Shenneil Laing

Assignment # 1

1. GAAP refers to the standard framework of guideline for financial accounting used in any
given jurisdiction. This generally includes accounting standards, accounting conventions, and
rules and regulations that accountants must follow in the in the preparation of the financial
statements.

2.
 Dominica Branch
 St. Lucia Branch
 Grenada Branch
 Antigua / Barbuda Branch
 Institute of Chartered Accountants of Barbados

3.
 The IASB sets up a steering committee
 The steering committee identifies issues.
 The steering committee studies national and regional requirements and practice in
relation to the issues.
 The steering committee prepares and presents a Point Outline to IASB.
 The Point Outline is converted to an Exposure Draft and sent out to member
organizations for discussion / feedback.

4. The main difference between accrual and cash basis accounting is the timing of when
revenue and expenses are recorded and recognized. Cash basis method is more immediate in
recognizing revenue and expenses, while the accrual basis method of accounting focuses on
anticipated revenue and expenses.

5.
 Customers - These outsiders have an interest in information about the continuance of
an enterprise, especially when they have a long-term involvement with or dependent
on the enterprise.
 Investors - Investors being the providers of capital are concerned with the risk and
return provided by their investments.
 Trade creditors - Trade creditors are interested in information which enables them to
determine whether amounts owing to them will be paid when due.
 Lenders - Lenders are interested in information which enables them to determine
creditworthiness of the company

6. The International Accounting Standards Board (IASB) is standard setting body of IASC
and independently run private sector organization.

7.
 Makes it simple for SMEs to comply with the requirements of one standard than
adhering to the full set of IASs and many national GAAPs requirements.
  Reduces the cost associated with meeting the requirements of the full set of standards
that adhering to the full set of IFRSs and SMEs
 Simply meets the needs and capabilities of SMEs.
8.
 Identify Transactions
 Record Transactions in Journal
 Post Journal to Ledger
 Prepare Trial Balances
 Record Adjusting Entries
 Prepare Adjusted Trial Balance
 Prepare Financial Statements
 Post-closing Entries

AM SORRY FOR THE LATE POSTING IS BECAUSE AM NEW.