ACCT1501 stupid question (1 Viewer)

[nerdd]

hey all..
just wanted to know in regards to the underlying assumptions of accting, is 'matching' the same as 'materiality'? cause i was reading the textbook and the course resource kit (the textbook doesn't have matching, and the course resource kit doesn't have materiality). Just wondering if there's any relation between them? And why would Robert leave out 'matching' from the CRK? is it not important.. irrelevant... or??

And another qn: can someone please explain what conservatism and venture accounting is? I can't seem to find a direct definition of the latter.. all i have in my lecture notes is stuff about voyages and ships and how they counted assets at the end of each voyage.. but nothing that actaully tells me what it is.

Thanks!

 

[addz]

wasnt materiality about not taking count of the small stuff..

dunno about the other stuff yet lol

 

[nerdd]

yeah then what's matching??

 

[Minai]

Hmm
Matching basically means you have to associate your expenses with revenue from the same accounting period (ie keep things within their respective financial year's for example)

Materiality, as addz said, relates to the significance of the item in the context of the firm/whatever when it comes to recording the DR/CR - whether an item should be expensed or added as an asset. For example, office paper clips arent materialistic, so you wouldnt list paper clips as an asset, it would be an expense

 

[Minai]

Hmm about your second query, never heard of voyaging..
but conservatism basically means accounting conservatively, ie, recording your lowest estimate figures for revenue or assets and highest estimate figures for expenses or liabilities

 

[nerdd]

ahh it's all clearer now.
thanks

 

[shazabdazla]

so matching does not only apply to rev and COGS, but to rev and ALL expenses????

 

[rukawasan]

not too sure... i couldnt find anything outside the lect notes abt venture acct... i think it mite means since a venture involves cooperation btw partners in a venture which ceases when the goal is achieved... (in robert's eg when a voyage to the far east to bring back spices... then profit made upon return and divided among partners... the venture as a legal entity ceases)... so venture acct is presumably acct that takes this into account.... eg. liquidation value of assets once venture ceases...

however... this is purely speculation...

 

[Bambul]

I don't think you need to know anything about venture accounting. It was just an example given, most of the stuff you learn at the start of ACCT1501 is just to get you in the mood and won't be tested.

The only thing close to venture accounting is joint ventures, which is covered in Accounting 2B and is very different to the ship example.

 

[@lbert3269]

Why don't you post your questions on the 'Discussion Forum' on the Acct1501 homepage ? (It's on webct btw).

The lecturers actually reply you so you'd probably get a better answer there. (No offense dudes)

 

[Minai]

well, myself and Bambul both got HD's when we did ACCT1501..so we know a lil bit about the subject

 

[truly-in-bliss]

hey nerdd!!! and bamboo!!!! and minai!!!!!!!!

 

[@lbert3269]

Originally posted by Minai
well, myself and Bambul both got HD's when we did ACCT1501..so we know a lil bit about the subject

Wow ! How the hell you pull that off ?

Acct1501 is the boringest sub EVER ! I can't even sit there for 5 mins without doodling on my notebook.

 

[nickyazn]

nerrrrrrrrrrrd!

 

[nerdd]

hahah hey tib!

 

[Minai]

Originally posted by truly-in-bliss
hey nerdd!!! and bamboo!!!! and minai!!!!!!!!

hey tib!!!!!!!!!

Originally posted by @lbert3269
Wow ! How the hell you pull that off ?
Acct1501 is the boringest sub EVER ! I can't even sit there for 5 mins without doodling on my notebook.

cause its soo easy...yes its boring, but if u sit there and just do the tutorial homework, its not really a challenge
its probably the best chance u'll have in your entire degree to get an HD

 

[Bambul]

I slept through most of Macro1, never bought the textbook, did minimal study and got an HD. That was an easier HD than ACCT1501.

Mind you, I haven't gotten any HD's since and my WAM fell by about 12% from year 1 to year 2.