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    Basic Generally Accepted Accounting Principles (GAAP)

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    Convergence of IFRS and U.S. GAAP on Financial Performance

    The Financial Accounting Standards Board has undertaken several key initiatives to pursue the goal of convergence of International Financial Reporting Standards (IFRS) and U.S. Generally Accepted Accounting Principles (GAAP). Furthermore, the Board conducts several joint projects with the IASB, and it works with the IASB on the

    Financial Accounting Standards Board: Convergence of IFRS and GAAP

    The Financial Accounting Standards Board (FASB) has undertaken several key initiatives to pursue the goal of convergence of the International Financial Reporting Standards (IFRS) and the U.S. Generally Accepted Accounting Principles (GAAP). Furthermore, FASB conducts several joint projects with the International Accounting Stand

    GAAP Questions: Purpose, Application and Consequences

    What is the purpose of GAAP and the accounting cycle? Is it possible to deviate from GAAP and the accounting cycle and still prepare financial statements? Why or why not? What are some possible consequences of this course of action? Provide an example.

    Departures from GAAP: audit opinions are presented in good form for a qualified opinion and then an adverse opinion. Rule 203 is discussed including the application to Graham Company.

    On January 1, Graham Company purchased land (the site of a new building) for $100,000. Soon thereafter, the Highway Department announced a new feeder roadway route that would run alongside the site. The effect was a dramatic increase in local property values. Nearby comparable land sold for $700,000 in December of the current ye

    Departures from GAAP - Auditing Reports

    On January 1, Graham Company purchased land (the site of a new building) for $100,000. Soon thereafter, the Highway Department announced a new feeder roadway route that would run alongside the site. The effect was a dramatic increase in local property values. Nearby comparable land sold for $700,000 in December of the current ye

    GAAP Related Practice Question's

    Three independent unrelated paragraphs follow. Each one contains some unsound reasoning. For this practice, identify the areas that are not in accordance with US GAAP or are not true and explain why the reasoning is incorrect. Complete the identification and explanation of each paragraph before proceeding to the next paragra

    Report Situations & Departures From GAAP

    Chapter 12, Problem 12.37 Various Report Situations. Assume the auditors encountered the following separate situations when deciding upon the report to issue for the current-year financial statements. 1. The auditor decided that sufficient competent evidence could not be obtained to complete the audit of significant inve

    SEC and European equivalent views of GAAP

    The SEC and its European equivalent are trying to merge their respective views of GAAP (Generally Accepted Accounting Principles). What are the easy points and what are the stumbling blocks?

    Difference between GAAP and tax accounting

    Gambali, a calendar-year, accrual basis S corporation, makes regular and substantial contributions to local tax-exempt charitable organizations. On December 20, its board of directors authorized a $175,000 contribution to the Calvin Home for Abused Children. The corporation paid the contribution on January 25. Gambali's ordin

    Accounting Principles: Corrections using GAAP

    Presented below are a number of business transactions that occurred during the current year for Fresh Horses, Inc. Instructions In each of the situations, discuss the appropriateness of the journal entries in terms of generally accepted accounting principles. (a) The president of Fresh Horses, Inc. used his expense accoun

    Do Political Decisions Influence GAAP?

    Research and Development and Start Up costs associated with development are expensed as incurred. Explain the rationale? Do you feel that this treatment is consistent with accounting principles? Why or why not?

    Balance sheet for R&R Company

    R&R Equipment Company is preparing its annual financial statements in anticipation of applying for a loan. During the last week of the year, R&R received a shipment of inventory but has not paid for it. The invoice indicates that R&R owes $5,000 for the purchase. The owner of R&R, Randy Ray, has decided to omit this asset and th

    Deviation from GAAP

    Is it possible to deviate from Generally Accepted Accounting Principles (GAAP) and the accounting cycle and still prepare financial statements? What are some possible consequences of this course of action?

    Basic accounting

    A. The framework used to record and summarize the economic activities of a business enterprise is referred to as the accounting equation. State the basic accounting equation and define each of its major components. How are business transactions and financial statements related to the accounting equation? B. Explain t

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