using generally accepted accounting principles (GAAP) requirements‚ revenue cannot be recognized as the seller has not done everything required under the sales agreement. In this specific sales agreement‚ title and risk of the shipment remains the seller’s until received by the buyer. Therefore‚ Biovail is liable for shipping incidents. It is also important to note here that Biovail’s stock is listed on the NYSE and must abide by U.S. GAAP. While GAAP is not law and does allow for corporate discretion
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Previously‚ the documents that detailed the rules and regulations of the Generally Accepted Accounting Principles (GAAP) varied in structure‚ format‚ and completeness. These variations led to confusion among users and it became more difficult to determine if they were using GAAP correctly. In response to this problem‚ the FASB developed the Accounting Standards Codification (ASC) whose main purpose is to provide users access to all of the generally accepted accounting principles in one place. The
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Abstract Financial Accounting Standards Board (FASB) is a seven member board that consists of accounting professionals who establishes and communicates financial accounting and reporting standards known as generally accepted accounting principles (GAAP) in United States. The standards’ quest is to govern the preparation of the corporate financial reports and hence ensuring transparency‚ credibility and understandability of the financial statements. To achieve these‚ there is need to set guidelines
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History of Fourth Directive Company law directives are published under the authority of the Treaty of Rome (Article 54(3) (g)). The council and the commission want to co-ordinate safeguard to protect the interest of member state and others‚ in such a way that these safeguard are become similar across the EU. The objective of EU is to convey a common market that allows freedom of capital‚ goods‚ persons and services between member countries. EU adopted so many directives which are dealing with accounting
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The International Accounting Standard Committee (IASC) came into existence on June 29 1973 when sixteen accounting bodies from nine nations (designated as founder members) signed the agreement and constitution for its formation with headquarters at London. The objective of the committee is "to formulate and publish in the public interest standards to be observed in the presentation of audited financial statements and to promote their worldwide acceptance and observance". This would
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Harmonization of International Accounting Standards: Advantages & Disadvantages‚ Obstacles & Solutions As the trend for globalization in business becomes increasingly important for economic success‚ many issues arise through international business practices for corporations‚ governments‚ and investors. Due to the many conflicting codes and practices that exist between various national financial accounting standards throughout the world‚ international business becomes harder to analyze
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facilitated by accounting organizations such as standard-setters‚ accounting firms and professional bodies. Financial statements are usually audited by accounting firms‚ and are prepared in accordance with generally accepted accounting principles (GAAP). GAAP is set by various standard-setting organizations such as the Financial Accounting Standards Board (FASB) in the United States[1] and the Financial Reporting Council in the United Kingdom. As of 2012‚ "all major economies" have plans to converge
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reasonable care‚ knowledge‚ skill‚ and judgment when providing auditing and other accounting services to a client. In other words‚ an accountant’s actions are measured against those of a “reasonable accountant” in similar circumstances. The development of GAAPs‚ GAASs‚ and other uniform accounting standards has generally made this a national standard. An accountant who does not comply with GAASs when conducting an audit and thereby fails to uncover a fraud or embezzlement by an employee of the company
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implementation of IFRS will require substantial amendment in existing laws. The basic objective of this research paper is to trace the real problems regarding IFRS implementation in India and to suggest remedial measures. Keywords : IAS‚ Indian GAAP‚ US GAAP‚ IASB‚ Fair Values‚ MCA. 1. INTRODUCTION : CONCEPTUALIZING THE TERM IFRS The full abbreviation of the term “IFRS” is international financial reporting standard (IFRS). IFRS has been developed by International accounting standard board (IASB).
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100 countries have opted to comply with IFRS‚ or International Financial Reporting Standards which was developed by the IASB globally. Here in the United States‚ we have conformed to the use of U.S. GAAP or generally accepted accounting principles‚ developed by the FASB. There are other “local” GAAP systems across the world. Countries like Germany‚ India‚ Russia‚ and more have their own form of generally accepted accounting principles as well. SEC Chairman‚ Arthur Levitt‚ once said‚ "Financial reporting
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