Semester "FALL 2010"
"Financial Statement analysis(FIN621)"
This is to inform that next Graded Discussion Board (GDB) will be opened according to the following schedule
Schedule:
Opening Date and Time
November 22, 2010 At 12:01 A.M. (Mid-Night)
Closing Date and Time
November 24, 2010 At 11:59 P.M. (Mid-Night)
Topic/Area for Discussion
" Accounting Principles and its Application in Financial Statements "
Note: The discussion question will be from the area/topic mentioned above. So start learning about the topic now.
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"Suppose you are working as an accountant and the president of your firm Mr. Ali has a little back ground of accounting. This morning, he approached you and said:
"Last year we purchased a piece of land for Rs. 200,000. During this, the inflation has driven prices up by 12 %, and an expert has also just told me that we can sell this land for Rs. 300,000 whereas our balance sheet still shows the land at Rs. 200,000. It should be valued at Rs. 300,000 or at least at Rs. 224,000 (after the effect of 12% inflation)".
Identify accounting principle(s) (GAAP) applicable to this situation which negates Mr. Ali's Claim. "
"Last year we purchased a piece of land for Rs. 200,000. During this, the inflation has driven prices up by 12 %, and an expert has also just told me that we can sell this land for Rs. 300,000 whereas our balance sheet still shows the land at Rs. 200,000. It should be valued at Rs. 300,000 or at least at Rs. 224,000 (after the effect of 12% inflation)".
Identify accounting principle(s) (GAAP) applicable to this situation which negates Mr. Ali's Claim. "
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