what are some of the economic consequences of accounting standards?
603374
Various accounting standards have produced far-reaching economic consequences. This was demonstrated by the Financial Accounting Standards Board (FASB) in addressing such issues as restructuring costs, financial instruments and fair value accounting, stock options, and post-employment benefits.
436588
If the price that a firm charges is higher than its average cost of production for that quantity produced, then the firm will earn profits. Conversely, if the price that a firm charges is lower than its average cost of production, the firm will suffer losses.
620777
Involving in accounting practices such as book-and-hold technique to inflate corporate earnings can have the following ethical and legal implications: (1) Depending on the specific situation of the accounting fraud, it results in financial costs, prison time, and other legal punishments to the accountants found guilty.
1122654
['Substantial increases in unemployment.', 'A drop in available credit.', 'Diminishing output and productivity.', 'Consistent negative GDP growth.', 'Bankruptcies.', 'Sovereign debt defaults.', 'Reduced trade and global commerce.', 'Bear market in stocks.']
1449182
Disadvantages. It does not help take a firm decision owing to a lack of standard percentage or ratio regarding the components in the balance sheet and income statement. Such an analysis does not vigilantly follow accounting concepts and conventions. It does not help in measuring the liquidity.
666115
['Growth in Revenue.', 'Net Profit Margin.', 'Gross Profit Margin.', 'Operational Cash Flow.', 'Current Accounts Receivables.', 'Inventory Turnover.', 'EBITDA.']
319834
['Fines. Perhaps the first and most obvious consequence is the possibility of the organisation being fined for non-compliance. ... ', 'Imprisonment. ... ', 'Loss of Reputation. ... ', 'Loss of Current or Potential Staff. ... ', 'Down time and Loss of Productivity.']
141979
Other risks associated with a failure to prepare bank reconciliations on a regular basis include, inaccurate financial and tax reporting, loss of deposited funds from bank errors and various penalties and fees associated with NSF checks or overdrafts.
1417907
International Accounting Standards (IAS) are older accounting standards issued by the International Accounting Standards Board (IASB), an independent international standard-setting body based in London. The IAS were replaced in 2001 by International Financial Reporting Standards (IFRS).
640558
['Subsidiary Entries. ... ', 'Error of Omission. ... ', 'Transposition Errors. ... ', 'Rounding Errors. ... ', 'Errors of Principle. ... ', 'Errors of Reversal. ... ', 'Errors of Commission.']
921373
Inflation will impact both fixed and operating costs. The rate of different operating expenses will change and fixed expenses will vary accordingly.
415669
International Public Sector Accounting Standards (IPSAS) are a set of accounting standards issued by the IPSAS Board for use by public sector entities around the world in the preparation of financial statements.
924603
'" Thus, an accrual method of accounting taxpayer may deduct a fixed liability once economic perfor- mance has occurred. A contingent liability, however, cannot be deducted until it first becomes fixed and determinable, satisfy- ing the all events test, and then economic performance occurs.
1329826
['Size. A standard is an average expected cost and therefore small variations between the actual and the standard are bound to occur. ... ', 'Favourable or adverse. ... ', 'Cost. ... ', 'Past pattern. ... ', 'The budget. ... ', 'Reliability of figures.']
1040043
International Financial Reporting Standards (IFRS) set common rules so that financial statements can be consistent, transparent, and comparable around the world. ... They specify how companies must maintain and report their accounts, defining types of transactions, and other events with financial impact.
1287934
['It is concerned with financial and cost accounting. ... ', 'Decisions taken by the management accountant may or may not be executed by the management.', 'It is very expensive. ... ', 'New rules and regulations are to be framed, hence there is a possibility of opposition from the employees.', 'It is only in the developing stage.']
490260
Benefits of Harmonization consist of comparability of international financial information, conserving time and money, enhancing accounting standards and making better decisions according to consolidated information.