Case Study Inventory The Cost of Inventory The general principle for cost inclusion into inventory for US GAAP and IFRS is similar but not exactly the same. First let us look at US GAAP. The basis of accounting for inventories is “cost‚” which is explained in ASC 330-10-30 paragraph 1 as “the sum of the applicable expenditures and charges directly or indirectly incurred in bringing an article to its existing condition and location.” These costs are divided into two different categories‚ the
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Summary Discussion on IFRS versus GAAP Jayne Egharevba ACC/291 January 26‚2015 Business Management Summary Discussion on IFRS versus GAAP Harris‚ P.‚ Stahlin‚ W.‚ Arnold‚ L. W.‚ & Kinkela‚ K. (2013).The Financial Accounting Standard Boards ( FASB) and International Accounting Standard Board ( IASB) are both working on financial instruments that include classification and measurement of the financial instrument and impairment of financial assets. However‚ the boards did not converge and set down
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2015 Abstract The FASB and IFRS continually improve upon accounting standards and rulings in an effort to converge GAAP with international standards. In fact‚ several standard and ruling updates are being contemplated at this moment through pending discussions and through exposure drafts (PWC‚ 2011-2015); we will review a few of these in the next few paragraphs Differences between GAAP and IFRS First we should address a few differences between GAAP and IFRS standards in order to understand
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IFRS for U.S. Timber Industry INTRODUCTION This memorandum will address issues raised by the transformation from U.S. Generally Accepted Accounting Principles (US GAAP) to International Financial Reporting Standards (IFRS) in the timber industry. I will cover the following topics: different accounting treatment under U.S. GAAP and IFRS‚ the influence on investment decisions‚ Plum Creek’s reason for the opposition against transformation‚ and conclude with my preferred accounting treatment under
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accounting principles (GAAP). Accounting Standards GAAP is considered to be collection of methods used to prepare‚ process and present accounting information. GAAP is a general method‚ overall‚ is applicable to many different types of industries. The methods of using GAAP can be specific or principle based requirements. The use of GAAP can be flexible and general in the United States and are expected to follow GAAP principles. Many organizations contribute to GAAP‚ however‚ the Financial
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adoption of IFRS by US companies a. The FASB will serve in an advisory capacity to the IASB. b. The FASB will remain the designated standard-setter for US companies‚ but incorporate IFRS into US GAAP. c. The role of the FASB post-IFRS adoption has not been determined. d. The FASB will cease to exist. 3. Milestones in the transition plan for mandatory adoption of IFRS by US companies include all of the following except a. Improvements in accounting standards. b. Limited early adoption of IFRS in an effort
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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
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The following report will describe and discuss the major elements of accounting in the USA. It will show that the US Generally Accepted Accounting Principles (GAAP) are set by the Financial Accounting Standards Board (FASB)‚ where as the International Accounting Standards (IAS) are set by the International Financial Reporting Standards (IFRS). This report will also state the similarities and differences between these standards. In addition‚ the following report will use relevant examples to evaluate
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determine how they will be valuing their assets under the new International Financial Reporting Standards. Although ETS has had a successful switch over to IFRS for the January 2011 deadline‚ they have still not determined the accounting policies they will be following. The focus of the question is to determine the differences between pre-IFRS and IFRS that pertain to ETS’s accounts and what is allowable for the company. Analyze the Data There are many changes to the reporting‚ recording
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theories of accounting standards. Table of Contents INTRODUCTION On 29 April‚ 2012 Sleigh-Johnson‚ head of ICAEW ’s Financial Reporting Faculty said that “A US decision is really a critical part of the future success of IFRS. This is an once-in-a-lifetime change in global regulation and you just have to recognise there will be obstacles and delays”. Sleigh’s statement above mentions the important of role possess by US toward convergence to global accounting standard.
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