International Financial Reporting Standards Jose L. Gomez Accounting Capstone March 26‚ 2015 Abstract The FASB and IFRS continually improve upon accounting standards and rulings in an effort to converge GAAP with international standards. In fact‚ several standard and ruling updates are being contemplated at this moment through pending discussions and through exposure drafts (PWC‚ 2011-2015); we will review a few of these in the next few paragraphs Differences between GAAP and IFRS First we
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the History of Accounting’‚ The Accounting Review‚ Vol. 30‚ No. 3‚ 1955. Diller-Haas‚ A.‚ ‘Time to Change Introductory Accounting’‚ The CPA Journal‚ Vol. 74‚ No. 4‚ 2004. 4‚ 1985. at: http://papers.ssrn.com/sol3/papers.cfm?abstract_id=1340619‚ 2009. FASB‚ ‘Statement of Financial Accounting Concepts No. 8 – Conceptual Framework for Financial Reporting’‚ Financial Accounting Standards Board of the Financial Accounting Foundation‚ 2010. Fellingham‚ J.C.‚ ‘Is Accounting an Academic Discipline?’‚ Accounting
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Nonetheless‚ to some‚ the conceptual framework has contributed a lot in the development of business‚ financial‚ accounting and auditing fields. For instance‚ using the conceptual framework of financial reporting‚ the Water Accounting Standards Board (WASB) in Australia has developed a Water Accounting Conceptual Framework in order to assist in the country’s water reporting and the rights to water (Chalmers et al.‚ 2012). The WASB replicated the financial accounting concepts‚ principles and practices
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Why Conceptual Framework is considered to be a Normative theory? Do we need conceptual framework? Discuss. A conceptual framework of accounting can be considered to be a normative theory of accounting. A conceptual framework makes prescriptions in regards to what the objectives of accounting are‚ what qualitative characteristics general-purpose financial information should possess‚ how the elements of accounting should be defined and when they should be recognised and how the elements of accounting
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alternative accounting practices in different countries‚ convergence refers to the process of developing a set of high quality financial reporting standards for use internationally (the process of global standard setting). Until the establishment of the IASB in 2001‚ the main objective of the IASC was to achieve international harmonization in accounting standards. Accordingly‚ the focus was to achieve consensus among different countries with regard to accounting standards. In this process different countries
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frequent flyer miles could displace a fare-paying passenger. The Incremental Cost Method does not account for the opportunity cost (i.e. the cash revenue foregone) associated with such a displacement. The U.S. Financial Accounting Standards Board (FASB) considered‚ but never reached authoritative guidance on‚ how to account for airline frequent flyer programs. In contrast‚ airlines reporting under IFRS have been
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INTRODUCTION - FINANCIAL INSTRUMENTS In today’s world of Globalization‚ we are witnessing free trade agreements between different countries‚ international exchanges are multiplying‚ and commercial barriers are falling. Hence competition is measured on global scale. In this wave of globalization‚ financial instruments have been growing at an incredible pace. We are currently witnessing a rapid expansion phenomenon of the use of the financial instruments in the international financial market. These
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financial reporting than the outdated historical cost model. FROM: SEP-OCT 2005 ISSUE | BY HAN DONKER In recent years‚ international standard setters and regulators such as the International Accounting Standards Board (IASB) and the Financial Accounting Standards Board (FASB) have begun to favour the use of fair value accounting over historical cost accounting in financial reporting. A key reason for this shift in methodology is to improve the relevancy of the information contained in financial
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Business Combination Amendments November 29‚ 2008 Introduction There have recently been a number of significant accounting changes due to FASB and the International Accounting Standards Board (IASB) making modifications for the accounting treatment of business combinations in SFAS 141(R) and IFRS 3. Business combinations have implemented the newly created accounting treatment called the “acquisition method.” It will replace of the current “purchase method” strategy effective January
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of the 58 clubs included in the study did not select immediate expensing‚ and only three clubs switched accounting methods. The aim of the paper is to investigate whether the accounting regulation (FRS 10‚ ASB‚ 1997a: IAS 38 (Revised)‚ IASB‚ 2004b: SFAS 142‚ FASB‚ 2001) that purchased intangibles must be capitalised is appropriate. In these standards the application of the asset recognition criteria‚ that the expected future benefits from the asset are probable and will flow to the entity‚ is taken
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