Principles Of Accounting Principles

Submitted By narob12
Words: 325
Pages: 2
Open Document
Mr. Lukas:

In this business climate it is completely understandable to want your company to present well. However, your proposed treatment of the items we discussed conflicts with one of the basic principles of accounting in that it does not provide full disclosure to the users of the financial statements. Specifically, these items do not follow the guidelines set forth by the FASB Accounting Standards Codification. Please see the following recommendations:

• According to FASB 250-10-50-1, a change in accounting principle requires the following three actions:

1. Disclose on the financial statements an explanation of the change. Better flow of goods and industry norms are adequate explanations.
2. Outline the methods used to change accounting principles. Outline the change from weighted-average to FIFO. This would include (a) any prior period information that has been retrospectively adjusted, (b) the current period effects on the income statement and earnings per share, and (c) the cumulative effect on retained earnings (i.e. $250,000 increase).
3. Recognition of any indirect effects. Disclose any information that is indirectly affected.

• According to FASB 250-10-50-7 and 50-8, a correction of an error requires the following two actions:

1. Disclose that previously issued financial statements have been restated and the nature of the error. This would include the disclosure of (a) any line items and per-share amounts affected by the error in prior
Show More

Related Documents: Principles Of Accounting Principles

intermediate accounting 2 test bank Essay

Intermediate Accounting Kieso 15th Edition Test Bank Click here to download the solutions manual / test bank INSTANTLY!!! http://www.solutionsmanualtestbanks.com/2013/05/intermediate-acc ounting-kieso-15th-edition-test-bank.html Intermediate Intermediate Intermediate Intermediate Accounting Accounting Accounting Accounting Kieso Kieso Kieso Kieso 15th Edition Test Bank 15th Edition Test Bank Weygandt Warfield 15th Edition Test Bank Weygandt Warfield 15th Edition Test Bank…

Words 8328 - Pages 34

Assignment 2 Essay example

Chapter: 2 Chapter Review Questions Questions are at the end of each chapter under the “For Review” heading 1. The federal government consists of three distinct branches: legislative, executive and judicial, whose powers are vested by the U.S. Constitution in the Congress, the President, and the federal courts, including the Supreme Court. 2. The Commerce Clause refers to Article 1, Section 8, Clause 3 of the U.S. Constitution, which gives Congress the power “to regulate commerce with foreign…

Words 1085 - Pages 5

Guidelines And Definitions Of The Colorado State Court Statements

example (b.) implies a Colorado state court opinion for which you were unable to locate the court which rendered it. 1. Frank v. Frank, 193 Miss. 605, 10 So. 2d 839 (1943) 2. Hawthorne v. Walton, 72 Nev. 62, 294 P.2d 364 (1956) 3. Jefferson v. Anchorage, 513 P.2d 1099 (Alaska 1973) Citation examples numbered 1, 2 and 3 are all state supreme court decisions. Citation examples number 1 and 2 have parallel citations. Since the state court reporters indicate which state issued the opinion and since the…

Words 580 - Pages 3

Essay about Celta Assignment 1: Focus on the Leaner

Christopher Clayton CELTA Assignment 1 ISE Language LTD Centre No. 56108 Assignment 1: Focus on the learner Background For this assignment I chose Fernando; a 25 year old Spanish male from Seville. Fernando is an upper intermediate student, and is currently preparing to undertake his First Certificate examination. Fernando has been living in England for 6 months, since he graduated from university in Spain last year. He has been learning English since he was 11, but has only…

Words 1313 - Pages 6

Essay on Electromyogram: Muscle Fibers

Sarah Shidban Lab 1 Ali Izadpanah July 12, 2013 Electromyogram Experiment 1: (i) See Figure 1 for trace. Figure 1 is measuring the activity (force and time of contraction) of the entire muscle, which consists of several types of muscle fibers (Type I or slow twitch, Type IIa or intermediate fast twitch, and Type IIb or fast, fatigable/anaerobic) whereas a concentric needle electrode only detects and records the activity of one type of muscle fiber. A typical triphasic waveform is observed…

Words 1995 - Pages 8

Distinguishing Features of the Major Court Systems Essay

As in federal system the state intermediate appellate courts hear appeals from both criminal and civil trial courts within their geographic regions. Every state has a final appellate court. In most states these are called supreme courts. Some states have two, one for criminal and other for civil appeals. The state supreme courts hear appeals mostly form intermediate appeals courts. Most supreme courts may choose which cases to review, and all have the final word on matters…

Words 1209 - Pages 5

Unit 3 IP Pre Submit Essay

is delivered, the defendant still has another opportunity to appeal the second decision given by the appellate court as a last resort. The initial appeal is usually submitted to the Intermediate Court of Appeals which are found in 39 of the United States of America. In the state of Florida, there are 5 Intermediate Courts of Appeals which are also called District Courts of Appeals (DCA). As we may know, these courts’ function as a fine-toothed comb, ensuring that every aspect of the law as consistent…

Words 733 - Pages 3

Lab 7 Nucleophilic Substitution Lab

overall is most favorable for alkyl chloride, benzyl chloride, 1-bromobutane. Meanwhile, the SN1 mechanism was most favorable for tert-butyl bromide. Introduction Organic chemistry is the study of organic…

Words 993 - Pages 4

Prison OverCrowding Final Crime Society Essay example

structure in the criminal justice system so that all offenders receive the same or close to the same sentencing for a crime, without discrimination. These models consist of indeterminate sentencing, structured sentencing, mandatory sentencing and intermediate sentencing. Provided below is a brief description of each type of sentencing and how they contribute to the overcrowding in prisons and if they can be offered as an alternative to prison. First I would like to discuss two types of sentencing that…

Words 2416 - Pages 10

Adjusting Entries Essay

Financial Reporting: The Case of Frosty Co. Jason C. Porter ABSTRACT: Recent accounting scandals have emphasized the need to think beyond debits and credits. Accounting students must understand the effects of transactions on a company’s financial position, as well as the pressures and incentives they will someday face to misrepresent that position. This case introduces students in intermediate financial accounting courses to both of these important objectives. First, the case improves students’ critical…

Words 14057 - Pages 57