The disclosure of subsequent events and their effect in the financial statements PDF Download

Author: Israel Schupper
Publisher:
ISBN:
Category : Business
Languages : en
Pages :

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Author: Hortense Goodman
Publisher:
ISBN:
Category : Accounting
Languages : en
Pages : 96

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Author: International Accounting Standards Board
Publisher:
ISBN:
Category : Business & Economics
Languages : en
Pages : 104

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Author: Melvin M. Pechon
Publisher:
ISBN:
Category : Auditing
Languages : en
Pages : 162

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Author: William Baker Flowers
Publisher:
ISBN:
Category : Disclosure in accounting
Languages : en
Pages : 132

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Author: Jeremy Michels
Publisher:
ISBN:
Category :
Languages : en
Pages : 55

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Standard setters explicitly state that disclosure should not substitute for recognition in financial reports. Consistent with this directive, prior research shows that investors find recognized values more pertinent than disclosed values. However, it remains unclear whether reporting items are recognized because they are more relevant for investing decisions, or whether requiring recognition itself prompts differing behavior on the part of firms and investors. Using the setting of subsequent events, I identify the differential effect of requiring disclosure versus recognition in a setting where the accounting treatment of an item is exogenously determined. For comparable events, I find a stronger initial market response for firms required to recognize relative to firms that must disclose, although the large magnitude of the identified effect calls into question whether this difference can be attributed to accounting treatments alone. In examining various reasons for the stronger market response to recognized values, I fail to find support for the hypothesis that this difference is due to differential reliability of disclosed and recognized values. I do find some evidence that investors underreact to disclosed events, consistent with investors incurring higher processing costs when using disclosed information.

Author: Keith Czerney
Publisher:
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Category :
Languages : en
Pages :

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This study examines whether material corporate events that occur during the year-end closing process constrain management's and the auditor's resources and inhibit them from providing high quality financial reports. For a sample of U.S. company financial reports issued during 2000-2013, we identify material corporate events using Type II subsequent event footnote disclosures (i.e., material events that occur in year t+1, but prior to the issuance of the year t financial statements, yet do not affect amounts recognized in year t). We find that Type II subsequent events are associated with lower financial reporting quality as measured by the need to subsequently restate the year t financial statements. The increased restatement likelihood only occurs when managers are resource constrained. Auditors can mitigate the increased restatement risk but only when they allocate more resources to the engagement. Our results underscore the importance of resource management in the financial reporting and audit processes.

Author: Larry Rittenberg
Publisher: Cengage Learning
ISBN: 9780324658040
Category : Business & Economics
Languages : en
Pages : 960

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The auditing environment continues to change in dramatic ways, and new professionals must be prepared for a high standard of responsibility. Prepare your students for these changes by using the new decision-making framework in Rittenberg/Johnstone/Gramling’s AUDITING: A BUSINESS RISK APPROACH, 7th EDITION. With the help of new author Audrey Gramling, AUDITING 7e explains the importance of understanding business risk, internal controls, and the professional judgment processes. The latest edition keeps your students in touch with today’s rapidly changing environment by describing updates in the regulatory environment, such as Section 404 of the Sarbanes-Oxley Act. The authors have also expanded the coverage on the integrated audit. In addition, students will gain valuable experience by using the professional ACL auditing software, packaged with each new text, as they work with fraud cases. AUDITING 7e helps your students understand the risk associated with auditing in a relevant way. Important Notice: Media content referenced within the product description or the product text may not be available in the ebook version.

Author: United States Government Accountability Office
Publisher: Lulu.com
ISBN: 0359536395
Category : Reference
Languages : en
Pages : 234

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Audits provide essential accountability and transparency over government programs. Given the current challenges facing governments and their programs, the oversight provided through auditing is more critical than ever. Government auditing provides the objective analysis and information needed to make the decisions necessary to help create a better future. The professional standards presented in this 2018 revision of Government Auditing Standards (known as the Yellow Book) provide a framework for performing high-quality audit work with competence, integrity, objectivity, and independence to provide accountability and to help improve government operations and services. These standards, commonly referred to as generally accepted government auditing standards (GAGAS), provide the foundation for government auditors to lead by example in the areas of independence, transparency, accountability, and quality through the audit process. This revision contains major changes from, and supersedes, the 2011 revision.

Author: George Georgiades
Publisher: CCH Incorporated
ISBN: 9780808052494
Category :
Languages : en
Pages : 0

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Book Description
The GAAP Financial Statement Disclosures Manual provides a complete, quick, and valuable reference source for financial statement disclosures and key presentation requirements. Specifically, the Manual: - Provides over 750 examples of realistic sample footnote disclosures to assist in the preparation of financial statements for an audit, a review, or a compilation engagement. - Facilitates compliance with U.S. GAAP by integrating, in each chapter, the specific disclosure and key presentation requirements with the sample footnotes. - Provides sample disclosures that are technically sound, understandable, and comprehensive and that cover a variety of scenarios, from the most common to the most unusual. - Incorporates all currently effective accounting standards, including those that cover areas of unusual difficulty, such as revenue recognition, financial instruments, fair value, business combinations, consolidation, income taxes, pensions, leases, accounting changes, and variable interest entities. This Manual is arranged into the following major parts, consistent with the Codification''s structural organization: - Part 1 General Principles (ASC Topics 100s) - Part 2 Presentation (ASC Topics 200s) - Part 3 Assets (ASC Topics 300s) - Part 4 Liabilities (ASC Topics 400s) - Part 5 Equity (ASC Topics 500s) - Part 6 Revenue (ASC Topics 600s) - Part 7 Expenses (ASC Topics 700s) - Part 8 Broad Transactions (ASC Topics 800s) The Manual is designed for ease of use. Accordingly, each chapter is structured as a stand-alone chapter, providing you with all the information you''ll need on a specific topic. The majority of chapters consist of the following parts: 1. Executive Summary. This section provides a clear and concise overview of the specific financial statement topic. 2. Authoritative Accounting Literature. This section provides reference to the relevant FASB ASC Topic. 3. Disclosure and Key Presentation Requirements. This section provides a detailed listing of (a) the disclosure requirements (FASB ASC Section 50) and (b) those key presentation requirements (FASB ASC Section 45) that are relevant to enhance compliance with and better understand the disclosure requirements. This section also provides specific references to the FASB ASC paragraphs that prescribe the specific disclosure or key presentation requirement. Some of the items included in this section do not refer to any specific authoritative literature. Nevertheless, the disclosure or presentation items they address are considered informative for users of the financial statements and usually are disclosed or presented. These disclosures or presentation items are generally accepted by accountants and auditors and, accordingly, are referenced as "Generally accepted practice" in this section. 4. Examples of Financial Statement Disclosures. This section contains specific examples of disclosures that cover different situations, circumstances, assumptions, and so on. Unless specifically indicated, the examples provided assume that the most recent financial statements presented are for the year ended December 31, 20X2. The 2019-2020 GAAP Financial Statement Disclosures Manual is current through FASB Accounting Standards Update No. 2019-03, Not-for-Profit Entities (Topic 958): Updating the Definition of Collections. Material can be located several ways: the Cross-Reference shows the chapter in which a particular pronouncement is discussed; the Index provides a quick page reference. CONTENTS: The GAAP Financial Statement Disclosures Manual includes the following topics: Part 1--General Principles ASC Topic 105: Generally Accepted Accounting Principles Part 2--Presentation ASC Topic 205: Presentation of Financial Statements ASC Topic 210: Balance Sheet ASC Topic 215: Statement of Shareholder Equity ASC Topic 220: Income Statement--Reporting Comprehensive Income ASC Topic 225 (Superseded): Income Statement ASC Topic 230: Statement of Cash Flows ASC Topic 235: Notes to Financial Statements ASC Topic 250: Accounting Changes and Error Corrections ASC Topic 255: Changing Prices ASC Topic 260: Earnings Per Share ASC Topic 270: Interim Reporting ASC Topic 272: Limited Liability Entities ASC Topic 275: Risks and Uncertainties ASC Topic 280: Segment Reporting Part 3--Assets ASC Topic 305 (Superseded): Cash and Cash Equivalents ASC Topic 310: Receivables ASC Topic 320: Investments--Debt and Equity Securities ASC Topic 321: Investments--Equity Securities ASC Topic 323: Investments--Equity Method and Joint Ventures ASC Topic 325: Investments--Other ASC Topic 326: Financial Instruments--Credit Losses ASC Topic 330: Inventory ASC Topic 340: Other Assets and Deferred Costs ASC Topic 350: Intangibles--Goodwill and Other ASC Topic 360: Property, Plant, and Equipment Part 4--Liabilities ASC Topic 405: Liabilities ASC Topic 410: Asset Retirement and Environmental Obligations ASC Topic 420: Exit or Disposal Cost Obligations ASC Topic 430: Deferred Revenue ASC Topic 440: Commitments ASC Topic 450: Contingencies ASC Topic 460: Guarantees ASC Topic 470: Debt ASC Topic 480: Distinguishing Liabilities from Equity Part 5--Equity ASC Topic 505: Equity Part 6--Revenue ASC Topic 605: Revenue Recognition ASC Topic 606: Revenue from Contracts with Customers ASC Topic 610: Other Income Part 7--Expenses ASC Topic 705: Cost of Sales and Services ASC Topic 710: Compensation--General ASC Topic 712: Compensation--Nonretirement Postemployment Benefits ASC Topic 715: Compensation--Retirement Benefits ASC Topic 718: Compensation--Stock Compensation ASC Topic 720: Other Expenses ASC Topic 730: Research and Development ASC Topic 740: Income Taxes Part 8--Broad Transactions ASC Topic 805: Business Combinations ASC Topic 808: Collaborative Arrangements ASC Topic 810: Consolidation ASC Topic 815: Derivatives and Hedging ASC Topic 820: Fair Value Measurement ASC Topic 825: Financial Instruments ASC Topic 830: Foreign Currency Matters ASC Topic 835: Interest ASC Topic 840: Leases ASC Topic 842: Leases ASC Topic 845: Nonmonetary Transactions ASC Topic 850: Related Party Disclosures ASC Topic 852: Reorganizations ASC Topic 853: Service Concession Arrangements ASC Topic 855: Subsequent Events ASC Topic 860: Transfers and Servicing Accounting Resources on the Web Cross-Reference to Pre-Codification Accounting Literature Index ABOUT THE AUTHOR: George Georgiades, CPA, has more than 38 years of experience in public accounting, including seven years as an audit senior manager with a major international accounting firm. He currently has his own firm and consults with CPA firms, public companies, and private companies on technical accounting, auditing, and financial reporting and disclosure issues. He works closely with senior partners in charge of the quality control and accounting and auditing technical functions at several CPA firms. He has served as an engagement quality reviewer on hundreds of audit engagements related to financial statements of both small, closely held companies and large, publicly held enterprises. Also, he has personally conducted more than 75 peer reviews, consulting reviews, and inspections and brings to the Manual extensive hands-on experience in performing independent technical reviews of financial statements. Mr. Georgiades is also the author of the GAAS Practice Manual and the GAAS Update Service and has contributed extensively to several other publications. He is also author of numerous articles, continuing education courses, and periodicals on issues related to audit quality and financial reporting. He is a member of the American Institute of Certified Public Accountants and the California Society of Certified Public Accountants, and served on the California Society of CPAs'' Peer Review Committee.