structured with customers. As a part of ongoing discussions to converge U.S. Generally Accepted Accounting Principles (GAAP) and International Financial Reporting Standards (IFRS)‚ some proposals to change revenue recognition have been discussed. The following will discuss revenue recognition as it stands under U.S. GAAP and IFRS‚ as well as proposed changes to the revenue recognition principle. Revenue Recognition under U.S. GAAP Staff Accounting Bulletin‚ Topic 13 states‚ “The staff believes
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IFRS 5 IFRS 5 is about non-current assets held for sale and discontinued operations‚ which state that the aims of disclosed discontinued operations and non-current asset disposal is to helped group of users of the financial statement to assess the financial effects. The definition of discontinued operation in IFRS may differ from other accounting standard‚ IFRS has defined discontinued operation is an asset or component of a company that either has been disposed or is regarded as held-for-sale‚ and
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opinion‚ there are many advantages that speak for IFRS and their further development and adoption worldwide. First of all‚ accepting an international set of accounting principles will dramatically decrease the costs for reconciling one company’s financial reports with another’s. Comparing financial statements nowadays is one of the biggest issues for many firms operating on the global market‚ as accountants across countries follow different rules. With IFRS this process will be much quicker and cheaper
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business units‚ divisions‚ product lines‚ etc.) 2. Based on the form of your business‚ analyze whether or not you will be required to use Generally Accepted Accounting Principles (GAAP) or International Financial Reporting Standards (IFRS) accounting methods and how the IFRS / GAAP convergence will impact your business. Suggest how you will incorporate any changes into your books and records. (Note: You need to demonstrate to the
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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 Question text
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school research paper‚ nr. 10‚ 42p. Bollen L.‚ 1995‚ Financial reporting regulation for small and medium sized private firms‚ doctorate thesis Rijksuniversiteit Limburg‚ Maastricht‚ 235 pp. Eierle B.‚ 2004‚ the adaptation of German accounting rules to IFRS: a legislative balancing act‚ Accounting in Europe‚ 1‚ 27-50 Canibano L
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Case Study Inventory The Cost of Inventory The general principle for cost inclusion into inventory for US GAAP and IFRS is similar but not exactly the same. First let us look at US GAAP. The basis of accounting for inventories is “cost‚” which is explained in ASC 330-10-30 paragraph 1 as “the sum of the applicable expenditures and charges directly or indirectly incurred in bringing an article to its existing condition and location.” These costs are divided into two different categories‚ the
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PREVIEW OF CHAPTER 4-1 4 Income Statement Usefulness Predicting future performance. 4-2 Evaluate past performance. Help assess the risk or uncertainty of achieving future cash flows. Income Statement Limitations Companies omit items that cannot be measured reliably. 4-3 Income is affected by the accounting methods employed. Income measurement involves judgment. Income Statement Quality of Earnings Companies have incentives
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instruments. IFRS‚ unlike GASB has qualifying criteria that entities must meet in order to elect the fair value option. Furthermore‚ IFRS has different criteria to elect the fair value option for assets‚ liabilities and equity. Under IFRS 9‚ paragraph
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reporting China has amended its GAAP making it in line with IFRS requirement. Czech Republic: The Czech Republic is a small‚ yet stable European nation. The Czech Republic follows the Civil Law structure. The Accounting standards are prepared by the Ministry of Finance of the Czech Republic. All publicly traded companies are required to prepare their financial statements in accordance to the International Financial Reporting Standards (IFRS). While tax laws are in accordance with Czech regulations
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