Business dictionary defines FASB (Financial Accounting Standards Board) as, “Independent, US body responsible for establishing and interpreting the GAAP mainly for use in the United States. Its accounting standards, generally speaking, result in greater transparency and ease of analysis of a firm's finances than the accounting standards of several other countries. The comparable UK body is Accounting Standards Board (ASB).” Moreover, the major principle of the formation of the FASB is to establish
The true and fair override concept in accounting is used for purpose to override compliance with reporting standards of unexpected circumstances. The act of a true and fair override concept is a significant requirement of financial reporting. In most of these cases, a true and fair override will be achieved by compliance with accounting standards. Nevertheless, where compliance with an accounting standard will result in accounts being misled that they will conflict with the objectives of financial
his professional judgement because he was under pressure from his senior. He continued making false figures in order for a positive reflection of the financials even though he knew what he was doing was wrong and unethical. Having worked for an accounting firm as big as Ernst & Young and for such a long period, Myers should have known and followed his moral
According to IAS 16, the financial statement using their carrying amount for the year, “The objective of IAS 16 is to prescribe the accounting treatment for property, plant, and equipment. The principal issues are the recognition of assets, the determination of their carrying amounts, and the depreciation charges and impairment losses to be recognised in relation to them." The machines
Uniformity of accounting principles had been an issue of debates among Accounting Professionals for a couple of years. This quest gave birth to the modification of existing Accounting Standard and establishment of International Financial Reporting Standards (IFRS). An Accounting Standards is a rule or sets of rules, which prescribes the methods by which accounts should be prepared and presented. This regulatory framework of accounting is issued by the international accounting body of the accounting profession
The Financial Accounting Standards Board (FASB) codification for notes to the financial statements focuses on the details and usefulness of disclosures presented by an organization to investors and the public. Accounting policies should comply with (Governmental Accepted Accounting Principles (GAAP) standards to ensure fair representation of the organizations financial statements. Accounting policies adopted by an organization can significantly affect many areas of the financial statements. FASB
First of all, we have to know what’s the difference between IFRS and GAAP. IFRS: stipulate on the general principles of economic transactions accounting principles. It is simple and clear, and emphasize the content of understanding and application. It emphasis on substance does not stick to the form, which will help to truly reflect the financial status and business performance. It possesses forward-looking, withstand the trial of space-time evolution and transaction innovation. GAAP: specific detailed
interpretation done on the basis of the ratio give a clear idea about the present and the future. It helps the management as well as the stakeholders in decision making. A ratio expresses the relationship between two interconnected accounting figures. Both the accounting figures might be
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financial reporting are found in the financial statements. In recent years, there has been a growing need for calculating performance of banks by using the information from the financial report. Importance of a specific analysis for banks: Financial accounting is providing solid information basis that helps banks to reach important business decisions. The reason for that lies in the fact that complex business activities of banks are presented in financial statements standing for