ACC 113 Lecture Notes - Lecture 12: Historical Cost, Intellectual Capital, Tunxis Community College
6 Jan 2021
School
Department
Course
Professor
Document Summary
Professional judgement the process of making or recommending choices in accounting regarding cost and the timing of expense recognition. Canadian gaap leaves a lot more to judgement than us does. Accountants should look to exercise judgement in a way which is fair to all their stakeholders; take into account concepts like: The f/s users and their specific needs. Nature of organization"s operations (ownership, financing, operating or earnings cycle) The organization"s reporting constraints (audit requirements, parent company) Situation-appropriate measurement policies are chosen within the framework of the qualitative criteria, but only after making sure that the underlying assumptions are valid. Foundation of gaap for for-profit enterprises: universal assumptions essential to all f/r. Unit of measure: the results of enterprise"s operations can be measured meaningfully in monetary terms. Proprietary approach: the results of operations for a profit-oriented enterprise"s operations should be reported from the viewpoint of it"s owners: all outsiders are paid off and the owners keep the residual wealth.
