The Eleventh Edition maintains the qualities for which the text is. Through thirty years and ten best-selling editions, the text has built a reputation for accuracy, comprehensiveness, and student success. Chapter 7 Cash: What is it Coins, currency, funds on deposit (checking and savings), money orders, cashiers’ checks, personal checks, bank drafts, petty cash Cash Equivalents:CHAPTER 2 Conceptual Framework for Financial Reporting ASSIGNMENT CLASSIFICATION TABLE (BY TOPIC) TopicsIntermediate Accounting by Kieso, Weygandt and Warfield is, quite simply, the standard by which all other intermediate texts are measured. Diana Weekes-Marshall BSc, FCCA, FCA diana.weekes-marshallcavehill.uwi.edu Room SSA5 Tel: 417-4872 (office) Office Hours: By appointment only COURSE AIMS This course builds on the foundation established in the Level I Financial Accounting. FINANCIAL ACCOUNTING II COURSE OUTLINE SEMESTER II, 2012 2013 Lecturer: Mrs. Chapter 2 Solutions To Problems Kieso Intermediate Accounting 14Th Edition.
Qualitative characteristics. Qualitative characteristics. Usefulness, objective of financial reporting, qualitative characteristics. Full disclosure.6, 7, 9, 10 5, 6 7, 9, 10 5, 6 6, 7, 9, 10 5, 6, 7, 8, 10 6, 7, 8, 9, 10Comprehensive assignments 27, 28, 29 on assumptions, principles, and constraints.ASSIGNMENT CLASSIFICATION TABLE (BY LEARNING OBJECTIVE) Learning ObjectivesDescribe the usefulness of a conceptual framework.Describe efforts to construct a conceptual framework.Understand the objective of financial reporting.Identify the qualitative characteristics of accounting information.Define the basic elements of financial statements.Describe the basic assumptions of accounting.Explain the application of the basic principles of accounting.Describe the impact that constraints have on reporting accounting information.ASSIGNMENT CHARACTERISTICS TABLE Level of DifficultyUsefulness, objective of financial reporting. Intermediate Accounting 17th edition solutions are available for this textbook.Basic principles: a. Every textbook comes with a 21-day 'Any Reason' guarantee.
Full disclosure principle. Assumptions, principles, and constraints. Assumptions, principles, and constraints.
Revenue recognition principle. Qualitative characteristics. Objective of financial reporting. Conceptual framework–general. Accounting principles–comprehensive.Moderate Simple Simple Simple Moderate Complex Moderate Moderate15–20 15–20 10–15 15–20 20–25 20–25 20–25 20–25CA2-1 CA2-2 CA2-3 CA2-4 CA2-5 CA2-6 CA2-7 CA2-8 CA2-9 CA2-10 CA2-11Conceptual framework–general.
A conceptual framework is a coherent system of concepts that flow from an objective. Cost-Benefit.Simple Simple Moderate Moderate Complex Moderate Complex Moderate Moderate Moderate Moderate20–25 25–35 25–35 30–35 25–30 30–35 20–25 20–30 20–30 20–25 30–35ANSWERS TO QUESTIONS 1. Expense recognition principle. Qualitative characteristics. Expense recognition principle. Expense recognition principle.
The primary objective of financial reporting is as follows: The objective of general purpose financial reporting is to provide financial information about the reporting entity that is useful to present and potential equity investors, lenders, and other creditors in making decisions in their capacity as capital providers. (4) It will enhance comparability among companies’ financial statements. (3) It will increase financial statement users’ understanding of and confidence in financial reporting. (2) New issues will be more quickly solvable by reference to an existing framework of basic theory. A conceptual framework is necessary in financial accounting for the following reasons: (1) It will enable the IASB to issue more useful and consistent standards in the future. The other concepts provide guidance on (1) identifying the boundaries of financial reporting, (2) selecting the transactions, other events, and circumstances to be represented, (3) how they should be recognized and measured, and (4) how they should be summarized and reported.
Kieso Intermediate Accounting Free Of Material
Enhancing qualitative characteristics are complementary to the fundamental qualitative characteristics. These characteristics enhance the decision usefulness of financial reporting information that is relevant and faithfully represented. The enhancing qualitative characteristics are comparability, verifiability, timeliness, and understandability. To be a faithful representation, information must be complete, neutral, and free of material error. In other words, faithful representation means that the numbers and descriptions match what really existed or happened. Faithful representation is a necessity because most users have neither the time nor the expertise to evaluate the factual content of the information.
Consistency facilitates comparisons between information about the same enterprise at two different points in time.Questions Chapter 2 (Continued) 8. Comparability facilitates comparisons between information about two different enterprises at a particular point in time. This point is important: it means that in the preparation of financial statements a level of reasonable competence can be assumed this has an impact on the way and the extent to which information is reported. Underlying these objectives is the notion that users need reasonable knowledge of business and financial accounting matters to understand the information contained in financial statements. The intent of such statements is to provide the most useful information possible at minimal cost to various user groups. In providing information to users of financial statements, the Board relies on general-purpose financial statements.
The elements are assets, liabilities, and equity (moment in time elements) and income and expenses (period of time elements). Since the elements of financial statements are the building blocks with which the statements are constructed, it is necessary to develop a basic definitional framework for them. Some of these terms have been in use for a long period of time, and their meanings have changed over time.
(2) A going concern assumption. The five basic assumptions that underlie the financial accounting structure are: (1) An economic entity assumption. This interaction is referred to as “articulation.” That is, key figures in one financial statement correspond to balances in another.
Measurement of progress and status for arbitrary time periods is a practical necessity to serve those who must make decisions. (a) In accounting it is generally agreed that any measures of the success of a company for periods less than its total life are at best provisional in nature and subject to correction. (5) Accrual-basis assumption. (4) A periodicity assumption.
A number of accounting practices such as adjusting entries or the reporting of corrections of prior periods result directly from efforts to make each period’s calculations as accurate as possible and yet recognizing that they are only provisional in nature. This becomes very difficult for an arbitrary time period with incomplete transactions in process at both the beginning and the end of the period. The accrual system calls for associating related revenues and expenses. (b) The practice of periodic measurement has led to many of the most difficult accounting problems such as inventory pricing, depreciation of long-term assets, and the necessity for revenue recognition tests.
Only if circumstances change dramatically will the Board consider a more stable measurement unit. The IASB indicated that it expects the currency unadjusted for inflation or deflation to be used to measure items recognized in financial statements. When the value of the currency fluctuates greatly over time, the monetary unit assumption loses its validity.
0 kommentar(er)
