What is the prudence concept in accounting? Under the prudence concept‚ you should not overestimate the amount of revenues that you record‚ nor underestimate the expenses. You should also be conservative in recording the amount of assets‚ and not underestimate liabilities. Another way of looking at prudence is to only record a revenue transaction or an asset when it is certain‚ and to record an expense transaction or liability when it is probable. Another aspect of the prudence concept is that you
Premium Generally Accepted Accounting Principles Balance sheet
reporting standards (IFRS) with their “Made in Canada” (Canadian Institute of Chartered Accountants [CICA]‚ 2006) generally accepted accounting practice (GAAP)‚ Canada would lie very close‚ if not on the line of convergence. Over the past few years‚ before the consideration of IFRS and leading up to the full convergence of it‚ Canada’s GAAP has been a ‘no mans land’ (Martin‚ 2009). It was becoming vastly foreign to the rest of the world‚ when it was once similar to US GAAP. As a result participants
Premium International Financial Reporting Standards Finance Globalization
Introduction. The theme of my course-paper is ‘Word-formation. Conversion’. At the first part of the work I’ve wrote some lines about the term ‘word’ as the smallest independent unit of speech. Next‚ there is the definition of the field of word-formation. At the following part you can find some information about the affix word-formation of nouns‚ verbs and adjectives. The next part named ‘conversion’. Where the terms ‘conversion’ and ‘zero-derivation’ are examined which are the synonyms for some
Premium Verb 2nd millennium Noun
Corporations in Australia have started adopting IFRS as its domestic financial reporting standards since 2005. Although AIFRS applied almost whole contents and wording of IFRS‚ owing to the different domestic legislative environment‚ some modifications were needed and included the removal of certain options permitted or wording changes under IFRS. The species of these differences that exist between IFRS and AIFRS can be universally sorted as follow: 1. Recognition differences. 2. Measurement
Premium Financial statements International Financial Reporting Standards Balance sheet
ey.com/IFRS Issue 2 / May 2011 IFRS Developments What you need to know • Common requirements now exist between US GAAP and IFRS on how to measure fair value • IFRS 13 does not change when an entity is required to use fair value‚ but rather‚ provides guidance on how to measure the fair value of financial and non-financial assets and liabilities when required or permitted by IFRS • While many of concepts in IFRS 13 are consistent with current practice‚ certain principles‚ such
Premium Asset International Financial Reporting Standards Balance sheet
2011. Pp.125 - 136 IFRS Implementation in India: Opportunities and Challenges Pawan Jain1 One of the foremost requirements to operate a Business successfully is to have a good financial reporting system in place. Keeping this in mind‚ Accounting Professionals and Accounting Bodies across the globe‚ during last decade‚ had tried to put a financial reporting system in place which is harmonized‚ robust and have extensive applicability. IASB (formerly IASC) came out with IFRS which were adopted
Premium International Financial Reporting Standards Financial statements International Accounting Standards Board
| MEXICAN GAAP (MEXICAN FRS) | US GAAP | Inflation | Effects of inflation should be recorded on the financial statement.Included in the results of operations is a gain or loss from monetary position that represents the inflation gain or loss from maintaining net monetary liabilities or assets‚ respectively. | In the U.S. GAAP no gain or loss on monetary position is recognized in the financial statements. | Deferred Taxes | Mexican GAAP recognizesDeferred tax effects for all transactions that
Premium Generally Accepted Accounting Principles Balance sheet
Who Sets “GAAP” Internationally? A brief history: • In the past‚ each country or jurisdiction generally had its own national standard setter. • Beginning in 1973‚ the International Accounting Standards Committee (IASC) began issuing guidance that was largely voluntary. – Goal: To harmonize global accounting standards. – Took on a new momentum in 2000‚ when EU announced plans to adopt. – In 2001‚ the IASB replaced the IASC. • Today‚ nearly 120 countries require or permit the use of IFRS. – Notably
Premium International Financial Reporting Standards Financial statements
items should be sufficiently detailed to enable identification of material components under US GAAP. In contrast the Financial Instruments and Exchange Act requires Japanese GAAP to present items in a more detailed manner compared to IFRS and US GAAP. Thus Bridgestone‚ following JP GAAP have more accounts on the face of the balance sheet than Goodyear under US GAAP. Further‚ both US GAAP and JP GAAP requires the balance sheet items to be grouped or categorized as current assets‚ property plant
Premium Generally Accepted Accounting Principles Balance sheet Accounts receivable
Task 2: Discuss the fear expressed by the chairman of SEC (USA) that there is a possibility of the world moving towards at least three versions of IFRS- namely IASB IFRS‚ EU IFRS and US IFRS. Introduction With the introduction of International Accounting Standards (IAS) and International Financial Reporting Standards (IFRS)‚ the world is one step closer to achieving a global set of accounting standards comprehensible by different users of financial statement worldwide. The benefits of using these
Premium International Financial Reporting Standards Financial statements