¶ … Alleg Balance Sheet Current assets:

Cash

$13,000

Market Securities

$17,000

Account receivable

$26,000

Inventories

$30,000

Total Current assets

$86,000

Plan and equipment:

Land and buildings

$57,000

Machinery

$125,000

$182,000

Less Accumulated depreciation

Total Plant Equipment

$61,000

$121,000

Intangibles:

Goodwill

$8,000

Patents

$10,000

$18,000

Other Assets

$50,000

Total Assets

$275,000

LIABILTIES AND STOCKHOLDERS EQUITY

Current liabilities

Accounts payable

$15,000

Current maturities of long-term debt

$11,000

Total Current Liabilities

$26,000

Long-Term Liabilities

Mortgages payable

$80,000

Bonds payable

$70,000

Deferred Income Taxes

$18,000

Total long-term liabilities

$168,000

Stockholders' equity:

common stock no par value

21000 shares authorized at $1 par valu,

10000 shares issues

$10,000

Additional paid in capital

$38,000

Retained Earnings

$33,000

Total Stockholder's equity

$81,000

Total Liabilities and Stockholders equity

$275,000

Case 3-8

a. Special Note

1. This was prepared using the Financial Reporting Standards or IFRS.

2. This was not reconciled with the U.S. Or the U.S. GAAP.

3. The statements comply with HKFRS and the standards are not identical.

b. Audit Report

1. Two years of 2007 and 2008.

2. IFRS standards were used.

3. The internal group maintained effective control.

4. Ultimately the responsibility falls on the Group's leadership branch to maintain legal and fair reporting standards.

5. The auditing standards used were applicable in this case.

6. Internal controls are merely tools of greater strategic objectives, their success is dependent upon their purpose and application.

c. Consolidated Balance Sheet

1. It is necessary to create some shared ideas of standards and the report was being presented to the SEC which uses different standards.

2. The assets presentation is a standard IFRS presentation with an emphasis on non-current assets.

3. The equity portion is presented before the liabilities section making it similar to the IFRS.

4. Liabilities are presented in succinct and appropriate format.

Problem 4-4

Taperline Corporation Income Statement

For Year ending Dec 31, 2010.

Revenues

Sales

$670,000

Rental Income

$3,600

Gain on the sale of fixed assets

$3,000

Total revenues

This presentation is a simple step income statement due to the fact that all data is combined on one sheet.
b. Yes

c. If a subsidiary were not consolidated but accounted for using the equity method, this would increase the net earnings due to the profitability of the subsidiaries.

d. Equity in loss from unconsolidated entities is the amount of loss based on the net losses of the unconsolidated affiliate.

e. Note 1 suggests that due to write offs there should be a better after tax profitability component.

f. Taking impairment for goodwill under financial services is not a good idea because this should be reserved for writing off worthless goodwill. Unless there are financial services that are worthless this is not advised.

Essay

The purpose of this essay is to explore the accounting standards that are practiced within the United States. Specifically this writing will address the issue of where the U.S. stands in relation to the International Financial Reporting Standards (IFRS) in today's economic climate. This essay will also address the Generally Accepted Accounting Principles (GAAP) and how it compares to the IFRS standards. Before concluding, a comparison will be offered that highlights the advantages and disadvantages of companies operating in the U.S. To adhering to IFRS standards.

The U.S. Relation with the IFRS

Economic and financial principles are difficult to standardize and even more difficult to properly understand within the context of complex and entangling financial regulations. The International Financial Reporting Standards (IFRS) is a global attempt at regulating the accounting profession and providing some sort of guidance for business practices to model in order to create a universal code or language to conduct commerce.

The United States, a very powerful and independent nation in many ways, has held out from complying with the IFRS standards for many years despite pressure from other countries and organizations. The current trend is seen as not likely that the U.S. will adopt these standards. Bramwell (2014) explained "the prospect of International Financial Reporting Standards (IFRS) being fully adopted in the United States in the near future are growing less likely, as the Financial Accounting Standards Board (FASB) and the International Accounting Standards Board (IASB)…