A Potential Issue Facing the Convergence Project Is That Many

question 82

True/False

A potential issue facing the convergence project is that many companies have entered into contracts based upon U.S. GAAP financial reporting; many of these contracts will have to be renegotiated using IFRS which potentially could cause some companies more harm than good.

Analyze the importance and application of preemptive rights in different types of corporations.

Determine conditions under which a corporation can purchase, redeem, or otherwise acquire its own shares.

Recognize the rights conferred by ownership of shares in a corporation.

Gain knowledge of the historical context and significance of federal statutes regulating securities.

---

Definitions:

Owner's Equity

The residual interest in the assets of a company after deducting liabilities, representing the owner's claim on the business assets.

Net Income

The total earnings of a company after deducting all expenses and taxes from total revenue.

Drawings

Amounts withdrawn by the owner(s) of a business for personal use.

FASB

The Financial Accounting Standards Board (FASB) is a private organization that establishes financial accounting and reporting standards for companies and nonprofit organizations in the United States.