Developments in U.S.‚ Obstacles to U.S. adoption of IFRS and Implications of US-IFRS Convergence. In the first part‚ the report shows the definition of IFESs and the incentives of the convergence. The second part focuses on current developments in U.S. And the third part analyse the obstacles to U.S. adoption of IFRS in three aspects‚ cultural issue‚ regulatory issues and practical issues. Lastly‚ the report provides the likely implications that the US-IFRS convergence will exert on companies. To sum
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2015 Abstract The FASB and IFRS continually improve upon accounting standards and rulings in an effort to converge GAAP with international standards. In fact‚ several standard and ruling updates are being contemplated at this moment through pending discussions and through exposure drafts (PWC‚ 2011-2015); we will review a few of these in the next few paragraphs Differences between GAAP and IFRS First we should address a few differences between GAAP and IFRS standards in order to understand
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and subsequently updated in 2008‚ the boards agreed on a Memorandum of Understanding (MoU) which detailed the short and long-term convergence projects “that would bring the most significant improvements to International Financial Reporting Standards (IFRS) and U.S. Generally Accepted Accounting Principles (US GAAP).” (IASB-FASB‚ 2012). While many of the short-term and long-term convergence projects have been completed‚ currently‚ the boards have yet to finalize all of the technical pronouncements regarding
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2.2.6 Factors Affecting the Adoption of IFRS- Empirical Evidence In a broader view‚ a set of accounting standards as part of accounting systems is continuously influenced by several differing institutional factors where that set of standards operates. These factors include culture (e.g. in regards to the implementation of IFRS in the Arab world‚ it could be complicated to harmonize accounting standards to those of western civilizations- Sanchez (2015))‚ enterprise ownership and activities‚ finance
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CHEMICAL CORPORATION) 1.The net profit figure reported under PRC GAAP is RMB 19‚011 million. This is RMB 2‚592 million lower than the amount under IFRS‚ and RMB 6‚566 million lower than the amount under U.S. GAAP. The net profit figure of RMB 19‚011 reported under PRC GAAP was increased to RMB 21‚593 under IFRS. The increase of RMB 2‚582 under IFRS was due to the following reasons: Dep. and disposal of oil and gas properties RMB3‚044 Acquisition of subsidiaries 443 Capitalization of general
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“The first project is IFRS 9: Financial Instruments (replacement of IAS 39)” (IFRS Foundation and the IASB‚ 2012: Financial Instruments). To simplify the requirements for financial instrument classification and measurement in November 2008 this project was added to the IASB’s active agenda with the objective of improving financial statement usefulness for users. The project is being conducted in three main phases. Phase I - Classification and measurement‚ the IASB published IFRS 9 Financial Instruments
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ACC 557 Week 9 DQ1 "Cash Flow Reporting" Please respond to the following: Given the complexities related to preparing and interpreting the statement of cash flow‚ evaluate the current requirement under GAAP and IFRS‚ indicating improvements that you would make to each method’s requirement to better serve the users of the information. Provide a rationale for your changes. Analyze the impact of erroneous classifications in the Operating Activities section of the statement of cash flows‚ detailing
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Solutions Ch 3 Balance Sheet 3.22 (Nestlé; asset recognition and measurement.) a. Both U.S. GAAP and IFRS would recognize Investment in Bond (noncurrent asset)‚ CHF800 million. Nestlé would record the bond at acquisition cost‚ not the amount it will receive at maturity. b. Both U.S. GAAP and IFRS would recognize Prepaid Insurance (current asset); CHF240 million would be recorded initially. At Nestlé’s year-end‚ the balance in the Prepaid Insurance account would reflect the two months usage of
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An Insight on IFRS versus U.S GAAP & Implications of IFRS adoption on Financial Statement and Accounting Quality Q2) Principle and rule-based accounting reflect different approaches to accounting. The pros and cons of rule-based accounting (RBA) and principle-based accounting (PBA) are as discussed. (1) RBA deters creative accounting as rules reduce opportunistic discretion unlike PBA which is more subjective and ambiguous.On the other hand‚ others argue that rules are a means to circumvent
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determine how they will be valuing their assets under the new International Financial Reporting Standards. Although ETS has had a successful switch over to IFRS for the January 2011 deadline‚ they have still not determined the accounting policies they will be following. The focus of the question is to determine the differences between pre-IFRS and IFRS that pertain to ETS’s accounts and what is allowable for the company. Analyze the Data There are many changes to the reporting‚ recording
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