Corporation Reconciliation from U.S. GAAP to IFRS 2014 Income under US GAAP $1‚000‚000 Adjustments: Reversal of write-down of inventory to replacement cost 10‚000 Additional depreciation on revaluation of equipment (25‚000) Impairment loss on intangible asset (5‚000) Recognition of deferred development costs 80‚000 Reversal of amortization of deferred gain on sale and leaseback (30‚000) Income under IFRS $1‚030‚000 2014 Stockholders’ equity under US GAAP $8‚000‚000 Adjustments:
Premium Generally Accepted Accounting Principles Depreciation
(a) Briefly explain what prompted some countries over the world to strongly advocate harmonization of accounting. The important reasons which necessitate harmonization of accounting practices are well contained in the observation made by Saudagaran. “While the initial efforts at harmonization were mainly championed by political bodies and professional accounting organizations‚ current pressures to harmonize are driven by investor groups who use financial statements‚ multinational companies which
Premium International Financial Reporting Standards International Accounting Standards Board Financial statements
IFRS versus GAAP Comparison Jennifer Brown‚ Jason Hammock‚ Dominec Pietrandrea‚ Anne Risley‚ Inga Wedderburn ACC/291 November 24‚ 2014 Kevin Waters IFRS versus GAAP Comparison In the United States‚ companies use an accounting method referred to as Generally Accepted Accounting Principles (GAAP). While the U.S. has structured GAAP to align all reporting for U.S. businesses‚ it is different from most other countries accounting standards. International Financial Reporting Standards (IFRS) is an accounting
Premium International Financial Reporting Standards Generally Accepted Accounting Principles Balance sheet
Chapter 6 (Case 6-1 CHINA PETROLEUM AND 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
Premium Generally Accepted Accounting Principles European Union Depreciation
reasonableness of the amounts previously recorded by Crabtree. According to AU Section 312A‚ in determining the amount of the likely misstatements to be aggregated‚ the auditor considers the “closest reasonable estimate” which may be a range of acceptable amounts or a point estimate‚ if that is a better estimate than any other amount. Moreover‚ the Rule 102 Integrity and Objectivity states that the performance of any professional service‚ a member shall maintain objectivity and integrity‚ shall
Premium Financial statements Audit Accountant
wherein each country has its own set of GAAP and (b) It provides a level playing fields where no country is advantaged or disadvantaged because of its GAAP . What is Harmonization of Accounting Standards? Just as the words connote‚ “harmonization of accounting standards” can be defined as the continuous process of ensuring that the Generally Accepted Accounting Principles (GAAP) are formulated‚ aligned and updated to international best practices (GAAPs in other countries) with suitable modifications
Premium International Financial Reporting Standards International Accounting Standards Board International relations
following is true about the FASB after the mandatory adoption of IFRS by US companies a. The FASB will serve in an advisory capacity to the IASB. b. The FASB will remain the designated standard-setter for US companies‚ but incorporate IFRS into US GAAP. c. The role of the FASB post-IFRS adoption has not been determined. d. The FASB will cease to exist. 3. Milestones in the transition plan for mandatory adoption of IFRS by US companies include all of the following except a. Improvements in accounting
Premium International Financial Reporting Standards Depreciation Financial statements
new separate accounting standards have its advantages and disadvantages. Background In USA‚ there are a large number of nonpublic companies‚ much more than public companies. As time goes‚ deficiencies exist in current GAAP to meet nonpublic companies to make financial reporting. GAAP is extremely complex and onerous to nonpublic companies. Those private companies frustrated with being forced to spend a great amount of money on valuating intangible property‚ or spending hours on disclosures that users
Premium Public company Financial statements Privately held company
(SEC) The Securities and Exchange Commission is a U.S. regulatory agency that has the authority to establish accounting standards for publicly traded companies. The SEC provides financial reporting requirements both form and content - including GAAP - as well as regulation of various financial services entities and market mechanisms. The SEC retains the right to overrule FASB pronouncements‚ and it occasionally exercises this right. The SEC would appear to have the most legal power in response
Premium International Financial Reporting Standards Financial Accounting Standards Board
Accounting Principles (US GAAP) to International Financial Reporting Standards (IFRS) in the timber industry. I will cover the following topics: different accounting treatment under U.S. GAAP and IFRS‚ the influence on investment decisions‚ Plum Creek’s reason for the opposition against transformation‚ and conclude with my preferred accounting treatment under different roles. ACCOUNTING TREATMENT The concern is mainly on recognition of the value of standing timberlands. Under US GAAP‚ standing timber
Premium Generally Accepted Accounting Principles Financial statements Balance sheet