ACCTG 102 Midterm: Accounting 102 exam

• School: University of Auckland
• Department: Accounting
• Course: ACCTG 102
• Professor: Idd

Document Summary

Nz law : financial reporting act of 2013. Cover for profit and not for profit , focus on for profits entity. 1. 2. 1. (two primary accounting standard are iasb and fasb -financial accounting standards boards) Iasb determined the international financial reporting standards(ifrs) which is followed by more than 130 countries. Most companies in us is following the gaap which is determined by fasb. Standard issued if 9 of 14 members approve. Under fra,only private sector,for profit entities that are publicly accountable or large must follow gaap. -----publicly accountable(means accountable to public and issues shares to public) Tier 1 : full ifrs ; know as the gold standard ( if entity is accountable must follow,if the entity is large enough can choose follow ) Tier 2 : reduced disclosure ifrs ( not accountable ,but large enough) Second level = qualitative characteristics of accounting information; and definitions and recognition criteria for financial statement elements. Third level = underlying assumptions and measurement concepts.