) State & explain the principles of accounting on which each
of the
treatments
described below are based. ( explain the principle first and relate
it with the scenario)
Calibre or quality of management is not disclosed on the
balance sheet.
Debentures are marked at the same amount in the shillings which
the company borrowed though the purchasing power of many may have
substantially changed.
Advance received from a customer is not taken as income or
sales.
Rent paid for...
Explain why an accounting standard in relation to the
recognition and measurement of provisions was necessary with
reference to the guidance in IAS 37 “Provisions, Contingent
Liabilities and Contingent Assets”. (Maximum word count 160
words)
Explain why an accounting standard in relation to the
recognition and measurement of provisions was necessary with
reference to the guidance in IAS 37 “Provisions, Contingent
Liabilities and Contingent Assets”. (max 160 words)
Critically explain how the Australian Accounting Standards Board
take part in the global accounting standard setting process (i.e.
in setting IFRS). Why is the IFRS set by the International
Accounting Standards Board (IASB) not compulsory for the member
countries of IASB? (700 words needed)
GAAP is the accounting standard used in the US, while IFRS is
the accounting standard used in over 110 countries around the
world. GAAP is considered more rules based and IFRS is more
principles based. Which standard do you feel is best suited for the
US and if the SEC decides to switch over to IFRS how will that
affect US companies?