Biovail Corporation: Revenue Recognition an FOB Sales Accounting, first issue or problem that arise is regarding the policy of the accounting for revenue recognition. Since the stock of Biovail was listed on the New York Stock Exchange, they are complied with the U.S GAAP which mentioned that revenue must be earned and realized or realizable for it to be recognized. Under SAB 101, there are four criteria which…

interests of the development of standards and managers. Here I will use 3 outside textbook references which relates to due process that help to support my points. Credit Losses Credit-related impairment losses of financial assets. The project involves the preparation of reports. The goal of the project is to significantly improve the financial instrument users of financial…

1- The presentation of financial accounting information is governed by a combination of legal requirements and accounting regulations and conventions. Different types of business entities are governed by different requirements for the preparation of financial statements. Discuss the different elements of financial statement and support with examples from the Annual report of Starbucks. these components are "the building obstructs with which money related articulations are developed—the…

criticism towards Porter’s (1980) Five Forces framework, stating that it was designed too long ago when the business environment was different from the current, fast paced business environment and furthermore that it should include pressure from international markets but more importantly pressure from domestic rivalry and governments (Öz, 2002: 509). In a study by Van Den Bosch and Van Prooijen (1992: 174), they believe that Porter’s framework fails by stating that there are certainly other…

maintaining adherence to the professional principles.” It also lists a number of “professional principles” which are: “(a) that authorised persons should act with independence and integrity, (b) that authorised persons should maintain proper standards of work, (c) that authorised persons should act in the best interests of their…