The Financial Accounting Standards Board instituted the extraordinary items rule to provide more insight and transparency to financial statements. Events can be classified as extraordinary items if they are unusual or occur infrequently. Classifying unusual and infrequent events as extraordinary on financial statements provides a more accurate picture of the businesses’ performance. For companies to meet the unusual standard, the event must be extremely abnormal and are totally unrelated to ordinary
Words: 479 - Pages: 2
significantly. As a result we witnessed many countries that have adopted International Financial Reporting Standards (IFRS) in replace of their global General Accepted Accounting Principles (GAAP), or at least have permitted IFRS. European Union is one important example of twenty eight countries that adopted IFRS in 2005. European policy makers state that the reason for adopting one set of accounting standers is to “level the playing field” for investors in the European capital market by increasing the
Words: 1450 - Pages: 6
Chapter 3: Standard Setting Review Questions: 8-If the standard-setting process should achieve better information, what criteria would identify better information? The relevance and reliability are the two main criteria that would identify better information since this would result useful and trustful information. 9-Is the setting of accounting standards desirable for society? If so, who should set standards? Yes, the setting of accounting standard is desirable for society because it provides
Words: 707 - Pages: 3
Taylor FASB/IASB Exposure Draft on Leases The International Accounting Standards Board (IASB) and the Financial Accounting Standards Board (FASB) published comment a revised Exposure Draft on Leases on May 16th, 2013 and closed on September 13th, 2013. Based on this exposure, two boards claimed that the existing financial reporting of leasing activities fails to meet the needs of users of financial statements. While the existing accounting principles require to record the leased assets and liabilities
Words: 332 - Pages: 2
MALAYSIAN ACCOUNTING STANDARDS BOARD Technical Release i-4 Shariah Compliant Sale Contracts © Malaysian Accounting Standards Board 2010 1 TR i-4 This Technical Release (TR) contains material in which the International Accounting Standards Committee Foundation (IASCF) holds copyright and which has been reproduced in this Statement with the permission of IASCF. Copyright in the International Financial Reporting Standards (including Interpretations), International Accounting Standards Board
Words: 5505 - Pages: 23
W Accounting Standards Boards Miranda Arnold ACC/541 Cecil Lucy March 17, 2014 Accounting Standards Boards The International Accounting Standards Board (IASB) and the Financial Accounting Standards Board (FASB) first converged in 2002 following the Norwalk Agreement (Whittington, 2007). The convergence was inspired by the need of the boards to produce a solid infrastructure by uniting the two frameworks represented by each board in a bid to harmonize
Words: 1158 - Pages: 5
Objectives of GPFR The conceptual framework (CF) is a logical guideline of interrelated objectives and fundamentals that are expected to lead to consistent accounting standards and underlie the preparation and presentation of financial reports. Only CF and SAC 2 deal with the objective of GPFR (Mala 2013, pp. 12-6). There is no clear definition of the objectives of GPRF in the Conceptual Framework but according to the CF’s guideline and SAC 2 there are few objectives that GPRF should be met: OB1
Words: 893 - Pages: 4
International Convergence of Accounting Standards is not new. At first, the convergence focused on the principles used in major capital markets around the world. By the 1990s, the idea of harmonization was replaced by the notion of convergence and the International Accounting Standards Committee was formed in 1973, which was the first international standards-setting body. The FASB and the IASB have been working together toward convergence since 2002. The Financial Accounting Standards Board believes that
Words: 514 - Pages: 3
Zachary Brink Professor McComb 16 September 2014 The FASB has recently issued Accounting Standards Update Number 2014-11 regarding topic 860: repurchase-to-maturity transactions, repurchase financings, and disclosures. Previously these transactions were accounted for as a sale with a forward purchase agreement, which would remove the asset from the balance sheet of the transferor. These transactions will now be recorded as a secured borrowing. The reasoning for this is that repurchase-to-maturity
Words: 533 - Pages: 3
International Accounting Standards Board (IASB) was formed in an attempt to bring uniform accounting standards within international countries through its issuing of the International Financial Reporting Standards (IFRS). Today, over 100 countries including Canada, India, and Japan have adopted these standards for financial reporting. The growth of multinational companies such as Coca Cola and the increasing desire of cross-border investing have made it apparent that the U.S.accounting standards known as
Words: 292 - Pages: 2
