Eagle Impairment Case Question 1 IFRS According to the facts provided for Eagle in Italy‚ we assume that the commercial building‚ which represents a cash-generating unit (CGU)‚ meets the requirement for a recoverable test under IFRS. The impairment loss is required when the building’s book value exceeds the higher of the asset’s value-in-use and fair value less costs to sell. Carrying value 1‚100 > 900 Higher of Value in use (900)
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Polluter Corp. Polluter Corp. is a company that operates three manufacturing facilities and produces household cleaning products in the United States. The U.S. government grants this company with emission allowances (EAs) that can be used during 2010 to 2030. According to The Federal Energy Regulatory Commissions (FERC)‚ Polluter Corporation records emission allowances as elusive assets with a cost basis of zero. The fiscal year is December 31. To control and decrease the release of pollutants
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Sunday‚ September 26‚ 2010 from http://www.google.com/finance?q=NYSE:AMR Daimler AG. Retrieved on Sunday‚ September 26‚ 2010 from http://www.google.com/finance?q=ETR:DAI Financial Accounting Standards Board‚ (2010) http://www.fasb.org IFRS Foundation. (2010). IFRS. Retrieved from http://www.iasb.co.uk/ International Accounting Standards Board‚ (2010). Retrieved September 2010 from http:// www.iasb.org Macy’s Asset Utilization. Retrieved on Sunday‚ September 26‚ 2010 from http://ycharts.com/companies/M/asset_utilization
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Accounting Basics: Introduction Accounting is a glorious but misunderstood field. The popular view is that it’s mostly mind-numbing number-crunching; it certainly has some of that‚ but it’s also a rich intellectual pursuit with an abundance of compelling and controversial issues. Accountants are often stereotyped as soulless drones laboring listlessly in the bowels of corporate bureaucracies. But many accountants will tell you that it’s people skills‚ not technical knowledge‚ that are crucial to
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What Is the History of the Accounting Profession? By an eHow Contributor ? Accounting has been around for centuries. The Romans had a modern tax system complete with sales tax‚ land tax and a flat rate citizen tax. The Roman Empire employed tax collectors that kept track of collections through a rudimentary accounting system. Today‚ accounting is a career. Most U.S. colleges and universities offer tax or accounting degrees at the bachelor’s‚ masters and doctorate levels. Double-Entry
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Chapter 1 Questions 1. How important is international trade to the world economy? a. International sales and trade can be a source of higher profit margins through additional sales. Unique products or technological advantages can provide competitive advantage that a company wishes to exploit by expanding sales in a foreign market 2. What accounting issues arise for a company as a result of engaging in international trade? b. New accounts added to the chart of accounts‚ foreign
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Case 10-2 Eagle Impairment Case Question #1 Under IFRS’ International Account Standard No.36^15 an asset must be assessed for indicators of impairment at the end of each reporting period. The information provided for the commercial building in Italy does not say whether there are is an event or change in circumstances that indicate that book value of the asset may not be recoverable. Since there is no indicator mentioned‚ one possibility would be that no investigation of impairment take place and
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De La Salle Professional Schools‚ Inc. Graduate School of Business COMMENTARY: GLOBAL COMPARABILITY IN FINANCIAL REPORTING: WHAT‚ WHY‚ HOW AND WHEN? REACTION PAPER The commentary paper mainly deals with the evolution and convergence of accounting standards. In response to comparability & convergence issues that have arisen to date‚ the commentary has discussed what comprises global comparability in financial reporting‚ why it has arises and how they could make
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standards to be compliant with IFRS will be assisted by the Framework The framework will help prepares to apply IFRS more effectively if they understand the concepts underlying the standards; additionally the Framework should help in dealing with new or emerging issues which are‚ as yet‚ not covered by IFRS The above is also true of the work of the auditor; in particular the framework can assist the auditor in determining whether the financial statements conform to IFRS Users should be assisted by
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Conceptual Framework project aims to “update and refine the existing concepts to reflect the changes in markets‚ business practices and the economic environment that have occurred in the two or more decades since the concepts were first developed.” (IFRS) Therefore‚ the IASB and the US FASB (the boards) are undertaking the project jointly. Scope of the project As we expected‚ the new framework will deal with a wide range of topics and issues. Moreover‚ it will build on the existing IASB and FASB
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