Accounting for absolutely everything

Article Abstract:

The Accounting Standards Committee's Technical report (TR) 780 on intangible fixed assets, issued prior to the forthcoming exposure draft on accounting for fixed assets, serves to perpetuate already extant conservative accounting principles for intangibles. Accounting for intangible fixed assets requires a completely new approach, and the related accounting methodology should cover all aspects of company operations referred to as internally created goodwill. The sensible way to account for intangibles is to predicate it upon their value to the business along the lines set up in Statement of Standard Accounting Practice 19, Accounting for Investment Properties. The method used in TR 780 leads to intangibles being omitted or calculated at a fraction of their values. Its recommendation that intangibles be limited to an economic life of 40 years for the purposes of amortization is wrong in that there should be no limits to the economic life.

Reports, Accounting Standards Committee

---

FRS 2: Accounting for subsidiary undertakings, July 1992

Article Abstract:

Financial Reporting Standard Number Two (FRS) contains the requirements for parent companies of subsidiaries in preparing their consolidated financial statements. The consolidated finanicial statements are to serve as a source of financial information about the economic activities of a parent company and its subsidiaries as a single economic entity. Several important issues pertaining to FRS, which is entitled 'Accounting for Subsidiary Undertakings,' are discussed. These include the history of the FRS, its objective, definitions of terms associated with the standard, the FRS' statement of standard accounting practice, the FRS in relation to international accounting standards, and some legal requirements relating to subsidiary undertakings.

Subsidiary corporations, Subsidiaries, Holding companies

---

The case for visible conformity

Article Abstract:

Although British corporations' annual reports generally comply with the standards established by the Institute of Chartered Accountants in England and Wales and with those of the International Accounting Standards Committee (IASC), their annual reports seldom note such compliance. In the interest of satisfying the curiosity of foreign investors and to encourage the adoption of IASC standards by more countries, British companies should note the standards followed in their annual reports. British companies argue that they should not have to note such compliance until U.S. corporations begin doing so, since the "generally accepted accounting principles" of the U.S. comply with IASC standards as well.

Auditing, International Accounting Standards Board, Financial statements, Corporation reports, Company reports

Similar abstracts:

• Abstracts: Accounting and theories of organizations: some preliminary considerations. An examination of managerial accounting practices as a process of mutual adjustment
• Abstracts: The implications of equity issuance decisions within a parent-subsidiary governance structure. Corporate sale-and-leasebacks and shareholder wealth
• Abstracts: Last filing for tax year changes excused for preparers' errors. AMT increases advantages of cross-purchase arrangements over redemption agreements
• Abstracts: A package with more than just word processing. On test: practica vitesse
• Abstracts: The LIFO/FIFO choice: an asymmetric information approach. LIFO liquidations. The Incremental information content of financial statement disclosures: the case of LIFO inventory liquidations

This website is not affiliated with document authors or copyright owners. This page is provided for informational purposes only. Unintentional errors are possible.