Generally accepted accounting principles, Accounting Basics

Some companies announce pro forma earnings and then disclose real earnings measured under US Generally Accepted Accounting Principles (GAAP) in their quarterly financial reports.

 Required:

1. What do you mean by the term pro forma earnings in this context? How do they relate to the concept of earnings quality?

2. Go to EDGAR and download the most recent 10-Q (quarterly report) to see if your company has a pro forma earnings announcement. If so, reconcile it to GAAP earnings.

3. Using 2009 data, what is the company's approximate income tax rate? What is the percentage of net income relative to revenue dollars?

Some company have haves unrealized gains and losses on certain investments in securities, foreign currency items, and certain pension liability adjustments, producing what is known as comprehensive income.

Required:

4. What is comprehensive income? How does it vary from net income? Where is it reported?

5. Access the FASB website. Justify the specific citation from the authoritative literature that explains the 3 alternative formats for reporting comprehensive income.

 

Posted Date: 3/19/2013 6:35:28 AM | Location : United States







Related Discussions:- Generally accepted accounting principles, Assignment Help, Ask Question on Generally accepted accounting principles, Get Answer, Expert's Help, Generally accepted accounting principles Discussions

Write discussion on Generally accepted accounting principles
Your posts are moderated
Related Questions
A $9,000 loan to be repaid in full at the end of five years. Interest on the loan is payable quarterly. The interest rate is 8% compounded quarterly. What is the present value

Q. Uses of journal in accounting? Organizing journal entries in a computerized system is different than in a manual system. The computer usually asks for the number of the acco

Q. What are Accounting software packages? Accounting software packages are normally menu driven and organized into modules such as accounts payable, general ledger, accounts re

Explain in detail about the MERCHANDISE INVENTORY Cost of merchandise purchased during an accounting period is debited to Purchases account. To determine VALUE of the goods on

Jane and Walt form Orange Corporation. Jane transfers equipment worth $475,000 (basis of $100,000) and cash of $25,000 to Orange Corporation for 50% of its stock. Walt transfers

Sucked into a wormhole while spending time in outer space, you land in a perfect world where accountants are worshipped and paid extravagantly. As an accountant, you're immediately

Antidilution of Ownership The right of an investor is to continue the same percentage ownership of an organizations main stock in the event that the organization issues more s

International Capital Budgeting Question 1. How does international capital budgeting differ from domestic capital budgeting? Many firms, when assessing international proj

Q. Example on gross margin method? To demonstrate the gross margin method of computing inventory assumes that for several Years Field Company has maintained a 30 per cent gross

how to develop a course project having to do with writing notes for a fictitious annual report