effect on company valuation‚ all other things being the same. Nevertheless‚ many companies proceeded on the assumption that “off-balance-sheet” financing was a good thing. Then came the Financial Accounting Standards Board Statement No. 13 (called FASB 13) in 1976 with an explicit ruling that called for the capitalization on the balance sheet of certain types of lease.3 In essence‚ this statement says that if the lessee acquires essentially all of the economic benefits and risks of the leased
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1. What is the FASB Accounting Standards Codification? The FASB Accounting Standards Codification® is the source of authoritative generally accepted accounting principles (GAAP) recognized by the FASB to be applied to nongovernmental entities. 2. When did the codification become effective? The Codification is effective for interim and annual periods ending after September 15‚ 2009. 3. The FASB had three primary goals in developing the Codification. Identify them. a.
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accounting standards board (IASB) has replaced the international accounting standards committee (IASC) in 2001 and at the same time many standards of IFRS come from the International Accounting Standards which issued by IASC. After the new standards announce‚ the uptrend of globalisation has pushed more and more countries on their ways of adopting the international accounting standards. The drive for IASB is a British initiative and London is the headquarters for the IASB. Natural expectation would
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Chapter 12 Homework Questions Q1. What are the two main characteristics of intangible assets? The two main characteristics of intangible assets are: (a) they lack physical substance. (b) they are not a financial instrument. Q4. Why does the accounting profession make a distinction between internally created intangibles and purchased intangibles? When intangibles are created internally‚ it is often difficult to determine the validity of any future service potential. To permit
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somewhat complicated because IFRS sets its own rules how companies prepare and disclose their financial statements. Whereas‚ U.S. GAAP guidelines are pretty much standard across the board and is established by the Financial Accounting Standards Board (FASB). I think the challenges facing accounting professional‚ is knowledge. I think it is essential that accounting professional gain a complete understanding of IFRS rules. I also think it is important to implement IFRS guidelines into GAAP‚ without manipulating
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Accounting 381 Reading Assignment 1: Accounting and Professionalism Due: Tuesday‚ January 12‚ 2010 (at beginning of class). Please be prepared to discuss the questions and your responses in class on this date. Required: Answer the following questions based on your examination of the readings listed below. This should be completed on an individual basis. Your discussion should be no more than 2 pages in length‚ single-spaced. You do not need to use a particular format to prepare your
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Many of the standards forming part of the IFRS are know by the older name IAS. Many countries use these standards and many do not. The International Accounting Standards Board is a committee that is trying to develop global accounting standards. The IASB has developed procedures that brings transparency‚ predictability‚ and consistency of this committee is to create global standards that are transparent‚ enforceable‚ understandable‚ and of high quality. These standards would be a very important step
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real problems regarding IFRS implementation in India and to suggest remedial measures. Keywords : IAS‚ Indian GAAP‚ US GAAP‚ IASB‚ Fair Values‚ MCA. 1. INTRODUCTION : CONCEPTUALIZING THE TERM IFRS The full abbreviation of the term “IFRS” is international financial reporting standard (IFRS). IFRS has been developed by International accounting standard board (IASB). As per IASB “IFRS refers to a set of international accounting standard stating how particular type of transactions and other events should
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What are some of the key differences between IFRS and U.S. GAAP? The International Financial Reporting Standards (IFRS) - the accounting standard used in more than 110 countries - has some key differences from the U.S. Generally Accepted Accounting Principles (GAAP). At the conceptually level‚ IFRS is considered more of a "principles based" accounting standard in contrast to U.S. GAAP which is considered more "rules based." By being more "principles based"‚ IFRS‚ arguably‚ represents and captures
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Accounting in the USA The following report will describe and discuss the major elements of accounting in the USA. It will show that the US Generally Accepted Accounting Principles (GAAP) are set by the Financial Accounting Standards Board (FASB)‚ where as the International Accounting Standards (IAS) are set by the International Financial Reporting Standards (IFRS). This report will also state the similarities and differences between these standards. In addition‚ the following report will use
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