What does Accounting Standard 1,3,11&29 Says Pls Explain?

Question

What does Accounting Standard 1,3,11&29 Says Pls Explain?

Answer 1

Statement No. 1

Disclosure of Foreign Currency Translation Information

Summary

This Statement requires companies to disclose

   1. information about which accounts are translated at current rates and which are historical rates and

   2. their method of accounting for exchange adjustments, i.e., whether those gains and losses are recognized in income in the period in which exchange rates changed or whether they are deferred for later recognition. Disclosures about total amounts of gains and losses either recognized currently or deferred also are required.

Statement No. 3

Reporting Accounting Changes in Interim Financial Statements--an amendment of APB Opinion No. 28 (Issued 12/74)

Summary

This Statement amends APB Opinion No. 28, Interim Financial Reporting with respect to two aspects of reporting accounting changes in interim financial reports. This Statement specifies that certain changes in accounting principles-termed "cumulative effect type" accounting changes-made in other than the first interim period of the year will result in the restatement of financial information for the earlier interim periods of that year. It also requires certain financial statement disclosures for situations in which a company changes to the Last-In, First-Out (LIFO) method of inventory pricing but is unable to determine the cumulative effect of that change.

  

Statement No. 11

Accounting for Contingencies: Transition Method--an amendment of FASB Statement No. 5 (Issued 12/75)

Summary

This Statement amended paragraph 20 of FASB Statement No. 5, Accounting for Contingencies, to require that a company restate its financial statements for as many preceding periods as was practicable to conform to the provisions of Statement 5. The effect on income of applying Statement 5 in a period in which a cumulative effect was included in determining net income was required is to be disclosed for that period, and the reason for not restating all prior periods presented had to be explained.

Statement No. 29

Determining Contingent Rentals--an amendment of FASB Statement No. 13 (Issued 6/79)

Summary

The Board has been asked to reconsider the definition of contingent rentals in FASB Statement No. 13, "Accounting for Leases," because differing views about the meaning of that definition result in similar leases being accounted for differently, for example, as a capital lease by one lessee and as an operating lease by another lessee. This Statement defines contingent rentals as the increases or decreases in lease payments that result from changes occurring subsequent to the inception of the lease in the factors on which lease payments are based. Lease payments that depend on a factor that exists and is measurable at the inception of the lease, such as the prime interest rate, would be included in minimum lease payments based on the factor at the inception of the lease. Lease payments that depend on a factor that does not exist or is not measurable at the inception of the lease, such as future sales volume, would be contingent rentals in their entirety and, accordingly, would be excluded from minimum lease payments and included in the determination of income as they accrue.