COSTING CONVERGENCE UNDER GENERALLY ACCEPTED ACCOUNTING PRINCIPLES AND INTERNATIONAL FINANCIAL REPORTING STANDARDS Casey Reineking Department of Accounting Murray State University Murray, KY 42071-3314 E-mail: casey.reineking@hotmail.com Don H. Chamberlain Department of Accounting Murray State University Murray, KY 42071-3314 Holly R. Rudolph Department of Accounting Murray State University Murray, KY 42071-3314 L. Murphy Smith* Department of Accounting Murray State University 351 Business Building
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International Accounting Accounting for income taxes IAS 12 1 Executive summary • Despite the similar approaches to accounting for taxation under IFRS and US GAAP, deferred taxation is one of the most common areas where differences arise. The reason is that a high proportion of transactions recognized in either the statement of income or balance sheet will have consequential effects on deferred taxes. • US GAAP, deferred tax asset is recognized in full. It is then reduced by
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Both the International Accounting Standards Board (IASB and the Financial Accounting Standards Board (FASB) provide oversight for Generally Acceptable Accounting Principles (GAAP) and the International Financial Reporting Standards (IFRS). Both the FASB and the IASB have been working together to bring more of a uniform set of regulations between the two standards. GAAP has tradionally always provided the guidelines that companies in the United States follow when putting their financial
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There is significance between accounting harmonisation and accounting standardisation where harmonisation allows countries to have different accounting standards provided that they do not have logical conflict with the International Accounting Standards Board (IASB). Therefore the accounting standards in different countries are not identical but very similar from one to another which allows convergence of accounting practices. However, standardisation of accounting has the direct opposite meaning
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many of the existing reporting rules and standards that are currently used in the field of accounting today. Accountants will need to adapt to the challenging task of working with both GAAP (Generally Accepted Accounting Principles) and IFRS (International Financial Reporting Standards) reporting methods in order to conduct everyday business. The following paragraphs will discuss reporting, GAAP and IFRS standards of reporting Some advocate the idea that companies should voluntarily disclose financial
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GAAP vs. IFRS Giovanni Flores Johanna Guedea Orlando Muñoz ACC/290 March 10, 2015 Stephen Russell GAAP vs. IFRS For a long time, there have been proposals that have been working on with regard to the replacement of GAAP also known as Generally Accepted Accounting Principles with IFRS known as International Financial Reporting Standards which are used in the accounting and financial reporting aspects. But what is it that makes them both so different and so similar? It
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Comparison of IFRS to GAAP Khadija Boyd Crystal Scott ACC 290 11 August 2014 Deborah Wilson This paper will examine comparisons between the International Financial Reporting Standards (IFRS); which is designed to be a common global language for business affairs and the Generally Accepted Accounting Principle (GAAP); which refer to the standard framework of guidelines for financial accounting. There are certain ways that the format of a statement of financial position under the IFRS often differ
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between US GAAP and IFRS that affecting several major accounting standards. On the other hand, IFRS conversion warrants consideration which already impacting business decisions, and not simply through non-US subsidiaries. IFRS has already influence US GAAP, under the Memorandum of Understanding (MoU), the Financial Accounting Standard Board (FASB) and the International Accounting Standard Board (IASB) are working jointly to develop standards that will converge and improve IFRS and US GAAP. SEC proposed
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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.
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infuse IFRS into U.S. Generally Accepted Accounting Principles by endorsing international standards one at a time while also continuing to converge them to GAAP. The Financial Accounting Standards Board would follow some established endorsement protocol for folding newly issued or amended international standards into GAAP, while also having the authority to modify or supplement them as the boards deems necessary. That would lead to a more gradual transition to IFRS with differences between IFRS and
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