Financial Statements: Financial statements are condensed summary of transactions communicated in the form of reports for the purpose of decision making. The financial statements reports, and shows the financial status of the business. The financial statements consist of the balance sheet , income statement, statement of retained earnings , and the cash flow statement. Financial Disclosures: Financial disclosures refer to all material, significant and relevant information about the reporting organization that are essential to understand the financial statements of the organization entirely. It also helps to evaluate the performance and the financial health of an organization. These disclosures are either provided on the face of the financial statement or as notes to the financial statements as supporting schedules. GAAP: Generally Accepted Accounting Principle (GAAP) is a common set of accounting principles, standards, and procedures that the companies must follow at the time of preparation of the financial statements. IFRS: International Financial Reporting Standard is abbreviated as IFRS. The IFRS is set up to bring a standard global language in accounting, so that the other firms across the globe can understand the accounting term of all other businesses. Rules of Debit and Credit: Following rules are followed for debiting and crediting different accounts while they occur in business transactions: Debit all increase in assets, expenses and dividends, all decrease in liabilities, revenues and stockholders’ equities. Credit all increase in liabilities, revenues, and stockholders’ equities, and all decrease in assets and expenses. To determine: The reason for increase in total deferred income of €249 as of the end of fiscal 2015. \
Financial Statements: Financial statements are condensed summary of transactions communicated in the form of reports for the purpose of decision making. The financial statements reports, and shows the financial status of the business. The financial statements consist of the balance sheet , income statement, statement of retained earnings , and the cash flow statement. Financial Disclosures: Financial disclosures refer to all material, significant and relevant information about the reporting organization that are essential to understand the financial statements of the organization entirely. It also helps to evaluate the performance and the financial health of an organization. These disclosures are either provided on the face of the financial statement or as notes to the financial statements as supporting schedules. GAAP: Generally Accepted Accounting Principle (GAAP) is a common set of accounting principles, standards, and procedures that the companies must follow at the time of preparation of the financial statements. IFRS: International Financial Reporting Standard is abbreviated as IFRS. The IFRS is set up to bring a standard global language in accounting, so that the other firms across the globe can understand the accounting term of all other businesses. Rules of Debit and Credit: Following rules are followed for debiting and crediting different accounts while they occur in business transactions: Debit all increase in assets, expenses and dividends, all decrease in liabilities, revenues and stockholders’ equities. Credit all increase in liabilities, revenues, and stockholders’ equities, and all decrease in assets and expenses. To determine: The reason for increase in total deferred income of €249 as of the end of fiscal 2015. \
Solution Summary: The author explains that financial statements are a condensed summary of transactions communicated in the form of reports for the purpose of decision making.
Definition Definition Financial statement that provides a snapshot of an organization's financial position at a specific point in time. It summarizes a company's assets, liabilities, and shareholder's equity, detailing what the company owns, what it owes, and what is left over for its owners. The balance sheet serves as a crucial tool to assess the financial health and stability of a company, as well as to help management make informed decisions about its future investments and financial obligations.
Chapter 13, Problem 1CCIFRS
(1)
To determine
Financial Statements: Financial statements are condensed summary of transactions communicated in the form of reports for the purpose of decision making. The financial statements reports, and shows the financial status of the business. The financial statements consist of the balance sheet, income statement, statement of retained earnings, and the cash flow statement.
Financial Disclosures: Financial disclosures refer to all material, significant and relevant information about the reporting organization that are essential to understand the financial statements of the organization entirely. It also helps to evaluate the performance and the financial health of an organization. These disclosures are either provided on the face of the financial statement or as notes to the financial statements as supporting schedules.
GAAP:
Generally Accepted Accounting Principle (GAAP) is a common set of accounting principles, standards, and procedures that the companies must follow at the time of preparation of the financial statements.
IFRS:
International Financial Reporting Standard is abbreviated as IFRS. The IFRS is set up to bring a standard global language in accounting, so that the other firms across the globe can understand the accounting term of all other businesses.
Rules of Debit and Credit:
Following rules are followed for debiting and crediting different accounts while they occur in business transactions:
Debit all increase in assets, expenses and dividends, all decrease in liabilities, revenues and stockholders’ equities.
Credit all increase in liabilities, revenues, and stockholders’ equities, and all decrease in assets and expenses.
To determine: The reason for increase in total deferred income of €249 as of the end of fiscal 2015. \
(2)
To determine
To explain: the threshold for recognition of provision under IFRS different than it is under U.S. GAAP.
(3)(a)
To determine
Beginning and ending balances of total provisions and retirement benefits shown in Note 32 for fiscal 2015 tie to the balance sheet.
b.
To determine
To prepare:Journal entries for the changes in the litigation provision occurred during the fiscal year 2015.
(4)
To determine
To know: Whether amounts of contingent liability recognized as liability on the A’s balance sheet.
Required:
1. Compute a predetermined overhead rate for the plant as a whole based on machine hours. Round your answer to two decimal places.
per machine hour
2. Compute predetermined overhead rates for each department using machine hours. (Note: Round to two decimal places, if necessary.)
Department A
Department B
per machine hour
per machine hour
3. Conceptual Connection: Job 73 used 20 machine hours from Department A and 50 machine hours from Department B. Job 74 used 50 machine hours from Department A and 20 machine hours from De
Compute the overhead cost assigned to each job using the plantwide rate computed in Requirement 1. Repeat the computation using the departmental rates found in Requirement 2. Round final answers to
cent, if necessary.
Job 73
Job 74
Plantwide
Departmental
Which of the two approaches gives the fairer assignment?
4. Conceptual Connection: Repeat Requirement 3, assuming the expected overhead cost for Department B is $94,000 (not $69,000). Round overhead rates…
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