The objective of financial reporting essentially focus on providing persons with reasonable knowledge that is useful in making business and economic decisions.


The Objective provide information useful in:

1. investment and credit decisions.

2. assessing future cash flow prospects.

3. assessing an enterprise's resources, the debt and equity.


The Hierarchy of Accounting Qualities

1. Constraints: Benefits and Costs (pervasive)
Materislity (Threshold for Recognition)

2. User-Specific Quality: Understandability
Decision Usefulness

3. Primary Qualities:
A) Relevence: Perdictive value, Feekback value, Timeliness
B) Reliability: Neutrality, Representational Faithfulness, Verfiability

4. Secondary Qualities:
A) Comparability
B) Consistency

General Rule on Position of Explanatory Paragraph

1. Unqualified opinion :

The explanatory paragranh generally would follow the opinion paragraph.

2. Qualified, adverse, and disclaimer of opinion :

The explanatory paragraph generally would precede the opinion paragraph.

3. Exception : ( A. Justified GAAP departure B. Emphasis of a matter )

The explanatory paragraph may be placed either before or after the opinion paragraph.

1. Independent

Independent Auditor's Report

To the Stockholders and Board of Directors of Anderson Company :

2. Responsibility

We have audited the accompanying balance sheet of Anderson Company as of December 31, 2007, and the related statements of income, retained earnings, and cash flows for the year then end.

Thease financial statements are the responsibility of the Company's management. Our responsibility is to express an opinion on these financial statements based on our audit.

3. Audit & GAAS

We conducted our audit in accordance with auditing standards generally accepted in the United States of America.

4. Plan and perform & Material misstatement

Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements are free of material misstatement.

5. Examing evidence

An audit includes examing, on a test basis, evidence supporting the amounts and disclosures in the financial statements.

6. Assessing accounting principles

An audit also includes assessing the accounting principles used and significant estimates made by management, as well as evaluting the overall financial statement presentation.

7. Reasonable basis

We believe that our audit provides a reasonable basis for our opinion.

8. Opinion & GAAP

In our opinion, the financial statements referred to above present fairly, in all material respects, the financial position of Anderson Company as of December 31, 2007, and the results of its operations and its cash flows for the year then ended in conformity with accounting principles generally accepted in the United Stases of America.

9. Name & Date

Anderson Young

March 28, 2008

Green Island Advanture

By Anderson Young

The Green Island is a small volcanic island in the Pacific Ocean, about 33 kilometers off the eastern coast of Taiwan. The climate is tropical and any time is adaptable to visit, fall and sprint especially.

On this island, the visitors can go snorkeling or driving to see many kinds of tropical fishes, ride motors to see the majestic coast scenery and take a health spa at hydrothermal vent.

The total fee of visiting the Green Island, including traffic fee, room and board, snorkeling or diving, is not expensive. The Green Island’s adventure is worthy of our visit. Pick up your backpack and get going !