business units‚ divisions‚ product lines‚ etc.) 2. Based on the form of your business‚ analyze whether or not you will be required to use Generally Accepted Accounting Principles (GAAP) or International Financial Reporting Standards (IFRS) accounting methods and how the IFRS / GAAP convergence will impact your business. Suggest how you will incorporate any changes into your books and records. (Note: You need to demonstrate to the
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corporations: Select one: a. must follow GAAP for private companies b. must follow IFRS c. do not use standards when creating financial statements d. have a choice of following GAAP for private companies or IFRS Feedback Explanation: Private corporations have a choice of following IFRS or the new GAAP specifically updated for private companies. The correct answer is: have a choice of following GAAP for private companies or IFRS Question 2 Correct Mark 1.00 out of 1.00 Flag question Question text
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school research paper‚ nr. 10‚ 42p. Bollen L.‚ 1995‚ Financial reporting regulation for small and medium sized private firms‚ doctorate thesis Rijksuniversiteit Limburg‚ Maastricht‚ 235 pp. Eierle B.‚ 2004‚ the adaptation of German accounting rules to IFRS: a legislative balancing act‚ Accounting in Europe‚ 1‚ 27-50 Canibano L
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Case Study Inventory The Cost of Inventory The general principle for cost inclusion into inventory for US GAAP and IFRS is similar but not exactly the same. First let us look at US GAAP. The basis of accounting for inventories is “cost‚” which is explained in ASC 330-10-30 paragraph 1 as “the sum of the applicable expenditures and charges directly or indirectly incurred in bringing an article to its existing condition and location.” These costs are divided into two different categories‚ the
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PREVIEW OF CHAPTER 4-1 4 Income Statement Usefulness Predicting future performance. 4-2 Evaluate past performance. Help assess the risk or uncertainty of achieving future cash flows. Income Statement Limitations Companies omit items that cannot be measured reliably. 4-3 Income is affected by the accounting methods employed. Income measurement involves judgment. Income Statement Quality of Earnings Companies have incentives
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instruments. IFRS‚ unlike GASB has qualifying criteria that entities must meet in order to elect the fair value option. Furthermore‚ IFRS has different criteria to elect the fair value option for assets‚ liabilities and equity. Under IFRS 9‚ paragraph
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provide a single set of high-quality‚ global accounting principles. Changes in accounting principles are simply a change in rule‚ from one method of reporting for an item to another‚ under domestic standards such as international standards such as IFRS. The reason accountants change principles is to better present financial information and to make things more clear to users. Typically the change is required to avoid improper disclosure and it only applies to past information. Change in accounting
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reporting China has amended its GAAP making it in line with IFRS requirement. Czech Republic: The Czech Republic is a small‚ yet stable European nation. The Czech Republic follows the Civil Law structure. The Accounting standards are prepared by the Ministry of Finance of the Czech Republic. All publicly traded companies are required to prepare their financial statements in accordance to the International Financial Reporting Standards (IFRS). While tax laws are in accordance with Czech regulations
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The IASB (International Accounting Standards Board) is the standards-setting body that functions within the IFRS (International Financial Reporting Standards).The 15 members are responsible for the development of the IFRSs‚ including the IRFS and SMEs (small and medium-sized entities) and for approving interpretations of IFRSs as developed by the IFRS interpretations committee. Through extensive outreach activities and input into standards-setting from stakeholders‚ IASB is able to do the necessary
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influencing the preparation of financial statements beyond national borders. Many countries around the world that are using their national Generally Accepted Accounting Principles (GAAP) are adopting the International Financial Reporting Standards (IFRS) in the preparation and presentation of their financial statements. The IFRSs are issued by International Accounting Standards Board (IASB) and the adoption of IFRSs is having a growing influence on national accounting requirements and practices. This
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