Public Company Accounting Oversight Board

2015 Intermediate Accounting- Case #1 Chico’s FAS, Inc. is a retail company that encompasses four brands: Chico’s, White House Black Market, Boston Proper, and Soma Intimates. The company earns revenue through the sale of women’s clothing and accessories in stores and online. Chico’s defines the critical accounting policies that they use to explain any discrepancies between the dollar amounts on the financial statements and the actual cash amount to its Audit Committee and Board of Directors…

Under FASB accounting framework, private organizations are allowed to amortize goodwill only for book purpose. Previously, FASB enacted the policy to amortize goodwill over 40 years, then it was changed and goodwill cannot be amortized at all by companies. However, under this no-amortizing policy, it was specified that the goodwill has to be examined annually for impairment by companies. Under GAAP, private companies can report goodwill in their financial statement till the time they are not…

trillion. To record these transactions, these firms manage a large amount of data. Accountancy boards standardize the methods these companies use to record financial information. To facilitate the business flow, the boards have cooperatively created a new revenue reporting standard. The boards have also outlined the basic steps all firms should take when making the transition. Depending on the entity, the boards expect firm’s to adopt these new practice by a given date. Managing Financial Data …

the international accounting standard is restricted by the environment, regulation and culture of the country. Depending on its region, every country practices its own culture which eventually build the society’s behaviour. Nobes and Parker (2012, page 29) note that: “Culture in any country contains the most basic values that an individual may hold. It affects the way that individuals would like their society to be structured and how they interact with its substructure. Accounting may be seen as…

Generally Accepted Accounting Principles (GAAP) are rules and guidelines established to attempt to standardize accounting and recording practices across the United States and Internationally. While United States has traditionally used GAAP, the ever changing world market makes it necessary for the US to begin to use IFRS in conjunction with or sometimes in place of GAAP. In an effort to standardize fair value measurements for financial instruments, the Financial Accounting Standards Board…

concise, the Financial Accounting Standards Board (FASB) created the Generally Accepted Accounting Principles (GAAP) which is a set of standards that includes a set of codes that provide structure and organization. (Spiceland, Sepe, & Nelson, 2013, pg. 10) Similarly, international countries have created their own set of accounting standards. However, in the past few decades, the United States and other countries have been getting into business with each other. The accounting standards between…

The accounting standards guide the accounting and reporting of a company’s revenues, expenses, assets, and liabilities. In the accounting of non-financial assets under the Generally Accepted Accounting Principles (GAAP) and International Reporting Financial Standards (IFRS), there are perceived similarities and significant differences with far reaching implications in the accounting practice. Consequently, the Financial Accounting Standards Board (FASB) and the International Accounting Standards…

Accrual Accounting Guide This is a comprehensive guide to accrual accounting. Let’s start with understanding what accrual accounting is. What is Accrual Accounting? Accrual accounting is the art and science of recording, summarizing, classifying the revenues and expenses of the company whenever they happen even if the cash in yet to be received or yet to be paid. Most of the companies follow accrual accounting because it takes care of the complexities of the accounting system. For sole…

There are different accounting standards that have been introduced by the respectable bodies in order to make the accounting process of the assets convenient. In this paper, a company name, Empire Real Estate Investment Trust needs financial advice regarding its matter of office building in Central London. The paper is divided into four different parts in which four different situations are provided and the treatment of which is elaborated under two accounting standards that is IAS 40 and IAS 16…

or Sarbox is a law that aims to deter and prevent future accounting fraud, increase confidence in public company financial reporting and to protect stockholders. Although the regulations of this Act are not perfect and are the cause of many controversies whether this Act had a positive impact in American business or not, it led to changes in the corporate culture in the United States and abroad. Also known as the 'Public Company Accounting Reform and Investor Protection Act' (in the Senate) and…