America difficult as they often have to prepare financial statements using IFRS and another set using American Generally Accepted Accounting Principles. More Flexibility IFRS uses a principles-based‚ rather than rules-based‚ philosophy. A principles-based philosophy means that the goal of each standard is to arrive at a reasonable valuation and that there are many ways to get there. This gives companies the freedom to adapt IFRS to their particular situation‚ which leads to more easily read and useful
Premium International Financial Reporting Standards Financial statements Financial Accounting Standards Board
is a financial instrument under U.S. GAAP? a. a consolidated investee b. an equity method investment c. buildings and land d. treasury stock e. None of the above 5. How are derivative financial instruments valued on the balance sheet? a. historical cost b. amortized cost c. fair value d. depends on the valuation of the underlying asset/liability e. None of the above 6. Which of the following is not a financial instrument under IFRS? a. Bonds issued by the reporting
Premium Generally Accepted Accounting Principles Balance sheet Financial statements
first recognized as a reduction in any related revaluation surplus | | | | | * Question 5 2.5 out of 2.5 points | | | Which of the following is generally true about the differences between U.S. GAAP and IASB standards?Answer | | | | | Selected Answer: | U.S. GAAP tends to be more rule-based‚ and the IASB standards tend to be principles-based. | | | | | * Question 6 2.5 out of 2.5 points | | | The “Seventh Directive” issued by the European Commission is
Premium International Financial Reporting Standards Balance sheet International Accounting Standards Board
The Financial Accounting Standards Board (FASB) has been working for ten years to bridge the gap between the United States’ Generally Accepted Accounting Principles (GAAP) and the International Accounting Standards Board (IASB). As part of this movement‚ Russell Golden‚ the chairman of the FASB‚ indicated that he would like to focus on making corporate disclosures more consistent. By doing so‚ it would be easier for investors to compare companies from different sectors. The FASB is “working on a
Premium International Financial Reporting Standards Financial Accounting Standards Board Financial statements
Financial Statement Analysis Introduction to Management Accounting 561 August 31‚ 2010 Robert L. Hynous‚ Jr. Financial Statement Analysis The primary principle of the financial statement analysis is to examine the accounting books for the accountability of review each year-end for profit or loss in a company to be review by the stockholders. Team A will review the financial statement analysis of two American companies; United Parcel Service (UPS) a service‚ Talbots (TLB) a retailer‚
Premium Generally Accepted Accounting Principles Economics Balance sheet
UNIVERSITI TENAGA NASIONAL COLLEGE OF BUSINESS MANAGEMENT AND ACCOUNTING DEPARTMENT OF ACCOUNTING SUBJECT: ACCOUNTING THEORY AND PRACTICE PREPARE FOR: DR.NORHAYATI MAT HUSIN PREPARE BY: NUR FADZILAH BT NORIZAN (AC086628) NUR IZYAN BT MOHD ISHAK (AC086934) NURUL AQILAH BT ZAMRI (AC085167) THILAGA SEGARAN (AC086628) BACHELOR IN ACCOUNTING (HONS) CASE 1: WASTE MANAGEMENT a) Define the matching principle and explain
Premium Depreciation Generally Accepted Accounting Principles
different in recognition of intangible assets‚ revenue‚ tax‚ inventory under IFRS (Aus) and U.S.GAAP. Secondly‚ describe consequence of the different recognition of accounting items and how it affects to financial statement and different regulation under AISC (Aus) and SEC (US). Thirdly‚ describe the factors that influence the accounting practices of Walmart and Woolworths. In the end‚ evaluate the theoretical benefits in adopting IFRS standards for both these two companies. Introduction Faced with the
Premium Balance sheet Financial statements International Financial Reporting Standards
judgement in preparing financial statements by prescribing the nature functions and limits of financial accounting and reporting. It also inceses the users’ understanding of and the confidence of financial reporting. 3. U.S. companies be affected by the IFRS - International Financial Reporting Standards has been affecting US companies for some time -
Premium Generally Accepted Accounting Principles
forth by the (SEC) and the (FASB); the (FASB) ensures that all companies focus on the characteristics of relevance and reliability when generating financial reports while staying within the guidelines of the Generally Accepted Accounting Principles (GAAP). When companies do not follow these guidelines they can be sanctioned by the (SEC) (Facts about FASB‚ 2009). The (PCAOB) was granted investigative and disciplinary power by the Sarbanes-Oxley Act of 2002; this act was established as a result of major
Premium International Financial Reporting Standards Financial Accounting Standards Board Certified Public Accountant
standards bodies in both countries. In the UK this would be the Accounting Standards Board (ASB) which helps to set the Financial Reporting standards (FRS) used in the UK‚ whereas in the Netherlands the Dutch Generally Accepted Accounting Polices (GAAP) are provided by the council for annual reporting and the influential Dutch accounting profession the Royal Nederlands Institut van Register accountants (NIVRA). Sharing the tradition of public ownership‚ they both present a true and fair view in their
Premium Balance sheet Generally Accepted Accounting Principles Financial statements