Article Analysis In this analysis, I summarize the article “FAF Creates Private Company Council” written by Ken Tysiac and offer conclusions on this article. Article Summary At the beginning of this article, Ken states that Financial Accounting Foundation (FAF), FASB’s parent organization, voted to establish Private Company Council (PCC) for creating differences in U.S. GAAP for private companies on May 23. As a result, FASB will be responsible for “endorsement” rather than “ratification” of PCC
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Accepted Accounting Principles to International Financial Reporting Standard: The Potential Change for Leasing The United States, via the US Financial Accounting Standards Board (FASB), International Accounting Standards Board, and SEC all have begun the process to migrate from General Accepted Accounting Principles (GAAP) to the International Financial Reporting Standard (IFRS). This migration has advocates for and against the change. A major change in the IFRS proposal is the accounting of leases
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Country Differences in Accounting Standards Kimetha Davis BUS616 International Business Jason Sheedy Ashford University May 6, 2012 2 Abstract Accounting Standards hold a very important place in any business, whether foreign or domestic. Accounting is shaped, by the environment, in which it operates. Throughout the world accounting, systems are most
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everyone understands that accounting is the mode of communication in business. It is the channel through which investors and businessmen get to understand whether their investments are worth it or not. It helps in giving the value of an investment at any given time. The contemporary accounting practice and methods are quite diverse. However, they have not been so since the beginning. According to Waweru (2010), there are numerous changes that have marked the evolution of accounting. This research paper
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very different” (Bloomsbury Publishing, 2009). As it applies to accounting, convergence is the “collaborative efforts of the FASB and the International Accounting Standards Board (IASB) to both improve U.S. generally accepted accounting principles (U.S. GAAP) and International Financial Reporting Standards (IFRS) and eliminate the differences between them” (IASB-FASB Update Report to the Financial Stability Board Plenary on Accounting Convergence, 2012). While efforts towards convergence have been
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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
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INTRODUCTION United States Generally Accepted Accounting Principles (GAAP) is the standard platform of guidelines that governs the rules of financial accounting utilized in the preparation of financial statements. The US GAAP can be quite flexible in its interpretations and rulings, but the framework of GAAP is based upon certain constraints and principles in the preparation of financial reports. This paper shall endeavor to address the organization of GAAP and some of the specific areas
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Cash Basis or Accrual Basis a) Use FARS to identify what standards-setters have said as to the superiority of accrual accounting relative to a cash basis. Do you agree with the justification for accrual accounting? Explain? The FASB has stated that the accrual-basis method is superior to the cash-basis method. For example, the accrual-basis method promotes the caution and equivalent concepts, which are two of the fundamental accounting concepts. Thus, dissimilar to the cash-basis method, financial
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existing conditions, situations, or sets of circumstances involving uncertainty as to possible gains or losses to an entity that will ultimately be resolved when one or more future events occur or fail to occur (ASC Glossary). The Financial Accounting Standards Board (FASB) issued an exposure draft in July 2010 relating to additional disclosures relating to certain loss contingencies. FASB argues the necessity of this proposal arises from concerns of investors and other financial statement users
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The question also arises as to whether IFRS 9 will retain its current requirements even in the short term. The US standard setter, the Financial Accounting Standards Board, is also undertaking a concurrent project on financial instruments and the IASB has acknowledged that this will see further changes to IFRS 9 before its mandatory application date. The treatment of financial liabilities also remains a contentious area and was dropped from IFRS 9 very late in the process. “The IASB has grappled
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