Reference no: EM131820513
Assignment
1. Explain why principles-based standards require a conceptual framework.
2. Why is it important that the IASB and FASB share a common conceptual framework?
3. It is suggested that several parties can benefit from a conceptual framework. Do you consider that a conceptual framework is more important for some parties than others? Explain your reasoning.
4. What is meant by a 'cross-cutting' issue? Suggest some possible examples of cross cutting issues.
Questions
1. What you think is the fundamental problem with financial statements based upon the historic cost measurement principle used under US GAAP ?
2. What do you think of the principle' ... accounts must reflect economic reality' as a core principle of measurement in accounting?
3. How would you measure economic reality?
4. What is reliability in accounting?
1. The article states that the US standard setter FASB requires companies to record a provision in relation to environmental costs of retiring an asset ('to reserve environmental liabilities') if its fair value could be reasonably estimated. How do you think companies would go about estimating such a provision?
1. What aspects of the requirements were used by US companies to defer recognition of a liability?
2. In what ways does the recognition of the liability in relation to future restoration activity affect (a) net profit in the current year and future years; and (b) cash flow in the current and future years?
3. The article refers to changes in disclosure requirements relating to environmental liabilities in many countries around the world. How important is it that companies recognise the liability? To what extent is disclosure about the liability sufficient?
Services offer overnight delivery of parcels
: Two shipping services offer overnight delivery of parcels, and both promise delivery before 10 a.m.
|
What is the lowest possible price
: What is the lowest possible price Marques golf co. could charge per set of woods and still make a $9,000 profit on this order
|
Calculate the firm tax on its operating earnings only
: Calculate the firm's tax on its operating earnings only. What is the firm's total tax liability for the year?
|
Eastern and midwestern united states
: The article "Doctors Misdiagnose More Women, Blacks" (San Luis Obispo Tribune, April 20, 2000) gave the following information, which is based on a large study
|
How would you measure economic reality
: What do you think of principle' ... accounts reflect economic reality' as a core principle of measurement in accounting? How would you measure economic reality?
|
Compute the firm earnings after taxes
: Compute the firm's earnings after taxes and earnings available for common stockholders? (earnings after taxes and preferred stock dividends,
|
Information on compliance with child restraint laws
: The Cedar Rapids Gazette (November 20, 1999) reported the following information on compliance with child restraint laws for cities in Iowa:
|
Which reporting makes Moss look better
: Moss Exports is having a bad year. Net income is only $60,000. Also, two important overseas customers are falling behind in their payments to Moss.
|
Calculate the tax on the sale of each asset
: Calculate the amount of capital? gain, if? any, realized on each of the assets. Calculate the tax on the sale of each asset.
|