How To Succeed In A College (2)

Financial AccountingAccounting courses are often the bane of a business major’s college career. In case of difference between the provisions of the Tax Code and the rules and regulations implementing the Tax Code, on one hand, and the GAAP and GAAS, on the other hand, the provisions of the Tax Code and the rules and regulations issued implementing the Tax Code shall prevail.” In a separate ruling, the BIR held that Therefore, it is the financial statements which is in conformity with the Tax Code that should be attached in the filing of Income Tax Returns” (BIR Ruling No. M-111-2006).

There may be no better example of the power of accounting than this case in which suppression of a DTL for book purposes (about which some accountants and others have had concerns from the beginning) could end up forcing a corresponding tax law change to exempt foreign earnings from U.S. tax, a result that might not be a possibility if APB 23 had not been adopted or the Opinion had been implemented more rigorously.

From an investor’s perspective, APB 23 would be more internally consistent and prudent if instead of suppressing the DTL and thereby mixing inferior restricted earnings with other types of earnings, the ruling required a special designation of overseas earnings not intended for repatriation with the main financial statements excluding (or footnoting) such earnings.Financial Accounting

The framework of the GAAP is based upon the method followed by CPA firms to prepare, record and present statements of their incomes, expenses, assets and liabilities and the regulations that govern the calculation of the profit/ loss figure for a given period of time which is usually one year (whether the year followed is the financial year or the calendar year depends upon individual firm’s accounting policies).

Government Agencies – would include government instrumentalities like bureaus, Congress, Judiciary, constitutional bodies and self contained institutions, among others, which are required to have an accounting division, which are of equal level with that of other agencies that are tasked to do maintenance of accounts and submit financial statements on a regular basis.

Financial Accounting