Essays on Accounting Principle

Accounting Standard followed by the company:

i) General Mills Inc:

General Mills Inc, for the purpose of its financial reporting, follows Generally Accepted Accounting Principle(GAAP).

ii) Meiji Holdings: The company, for the purpose of the financial reporting and also for its subsidiaries, follows Generally Accepted Accounting Principle(GAAP). The company declares that the accounting standards are different from International Financial Reporting Standard(IFRS).

Accounting Standard followed by the auditors:

i)General Mills Inc: The financial statements of the company are audited by KPMG LLP, which are the external auditors of the company. The external auditors have used standards of Public Company Accounting Oversight Board(United States). The standards obligates the auditors to ensure that all the financial statements of the company are free from any material ...

Accounting Standard followed by the company

i) General Mills Inc:

Referring to Note 1 of the financial statement, we notice that General Mills Inc follows Generally Accepted Accounting Principle(GAAP).

ii) Meiji Holdings: Referring to the Note 1 of the consolidated financial statements, we find that Meiji Holdings are following Generally Accepted Accounting Principle(GAAP) in Japan. In addition, the company specifically declares that the consolidated financial statements of the company are not prepared in accordance with GAAP standards prevalent in countries or jurisdictions other than Japan.

Accounting Standard followed by the auditors

i)General Mills Inc: Referring to the report of external auditors, we find that the consolidated financial statements of the company have been audited by KPMG LLP using standards of Public Company Accounting Oversight Board(United States). The ...

Reconciliation Income Statement

For the year ended 31 Dec 2011 . Profit as per GAAP $1,000,000 Add Inventory (realizable) 190,000 Deducted impairment loss 6,000 Gain from sale and lease back 150,000 Total income 1,346,000 Deduct Inventory (historical) (152,000) Impairment loss (5,000) Net Income (IFRS) 1,189,000

Reconciliation Statement of Stockholder’s Equity

For the year ended 31 Dec 2011 .

Stockholder’s equity as per GAAP $8,000,000

Add

Revaluation gain 720,000

Intangible assets fair value adjustment 1,000 Total 8,721,000 Deduct

Development cost capitalization adjustment (120,000)

Stockholder’s equity as per IFRS 8,601,000 Notes The addition of ...

Generally accepted accounting principles

Health care financial management like that of other industries follows a set of generally accepted accounting principles (GAAP) regardless of whether it is for a profit or non-profit making organization. Health care organizations generate their revenues from delivering services and from the sale of drugs and medical supplies. Expenses in health care organizations normally include but are not limited to the costs related to labor and the purchase of drugs and medical supplies (Hankins & Baker, pp.412-413). These transactions have to be recorded according to the concepts of GAAP. The aim of this essay is therefore is to discuss the following generally ...