ACC 604: Accounting Policies and Reporting Issues

Syllabus

Chapter 1 Accounting Standards
Chapter 2 Financial Statements
Chapter 3 Financial Statement Analysis
Chapter 4 Other Reporting Issues

External Financial Reporting

Users of Financial Statements
Internal Users / External Users
Objective of External Financial Reporting
Investors, Creditors, Employees, Financial Advisers, Stock Exchange, Regulatory Agencies

Development of Accounting Standards

SEC, AICPA, CAP, CPA, FASB, APB, IASC, IAS
Securities Exchange Commission
American Institute of Accountants
Committee on Accounting Procedures
Accounting principles board
Certified Public Accountant
Financial Accounting Standards Board
International Accounting Standards Committee
International Accounting Standards (Total 41 Standards)

Annual Report

SEC and its regulations
MD & A (Management’s discussion and analysis)
Standardized consolidated financial statements
Management Report
Social Responsibility Report
Auditors Report
Audit Committee

SEC and its Reporting Standards

US GAAP

According to the AICPA , GAAP are the ‘’conventions , rules and procedures necessary to define accepted accounting practice at a particular time.’’

Selected Disclosures in Financial Statements

Disclosure of Accounting Policies
Interim Financial Reporting
Disclosure of Long Term Obligations
Related Party Disclosures

Reporting Issues for Multinational Companies

A US Corporation that operates a business through a foreign branch or division must report the income from that foreign operation on the company’s US income tax return. This foreign income will be taxed the same way as domestic income.
A foreign subsidiary’s income will not be taxed to the US parent until it is distributed as a dividend to the parent.
All US companies doing business in foreign countries will be taxed by the foreign countries on their foreign income
Foreign Currency Translation