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It is similar to amalgamation though not exactly the same. In external reconstruction a new company is formed for the purpose of taking over the business of an existing sick company which has incurred huge losses and is facing financial difficulties. Existing company is wound up by selling its business to the newly formed company which is generally similarly named and owned by the same shareholders to a great extent.
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Is employee an external user of accounting information?
External ueser
Examples of external users of accounting information?
external aiditor,shareholder,goverment etc
Internal and external accounting information?
internal = inside business external = outside business
Do ALL companies have to comply with GAAP?
Not all companies are required to comply with Generally Accepted Accounting Principles (GAAP). Publicly traded companies in the United States must follow GAAP as mandated by the Securities and Exchange Commission (SEC). However, private companies have the option to use GAAP or other accounting frameworks, such as the cash basis or tax basis of accounting, depending on their financial reporting needs and regulatory requirements. Additionally, some smaller entities may choose not to adhere to GAAP if they are not seeking external financing or investment.
What companies have been accused of accounting fraud?
Companies that have been accused of accounting fraud include General Electric and Hospital Chain. Both companies were very suspicious, which is the reason why they've been accused of accounting fraud.
How many minimum number of companies involved in external reconstruction?
The minimum number of companies involved in an external reconstruction can vary based on the specific circumstances of the reconstruction. Typically, at least two companies are needed: one that is being reconstructed and another that is acquiring or merging with it. However, additional companies may be involved for legal, financial, or advisory purposes, depending on the complexity of the situation. Therefore, while two is the minimum, the actual number can be higher depending on the context.
Distinguish between internal and external reconstruction of a company?
internal reconstruction no new company is formed in external reconstruction an existing company is dissolved and a new company is formed with the same shareholdders. there will be absence of liquidation expenses in internal reconstruction. liquidation expenses is present in external reconstruction.
How does it benefit external users in accounting principles?
of accounting principles
Is employee an external user of accounting information?
External ueser
Which type of accounting information is intended to satisfy the needs of external users of accounting information?
Financial accounting
What is process of external recontruction?
"External reconstruction" means repairing the outer wall of something.
Internal and External Reporting Requirements?
differentiate between financial Accounting and management accounting
Examples of external users of accounting information?
external aiditor,shareholder,goverment etc
Internal and external accounting information?
internal = inside business external = outside business
Do ALL companies have to comply with GAAP?
Not all companies are required to comply with Generally Accepted Accounting Principles (GAAP). Publicly traded companies in the United States must follow GAAP as mandated by the Securities and Exchange Commission (SEC). However, private companies have the option to use GAAP or other accounting frameworks, such as the cash basis or tax basis of accounting, depending on their financial reporting needs and regulatory requirements. Additionally, some smaller entities may choose not to adhere to GAAP if they are not seeking external financing or investment.
Distinguish between internal and external reconstruction of?
Internal Reconstruction: 1. No new company is formed. The existing company continues as a going concern; 2. The ailing company will not gove ito liquidation under the capital reduction scheme and 3. Involves complying the requirements under the Companies Act. External Reconstruction:- 1. A new company is formed by the existing shareholder of the old company to take over the assets and liabilities; 2. The ailing company goes into liquidation and 3. There is no need to comply with particular clause in the Companies Act. Anonymous regards Bhimireddy
What are some accounting companies locates in Austin Tx?
There are plenty of accounting companies in Austin, Texas. A few of the accounting companies in Austin, Texas include Cooper Graci & Company, McMordie & Company and Padgett Strateman & Company.
