“The first project is IFRS 9: Financial Instruments (replacement of IAS 39)” (IFRS Foundation and the IASB‚ 2012: Financial Instruments). To simplify the requirements for financial instrument classification and measurement in November 2008 this project was added to the IASB’s active agenda with the objective of improving financial statement usefulness for users. The project is being conducted in three main phases. Phase I - Classification and measurement‚ the IASB published IFRS 9 Financial Instruments
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ACC 557 Week 9 DQ1 "Cash Flow Reporting" Please respond to the following: Given the complexities related to preparing and interpreting the statement of cash flow‚ evaluate the current requirement under GAAP and IFRS‚ indicating improvements that you would make to each method’s requirement to better serve the users of the information. Provide a rationale for your changes. Analyze the impact of erroneous classifications in the Operating Activities section of the statement of cash flows‚ detailing
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Solutions Ch 3 Balance Sheet 3.22 (Nestlé; asset recognition and measurement.) a. Both U.S. GAAP and IFRS would recognize Investment in Bond (noncurrent asset)‚ CHF800 million. Nestlé would record the bond at acquisition cost‚ not the amount it will receive at maturity. b. Both U.S. GAAP and IFRS would recognize Prepaid Insurance (current asset); CHF240 million would be recorded initially. At Nestlé’s year-end‚ the balance in the Prepaid Insurance account would reflect the two months usage of
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An Insight on IFRS versus U.S GAAP & Implications of IFRS adoption on Financial Statement and Accounting Quality Q2) Principle and rule-based accounting reflect different approaches to accounting. The pros and cons of rule-based accounting (RBA) and principle-based accounting (PBA) are as discussed. (1) RBA deters creative accounting as rules reduce opportunistic discretion unlike PBA which is more subjective and ambiguous.On the other hand‚ others argue that rules are a means to circumvent
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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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1 Introducing IFRS In This Chapter ▶ Seeing how standards are set‚ and amended ▶ Rolling out IFRS globally ▶ Presenting IFRS financial statements M In this chapter‚ I move beyond telling you what standards are to helping you understand what they do. To start‚ I explain how the standards are created and amended‚ and then I take a look at the scope of IFRS worldwide. Finally‚ I introduce you to the important financial statements that you must present to conform with IFRS: the statement of
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Canadian GAAP - IFRS Comparison Series Issue # 11 – Business Combinations Both IFRS and Canadian GAAP are principle based frameworks‚ and from a conceptual standpoint‚ many of the general principles are the same. However‚ the application of those general principles in IFRS can be significantly different from Canadian GAAP. Therefore‚ to understand the magnitude of the differences between IFRS and Canadian GAAP‚ it is essential to look beyond the general principles and look at the detailed guidance
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International GAAP Holdings Limited Model financial statements for the year ended 31 December 2013 Contacts IFRS global office Global IFRS Leader Veronica Poole ifrsglobalofficeuk@deloitte.co.uk Global IFRS Communications Director Mario Abela ifrsglobalofficeuk@deloitte.co.uk IFRS centres of excellence Americas Canada LATCO United States Karen Higgins Fermin del Valle Robert Uhl iasplus@deloitte.ca iasplus-LATCO@deloitte.com iasplusamericas@deloitte.com Anna Crawford Stephen Taylor Shinya Iwasaki
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argument is that to maintain sector neutral accounting‚ there will be a need for significant changes in the IFRS; however‚ this is likely to result in higher costs and the quality will not be necessarily high. It concludes that sector specific is beneficial for both the sectors. The public sector can adopt the International Public Sector Accounting Standards while the private sector may continue with IFRS. In the end‚ essay also recommends research on the impact of the adoption of IPSAS on the public sector
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4. – Why are revenue and expense accounts called temporary or nominal accounts? Revenue and expense accounts are referred to as temporary or nominal accounts because each period they are closed out to Income Summary in the closing process. Their balances are reduced to zero at the end of the accounting period; therefore‚ the term temporary or nominal is sometimes given to these accounts. 7. Indicate whether each of the following items is a real or nominal account and whether it appears in the
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