The FASB requires a reconciliation between the effective tax rate and the federal government’s statutory rate. Of what benefit is such a disclosure requirement?
The FASB improves customers' awareness of diverse perspectives by making disclosures.
The Financial Accounting Standards Board or FASB is an organization created within the private sector to establish and improve financial accounting standards. The experts that set accounting rules and standards are actually regulated by the SEC, but this has generally alone allowed the FASB to create its own claims guidelines.
The advantage of reconciling the compelling tax rate and the federal statutory rate is that a speculator can decide the actual fee paid by the undertaking. Such assurance is particularly necessary if there are significant variations in the effective charge rate due to unusual or rare exchanges of the undertaking.
In some cases, companies, as paid because of a favorable term, assess treatment that is not affordable. Such information should be surprisingly valuable to the monetary statement reader.
Under IFRS, share dividends declared after the statement of financial position date but before the end of the subsequent events period are:
a) accounted for similar to errors as a prior period adjustment.
b) adjusted subsequent events, because they are paid from prior year earnings.
c) not adjusted in the current year’s financial statements.
d) recognized on a prospective basis from the date of declaration
Morlan Corporation is preparing its December 31, 2017, financial statements. Two events that occurred between December 31, 2017, and March 10, 2018, when the statements were authorized for issue, are described below.
What effect do these subsequent events have on 2017 net income?
The following comment appeared in the financial press: “Inadequate financial disclosure, particularly with respect to how management views the future and its role in the marketplace, has always been a stone in the shoe. After all, if you don’t know how a company views the future, how can you judge the worth of its corporate strategy?” What are some arguments for reporting earnings forecasts?
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