CASE 11-6: LESSEE LTD Caleb Aytes Brayden Hudson Brian Laws Katie Vittetoe Topics To Be Discussed • • • • Relevant Facts of the Case IFRS US GAAP Real World Relevant Facts of the Case • Lessee Ltd. – British Company that applies IFRS – Leases equipment from Lessor Inc. – 3 years – No purchase or renewal options & equipment reverts back to Lessor when lease expires – Remaining useful life = 4 years – Guaranteed Residual Value of $20K Accountants Analysis Relevant Questions 1. Was the junior
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CHAPTER 1 FINANGIAL ACCOUNTING AND ACCOUNTING STANDARDS OVERVIEW Accounting is the language of business. As such‚ accountants collect and communicate economic information about business enterprises or other entities to a wide variety of persons. To be useful‚ financial statements must be clearly understandable and comparable so that users may compare the performance of one business with the performance of the same business for a prior period or with the performance of another similar business
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accounting standards in use through out the world in the next five years? The SEC (Securities and Exchange Commission) which oversees the accounting practices of publicly traded corporations. Is currently implementing plans for the convergence of GAAP into the IFRS as the standard for the U.S. and the world. Currently 110 developed‚ mid level‚ and developing countries use the IFRS as their accounting standard. The SEC has stated that they would like to converge to the IFRS by the end of 2014 but
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chart that includes 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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Which Standard: The statement ‘Uniform accounting standards produce uniform financial reporting’ is ideal but untrue. The standard referred to in this essay will be the International Financial Reporting Standards (IFRS). Adoption of IFRS‚ which include old and revised IAS‚ was the approach selected by Europe and many other countries. More than 100 countries have agreed to require or allow adoption of IFRS‚ or have established timelines for the adoption of IFRS. However‚ not all 122 jurisdictions
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the organization. The financial management process must be done based on the generally accepted accounting principles (GAAP) set by the Financial Accounting Standards Board (FASB) that all organization must follow when creating their financial statements. “Generally Accepted Accounting Principles (GAAP) refers to a widely
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(2006). Fundamentals of Financial Accounting. [University of Phoenix Custom Edition e-Text]. New York: McGraw-Hill Irwin. PricewaterhouseCoopers. (2008)Similarities and differences A comparison of International Financial Reporting Standards and US GAAP for investment funds. Retrieved April 12‚ 2008‚ from http://www.pwc.com/extweb/pwcpublications.nsf/docid/7FD21F10E3D4300B8525730400674531 Wikipedia. (2008). The Free Encyclopedia. Retrieved April 11‚ 2008‚ from http://www.wikipedia.org/
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Pennsylvania. Dick’s has 451 stores nationwide and 81 Golf Galaxy stores. Dick’s Sporting Goods was founded by Richard Stack in the early 1960s. This paper is focused on the notes of the consolidated financial statements which are changed from U.S. GAAP to the IFRS standards. Financial Statement Presentation First‚ on the 2011 Annual Report of Dick’s Sporting Goods page 51‚ the title Balance Sheet will need to be converted to Statement of Financial position (IAS 1.60). Also the presentation of
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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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Case 1: Toyota’s Global Expansion Toyota is expanding aggressively to overtake General Motor’s first position in volume. Its goal won’t be achieved if Toyota only focusing its manufacturing plant only in Japan‚ because as the volume increase the demand stay still in Japan‚ and if Toyota exporting their product it will make their cost higher and resulting uncompetitive price. So Toyota built their manufacturing overseas by considering country’s law‚ agreement‚ demand‚ taxes‚ currency and cost
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