movement will have a significant influence on Canadian business such as capital markets‚ financial statement preparers‚ the accounting profession‚ and even accounting students. Investors are eager to understand the differences between IFRS and Canadian GAAP. The public companies should be ready to follow IFRS in January‚ 2011. Even private companies should fit their businesses into the new environment. Therefore‚ most Canadian companies care about what issues IFRS deals with. In our report‚ we will
Premium International Financial Reporting Standards Financial statements Generally Accepted Accounting Principles
Q1 Answer: The numbers in the Financial Statement were different under the two methods because under the non-GAAP accounting method apple gave the revenue numbers without the use of subscription accounting‚ which recognized the revenue at the point of sale. Moreover the non-GAAP numbers did not adjust the estimated costs associated with its plan to provide new features and software upgrades to iPhone buyers free of charge and these figures were not prepared under a comprehensive set of rules or principles
Premium Future Generally Accepted Accounting Principles Prediction
1. According to U.S. GAAP‚ revaluation is not permitted for all types of intangible assets. Under IFRS‚ revaluation to the fair value of intangible assets other than goodwill is an allowable alternative treatment. This is a good difference between U.S. GAAP and IFRS. Sometimes‚ intangible assets do change rapidly over time. For example‚ a trademark may not be noteworthy at the transaction. However‚ as the company becomes larger and larger‚ the underlying value of the trademark would increase significantly
Premium Generally Accepted Accounting Principles Balance sheet
Introduction The United States is currently going through a big decision. It is deciding on whether to fully adopt International Financial Reporting Standards (IFRS)‚ or to stay with the current U.S Generally Accepted Accounting Principles (GAAP). Since this is such a major decision‚ now would be an opportune time to take a look at what the pros and cons would be of switching to this new way of financial reporting‚ and in doing so‚ show why I believe the costs (both financial and otherwise) are
Premium International Financial Reporting Standards Financial Accounting Standards Board Financial statements
across all geographical areas. The Financial Accounting Standards Board (FASB) is the independent body that is responsible for the creation of GAAP. The board is the standard setting body in charge of standards for nongovernmental companies operating in the United States. Since 2002‚ the IASB and FASB have been working together to improve and converge U.S. GAAP and IFRS. The United States is not the only country working toward convergence‚ as of 2009‚ Japan and China were both working toward convergence
Premium International Financial Reporting Standards Financial Accounting Standards Board Financial statements
Taking a Closer Look at IFRS & GAAP: A Comparative Analysis Andrew Eubanks ACC/291 Principles of Accounting II May 18th 2015 Lee Guillory Taking a Closer Look at IFRS & GAAP: A Comparative Analysis There has been a big debate brewing about the acceptable accounting standards used in the US‚ also known as the GAAP or General Accepted Accounting Principles and whether or not the US should adopt the International Financial Reporting Standards used by many international companies. The following
Premium International Financial Reporting Standards Asset Balance sheet
set-up the codification of Generally Accepted Accounting Principles (GAAP). In the following paragraphs the purpose and reason are defined. The break-down of the nine main areas are described with a break-down of each area. An accounting professional will use these areas many times in his or her career‚ so the knowledge offered is important. The FASB codification system is a database system set-up for the authoritative combination of GAAP to be found in one place. A person does not have to search several
Premium Balance sheet Asset Income statement
537 November 10th 2012 Professor Joh David Basic Accounting Concepts and Business Structures Generally Accepted Accounting Principles (GAAP) and Related Hierarchy The common set of standards and procedures is called generally accepted accounting principles (GAAP). Four organizations are instrumental in the development of financial accounting standards (GAAP) in the United States: 1- Securities and Exchange Commission (SEC) 2- American Institutes of Certified Public Accountants (AICPA) 3- Financial
Premium Generally Accepted Accounting Principles Financial statements Financial Accounting Standards Board
“private company GAAP.” Summarize the interaction between this group and FASB in addition to arguments for and against the new group | The Financial Accounting Foundation (FAF)‚ in May of 2012‚ has established The Private Company Council (PCC) to serve as the primary advisory body to the Financial Accounting Standards Board (FASB) for private company matters. Using the U.S. Generally Accepted Accounting Principles (U.S. GAAP) as a guide‚ the PCC will recommend modifications to FASB to create
Premium Privately held company Public company Financial statements
requirements or practice are: • Partial acquisitions. Non-controlling interests are measured either as their proportionate interest in the net identifiable assets (which is the original IFRS 3 requirement) or at fair value (which is the new requirement in US GAAP). • Step acquisitions: The requirement to measure at fair value every asset and liability at each step for the purposes of calculating a portion of goodwill has been removed. Instead‚ goodwill is measured as the difference at acquisition date between
Premium Generally Accepted Accounting Principles Balance sheet Goodwill