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CPA is a professional certification course that enables a person to work as an accountant in India as well as other foreign nations. The American Institute of Certified Public Accountants has jurisdiction over it (AICPA).$10.99
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CPA is a professional certification course that enables a person to work as an accountant in India as well as other foreign nations. The American Institute of Certified Public Accountants has jurisdiction over it (AICPA).
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Course
CPA
Institution
CPA
The test’s actual title is the Uniform Certified Public Accountant Examination, and it’s developed and scored by the American Institute of Certified Public Accountants (AICPA). But more importantly: the CPA test is necessary to achieve licensure in all 50 states and other U.S. jurisdictions.
include government bonds – both US Treasury and municipal bonds
corporate bonds, preferred stock, convertible bonds,
also include collateralized securities – eg – collateralized debt obligations,
commercial paper
EQUITY SECURITIES
instruments that signify ownership interests in company assets and profits
eg – common stock, preferred stock, and other capital stock
company may also hold derivatives such as warrants or call options
TRADING SECURITIES
entity is holding the securities but will sell the securities quickly
usually recorded as a current asset
recorded at fair value – eg – mark to market
unrealized and realized gains and losses are recorded as income
AVAILABLE-FOR-SALE-SECURITIES
entity will hold the securities and will sell when cash is required
recorded as current asset or non-current asset on balance sheet
recorded at fair value – eg – mark to market
changes in fair value are not recorded as income
HELD-TO-MATURITY SECURITIES
purchased with the intent to hold the securities to maturity
recorded as current asset or non-current asset on balance sheet
recorded at amortized cost
unrealized gains and losses are not included in earnings
, realized gains and losses do not exist if securities held to maturity
CHAPTER 12: IFRS
International Financial Reporting Standards (IFRS) are guidelines and rules set by
the International Accounting Standards Board (IASB)
Big difference between US GAAP and IFRS is that US GAAP employs a rules based
approach, as the standards are usually explicit as to precise rules that must be
followed for recognition, measurement, and financial statement presentation
IFRS is considered a principle based approach, as it attempts to set general
principles for recognition, measurement and reporting, and allows professional
judgment in applying these principles.
IASB FRAMEWORK
The Framework sets forth 4 principal qualitative characteristics of financial statements:
Relevance
Information must be useful to the user in making the decision (capable of influencing
the users decision)
Some of the attributes of relevance include:
Predictive value – historical info can be used to help predict the future
Confirmatory value – use the info to confirm to prior expectations and to assess
managements performance
Reliability
Information is reliable and free from material error and bias if it has the following
characteristics:
Neutrality – free of bias
Faithful representation – info should faithfully represent the economic events and
transactions in the statements
Substance over form – accounting should reflect the substance of a transaction and
look beyond its legal form
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