...constituted an Accounting Standards Board (ASB) on 21st April, 1977. Scope and Functions of Accounting Standards Board: The main function of ASB is to formulate accounting standards so that such standards may be established by the Council of the Institute in India. While formulating the accounting standards, ASB will take into consideration the applicable laws, customs, usages and business environment. The Institute is one of the Members of the International Accounting Standards Committee (IASC) and has agreed to support the objectives of IASC. While formulating the Accounting Standards, ASB will give due consideration to International Accounting Standards, issued by IASC and try to integrate them, to the extent possible, in the light of the conditions and practices prevailing in India. The Accounting Standards will be issued under the authority of the Council. ASB has also been entrusted with the responsibility of propagating the Accounting Standards and of persuading the concerned parties to adopt them in the preparation and presentation of financial statements. ASB will issue guidance notes on the Accounting Standards and give clarifications on issues arising there from. ASB will also review the Accounting Standard at periodical intervals. Audited Financial Statements: For discharging the above functions, ASB will keep in view the purposes and limitations of published financial statements and the attest function of the auditors. ASB will enumerate and describe the basic concept...
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...INTRODUCTION International Financial Reporting Standards (IFRS) In 2011, international financial reporting standards (IFRS) will replace generally accepted accounting principles (GAAP). This means Canadian publicly-traded companies will be required to present financial statements in accordance with IFRS. This change will not only affect those involved in the development of financial information but also those who use this information. Economic globalization brings increased demand for high quality, internationally comparable financial information. That’s why in 1999, CGA-Canada took the pioneering step of advocating for the convergence to IFRS in Canada and continues today to contribute to the evolution and adoption of IFRS. By providing our professional advice to the accounting community, ensuring the latest information and professional development opportunities are available to CGAs and keeping the CGA Program of Professional Studies current, the Association is well prepared for the transition to IFRS. CGA-Canada and International Standards-Setting CGA-Canada plays a critical role in international standards-setting through exposure draft comments and its international representation by virtue of being an International Federation of Accountants (IFAC) member body. Comments to the International Accounting Standards Board, the International Auditing and Assurance Standards Board, the International Ethics Standards Board for Accountants and the International Accounting Education...
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...FINANCIAL REPORTING AND COST CONTROL GROUP-3 PRESENTED BY:AKSHAY ESHAA RANJAN SAI CHARAN SHARATHCHANDRA H J VIKASH INTERNATIONAL FINANCIAL REPORTING STANDARDS (IFRS) CONTENTS :INTRODUCTION OBJECTIVES OF IFRS STANDARDS OF IFRS WHY IFRS IS PREPARED ? ADVANTAGES AND DISADVANTAGES INDIAN ACCOUNTING STANDARDS Differences between ifrs , ind gaap and us gaap INTRODUCTION :- IFRS is set if international accounting standards developed by IASB (International Accounting Standard Board) under the governance if IFRS to set a high quality accounting standards. There are 120 nations who are following IFRS. WHAT IS IFRS ? International Financial Reporting Standards (IFRS) are designed as a common global language for business affairs so that company accounts are understandable and comparable across international boundaries. OBJECTIVES OF IFRS To develop, in the public interest, a single set of high quality and globally accepted financial accounting standards. It is to promote the use and rigorous application of those standards. Transparent for all users and comparable over all periods. Provides a suitable starting point for accounting in accordance with IFRS. Can be generated at a cost that does not exceed the benefits. WHY IS IFRS NECESSARY ? It is believed that IFRS, when adopted worldwide, will benefit investors and other users of financial statements by reducing cost of investments and increasing the quality of...
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...system when it is purchased by Careway. A deliverable must have objective value on a stand-alone basis. The five-year research and development agreement doesn't have a deliverable because it's integrated with the five-year license and distribution agreement and doesn't have a stand-alone value. According to FASB ASC 605-25, it's not a deliverable. 2. According to FASB Statement of Financial Accounting Concepts(CON) 5,Recognition and Meaurement in Financial Statements of Business Enterprises, revenue is considered “earned” if an entity has substantially accomplished what it must do to be entitled to the contractual benefits. Revenue is “realizable” when related assets received are readily convertible to cash or claims to cash. In this case, SolvGen should recognize the nonrefundable milestone payments as revenue when Careway launches the proprietary instrument systems, because the launch date of the systems is the time that Careway begins to benefit from the systems. Before that date, the nonrefundable milestone payments should be recognized as unearned revenue. The advance payments such as Exclusive negotiation payment(1 million) and contract signing payment(2 millions) should be...
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...Learning outcome (1): Understand the regulatory framework for financial reporting User needs: Accounting standards Board (ASBs) Statement of Principles INTRODUCTION This section of the unit discusses the qualitative characteristics of the financial statements and how it relates to the content and presentation of a financial statement. The second part of this paper sets out to assess the difficulty preparing a useful set of financial statements that exhibits the qualitative characteristics mentioned in the first part. Defining a financial report: A financial report is a written report which quantitatively describes the financial health of a company. Financial statements are usually compiled on a quarterly and annually basis . According to the Accounting Standards Board (1999), the objective of financial statement is to provide information on the reporting entity's financial position and performance that is useful to a wide range of users to assess the management and for decision making. Composition of a complete financial statement As per IAS 1 (international Accounting Standard), a complete set of financial statement comprises of: * A statement of financial position (balance sheet) * A statement of comprehensive income for the period (income statement) * A statement of cash flow * A statement of changes in equity * Notes comprising a summary of significant accounting policies and other explanatory information. * A statement of financial position (Balance sheet)...
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...Australian School of Business Accounting ACCT1511 ACCOUNTING AND FINANCIAL MANAGEMENT 1B Course Outline Semester 1, 2012 Part A: Course-Specific Information Please consult Part B for key information on ASB policies (including those on plagiarism and special consideration), student responsibilities and student support services. Table of Contents 1 PART A: COURSE-SPECIFIC INFORMATION 1 2 STAFF CONTACT DETAILS COURSE DETAILS 3 3 3 3 3 4 4 5 5 5 6 7 7 8 10 11 12 2.1 Teaching Times and Locations 2.2 Units of Credit 2.3 Summary of Course 2.4 Course Aims and Relationship to Other Courses 2.5 Student Learning Outcomes 3 LEARNING AND TEACHING ACTIVITIES 3.1 Approach to Learning and Teaching in the Course 3.2 Learning Activities and Teaching Strategies 4 ASSESSMENT 4.1 Formal Requirements 4.2 Assessment Details 5 6 7 COURSE RESOURCES COURSE EVALUATION AND DEVELOPMENT COURSE SCHEDULE [ACCT1511 Accounting and Financial Management 1B] 2 PART A: COURSE-SPECIFIC INFORMATION 1 STAFF CONTACT DETAILS AFM1B staff members’ details, contact information and consultation times are consolidated together with the course timetable, which is posted separately on Blackboard. The policies regarding staff contact are as follows: The Staff are available for consultation starting from week 2 to week 13 (excluding mid-year recess) and STUVAC only. Consultation time during STUVAC differs from those of other weeks and will be notified on Blackboard...
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...1. The professional standards urge auditors to be cautious when they are considering “uncorrected misstatements” in a client’s financial statements. AU Section 312 discusses such items at length. Following is an excerpt from that discussion. If the auditor concludes that the effects of uncorrected misstatements, individually or in the aggregate, do not cause the financial statements to be materially misstated, they could still be materially misstated because of further misstatements remaining undetected. As the aggregate misstatements approach materiality, the risk that the financial statements may be materially misstated also increases; consequently, the auditor should also consider the effect of undetected misstatements in concluding whether the financial statements are fairly stated. [AU 312.65] AU Section 312 notes that if the auditor concludes that the client’s financial statements are materially misstated, then “the auditor should request management to make the necessary corrections” (312.64). This section goes on to discuss the documentation standards for “uncorrected misstatements” (see paragraphs 69-70). For example, auditors must document in their workpapers “whether uncorrected misstatements, individually or in the aggregate, do or do not cause the financial statements to be materially misstated, and the basis for that conclusion.” In summary, auditors’ lives would be considerably less complicated if clients would prepare an adjusting entry for each...
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...Standard On October 7 the FASB held it last decision meeting on their new lease accounting convergence project. The project is a joint project between the FASB and the IASB to change how leases would be recognized. Before leases may or may not have to be recognized on the lessee’s books. The new rule would require lessee to recognize the assets no matter what. The FASB originally was looking to implement the new standard by the end of 2015, but that will not happen. The transition will most likely take place somewhere in 2019. In the article “Lease Accounting Standard New Start Date Likely 2019” they talk about the difficulties faced by companies with this change. The first being that this change comes right along with the changes in revenue recognition, making this a balancing act become for companies to update to the new standards. Second most companies are not ready to take on this change. As stated in the article “Last year Deloitte found that almost 80% of the executives it surveyed were not ready for the standard, citing the quality of data, the complexity of compliance, and a lack of confidence in IT systems as the main concerns for companies.” The reason why I picked this article is because in class we most of the time take about the reasoning and methods and accounting entries that happen with transactions and how changes in practice affect how we recognize these transactions. But this article it adds a general background to what challenges companies will have to face...
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...Australian School of Business Accounting ACCT1511 ACCOUNTING AND FINANCIAL MANAGEMENT 1B Course Outline Semester 2, 2013 Part A: Course-Specific Information Please consult Part B for key information on ASB policies (including those on plagiarism and special consideration), student responsibilities and student support services. Table of Contents 0 PA RT A : COURSE-SPECIFIC INFORMA TION 1 2 STA FF CONTA CT DETA ILS COURSE DETA ILS 2 2 3 3 3 3 3 4 7 7 7 9 9 9 12 5 6 7 COURSE RESOURCES COURSE EV A LUA TION A ND DEV ELOPMENT COURSE SCHEDULE 12 13 13 2.1 Teaching Times and Locations 2.2 Units of Credit 2.3 Summary of Course 2.4 Course A ims and Relationship to Other Courses 2.5 Student Learning Outcomes 3 LEA RNING A ND TEA CHING A CTIV ITIES 3.1 A pproach to Learning and Teaching in the Course 3.2 Learning A ctivities and Teaching Strategies 4 A SSESSMENT 4.1 Formal Requirements 4.2 A ssessment Details 1 [ACCT1511 – Accounting & Financial Management 1B] PART A: COURSE-SPECIFIC INFORMATION 1 STAFF CONTACT DETAILS AFM1B staff members’ details, contact information and consultation times are consolidated together with the course timetable, which is posted separately on Blackboard. The policies regarding staff contact are as follows: The Staff are available for consultation starting from week 2 to week 13 (excluding mid-year break week) and STUVAC only. Consultation times during STUVAC will differ from those of other weeks and will be notified on Blackboard...
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...www.gtgifrs.com: 1 IFRS IMPLEMENTATION AND CHALLENGES IN INDIA By Vandana Saxena Poria, OBE CEO, Get Through Guides Published in MEDC Monthly Economic Digest – August 2009 issue Need for universal GAAP In recent times, capital markets have become global and continue to expand. Moreover, there has been significant globalisation of production and trade. Investors can trade shares and securities worldwide. Entities are in a position to access the funds globally in the most advantageous markets. For this, investors from all over the world rely upon financial statements before taking decisions. They need to be convinced that the financial statements are true and fair and what they understand from the statements is what the person preparing them intends to convey. However, different countries adopt different accounting treatments and disclosure patterns with respect to the same economic event. This may create confusion among the users while interpreting the financial statements. Financial statements that are based on a single, universally accepted and used GAAP will enable the world to exchange financial information in a meaningful and trustworthy manner. This will accelerate the globalisation of finance. Adoption of IFRS worldwide and in India The use of International Financial Reporting Standards (IFRS) as a universal financial reporting language is gaining momentum across the globe. Several countries have implemented IFRS and converged their national GAAP to IFRS. More than 100...
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...Case 3-8 IASB vs. FASB Conceptual Frameworks Q. Discuss the similarities and differences between the FASB and IASB conceptual frameworks with respect to the definitions of the elements of financial statements. INTRODUCTION At the October 2004 joint IASB-FASB meeting, the Boards agreed to add to their respective agendas a joint project to develop a common conceptual framework—a single framework that both converges and improves upon the existing frameworks of the two Boards. (The Boards had previously discussed a staff proposal for this project at their April joint meeting.) The Boards also agreed that the project should be divided into phases. Initially, the focus will be on objectives, qualitative characteristics, elements, recognition, and measurement. The Boards will give priority to addressing issues that are likely to yield benefits to the Boards in the short term, that is, cross-cutting issues that affect a number of their standards-level agenda projects. Therefore, the first step is to identify and prioritize those cross-cutting issues. Possible examples that the staff have suggested include the meaning and role of reliability; the definition of liability; the meaning of probable; the effect of conditions, contingencies, or other uncertainties; the unit of account; and accounting for contractual rights and obligations, as explained further below. Initially, the Boards will focus on concepts applicable to business entities in the private sector. Later,...
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...Accounting Standards Building international opportunities for Australian business Corporate Law Economic Reform Program Proposals for Reform: Paper No. 1 © Commonwealth of Australia 1997 ISBN 0 642 26110 5 This work is copyright. Apart from any use as permitted under the Copyright Act 1968, no part may be reproduced by any process without prior written permission from the Australian Government Publishing Service. Requests and inquiries concerning reproduction rights should be directed to the Manager, Commonwealth Information Services, Australian Government Publishing Service, GPO Box 84, Canberra ACT 2601. The Government is seeking comments from interested parties on the detail of the proposals in this paper which should be forwarded to the following address: First Assistant Secretary Business Law Division The Treasury Parkes Place PARKES ACT 2600 Telephone: 02 6263 3960 Fax: 02 6263 2882 Email: clerp@treasury.gov.au Copies of this paper are available from the Australian Government Publishing Service and on the Treasury web site (http://www.treasury.gov.au). Enquiries concerning the paper can be made to: Ms Veronique Ingram Assistant Secretary The Treasury Telephone: 02 6263 3970 Printed by the Australian Government Publishing Service TABLE OF CONTENTS Page Abbreviations PART 1: PART 2: Reform Proposals Introduction 2.1 2.2 PART 3: Background Key economic principles v 1 9 9 10 11 11 12 13 13 14 16 17 19 19 19 20 22 23 The Case for Reform 3.1 3.2 Impetus...
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...Valuation of Inventories Cash Flow Statements Contingencies and Events Occurring After the Balance Sheet Date Net Profit or Loss for the Period, Prior Period Items and Changes in Accounting Depreciation Accounting Construction Contracts Accounting for Research and Development (Not Applicable now) Revenue Recognition Accounting for Fixed Assets Accounting for the Effects of Changes in Foreign Exchange Rates Accounting for Government Grants Accounting for Investments Accounting for Amalgamation Accounting for Retirement Benefits in the financial Statements of Employers Borrowing Costs Segment Reporting Related Party Disclosure Leases Earning Per Share Consolidated Financial Statements Accounting for Taxes on Income Accounting for Investments in Associates in Consolidated Financial Statements Discontinuing Operations Interim Financial Reporting Intangible Assets Financial Reporting of Interests in Joint Ventures Impairment of Assets Provisions, Contingent Liabilities & Contingent Assets Procedure for Issuing Accounting Standards Accounting Standard Board (ASB) determines the broad areas in which Accounting Standards need to be formulated. In the preparation of AS, ASB is assisted by Study Groups. ASB also holds discussions with representative of Government, Public Sector Undertakings, Industry and other...
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...Q NO.03: Discuss the role of each of the following in the Formation of Accounting Principles? * AICPA * FASB * SEC Ans: * AICPA: American Institute of Certified Public Accountant: The American Institute of Certified Public Accountants (AICPA) is the national professional organization for Certified Public Accountants (CPAs) in the United States. Founded in 1887, the American Institute of Certified Public Accountants (AICPA) is the national professional organization of Certified Public Accountants (CPAs) in the United States, with more than 394,000 members in 128 countries in business and industry, public practice, government, education, student affiliates and international associates. It sets ethical standards for the profession and U.S. auditing standards for audits of private companies, non-profit organizations, federal, state and local governments. It also develops and grades the Uniform CPA Examination. The AICPA maintains offices in New York City; Washington, DC; Durham, NC; and Ewing, NJ.The AICPA celebrated the 125th anniversary of its founding in 2012. The AICPA’s founding established accountancy as a profession distinguished by rigorous educational requirements, high professional standards, a strict code of professional ethics, and a commitment to serving the public interest. The AICPA’s mission is to provide members with the resources, information and leadership that enable them to provide valuable services in the highest professional manner...
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...Accounting Standards Building international opportunities for Australian business Corporate Law Economic Reform Program Proposals for Reform: Paper No. 1 © Commonwealth of Australia 1997 ISBN 0 642 26110 5 This work is copyright. Apart from any use as permitted under the Copyright Act 1968, no part may be reproduced by any process without prior written permission from the Australian Government Publishing Service. Requests and inquiries concerning reproduction rights should be directed to the Manager, Commonwealth Information Services, Australian Government Publishing Service, GPO Box 84, Canberra ACT 2601. The Government is seeking comments from interested parties on the detail of the proposals in this paper which should be forwarded to the following address:| First Assistant SecretaryBusiness Law DivisionThe TreasuryParkes PlacePARKES ACT 2600|Telephone:Fax:Email:|02 6263 396002 6263 2882clerp@treasury.gov.au| Copies of this paper are available from the Australian Government Publishing Service and on the Treasury web site (http://www.treasury.gov.au).Enquiries concerning the paper can be made to:Ms Veronique IngramAssistant SecretaryThe TreasuryTelephone: 02 6263 3970| Printed by the Australian Government Publishing Service Table of Contents Page Abbreviations v PART 1: Reform Proposals 1 PART 2: Introduction 9 2.1 Background 9 2.2 Key economic principles 10 PART 3: The Case for Reform 11 3.1 Impetus for reform 11 3.2 What the Government is seeking...
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