...Project Summary Background The objective of this project is to provide guidance to entities on how they should measure the fair value of assets and liabilities when required by other Standards. This project will not change when fair value measurement is required by IFRSs. Discussion at the September 2005 IASB Meeting At the September 2005 meeting, the IASB added the Fair Value Measurements topic to its agenda. The aim of the project is to provide guidance to entities on how they should measure the fair value of assets and liabilities when required by other Standards. This project will not change when fair value measurement is required by IFRSs. Discussion at the November 2005 IASB Meeting The staff conducted an education session on the FASB's working draft of a final Statement on Fair Value Measurements. In addition, the staff reviewed the scope of FASB's Fair Value Measurements project as it relates to IFRSs and the issues and questions to be addressed in preparing an IASB Exposure Draft and related Invitation to Comment. No decisions were made. At a previous meeting, the Board decided to issue the FASB's final Statement on Fair Value Measurements as an IASB Exposure Draft with an Invitation to Comment. The appendices in the FASB document dealing with consequential amendments and references to US GAAP pronouncements will be replaced with proposed consequential amendments and references to IFRSs. The Board further decided that there should be limited changes to the FASB's...
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...Over the past decade, the Financial Accounting Standards Board (FASB) and the International Accounting Standards Board (IASB) have been working together to form a set of global standards. They are trying to make the International Financial Reporting Standards the globally accepted financial reporting principles. 1. As an international manager or investor, what benefits do you see from the growing adoption of IFRS across countries? Growing the adoption of IFRS across countries will allow for more comparable financial statements and disclosures globally. Investors and other financial statement users will be able to see how international companies compare to one another. Currently, U.S. Generally Accepted Accounting Principles (GAAP) varies from IFRS in many ways, some causing significant differences in accounting for certain topics. Growing the adoption will also allow companies and all its subsidiaries to use the same set of standards. 2. In your mind, what are the three most substantial challenges to the growth and development of IFRS in the coming years? Why? The three most substantial challenges to the growth and development of IFRS in the coming years are “convergence” or full adoption of IFRS, large costs of adopting IFRS, and the disagreement with the EU. Convincing all nations to adopt IFRS as is, with no specific national standards stepping in, is going to be a difficult process. “Convergence is an impossible dream. You will always find issues where you basically...
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...A critical review of the trade-offs between the concepts of relevance and reliability in financial reporting Theme: Financial Accounting Classification: M41 Author: Prof D Coetsee Affiliation: Department of Accountancy, University of Johannesburg, South Africa Contact address: Department of Accountancy R-Ring 607 University of Johannesburg PO Box 524 Auckland Park Johannesburg South-Africa 2006 Telephone: +27-11-559-3047 Fax: +27-11-559-2777 E-Mail dcoetsee@uj.ac.za A critical review of the trade-offs between the concepts of relevance and reliability in financial reporting |Abstract | |In an information orientated system of financial reporting the move from historical cost to fair value | |accounting has created numerous debates surrounding the trade-offs of the concepts of relevance and | |reliability. This article contributes to the debate by critically reviewing the current developments of | |these trade-offs to determine whether current financial reporting guidelines are appropriate to deal with | |the difficulties and uncertainties of financial reporting. The article found that the proposals of the joint| |framework discussion paper goes a long way in resolving the issues around the trade-offs of relevance and | |reliability. Changing the concept of reliability to faithful representation...
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...5 ——————————————————————————————————————— Financial Affairs Division, Directorate for Financial and Enterprise Affairs Organisation for Economic Co-operation and Development 2 Rue André Pascal, Paris 75116, France www.oecd.org/daf/fin/wp ABSTRACT/RÉSUMÉ The New IAS 19 Exposure Draft At the end of April 2010, the International Accounting Standards Board (IASB) published an exposure draft with proposed changes to International Accounting Standard No. 19 (IAS 19). IAS 19 is the current standard for the financial reporting of company pension obligations that stem from defined benefit (DB) and similar plans. It is required for exchange-listed companies in many parts of the world. If enacted, the changes to IAS 19 proposed by the IASB are expected to have a significant impact on company financials on a global basis. The following paper summarizes the proposed changes as presented in the April 2010 exposure draft and explores some of their implications. This paper does not cover all the changes proposed by the IASB but attempts to focus on some key and controversial issues. JEL codes: G23, G32, M41, M52 Key words: IASB, IAS 19, defined benefit accounting, pension accounting, market-to-market Copyright OECD, 2010 Applications for permission to reproduce or translate all, or part of, this material should be made to: Head of Publications...
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...ACC/541 September 09,2013 Heber Howard Accounting Standard Boards Paper In the business of accounting two boards stand out the first one is the International Accounting Standards Board (IASB), and the second is the Financial Accounting Standards Board (FASB). The two boards are putting together this joint adventure to have a universal standard recognized internationally by entities for reporting of financial statements. This adventure will help to ensure that reporting of financial information is consistent globally and in the United States. The adventure will also help investors, stakeholders, the public, and financial institutions to read the financials in a clearer format. This paper will provide a brief understanding of the two boards joint adventure referred to as the convergence project. After discussing the relationship between the two boards along with the equivalents of the FASB original pronouncements, the paper will explain briefly how the MSA program prepares students for a professional life within the accounting vocation and how he or she will be able to make ethical business decisions. IASB and FASB The IASB is an independent regulatory body based in the United Kingdom, which aims to develop a set of global accounting standards (Investopedia, 2013). The IASB has 14 board members 12 are full-time and two are part-time and was established in 2001 as the successor to the International Accounting Standards Committee (answer, 2013). The FASB established...
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...Accounting Standard Board (IASB) and US national standard-setter, the Financial Accounting Standards Accounting (FASB). So far, IASB and FASB have created a uniform framework for how to measure fair value for entities around the world. By publishing IFRS 13 Fair Value Measurement, the IASB established a single source of guidance under IFRS for all fair value measurements. After searching relevant sources from financial books and economic websites, some of the issues about fair value accounting have been clarified and analysed. This assignment provides a better understanding of the joint work between IASB and FASB, the definition of fair value under both standards, the relevant issue about IFRS 13 and why accounting differences exist. A. Explain the purpose of the Memorandum of Understanding between the IASB and the US national standard-setter, the Financial Accounting Standards Board (FASB). Theoretically, A Memorandum of Understanding is a document that involved a bilateral or multilateral agreement between parties (Wikipedia 2011). In this particular research essay, the Memorandum of Understanding is a convergence process that both the International Accounting Standard Board (IASB) and US national standard-setter, the Financial Accounting Standards Accounting (FASB) would take steps to balanced the reciprocal structural changes (Aicpa 2006). The purpose of this Memorandum of Understanding is to establish a collaborative, working relationship between the IASB and FASB, which (1)...
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...Accounting Standards Board ACC/541 Accounting Standards Board Currently the International Accounting Standards Board (IASB) and the Financial Accounting Standards Board (FASB) are working on a joint venture known as the Norwalk Agreement that will most likely affect current and future individuals within the accounting field. Discussed within is the relationship between the IASB and FASB, the IASB equivalents of the original FASB pronouncements, and how a Master’s of Science in Accountancy program can prepare a student for a professional life within the field that will likely be affected by both boards. The History and Relationship of the IASB and FASB In 1973 both the FASB and International Accounting Standards Committee (IASC) were formed. FASB was created with the mission to establish and improve standards of financial accounting and reporting that foster financial reporting by nongovernmental entities providing decision-useful information to investors and other users of financial reports (Financial Accounting Standards Board, n.d.). The IASC began as the first body to set international standards and in 2001 the IASC became independent and further known as the IASB. Since 2001 the IASB has issued multiple International Financial Reporting Standards (IFRSs) that are currently permitted or required for more than 100 countries. In 2002 FASB and IASB began working with each other to improve and converge U.S. generally accepted accounting principles (GAAP) and IFRS (Financial...
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...(ACCA), “Impact of IFRS in Europe”, www.accaglobal.com/publicinterest/activities/research/reports/global_integration/, October 7, 2008. • Internal Auditor, magazine, “Getting Up To Speed with IFRS’, October 2008. • International Accounting Standards Board, “IASB Responds to G20 Recommendation and US GAAP Guidance’, www.iasb.org/News/Press+Releases/IASB+Responds+to+G20+Recommendations+and+US+GAAP+Guidance.htm, April 7, 2009. • EU Finance Ministers Statement, www.eu2009.cz/en/news-and-documents/news/statement-by-the-informal-ecofin-15621/ , April 4, 2009. • National Association of Corporate Directors (NACD) – Directors Monthly article, “IFRS – What The Board Needs to Know”, http://www.deloitte.com/dtt/cda/doc/content/us_assur_IFRS_DM%20Sep08_20080911pdf.pdf, September 2008. • Deloitte, www.deloitte.com/us/debates/IFRS. • Deloitte, “IFRS Conversion: Front or back Burner?”, article, http://www.deloitte.com/dtt/article/0,1002,sid%253D205755%2526cid%253D247925,00.html, April 2009. OVERVIEW. Introduction. The International Financial Standards (IFRS) – a set of global accounting standards developed by the International Accounting Standards Board (IASB) – are quickly becoming the worldwide norm for financial statements in publically...
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...A Little Bit of History The International Accounting Standard number 7 – Statement of Cash Flows (IAS7 or the standard) is the current authority issued by the International Accounting Standards Board (IASB) requiring the preparation and presentation of a Statement of Cash Flows, providing through it the historical changes in cash and cash equivalents of an entity. The standard was first issued in 1977 as IAS 7 – Statement of Changes in Financial Position by the International Accounting Standards Committee (IASC); subsequently, it was reissued in 1992 as IAS 7 – Cash Flow Statements. The updated standard was adopted by the IASB in 2001. Its name was changed to IAS 7 - Statement of Cash Flows in 2007 as a result of changes in terminology deriving from requirements in IAS 1 – Presentation of Financial Statements. Moreover, the issuance of new standards such as IFRS 10 – Consolidated Financial Statements, triggered minor amendments to IAS 7. Key differences between U.S. GAAP ASC 230 and IAS 7 The following table summarizes the main differences between the two standards. Subject | U.S. GAAP | IFRSs | Definition of cash and cash equivalents | Cash and short-term, highly liquid investments with maturities of generally 3 months or less are included. Bank overdrafts are not included. Restricted cash is not included. | Cash and short-term, highly liquid investments with maturities of generally 3 months or less are included. Bank overdrafts are included provided certain conditions...
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...Otto-Friedrich-Universität Bamberg Fakultät Sozial- und Wirtschaftswissenschaften Lehrstuhl für Betriebswirtschaftslehre, insbesondere Internationale Rechnungslegung und Wirtschaftsprüfung Prof. Dr. Brigitte Eierle Seminar Internationale Rechnungslegung und Wirtschaftsprüfung IFRS 13 – Kritische Würdigung |Name, Vorname : |Reimers, René | | |Matrikel-Nr: |1677578 | | |Semester: |1. Mastersemester | | | | | | |Adresse: |Josef-Kindshoven Str. 5 | | | |96052 Bamberg | | | |0951 8011252 | | | |rene.reimers84@gmx.de | | |Betreuer: |Andreas Weik, M.Sc. | | | |...
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...1. Describe the process by which the accounting standards are set in Singapore. Within the jurisdiction of Singapore, the task of prescribing accounting standards comes under the purview of the Accounting Standards Council (ASC). The ASC receives its mandate from the Accounting Standards Act, which came into effect on 01 Nov 2007. It is responsible for prescribing accounting standards for companies, charities, cooperative societies and societies in line with International Financial Reporting Standards (IFRS) issued by the International Accounting Standards Board (IASB). The formulation of accounting standards in Singapore follows a formal and rigorous process that comprises four successive stages—namely exposure, reviewing of comments, post exposure and Issuance of final standards. Exposure Stage The exposure stage is triggered in response to the IASB issuing an Exposure Draft (ED) on new IFRS; amendments to existing IFRS, International Accounting Standard (IAS); a draft Interpretation of the International Financial Reporting Interpretations Committee (IFRIC) or amendment to an existing Interpretation. ASC proceeds to issue its own ED on the proposed equivalent FRS (ED FRS) or draft Interpretation (ED INT FRS) for public comments. Extensive effort is also expended to proactively seek feedback from about 50 interested parties, comprising industry associations, Governmental bodies, listed companies, banks, securities firms and academic institutions. The ASC may also...
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...FASB and IASB Carolina Camacho-Collier ACC/541 June 6, 2011 Heber W. Howard Abstract This report has been made to explain the direct relationship that the Financial Accounting Standards Board (FASB) and International Accounting Standards Board (IASB) have and how crucial the unification of these two setting standards entities are in these current days, where financial transactions are expected to perform globally. In addition, it is important to have a Master of Science in accountancy in order to prepare professionals in accounting to provide reliable information for this new environment of economic and financial transactions. The Financial Accounting Standards Board (FASB), a non-governmental entity, was created in 1973, after the wheat committee decided to abolish the Accounting Principles Board (APB) as a result of criticism against the objectivity of members. The FASB consists of seven members, which are selected for renewable periods of five year terms with well-paid full time positions. This entity receives funding from the Securities of Exchange Committee (SEC). According with Kieso, Weigandt and Warfield (2007), the purpose of FASB is “to establish and improve standards of financial accounting and reporting for the guidance and education of the public, which includes issuers, auditors, and users of financial information.” The International Accounting Standards Board (IASB) is a private entity formed in 1973, based in London, England. The IASB is currently...
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...Business Research Report FASB: The Next Turn in the Road Table of Contents Executive Summary 3 Introduction 4 Research Findings 4 FASB Foundation and History……………………………………………………………………4 Impact of the New Code and Globalization………………………………………………………5 Feelings About the New Normal………………………………………………………………….7 Recommendations………………………………………………………………………8 Conclusion 8 References………………………………………………………………………………10 Executive Summary The financial crash of 1929 and the subsequent depression of the 1930’s created the desire an need for the formation of a set of standards for financial reporting and began the evolution toward present day FASB rulings. From the first set of standards it became obvious that this would not be able to be handled informally and by 1972 the FASB was formed so as to be the go to, non-governmental source for all regulations in the accounting industry. However, the formation of this body did not end the evolution or creation of regulations as they continue in the attempt to improve the transparencies of financial reports. This has, in turn, led to a rules oriented mindset that creates far more paperwork than is typically deemed necessary and creates the possibility for confusion and muddies the water. Therefore, many thought that the mission was failing and clarification of information was no longer occurring. For this reason FASB instated its codification clarification database in 2009 with the intention of...
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...Assignment 1 –FAC501 | Challenges facing the accounting profession and how I see them affecting me in the future with regards to IFRS companies submitting IFRS on US stock exchanges? Macdonald Felix Rusoto Muchemedzi Student Kaplan University As the Stock exchange affords different investors the opportunity to actively trade in the non-US companies and also provide an avenue for non-US companies to raise capital will the investment and accounting community be able to fully understand the information and make rational and informed decisions. In this discussion paper I will discuss the key requirement that participants should be financial bilingual to fully understand both sets of financial reports (IFRS and USGAAP) in order to be able to compare them, thus comparability is the main challenge facing the accounting profession and harmonization/convergence is a current and future requirement to ensure comparability, other factors will come into play as will be discussed later. My future has already started to be affected as I work in a US subsidiary in South Africa and we are required to provide USGAAP reconciliation from our IFRS financial reports and with greater convergence I strongly believe my work will be less as there will be no longer a need to be financially bilingual as there will be one set of financial reports. Literature review Both IFRS and USGAAP financial reporting standards are developed from the conceptual framework, hereafter IFRS conceptual framework...
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...Student Name: ID Number: Student Name: ID Number: FinaNCIAL aCCOUNTING tHOERY FIN420 Assignment 1 FinaNCIAL aCCOUNTING tHOERY FIN420 Assignment 1 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...
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