Accounting
Several terms and definitions are valuable to understand financial statements. In the United States, financial statements of public corporations are produced in accordance with the U.S. Generally Accepted Accounting Principles. These principles govern how the information for financial statements is compiled and presented. The purpose of these principles is so that all stakeholders can easily understand the statements and make comparisons across both time and across different companies, because the statements are produced and presented in a consistent manner. The International Financial Reporting Standards (IFRS) are the international equivalent of GAAP. While several countries utilize a national version of GAAP (U.S., Canada, UK, etc.), more than 100 countries use IFRS, making this set of standards the most widely-adopted in the world. There is a move to converge national GAAP standards with IFRS, including a multi-year project to converge U.S. GAAP with IFRS. For now, however, IFRS represents a different set of standards. The public statements of most European countries are produced according to IFRS, so it is important to understand the differences between IFRS and U.S. GAAP when analyzing those statements.
The Securities and Exchange Commission (SEC) is the body in the United States that governs the securities that trade publicly in the U.S., including those of foreign firms traded on U.S. exchanges. With specific regard to financial statements,...
Accounting Qualitative Characteristics of Financial Statements There are four principal qualitative characteristics that make the information provided in financial statements useful to users. These are understandability, relevance, reliability and comparability. The first section of this paper will be dedicated to explaining each of these concepts and how they relate to making financial statements more valuable for the audience. The first principal qualitative characteristic is understandability. This relates not only to the information but
The above extension or explanation of the responsibility of a managerial accounatant mainly highlights the fact that a managerial accountant has responsibilities not only to the finance department of an organization but also the entire team that is working within the organization. Hence, along with the classification, calculation, assessment, understanding, and transferring all the relevant financial data, the managerial accountant is also responsible for helping the business team: Customer satisfaction reports
Systems of income and financial position would superimpose standards of normalization upon everyone within the firm. Accounting, thereby, had achieved Foucault's definition of knowledge as power over people per excellence. By the 1950s, however, person as decision-maker replaced this vision of person as machine, and accounting still has power in our society, but a different sort of power. Likewise, accounting still possesses its constructivism (i.e. manner of perceiving a
However, net income has more extraordinary items included, which means that for Kraft cash flow from operations is the more accurate of the two. I predict that Unilever will continue along its steady growth path. The company has grown slowly but steadily in revenues in the past five years, averaging 2.2% growth in that span. Given the challenges in the economy, I also predict that Unilever will increase its debt
Therefore an indigenous accounting profession did not evolve in this period either and no accounting or audit rules were established" (2000, p. 16). In this free-for-all environment, it is difficult to discern any influence from the French accounting profession, except to the extent that its transactions involved the international community where certain documentary practices must be followed in order to conduct international commerce. For example, according to a contemporaneous
This is why those service providers to other businesses often stress customer results in the core industries they compete in. These customer successes show the depth of expertise in a given area. These success stories make services tangible to customers. Marketing strategies used to support this approach include the widespread use of video and interactive online materials to show the problems solved and results delivered with a service. The
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