Premium Essay

Acc/290 Paper

In: Other Topics

Submitted By GABRIEL0490
Words 341
Pages 2
IFRS verses GAAP

Gabriel Whatley

ACC/290

March 28, 2016
Steven McAlister

IFRS verses GAAP

International Financial Reporting Standards (IFRS) is a set of accounting standards developed by an independent, not-for-profit organization called the International Accounting Standards Board (IASB), (Rouse, 2011). While, GAAP (generally accepted accounting principles) is a collection of commonly-followed accounting rules and standards for financial reporting. Even though IFRS is a set of accounting standards and GAAP are sets of accounting rules and standards they do differ from each other.

Level One Heading Replace the level one heading with the words for your heading. The heading must be in bold font. Headings help your audience track the sub-topics discussed in the body of the essay or report. Begin a new heading for each sub-topic. Be sure to indent the first line of each paragraph between five and seven spaces by pressing the Tab key one time on the keyboard. In addition, remember to double space the entire paper using the double space functionality in Word. This template is already formatted for double spacing. Read more: Center for Writing Excellence>Tutorials and Guides>Software Tutorials and Guides>Formatting Tutorial for APA. In addition, keep in mind an academic essay should contain at least five paragraphs, which includes the introduction (introductory paragraph), the body (which is generally at least 3 paragraphs), and the conclusion (generally one paragraph). Most well-developed paragraphs contain at least 3-5 sentences, one of which is the topic sentence. Limit each body paragraph to one main idea.

Conclusion The closing paragraph is designed to bring the reader to your way of thinking if you are writing a persuasive essay, to understand relationships if you are writing a…...

Similar Documents

Premium Essay

Acc 290

...acc Accrual V.S. Cash Accounting Miguel Gonzalez ACC/290 August 3, 2012 Dr. Dorothy Welch In this assignment, I will describe the cash basis of accounting and the accrual basis of accounting and will explain the difference. Cash Basis accounting is the easy and less expensive method of accounting. In this method of accounting, cash is recognized when the physical cash transaction occurs. Thus, this method does not recognize payables, receivables, and prepaid expenses. Additionally, cash basis accounting does not comply with the revenue recognition principle and the matching principle. In accrual basis of accounting, revenue is recognized when it is earned and expenses are recognized when they are incurred. Susan Ward states, “Accrual basis accounting gives the most accurate picture of the financial state of your business.” We are essentially keeping track of the most current business practices, such as to who owes who money, and service. When the customer owes us money, we create an accounts receivable. When we owe money we create an accounts payable. When we pay cash before an expense we create a deferred expense account. There are key differences between the methods of accounting. In cash basis, taxable income may be deferred to the next year due to delays in billing. However, in accrual basis, the company might have to pay taxes on income before payment is received. Under the cash basis method, there is no company...

Words: 392 - Pages: 2

Premium Essay

Accounting 290 Paper

...Financial Statement Paper ACC/290 Financial Statement Paper Finance statements are very important in the accounting world. Here are a few questions that will be answered, to help better understand accounting. What is a finance statement? How does it provide benefit to the internal users? How does it provide benefit to external investors and creditors? There are four basic financial statements that are used in everyday life. These statements are used on many different scales and many different levels of use. The four basic financial statement sheets that are widely used are (1) An income statement (2) A retained earnings statement (3) a balance sheet (4) A statement of cash flow. An income statement shows the revenue a company made over a specific time period. Usually a company would want to know the yearly totals, so an income statement would be the best statement to review. The income statement shows the company’s net earnings and net losses. An income statement also shows how much money shareholders would receive if the company distributed the net earnings. The income statement shows, what is called “The Bottom Line”. There are many things that the income statement keeps track of; it shows money brought into the company from sales and products sold, which is called “gross”. It provides detail on items that are not expected to collect, such as sales on products, and returns. This is also known as the “returns and allowances”. If you subtract the......

Words: 1012 - Pages: 5

Premium Essay

Acc 290

...Running head: Learning Team Reflection University of Phoenix ACC/290 Principles of Accounting I 04 November 2012 Learning Team Reflection – Week 3 This week, we have learned that accounting involves more than recording transactions and balancing accounts. Along with journalizing transactions and adjusting entries, the accounting cycle also involves closing entries and preparing a post-closing trial balance. We believe that the most important of the skills learned when we are in an accounting position is to understand the basic accounting equation, assets + liabilities + stockholder’s equity. Most accounting concepts all go back to this equation as the basis for balancing accounts when transactions are journalized in them. There are two types of accounting methods used to maintain financial records and prepare reports: accrual and cash basis accounting. Accrual basis accounting is the method that is accepted under the Generally Accepted Accounting Principles (GAAP). This principle holds that accounting transactions are recognized and recorded when the expense or revenue actually occurred, not when cash changes hands (James, 2012). The benefit of accrual basis accounting is that expenses and revenues can be matched as they happen, which is much more effective for monitoring cash flow (Epstein, n.d.). Accrual accounting has a more complex recording process than cash basis accounting......

Words: 786 - Pages: 4

Premium Essay

Financial Staements Paper Acc/290

...Financial Statements Paper ACC/290 Income statements chronicle the gains or deficiencies of a company’s operations over a period of time, by reporting all revenues and expenses. These statements are processed each month, and at the end of the fiscal year. Income statements include definite expenses and revenues. Sometimes these statements are also known as P&L statements or profit and loss. The second statement is known as a retained earnings statement. This is for displaying the beginning balance of retained earnings and adjustments during the course of the year. The statement usually includes beginning balance, net income for the current cycle, dividends disclosed in the current period and ending balance. Balance sheets detail assets and claims to assets at a distinct point in time. Claims of creditors and claims of owners are examples of claims to assets. This particular statement provides a clear outline of the financial standing of the company as a whole. The direct function of a statement of cash flow is to present financial information such as cash receipts and payments during a set point in time. This assists investors and creditors to analyze a company’s financial position.. These statements address a company’s financing, investment and operational activities. Financial statements are useful to managers as these statements are utilized to measure the performance of the organization. Sales and expenses are compared to the income......

Words: 485 - Pages: 2

Premium Essay

Acc/290

...Financial Reporting, Part 1 XACC/290 12 May 2013 Financial Reporting, Part 1 After browsing for a publicly traded company on the Internet I decided to choose a Comcast Corporation. The reason I chose Comcast Corporation is because it is a company that has made huge stride over the last several years. I also chose a telecommunications company because my husband has worked in this industry for over 15 years. Telecommunication makes up a decent piece of the gross world product by providing business, money, and market stability for the world. Comcast Corporation provides their information on the 2012 annual report in millions, except per share data according to the report. Comcast Corporation’s total assets at the end of the most recent annual reporting period, which was 2012, is $164,971M. This number is important because assets add value to Comcast Corporation and support the continued growth of the company. On the top portion of the balance sheet, Comcast Corporation’s assets are in order of liquidity, from most liquid to least liquid. The total assets at the end for 2011 annual report was $157,818M. At the end of 2012 annual reporting period, Comcast Corporation had $10,951M in cash and cash equivalents. At the end of Comcast Corporation’s 2012 annual reporting period, Comcast Corporation had $6,206M in accounts payable verse 2011 annual report which stated a total of $5,705M. This is showing continued growth of the company. Comcast......

Words: 574 - Pages: 3

Premium Essay

Acc-290 Financial Statements

...Financial Statements Amber Khan University of Phoenix Principles of Accounting 1 ACC-290 Jean Balla May 9, 2012 Financial Statements Identify the four basic financial statements The four basic types of financial statements are balance sheet, income statement, statement of owner’s equity, and lastly statement of cash flow ("The Four Financial Statements", 1999-2010). Describe the purpose of each of the four financial statements. A balance sheet is used to summarize the finances of a company during a specific period of time. The sum of company’s liabilities and the owner’s equity should be equal the assets and finding the balance between the two is why this report is called a balance sheet. An explanation of the components of a balance sheet could be: Assets = Liabilities + Equity ("The Four Financial Statements", 1999-2010). An income statement is a representation of company’s profit or loss. The statement includes figures from sales and expenses. The difference between revenue and expenses is the company’s net income. An income statement is usually compiled monthly to keep track of the company’s progress. The purpose of owner’s equity statement is to compare owner’s equity from the start of the period to the end of that period. Owner’s equity combines information from both the income statement and balance sheet as an owner’s equity is determined by adding the investments and income and subtracting this figure from......

Words: 606 - Pages: 3

Premium Essay

Acc/290 Financial Reporting

...Financial Reporting – Apple, Inc. ACC/290   Apple Inc. is a manufacturer and developer of consumer electronics, computers, and software. The company is headquartered in Cupertino, California and was, until recent, headed by founder and CEO, Steve Jobs. Apple is a well-recognized company that provides an alternative to the traditional personal computer, and personal devices. Assets and Liabilities of Apple The four different types of assets are Current Assets, Long-Term Assets, PPE (Property, Plant & Equipment), and Intangible Assets. Team B’s task was to define current assets. A current asset is an asset which can either be converted to cash or used to pay current liabilities within one year. Typical current assets include cash, cash equivalents, short-term investments, accounts receivable, stock inventory and the portion of prepaid liabilities which will be paid within the year. Current assets are presented in the order of liquidity, example; cash, temporary investments, accounts receivable, inventory, supplies, prepaid insurance (Accountingbase.com, 2009). Team B was also asked to determine if Apple’s current assets are listed in the proper order. Apple lists its current assets in this order: cash and cash equivalents, short term marketable securities, accounts receivable, inventories, deferred tax assets, vendor receivables, other miscellaneous assets. Generally Accepted Accounting Principles (GAAP) require that assets are listed in order of liquidity. The......

Words: 854 - Pages: 4

Premium Essay

Acc 290 Final Exam

...ACC 290 Final Exam 1) Which financial statement is used to determine cash generated from operations? A. Income statement B. Statement of operations C. Statement of cash flows D. Retained earnings statement 2) In terms of sequence, in what order must the four basic financial statements be prepared? A. Balance sheet, income statement, statement of cash flows, and capital statement B. Income statement, capital statement, statement of cash flows, and balance sheet C. Balance sheet, capital statement, statement of cash flows, and income statement D. Income statement, capital statement, balance sheet, and statement of cash flows 3) In classifying transactions, which of the following is true in regard to assets? A. Normal balances and increases are debits. B. Normal balances and decreases are credits. C. Normal balances can either be debits or credits for assets. D. Normal balances are debits and increases can be debits or credits. 4) An increase in an expense account must be A. debited B. credited C. either debited or credited, depending on the circumstances D. capitalized 5) ABC Corporation issues 100 shares of $1 par common stock at $5 per share, which of the following is the correct journal entry? A. Cash $100 Common Stock $100 B. Cash $500 Common Stock $500 C. Cash $500 Paid-in Capital, Excess of Par $400 Common Stock $100 D. Cash $100 Paid-in Capital, Excess of Par $400 Common Stock $500 6) In the first month of operations, the total of the...

Words: 1713 - Pages: 7

Premium Essay

Acc 290 Financial Statements Paper

...Financial Statements Paper ACC290 January 2, 2013 David Aloyan The main goal of most businesses is to gain profit and have less spending costs all together. If a business is not making money, the owner of that business really has no reason to keep that business open. It is both a waste of time and a waste of money if there is no profit to be made. Many businesses deal with money all the time but how do they really know how much profit was made at a certain point of the year or a certain time of the month. If a business cannot keep track of the money coming in and the money being spent it cannot keep track of whether it is making money or loosing money. Fortunately, we have a solution to keep track of the money our businesses are making and the money our business are spending. Our Solution to our questions about cash flow is financial statements. Financial statements can be beneficial to internal and external sources that are interested in making a business grow. There are four basic financial statements that makeup the backbone of financial accounting. These four statements are balance sheets, income statements, retained earnings statements, and statements of cash flow. A balance sheet is used to show your business’s assets, what your business owns, and the business’s liabilities, what your business owes. It can paint a picture of your business’s finances at a specific point in time. An income statement shows how successful the business was for a certain......

Words: 608 - Pages: 3

Premium Essay

Acc 290 Week 3

...ACC 290 WEEK 3 A+ Graded Tutorial Available At: http://hwsoloutions.com/?product=week-3 Visit Our website: http://hwsoloutions.com/ Product Description PRODUCT DESCRIPTION ACC 290 Week 3, ACC 290 Week 3 Complete, 1- The process for completing accounting circuit includes … Analyzing business transactions (to judge what was purchased and what accounts it affects) Journalizing the transactions (place the entries in the correct accounts dr. & cr.) Post to ledger accounts (post to the correct ledger account dr. & cr.) 2- In order for me to remember which is a permanent account and which is a temporary account – temporary – revenues, expenses, and dividends permanent – all balance sheet accounts because they are carried forward to the next accounting period – assets, liabilities, and stockholder’s equity. The four closing journal entries are a- Revenue accounts are closed to income summary 3- A worksheet is a beneficial extra that sometimes makes it easier to prepare adjusting entries and financial statements. In larger corporations worksheets are helpful when making many adjustments and when using a computer, spreadsheet columns can be set up for trail balance, adjustments, and adjusted balances – there are also useful for the computation of net income/loss on the worksheet. Worksheets can be prepared manually, in an excel spreadsheet, or purchased with programmable Assignment BE4-1 cash net......

Words: 310 - Pages: 2

Premium Essay

Acc 290 Week 1

...ACC 290 Week 1, DQ1- The four basic financial statements are income, retained earnings, balance, and statement of cash flows. Financial statements provide a means for the business to judge the results of their operational or financial performance over a period of time. Income statements provide investors and the business a description of how profitable the business is performing within a specific period in time. Retained earnings are income that is left in the company (reinvested) that was not distributed to the stockholders. This statement explains why the DQ2- Financial statements alert investors of the risk that is involved in investing in the company. The information from these reports also allow investors to judge what type of return they will receive on their investment and it also helps them to determine whether to hold, buy, or sell. Creditors are concerned with any statistical financial information that helps them to determine the financial stability of the organization and whether the business will repay the loan….. DQ-3 A debit is an asset or increase in cash (left column). Debits normally increase assets and decrease liabilities and credits normally decrease assets and increase liabilities. A credit is a decrease in cash (right column). Debits and credits are used to record business transactions by the type of account that is used. Expense and assets are increased on the debit or left side and liability equity and revenue accounts are increased......

Words: 448 - Pages: 2

Premium Essay

Acc 290 Week 4

...Acc 290 Week 4, 1-One can determine the cost of goods sold when using a periodic inventory system does not calculate the cost of goods sold until the end of the period. At the end of the period a count is done to determine the ending balance of the inventory. After this is completed the cost of goods sold 2- The perpetual system of inventory keeps a running tally of inventory that is live and this is done by automatically making changes to the inventory as each item is sold, freight cost, returned, or 3- The reason behind understanding value of inventory at a point in time is to accurately report what the value of the inventory (asset) is for a company. If the asset of a company is worth less than what the market is willing to pay for it than the company will not make money on selling those goods. Also, knowing the price the inventory was purchased at compared to what the market price – Week 4 Problems Date Accounts Debit Credit July 1 Cash 12,000 12,000 1 Equipment 8,000 6,000 2,000 3 Supplies   900 900 5 Prepaid Insur. 1,800 1,800 12 Accounts Rec. 3,700 3,700 18 Accounts Pay. 1,500 1,500 20 Salary Exp. 2,000 2,000 21 Cash 1,600 1,600 25 Accounts Rec. 2,500 2,500 Financial Reporting Problem, Part I The company’s annual report is important because it gives the shareholders a clear picture and understanding about how the company is doing financially. The annual reports provide thorough information on very significant section of the......

Words: 420 - Pages: 2

Premium Essay

Acc 290 Week 5

...PRODUCT DESCRIPTION ACC 290 Week 5, 1- The control environment is the basis of the entire control system that the organization is establishing. The control environment is the value that is placed on integrity and the knowledge that unethical activity will not be tolerated. It is management’s responsibility to express behavior and attitude that enforces this ethical behavior. The control environment affects the internal control by setting a basis of control activities that safeguard assets, enhance accounting reliability, increase 2- The controls that should be in place to protect a merchandiser in a cash rich environment are – Establishment of responsibility Segregation of duties Documentation procedures Physical controls Independent internal verification 3- The Sarbanes-Oxley Act (SOX) requires that all publicly traded U.S. corporations are required to sustain a satisfactory structure of internal controls. In addition to internal controls each organization must be able to confirm their compliance by an independent outside audit. SOX came about because of public outrage to lack of corporate integrity and accounting dishonesty. Major corporations such as Enron and WorldCom were dishonestly reporting accounting figures to investors and such dishonesty led to the major losses in investor’s money. SOX requirements have improved Assignment BE5-1 Sales: $181,500 Cost of goods sold: $41,200 Gross profit: $38,000 Operating expenses: $17...

Words: 466 - Pages: 2

Premium Essay

Acc 290 Week 5

...ACC 290 WEEK 5 A+ Graded Tutorial Available At: http://hwsoloutions.com/?product=week-5 Visit Our website: http://hwsoloutions.com/ Product Description PRODUCT DESCRIPTION ACC 290 Week 5, 1- The control environment is the basis of the entire control system that the organization is establishing. The control environment is the value that is placed on integrity and the knowledge that unethical activity will not be tolerated. It is management’s responsibility to express behavior and attitude that enforces this ethical behavior. The control environment affects the internal control by setting a basis of control activities that safeguard assets, enhance accounting reliability, increase 2- The controls that should be in place to protect a merchandiser in a cash rich environment are – Establishment of responsibility Segregation of duties Documentation procedures Physical controls Independent internal verification 3- The Sarbanes-Oxley Act (SOX) requires that all publicly traded U.S. corporations are required to sustain a satisfactory structure of internal controls. In addition to internal controls each organization must be able to confirm their compliance by an independent outside audit. SOX came about because of public outrage to lack of corporate integrity and accounting dishonesty. Major corporations such as Enron and WorldCom were dishonestly reporting accounting figures to investors and such dishonesty led to the major losses in investor’s money. SOX......

Words: 490 - Pages: 2

Premium Essay

Acc 290

...Comparison between IFRS and GAAP Agustin Blanco ACC 290 06/06/2016 Dan Jensen Comparison between IFRS and GAAP This paper provides a comparison between the International Financial Reporting Standards (IFRS) and the United States Generally Accepted Accounting Principles (GAAP) and how they are differentiate from each other in the format of financial statement, conceptual framework, and IFRS terms. There is also a description of some issues the SEC must consider in order to adopt IFRS in the United States as well as a comparison of the rules regarding revenue recognition under IFRS versus GAAP. There is an explanation of the definitions Under IFRS for revenues and expenses, as well as an explanation of the competitive implications (both pros and cons) of Sarbanes-Oxley Act (SOX). Questions IFRS 2-1: In what ways does the format of a statement of financial position under IFRS often differ from a balance sheet presented under GAAP? The main difference between the formatting of IFRS and GAAP statement of financial of position and a GAAP balance sheet is the ordering of liquidity. IFRS does not require a particular order or any classification of accounts. It is common for companies to report assets in reverse liquidity under IFRS. Instead, GAAP specifies and requires all a company’s account be classified and ordered based on liquidity. IFRS 2-2: Do the IFRS and GAAP conceptual frameworks differ in terms of the objective of financial......

Words: 957 - Pages: 4