Financial Accounting 1 Summary VALIX

FINANCIAL ACCOUNTING VOL1 SUMMARY _VALIX

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1. ASC- accountn! " a "#$%c# act%ty. act%ty. It" &uncton " to p$o%'# (uanttat%# n&o$)aton p$)a$*y &nanca* n natu$# t+at " nt#n'#' to ,# u"#&u* n )akn! #cono)c '#c"on". . AICAAICA- accountn! " t+# ART o& $#co$'n!/ c*a""&yn!/ "u))a$0n!RCS--co))uncaton p$oc#""2 3. AAA"tat#)#nt AAA"tat#)#nt o& ,a"c accountn! t+#o$y2- ROC4SS o& '#nt&yn!/ )#a"u$n!/ co))uncatn!IMC2 5. I'#nt&yn! a" t+# analytical co)pon#nt 6. M#a"u$n! a" t+# technical co)pon#nt 7. Co))uncatn! a" t+# formal  t+# formal  co)pon#nt  co)pon#nt 8. In o$'#$ to ,# '#nt&a,*#/ a c#$tan #%#nt )u"t ,# (uant&a,*# o$ #9p$#""#' #9p $#""#' n t#$)" o& a unt o& )#a"u$#. It )u"t +a%# an #&&#ct on A""#t"/ La,*t#"/ O4. :. 49t#$na* t$an"acton " a*"o kno;n a" #9c+an !# t$an"acton ;+c+ n%o*%#"  #ntt#". 49a)p*# " pa y)#nt o& "a*a$#" to #)p*oy##". <. Int#$na* t$an"acton- p$o'ucton an' ca"ua*ty *o""unantcpat#' *o""#"/ act o& !o' 2 1=. Accountn! " t+# *an!ua!# o& ,u"n#"" ,#cau"# o& t+# co))uncaton p$oc#"". 11. C*a""&yn!C*a""&yn!- " acco)p*"+#' ,y po"tn! to t+# *#'!#$ 1. Su))a$0n!- p$#pa$aton o& FS. 13. Accountant>" Accountant>" p$)a$y ta"k " to "upp*y "upp *y &nanca* n&o$)aton to "tat#)#nt u"#$" "o t+at t+#y cou*' )ak# n&o$)#' ju'!)#nt an' ,#tt#$ '#c"on. 15. R#p. Act <<:- +*ppn# accountancy act o&  ==5 $#!u*at#" t+# p$actc# o& accountancy n t+# +*. 16. ?OA- ,o'y aut+o$0#' ,y *a; to p$o)u*!at# $u*#" an' $#!u*aton" a&&#ctn! t+# p$actc# o& t+# accountancy  p$o&#""on 17. C#$t&cat# o& $#!"t$aton "+a** ,# ""u#' & t+# $#!"t$ant +a" ac(u$#' a )n)u) o& 3 y#a$" o& )#ann!&u* #9p#$#nc# n any a$#a" o& pu,*c p$actc# nc*u'n! ta9aton. It ;** ,# %a*' &o$ 3 y#a$"/ $#n#;a,*# #%#$y 3 y#a$" upon pay)#nt o& $#(u$#' &##". 18. Mana!#)#nt a'%"o$y "#$%c#"- ,u"n#"" con'uct an' op#$aton" 1:. Cont$o**#$ " t+# +!+#"t accountn! o&&c#$  1<. Accountn! " #""#nta**y con"t$uct%# n natu$# =. Au'to$ #9a)n#" FS to a"c#$tan ;+#t+#$ t+#y a$# n con&o$)ty ;t+ GAA. 1. GAA " a "oca* p$oc#"". . @#%#*op)#nt o& GAA " &o$)a*0#' nta**y t+$ou!+ t+# c$#aton o& ASC. T+# accountn! "tan'a$'"  p$o)u*!at#' ,y t+# ASC con"ttut# con"ttut# t+# GAA. 3. SFAS " no; kno;n a" AS AS an' FRS 5. Accountn! "tan'a$'"-p$op#$ accountn! p$actc#. It c$#at#" co))on un'#$"tan'n!. 6. FRSC $#p*ac#" ASC 7. FRSC " t+# accountn! "tan'a$' "#ttn! ,o'y c$#at#' ,y RC upon $#co))#n'aton o& ?OA to a"""t t+# ?OA n ca$$yn! ca$$yn! out t" po;#$" an' &uncton" p$o%'#' un'#$ RA <<:. Man &uncton " to #",a*"+ an' )p$o%# accountn! "tan'a$'" t+at ;** ,# !#n#$a**y acc#p t#' n t+# +*. 8. FRSC " co)po"#' o& 16 )#),#$" ;t+ a c+a$)an ;+o +a' ,##n o$ " p$#"#nt*y a "#no$ accountn!  p$actton#$.  )#),#$" &$o) u,*c p$actc#/ co))#$c# an' n'u"t$y/ n'u"t$y/ aca'#)#/ !o%#$n)#nt. :. T+# count#$pa$t o& IC " t+# IFRIC n U  <. IASC- )p$o%#)#nt/ +a$)on0aton an' ;o$*';'# acc#ptanc# an' o,"#$%anc# o& accountn! "tan'a$'" 3=. IAS? $#p*ac#" IASC. It " a global a global phenomenon nt#n'#' phenomenon nt#n'#' to ,$n! a,out !$#at t$an"pa$#ncy an' a +!+#$ '#!$## o& co)pa$a,*ty n &nanca* $#po$tn!B on# un&o$) an' !*o,a**y acc#pt#' &nanca* $#po$tn! "tan'a$' 31. Accountn! a""u)pton"- "#$%# a" t+# &oun'aton o$ ,#'$ock o& accountn! to a%o' )"un'#$"tan'n!. no;n a" po"tu*at#". 3. Accountn!&"ca* p#$o'- 1)ont+" 33. F"ca* p#$o' cou*' #t+#$ ,# ca*#n'a$ o$ natu$a*. I& ca*#n'a$/ #n'" on '#c. 31. & natu$a*/ #n'" on any an y )ont+ ;+#n t+# ,u"n#"" " at t+# *o;#"t o$ #9p#$#ncn! "*ack "#a"on. 35. Mon#ta$y Unt +a"  a"p#ct"/ (uant&a,*ty an' "ta,*ty o& p#"ocu$$#nt $#p*ac#)#nt co"t " !no$#'2. So)#t)#"/ t " not n#c#""a$*y %a*' t+at p#"o " "ta,*# "nc# t+#$# )ay ,# n"tanc#" ;+#$#n t+#$# " a

FINANCIAL ACCOUNTING VOL1 SUMMARY _VALIX

jkycpa

1. ASC- accountn! " a "#$%c# act%ty. act%ty. It" &uncton " to p$o%'# (uanttat%# n&o$)aton p$)a$*y &nanca* n natu$# t+at " nt#n'#' to ,# u"#&u* n )akn! #cono)c '#c"on". . AICAAICA- accountn! " t+# ART o& $#co$'n!/ c*a""&yn!/ "u))a$0n!RCS--co))uncaton p$oc#""2 3. AAA"tat#)#nt AAA"tat#)#nt o& ,a"c accountn! t+#o$y2- ROC4SS o& '#nt&yn!/ )#a"u$n!/ co))uncatn!IMC2 5. I'#nt&yn! a" t+# analytical co)pon#nt 6. M#a"u$n! a" t+# technical co)pon#nt 7. Co))uncatn! a" t+# formal  t+# formal  co)pon#nt  co)pon#nt 8. In o$'#$ to ,# '#nt&a,*#/ a c#$tan #%#nt )u"t ,# (uant&a,*# o$ #9p$#""#' #9p $#""#' n t#$)" o& a unt o& )#a"u$#. It )u"t +a%# an #&&#ct on A""#t"/ La,*t#"/ O4. :. 49t#$na* t$an"acton " a*"o kno;n a" #9c+an !# t$an"acton ;+c+ n%o*%#"  #ntt#". 49a)p*# " pa y)#nt o& "a*a$#" to #)p*oy##". <. Int#$na* t$an"acton- p$o'ucton an' ca"ua*ty *o""unantcpat#' *o""#"/ act o& !o' 2 1=. Accountn! " t+# *an!ua!# o& ,u"n#"" ,#cau"# o& t+# co))uncaton p$oc#"". 11. C*a""&yn!C*a""&yn!- " acco)p*"+#' ,y po"tn! to t+# *#'!#$ 1. Su))a$0n!- p$#pa$aton o& FS. 13. Accountant>" Accountant>" p$)a$y ta"k " to "upp*y "upp *y &nanca* n&o$)aton to "tat#)#nt u"#$" "o t+at t+#y cou*' )ak# n&o$)#' ju'!)#nt an' ,#tt#$ '#c"on. 15. R#p. Act <<:- +*ppn# accountancy act o&  ==5 $#!u*at#" t+# p$actc# o& accountancy n t+# +*. 16. ?OA- ,o'y aut+o$0#' ,y *a; to p$o)u*!at# $u*#" an' $#!u*aton" a&&#ctn! t+# p$actc# o& t+# accountancy  p$o&#""on 17. C#$t&cat# o& $#!"t$aton "+a** ,# ""u#' & t+# $#!"t$ant +a" ac(u$#' a )n)u) o& 3 y#a$" o& )#ann!&u* #9p#$#nc# n any a$#a" o& pu,*c p$actc# nc*u'n! ta9aton. It ;** ,# %a*' &o$ 3 y#a$"/ $#n#;a,*# #%#$y 3 y#a$" upon pay)#nt o& $#(u$#' &##". 18. Mana!#)#nt a'%"o$y "#$%c#"- ,u"n#"" con'uct an' op#$aton" 1:. Cont$o**#$ " t+# +!+#"t accountn! o&&c#$  1<. Accountn! " #""#nta**y con"t$uct%# n natu$# =. Au'to$ #9a)n#" FS to a"c#$tan ;+#t+#$ t+#y a$# n con&o$)ty ;t+ GAA. 1. GAA " a "oca* p$oc#"". . @#%#*op)#nt o& GAA " &o$)a*0#' nta**y t+$ou!+ t+# c$#aton o& ASC. T+# accountn! "tan'a$'"  p$o)u*!at#' ,y t+# ASC con"ttut# con"ttut# t+# GAA. 3. SFAS " no; kno;n a" AS AS an' FRS 5. Accountn! "tan'a$'"-p$op#$ accountn! p$actc#. It c$#at#" co))on un'#$"tan'n!. 6. FRSC $#p*ac#" ASC 7. FRSC " t+# accountn! "tan'a$' "#ttn! ,o'y c$#at#' ,y RC upon $#co))#n'aton o& ?OA to a"""t t+# ?OA n ca$$yn! ca$$yn! out t" po;#$" an' &uncton" p$o%'#' un'#$ RA <<:. Man &uncton " to #",a*"+ an' )p$o%# accountn! "tan'a$'" t+at ;** ,# !#n#$a**y acc#p t#' n t+# +*. 8. FRSC " co)po"#' o& 16 )#),#$" ;t+ a c+a$)an ;+o +a' ,##n o$ " p$#"#nt*y a "#no$ accountn!  p$actton#$.  )#),#$" &$o) u,*c p$actc#/ co))#$c# an' n'u"t$y/ n'u"t$y/ aca'#)#/ !o%#$n)#nt. :. T+# count#$pa$t o& IC " t+# IFRIC n U  <. IASC- )p$o%#)#nt/ +a$)on0aton an' ;o$*';'# acc#ptanc# an' o,"#$%anc# o& accountn! "tan'a$'" 3=. IAS? $#p*ac#" IASC. It " a global a global phenomenon nt#n'#' phenomenon nt#n'#' to ,$n! a,out !$#at t$an"pa$#ncy an' a +!+#$ '#!$## o& co)pa$a,*ty n &nanca* $#po$tn!B on# un&o$) an' !*o,a**y acc#pt#' &nanca* $#po$tn! "tan'a$' 31. Accountn! a""u)pton"- "#$%# a" t+# &oun'aton o$ ,#'$ock o& accountn! to a%o' )"un'#$"tan'n!. no;n a" po"tu*at#". 3. Accountn!&"ca* p#$o'- 1)ont+" 33. F"ca* p#$o' cou*' #t+#$ ,# ca*#n'a$ o$ natu$a*. I& ca*#n'a$/ #n'" on '#c. 31. & natu$a*/ #n'" on any an y )ont+ ;+#n t+# ,u"n#"" " at t+# *o;#"t o$ #9p#$#ncn! "*ack "#a"on. 35. Mon#ta$y Unt +a"  a"p#ct"/ (uant&a,*ty an' "ta,*ty o& p#"ocu$$#nt $#p*ac#)#nt co"t " !no$#'2. So)#t)#"/ t " not n#c#""a$*y %a*' t+at p#"o " "ta,*# "nc# t+#$# )ay ,# n"tanc#" ;+#$#n t+#$# " a