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
What is the implication of applying accounting concepts wrongly


Q. What do you mean by note? A note is an unqualified written promise to pay another party the amount owed either when demanded or at a certain specified date habitually with i

Payroll implies with paying your employees (having seeing that the government gets the monies they require you to withhold from the employees and the payroll taxes they needs you t

Q. Define Current assets? Current assets are cash and other assets that a business is able to convert to cash or uses up in a relatively short period one year or one operating

WHAT IS THE MEANING OF INVENTORY TURNOVER

BRS - Bank Reconciliation Statement A bank reconciliation statement is a declaration organized by organizations to reconcile the balance of cash at bank in a company's own rec

WHO PREPARES A TRADING ACCOUNT AND WHY?

On 11/1/05 the Scranton Electric Company issued a check in the amount of $36,000 to the Fly By Night Insurance Company. The amount represented the total premiums on a liability ins

Your report must include at a minimum the following items. 1. Calculate the following ratios based on the 2011 financial statement: * Current ratio * Quick ratio * Total asset