Accounting Standards Essay - 821 Words

Case 3-6 Accounting Standards A. Given the income statement effects of LIFO versus FIFO, how will the balance sheet inventory amounts differ between General Motors and Ford versus Honda and Daimler-Benz? In other words, will inventory be reported amounts representing recent costs or older historical costs? In your opinion, which balance sheet amounts would be more useful to financial statement users in making decisions to buy or sell shares of a company’s stock? Inventory is an asset that is intended for sale or goods that are produced for sale. To determine the value of inventory to be reflected in the balance sheet, purchases are added to the beginning inventory and then cost of goods sold are subtracted. The FIFO and LIFO†¦show more content†¦Under the current US Generally Accepted Accounting Principles (US GAAP), both inventory methods are acceptable. However, under the International Accounting Standards, the LIFO is now allowed. In my opinion, the balance sheet that uses the FIFO method of inventory would be more useful in making decisions to buy or sell shares of a company’s stock because the FIFO method gives users a better indication of the value of the ending inventory and the balance sheet under the FIFO method would show a bigger amount of assets compared to the LIFO method. Likewise, the income statement of a company that uses the FIFO method would also show a higher gross margin and thus, the bottom line would be higher as well. However, investors also need to look at other components of the financial statements and analyze the trend of an entity to gain a better understanding of an entity’s operations, performance and net worth prior to deciding on whether to sell or buy that company’s stocks. B. Discuss the concept of conservatism. In your opinion, which is more conservative, General Motors, and Ford or Honda and Daimler-Benz? Explain. Conservatism is â€Å"the approach of choosing an accounting method when in doubt that will least likely overstate assets and net income.† (http://www.wiley.com/college/acc/weygandt347736/site/glossary/home.htm#c). Conservatism conflicts with the qualitative characteristics such as neutrality. Because of this, the FASB hasShow MoreRelatedAccounting Standard Of Australian Accounting Standards1140 Words   |  5 Pagesin there financial statements of their company. Australia Accounting Standard Board publish some new accounting standard related to the RDR implementing to review the differential reporting framework. These standards made on 30 June 2010 and implement on or after 1 July 2013. These new standards are:- †¢ AASB 1053 Application of Tiers of Australian Accounting Standards (PDF); and †¢ AASB 2010-2 Amendment to Australian Accounting Standards arising from Reduced Disclosure Requirements. DifferentialRead MoreThe Standards Of Accounting Standards830 Words   |  4 PagesAccounting standard set has become debatable topics in regards its function in real business. The standards of accounting have been developed throughout years and many countries has applied different accounting standard. However, as business world has become interconnected, there is an urged in need to have one stand-alone of accounting standards that could use worldwide. Therefore, many countries developed convergence of their accounting standard into International Financial reporting standard (IFRS)Read MoreAccounting Standards Essay1364 Words   |  6 Pagesof accounting standards that accurately represents all of their financial activity in a manner that is useful to concerned parties. To resolve these discrepancies three separate standard setting bodies have been tasked with developing Generally Accepted Accounting Principles (GAAP) for these different organizations: The Federal Accounting Stand ards Advisory Board (FASAB) for federal accounting, the Governmental Accounting Standards Board (GASB) for SLG, and the Financial Accounting Standards BoardRead MoreUs Accounting Standards vs. International Accounting Standards1742 Words   |  7 PagesUnited States Accounting Standards vs International Accounting Standards June 21, 2009 Introduction This research project will inform the reader of the difference between the United States accounting standards and International accounting standards. The United States uses the Financial Accounting Standards Board (FASB) to issue financial reporting procedures. The International Financial Reporting Standards (IFRS) are issued by the International Accounting Standards Board (IASB).Read MoreEthics Standards And The Field Of Accounting950 Words   |  4 Pagesnecessity in the field of accounting. Businesses rely on accountants to accurately report their financial information and give sound advise and consultation in regards to their business. There are standards and rules set in place to ensure that ethics and information is reported accurately. Laws and repercussions are created place to deter unethical and illegal accounting practices, although it still occurs in the business world on many levels. The field of accounting has a code of ethics forRead MoreAccounting Analysis On Accounting Standards1911 Words   |  8 Pagesfocussed on the topic related to Accounting theory concept in general. There are two articles to elucidate, first article is on Accounting Standards conceptual framework, which is further discussed in detail about the qualitative characteristics of Conceptual framework. Second article is about Positive Accounting Theory, where we discuss about Accounting theories. A) Article One: 1) Australian Accounting Standard Board (AASB) AASB - Australian Accounting Standards Board Body charged with developingRead MoreAccounting Standard : Accounting Standards Essay1118 Words   |  5 PagesAccounting Standard (AS) 2 Inventories constitute a major portion of current assets of an entity. A primary issue in accounting for inventories is the amount of cost to be recognized as an asset and carried forward until the related revenues are recognized. Indian Accounting Standard (Ind AS) 2, Inventories, prescribes the accounting treatment for inventories, such as, determination of cost and its subsequent recognition as expense, including any write-downs of inventories to net realizable valueRead MoreThe Financial Accounting Standards Board1346 Words   |  6 PagesEarnings per share is introduced by the Financial Accounting Standards Board as the functionality used to calculate an institutions’ earnings for the year-end financial statements. The institutions can be made of up a simple or complex capital structure. It must be calculated on a constant basis in order for reports to remain consistent. FASB provides a formula of â€Å"dividing income available to common stockholders by the weighted average number of common shares outstanding during the period† (FASBRead MoreInternational Accounting Standards : Standards1365 Words   |  6 PagesInternational Accounting Standards What are International Accounting Standards? The International Accounting Standards or IASC are accounting standards issued by the International Accounting Standards Board or IASB and its predecessor, the International Accounting Standards Committee or IASC. The International Accounting standards were started in 1966 after a proposal that was presented to create an International Study group that included the Institute of Chartered Accountants of England and WalesRead MoreAccounting Standard And International Accounting Standards Essay1500 Words   |  6 PagesAccounting standard has been introduced after the World War II where every country has its own proper accounting practices such as the United States Generally Accepted Accounting Principles (the US GAAP). As time flies, international trade and foreign direct investment has experience a period of rapid growth where the companies begin to expand their business in a larger scale. Frequent international mergers and acquisitions especially by American corporations to the European companies has created

Biography Of James Scott Wheelers The Big Red - 2658 Words

The history of the United States Army’s 1st Infantry Division is one of many â€Å"firsts.† The most complete history of the division, James Scott Wheeler’s The Big Red One: America’s Legendary 1st Infantry Division from World War I to Desert Storm, describes many of these firsts in detail. The 1st Division was the first U.S. division to be organized in the Army during World War I, the first division to deploy overseas, and the first unit to engage the enemy in Europe as part of the American Expeditionary Force (A.E.F.). This paper is the story of these World War I firsts. Using primary documents to include the massive volumes of the World War Records of the First Division, A.E.F., Regular available at the Fairchild Library, and the reminiscences of Major General Robert Lee Bullard, who initially served as a Brigade Commander and then commanded the Division for the first American battles in France. This paper chronicles the deployment, training in Fr ance, and major battles of the 1st Division in the Great War. The United States entered World War I on 6 April 1917. Thus began a massive mobilization and expansion of the United States Army with the intent to deploy enough Soldiers and Marines to the Western Front in France to defeat the German forces and end the war. The plan was to eventually deploy a million men organized into 42 U.S. divisions, a staggering number considering that the Army had zero divisions in April 1917 and was comprised of only 127,588 Soldiers in

Planning Healthy and Safe Environments Free Essays

The main factors to take into account when planning healthy and safe indoor and outdoor environments are; †¢Risk assessment; a risk assessment is a process that identifies and assesses the importance of risk in a situation and then assesses the measures that control it. A risk assessment should be undertaken before a planned outdoor learning experience, and the main findings recorded. †¢Contact details; you should always make sure that you have up to date emergency contact numbers, for all staff and children attending the outdoor excursion. We will write a custom essay sample on Planning Healthy and Safe Environments or any similar topic only for you Order Now Medical; you should always make sure that any medical requirements are set in place, for example, inhalers, sickness tablets etc†¦ Also take with you the first aid kit. †¢The age of children being taken off premises should be noted as the ratio of adult:child differs on age, for example more adults will be needed per child at 4/5 years than 10/11 year old. If it an indoor environment then you need to take into account; †¢The size of room for the amount of children to work safely in. †¢Whether or not it is a safe environment for any disability i. e wheel chair, walker etc. †¢If it is a kitchen, set out rules for children, such as utensil use, near cooker when lit, what happens if emergency etc. General behaviour when near hot appliances. Monitoring and maintaining health and safety makes others in school aware of risks, hazards and safe working. Health and safety are monitored and maintained by doing daily health checks, updating children files and checking materials for currency. Parents and teachers having open Communication, and parents informing teachers of children medical conditions and updates and exposures. The use of sign in badges for visitors are used also anybody working in a school environment has to have a C. R. B check before entering. There is also a Health and Safety policy which is followed and regularly updated. Also there is a use of caution signs to let others know of spillage, danger to health etc. How to cite Planning Healthy and Safe Environments, Papers

Ancient civilizations free essay sample

Ancient China was a country that was impacted by its geographic features. Ancient China was a very large country. China’s physical features were very greatly impacted by the contact of other cultures. Some of ancient China’s physical features that prevented them from having contact with other cultures were its large mountains and deserts. This had a good and a bad side to it. The good side was that China was well protected from intruders. However, the bad side to this was that it was it more difficult for China to have contact with other cultures. (Document 2). This also led to China becoming very ethnocentric. Yu was a very important figure in ancient China. Ancient China was in need for water since it was surrounded by deserts and mountains. The solution Yu had to this problem was that he opened passages for the streams throughout the provinces and deepened the existing channels and canals as well as directing them to the streams (Document 4). We will write a custom essay sample on Ancient civilizations or any similar topic specifically for you Do Not WasteYour Time HIRE WRITER Only 13.90 / page Mesopotamia was also a civilization that was impacted by its geographic features. The Fertile Crescent was a main part of the Mesopotamian society. It helped with the development of the Mesopotamian society because the crops farmed in the Fertile Crescent could be traded with other countries for goods that the Mesopotamians could not provide for themselves. The Fertile Crescent was the reason that civilizations arose in Mesopotamia. This occurred because it opened up more transportation options and it also improved trading. (Document 5). Ancient Egypt was a third example of a civilization that was affected by their geographic features. Ancient Egypt had periods of time called the â€Å"Old Stone Age, the Middle Stone Age, and the New Stone Age.† These time periods were when civilizations first started to rise. People learned how to make different tools and weapons for everyday use. For example, in the Stone Age, animals affected many people and how they lived. One way in which animals affected the way people lived in the Stone Age was that they would use animal skins and furs for clothing. This also helped to keep the people warm. (Document 1). Another example that shows how Egypt was greatly  affected by its geographic features is that the Nile River was a very important part in the Ancient Egyptian civilization. It played a big part in the development of Egypt because when the Nile flooded all of the crops and gardens would get fertilized and this would help bring food to the people of Egypt. This then helped the Egyptians become great merchants because they would sell those crops for profit in a relatively short time. The Nile River was a major part in helping Ancient Egypt become powerful at trading, farming, and transportation. (Document 6). Therefore, the development of early civilizations was greatly affected by their geographic features. To this day we still use some achievements that these ancient cultures invented. Geographic features play a very important role in civilizations.