International Accounting Standards Contents A. Introduction & Objective.……………………………………………………………….3 B. Why Harmonization of international accounting standards required……………..4 C. Factors influencing any Country’s Accounting Standards…………………………..6 D. Role of International Accounting Standard Board (IASB)……………….…………..8 E. Moving towards Harmonized International Accounting Standard………………….9 F. Obstacles and Benefits of the harmonization of International Accounting………..10
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Checkpoint: Accrual Method •Nonprofit organizations are required to produce financial statements based on the accrual method of accounting. How is this different from the cash basis of accounting? Why is accrual accounting important? Cash basis accounting‚ for example when you ship goods out of your business to customers and they have receipt but have not received the cash‚ means that you may have not booked the revenue. Accrual accounting is more accurate with the timing of reported revenue
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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 Codification eliminates obsolete
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On September 28 2010‚ the International Accounting Standards Board (IASB) and the US Financial Accounting Standards Board (FASB) had declared they had completely conducted the first stage of The Conceptual Framework joint project. The purpose of this joint project is to further improve an advanced conceptual framework for International Financial Reporting Standards (IFRSs) and US Generally Accepted Accounting Practices (GAAP) (Norwalk 2010). Basically‚ the conceptual framework is an attempt to express
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India is not the exception. In India IFRS is being implemented in phased manner. Till now it has been made mandatory for some specific group of listed companies. Although many countries of the world have been benefitted after implementing IFRS‚ it is both threat and opportunity for India. Indian companies have various challenges and issues to implement IFRS. The biggest challenge in India is to harmonize IFRS with respect to existing laws and regulations. Proper implementation of IFRS will require substantial
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Accounting Standard 10: Accounting for Fixed Assets • Fixed asset is an asset held for producing or providing goods and/or services and is not held for sale in the normal course of the business. • Cost to include purchase price and attributable costs of bringing asset to its working condition for the intended use. It includes financing cost for period up to the date of readiness for use. • Self-constructed assets are to be capitalised at costs that are specifically related to the asset and those
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1: Financial Accounting & Accounting Standards 1. Differentiate broadly between financial accounting and managerial accounting. -Financial accounting measures‚ classifies‚ and summarizes in report from those activities and that information which relate to the enterprise as a whole for use by parties both internal and external to a business enterprise. Managerial accounting also measures‚ classifies‚ and summarizes in report form enterprise activities‚ but the communication is for the use of internal
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direct outcome of Realization Concept (already discussed) and the Accounting Period concept. In a way‚ realization concept has been split up into two parts‚ namely‚ production of economic goods or rendering of economic services‚ and realization of due revenue. Any uncertainty about any of the two elements beyond what is considered uncontrollable will not permit the accountant to treat the money value or cash equivalent of the sale price to be considered as realized income.
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private company‚ and a proprietary company | | a public company‚ and a trade union | | a proprietary company‚ and a public company | | a proprietary company‚ and a partnership | 3. A proprietary company must have at least one shareholder and cannot have more than: | 100 shareholders | | 50 shareholders | | 20 shareholders | | 10 shareholders | 4. | The share capital of a company may consist of: | ordinary shares either fully paid or partly paid issued
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Accounting Standards-18 (AS-18): AS-18 deals with disclosure requirements in the Financial Statements in respect of the transaction with Related Party. As per AS-18‚ “Parties are considered to be related if at any time during the reporting period one party has the ability to control the other party or exercise significant influence over the other party in making financial and/or operating decisions” and Related Party transaction means “a transfer of resources or obligations between related parties
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