Reporting Standards (IFRS) are issued by the International Accounting Standards Board (IASB). There are proposals for the United States to adopt the International standards. Financial reporting procedures are debated about the United States using the Generally Accepted Accounting Procedures (GAAP) or following the global procedures. This project will also examine‚ compare‚ and contrast this debate. Discussion of Topic In an article by Heidi Tribunella (2009)‚ “U.S. GAAP is considered rules
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FIRST-TIME ADOPTION OF IFRS Question 1: What is Fiat’s key accounting policies? Which of Fiat’s key accounting policies are affected by the adoption of IFRS? a. Fiat’s key accounting policies: The Fiat Group has a tendency of engaging in financing accountings mechanism‚ selling a significant part of its finance‚ trade and tax receivables through either securitization programs or factoring transactions b. Fiat’s key accounting policies are affected by the adoption of IFRS: Three accounting changes
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disclosure requirements (FASB‚ 2013). Finally these standards would help management decide where disclosure is appropriate. Alternative approaches In terms of alternatives IFRS defines going concern as the period in the foreseeable future (Finance Train‚ 2013). According to IAS 1 Presentation of Financial Statements “an entity preparing IFRS financial statements is presumed to be a going concern.” Furthermore if there are significant concerns about the ability to continue as a going concern‚ these uncertainties
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CHAPTER 3 INTERNATIONAL CONVERGENCE OF FINANCIAL REPORTING Answers to Questions 1. The ultimate goal of both harmonization and convergence is to achieve international comparability in financial reporting‚ and both are processes that take place over time. However‚ while harmonization refers to the reduction of alternative accounting practices in different countries‚ convergence refers to the process of developing a set of high quality financial reporting standards for use internationally (the process
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US GAAP and IFRS Convergence: Why It Shouldn’t Happen Kaplan University AC551 – 01N Professor Sandra Gates May 25‚ 2014 US GAAP and IFRS Convergence: Why It Shouldn’t Happen Introduction With the boom in technological advances‚ the world is becoming smaller. These advances have fostered the growth of an increasingly global economy. In turn‚ worldwide economic intermingling brings with it the need for a universal language of accounting. Doubtless‚ this endeavor would prove
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differences between United States Generally Accepted Accounting Principles ( U.S. GAAP) and the International Financial Reporting Standards (IFRS) (Schroeder‚ Clark‚ & Cathey‚ 2005). U. S. GAAP are the laws of accounting in the United States. They govern how accountants measure‚ process‚ and communicate financial information about companies to the majority of Americans (Horngren‚ Harrison‚ Jr.‚ & Bamber‚ 2005). Similarly‚ IFRS are principles‚ standards‚ interpretations‚ and the framework adopted by the
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Developments in U.S.‚ Obstacles to U.S. adoption of IFRS and Implications of US-IFRS Convergence. In the first part‚ the report shows the definition of IFESs and the incentives of the convergence. The second part focuses on current developments in U.S. And the third part analyse the obstacles to U.S. adoption of IFRS in three aspects‚ cultural issue‚ regulatory issues and practical issues. Lastly‚ the report provides the likely implications that the US-IFRS convergence will exert on companies. To sum
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International Financial Reporting Standards (IFRS). The IASB was formed in 2001 to replace the International Accounting Standards Committee. Its mission is “to develop a single set of high quality‚ understandable‚ enforceable and globally accepted International Financial Reporting Standards”. The Financial Accounting Standards Board (FASB) is a private‚ not-for-profit organization whose primary purpose is to develop generally accepted accounting principles (GAAP) within the United States in the public
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Spain. Ida is a U.S. subsidiary of a U.K. entity and prepares its financial statements in accordance with U.S. GAAP for reporting to its U.S.-based lender and in accordance with IFRS in reporting to its parent. Ida owns and operates a commercial building that at year-end 2010 represents a a cash-generating unit (CGU) under IFRS and a long-lived asset classified as held and used under U.S. GAAP. One of Ida’s competitors sold its commercial building for an amount significantly less than its asking price
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Private corporations: Select one: a. must follow GAAP for private companies b. must follow IFRS c. do not use standards when creating financial statements d. have a choice of following GAAP for private companies or IFRS Feedback Explanation: Private corporations have a choice of following IFRS or the new GAAP specifically updated for private companies. The correct answer is: have a choice of following GAAP for private companies or IFRS Question 2 Correct Mark 1.00 out of 1.00 Flag question
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