Background Smooth Sailing is a private company that operates one cruise ship. Recently‚ pirate activity in the area where the cruise ship operates has increased‚ thus affecting the cruise ship’s potential future cash flows. The cash flow decline has directly contributed to a decline in the overall fair value of the cruise ship. Smooth Sailing has determined three possible options for its future‚ along with the probabilities of occurrence and estimated cash flows (ECF): 1. Continue operating
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for secondary format. The US GAAP use the management approach whereby segments are determine based on how information is presented to the decision maker for allocation of resources. The product revenue‚ assets‚ and location are required‚ regardless by the decision of management. IFRS 8 converges international accounting with US GAAP by utilizing the management approach to determine reportable segments. The two major differences will remain under IFRS 8. Firstly‚ US GAAP requires companies with a matrix
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to its U.S.-based lender in accordance with U.S. GAAP. IFRS and GAAP follow three steps in order to determine if a provision should be recognized. They are: a) the entity has an obligation at the reporting date as a result of a past event; b) it is probable (ie more likely than not) that the entity will be required to transfer economic benefits in settlement; However‚ in case of U.S. GAAP ‘probable’ is interpreted as a higher threshold than
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lot of significant events and become to be more and more mature. Culture and institutional factors have majorly influenced the development of accounting in Japan‚ and also led the problems in implementing International Financial Reporting Standards (IFRS). In 1927‚ the enactment of the Accountants Law marked the beginning of professional accountants working in Japan. Following its defeat in the Second World War‚ Japan was put under US occupation and in 1948‚ the country and was asked to enact The
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accounting-related acronyms: GAAP‚ SEC‚ FASB‚ IASB and IFRS. (b) Briefly explain the importance of knowledge base or organization that is referred to each of the accounting-related acronyms. * (a) The meaning of accounting-related acronyms GAAP‚ SEC‚ FASB‚ IASB and IFRS: * GAAP: Generally Accepted Accounting Principle. * SEC: Securities and Exchange Commission. * FASB: Financial Accounting Standards Board. * IASB: International Accounting Standards Board. * IFRS: International Financial
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is unlikely to become the primary valuation method for illiquid non-financial assets on a voluntary basis. Keywords: Fair value‚ IFRS‚ non-financial assets‚ illiquid assets. JEL Classification: M4‚ M41 This version: 4 November 2012 This paper previously circulated under the title: "Who uses fair -value accounting for non-financial assets after IFRS adoption?" This research was funded in part by the Initiative on Global Markets at the University of Chicago Booth School of Business
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the different accounting standards for these divisions of its company. When we are using IFRS to examine an impairment of Eagle’s Italy building‚ one is recognized “if‚ and only if‚ the recoverable amount of the building is less than its carrying amount. The carrying amount of the asset shall be reduced to its recoverable amount. That reduction is an impairment loss.” (IAS 36-59). In order to see if this IFRS is present we must first determine the recoverable amount‚ which is the higher of a cash-generating
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and a debt investor and understand the difference * Discuss the role of the Securities and Exchange Commission * Name the Big Four accounting firms and define the term “independent auditor” * Define corporate governance * Discuss GAAP and IFRS and the concept of rules-based versus principles-based * Discuss the roles of the board of directors and the audit committee * Discuss the basics of Sarbanes-Oxley * ------------------------------------------------- Discuss how legal
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industry and also the same home country‚ which is UK. The transformation to International Financial Reporting Standards (IFRS) will have an effect not just on the company existing accounting policies and financial reporting. It also has an influence on the company’s underlying‚ systems‚ processes‚ controls‚ tax‚ strategy‚ and many others. For most companies the transformation to IFRS has an
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accounting for changes in estimates and accounting principle is similar between GAAP and IFRS. They both indicate that companies
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