ACTG 3110 : ACTG 3110 notes
2 Feb 2012
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Document Summary
Public enterprise: has securities issues to the public or is in the process of issuing them. Control block: group of voting shares that gives control to a small group of shareholders. Private enterprise: does not issues securities to the public. Facts: public/private, type of business, legal or economic environment. User needs: cash flow assessment and prediction, contract compliance, performance evaluation, special entity-specific needs, Preparer motivations: income tax deferral, earnings mgmt (big bath to maximize loss to maximize earnings in the long run), contract compliance, minimum compliance. Time period: meaningful information for the given time period. Proprietary approach: should be reported from the view of the owners. Historical cost: cost at which it was initially purchased. Fair value: current measurement of what an asset or liability is worth at the reporting date. Entry or exit value (cost to replace or cost to sell) Recognition: it is recognized if it is reported on the f/s.
