Got a tricky question? Receive an answer from students like you! Try us!

Events after the Balance Sheet Date. SFAS 165 - Coursework Example

Only on StudentShare
Undergraduate
Author : arnemraz
Coursework
Finance & Accounting
Pages 8 (2008 words)

Summary

SFAS 165, “Subsequent Events” have eased out this problem of the company to a greater extent as it provides a detailed and comprehensive framework for the objective, scope, recognition and disclosure of the subsequent events (Financial Accounting Standard Board, 2009). …

Extract of sample
Events after the Balance Sheet Date. SFAS 165

This standard has also provided some examples of such events which should be or should not be recognized and reported in the financial statements. This article examines objective of SFAS 165 in a detailed manner such that the important paragraphs of the Statement are directly reproduced from the Statement so that actual wordings of the Statements regarding the important points of the Statement can be presented in their intended meaning.
This article is structured in such a manner that the first section highlights the overview of this Statement followed by the section which focuses upon the objectives of this Statement. Next section emphasizes the recognition criteria of this statement along with some of the examples taken directly from the Statement which highlight both types of events, the one which should be recognized as well as the other ones which should not be. The subsequent section outlines the comparison of SFAS 165 of GAAP with IAS 10 of IFRS. After that an example from Thomson One Banker database is reported in this article followed by discussion on that example. Conclusion is the last part of this article which leads to the end of this article.
Overview of SFAS 165
Statement of Financial Accounting Standards 165 (SFAS 165) discusses the events after the balance sheet date. Those events are also referred to as subsequent events. ...
Download paper
Not exactly what you need?

Related Essays

Balance sheet
Balance sheets are generally prepared by a company at the end of its financial year. The balance sheets are presented in either horizontal or in vertical form. All the items present in the balance sheet of a company are discussed in details in this study. The dual aspect of balance sheet and the application of balance sheet have also been mentioned in this study. The users of balance sheets include the company managers to help them in analysing the financial conditions of the company, the investors and shareholders to help them in their decision making process regarding investment in the…
10 pages (2510 words)
Valuation Under SFAS 141R
Any goodwill forthcoming from the merger or acquisition is examined and appraised under SFAR 142, in regards to its fair value. The whole context was aimed at adding more items to what constitutes a business when the acquisition or a merger is undertaken. The acquisition method is still followed as before, but more items are included here as well as different ways of ascertaining the fair value of assets and liabilities, which are acquired. The SFAR 141 principle of measuring goodwill requires the full goodwill approach reporting by the acquiring firm. This is explained as full measure i.e.…
3 pages (753 words)
Accounting Principles: Events After the Balance Sheet Date
This area of accounting standards is related to events, both favourable and unfavourable, that occur after the financial statements are prepared and are relevant to the contents of the financial statements. This paper examines some key elements of IAS 10. It begins by identifying the background and basis for the Accounting Standard, and goes on to identify its practical application, and in so doing, identifies some key components of Events after Balance Sheet Date. The paper also reports comparative analyses between the IAS and the US Generally Accepted Accounting Practice (GAAP). Background…
7 pages (1757 words)
SFAS 154 - Accounting Changes and Error Corrections
At times, it also happens that a change in the accounting policy or principle affects the consolidated financial statements of the group as well. So, SFAS 154 aims to highlight all of the above discussed issues in details and provide appropriate guidance as how to incorporate the effects of all those changes in the financial statements of the reporting entity. This article is structured in such a manner that first section describes the overview of SFAS 154 which includes the objective of its issuance as well as the scope of this standard. Next section focuses on recognition, measurement and…
8 pages (2008 words)
Personal Budget, Balance Sheet, and Cash Flow Statement
The assets should be equivalent to the liabilities of the individual. Some examples of assets that are included in the balance sheet include the real estate, the checking accounts, savings accounts, cash value of life insurance, vehicles, money market investments and jewelry. Liabilities represent the obligations of the individual such as consumer debts, student loan debts, car loans and outstanding mortgage repayments. Personal cash flow statement will measure the individual cash inflows and outflows in order to determine the net cash flow for a specific period of time. Personal cash inflow…
4 pages (1004 words)
JB HIFI LTD BALANCE SHEET AS AT JUNE 2009
These analysis form an integral part of the financial statement analysis, especially from the investors point of view, who always strive to invest in countries having strengthen and stabilizing financial ratios and representing an upward trend. It is of great significance that the ratios must be benchmarked against a standard in order for them to possess a meaning. Keeping that into account, the comparison is usually conducted between companies portraying same business and financial risks, between industries and between different time periods of the same company. The company under…
8 pages (2008 words)
General Journal Entries, Ledger Accounts, Trial Balance, Income Statement, Statement of Owners Equity and Balance Sheet (Case of Amal Translation)
In simple definition, General journal is a statement where double entry bookkeeping are posted by debiting an accouting followed by a corresponding crediting of another accounting using the same amount (Carl, James and Jonathan, 2008). Both debited and credited amount should be equal to maintain the accounting equation. Based on the available accounting information system, an organization may use specialized journal alongside the generalized journal entries in order to have an effective record keeping system. In this case, the application of a general journal entries can be limited to…
5 pages (1255 words)