The profit GAAP
Article Abstract:
Business profits are the bases for the computation of companies' income taxes under Canada's Income Tax Act. However, financial statements may be manipulated to show more profits or less profits, depending on what a company needs. In general, private or closely held public companies prefer to declare less profits and pay less taxes, while widely held public companies prefer to show higher profits even if it means paying more taxes. Three cases involving the use of generally accepted accounting principles to manipulate profits in financial statements are discussed.
Publication Name: CA Magazine
Subject: Business
ISSN: 0317-6878
Year: 1995
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Perched on the leading edge
Article Abstract:
A new legislation has made it imperative for Canadian companies to institute changes in their financial reporting. The revised environmental legislation and accounting standards could benefit mankind but it puts Canadian companies a step behind their competitors. Canada may have fulfilled its moral and social obligation by becoming more environment friendly but the costs and liabilities it will incur to Canadian firms will not be experienced by their competitors. Thus, there may be a need to reconsider the recent changes in environmental accounting.
Publication Name: CA Magazine
Subject: Business
ISSN: 0317-6878
Year: 1993
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Who sets the standard? What happens when a court decides to put a whole profession on trial?
Article Abstract:
Adhering to prevailing practices in a given profession does not insulate one from being prosecuted for negligence. This is the essence of the Supreme Court of Canada's ruling on a case where it found a chartered accountant professionally liable in following common accounting practices. This means individual chartered accountants should ascertain that their decisions are reasonable and not just consistent with accepted practices.
Publication Name: CA Magazine
Subject: Business
ISSN: 0317-6878
Year: 1992
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