Fair Value Accounting and Ethics Presented by: Unit 6: AC504 04.12.2011 Executive Summary Over the past 15 years fair value accounting has been building in popularity. It is now widely used by International Financial Reporting Standards (IFRS) and US GAAP. It is thought that adapting to fair value accounting will make financial statements more relevant and reliable. Currently the majority of assets are recorded under historical cost. Under historical cost the asset is recorded
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Principles Based Accounting Standards in the United States Elsie M. Powell Liberty University Online ACCT 301-D01 December 7, 2014 Rules vs. Principles Based Accounting Standards The United States of America is under a great decisional debate, should the United States adopt a more principles-based accounting standard or stay with the more rules-based standard that is currently used. The two standards offer differing views on how a company should approach their accounting needs. The United
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Comparative Reporting Harmonization can be described as the ‘Process of increasing the comparability of accounting practices by setting bounds to their degree of variation’ (Page 75). In Essence, it is the continual effort of implementing a global set of standards, in which there is if not none, minimal differences between financial reporting in countries all around the world. For many modern day businesses, it is important to have a set of financial statements that appeals to a wider audience
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IFRS in US Timber – Reading Questions 1. Consider the financial reporting implications under (i) U.S. GAAP and (ii) IFRS for a timber company that has significant standing timber (such as Plum Creek). a. How is standing timber treated under U.S. GAAP? b. How is standing timber treated under IFRS? c. How would the income statement and balance sheets of timber firms following U.S. GAAP versus IFRS differ if the fair value of standing timber changed
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Goodwill Valuation and Impairment Goodwill can be found on the balance sheet of many companies whether it is a publically traded or a privately owned company. In simple terms, goodwill is the result of one company obtaining another. In accounting, goodwill is identified as an asset that has future economic benefits, which results from the acquisition of another company’s assets (FASB ASC 350-20-20). This account is shown on the balance sheet of the acquiring company. The excess of purchase price
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Effectively Communicating with Clients By J. David Strother, CFP®, AIFA®, financial advisor at DSF Wealth Management, LLC Of all the elements a CPA or financial advisor needs to consider in order to operate a successful wealth management practice, an effective client communication strategy ranks at the top of the list. Regular communication is critical to the long-term success of your firm, but it has to be done right. The fact is that the vast majority of advisors want to sell, but very few
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overall effect of adopting IFRS on the company’s financial statements? From the consolidation perspective, the likely overall effect of adopting IFRS on the company’s financial statements would preserve and strengthen the company’s global financial competitiveness. Moreover, it will simplify the accounting and consolidation process significantly and reduce financial reporting costs. 2) What potential effect would arise if Klugen were to select the option under IFRS 3 to value non-controlling
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http://accountingonion.typepad.com/theaccountingonion/2011/08/let-the-condorsement-games-begin.html?utm_source=feedburner&utm_medium=feed&utm_campaign=Feed%3A+typepad%2Ftheaccountingonion+%28The+Accounting+Onion%29 August 18, 2011 Let the "Condorsement" Games Begin The SEC has finally conceded that its efforts to adopt IFRS have failed. Damage control has begun in earnest, but the ship is still taking on water. The SEC took a tentative poke at the problem last May with the publication of a Staff Paper, Exploring
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CHAPTER 2: REGULATION IN FINANCIAL ACCOUNTING Chapter 2 regulation in Financial accounting LEARNING OUTCOMES Upon completion of this chapter you should be able to understand: • The difference between management and financial accounting. • Why accounting regulations are important and required. • The need for and the structure of professional regulation, company law, stock exchange legislation and EU Directives. • How the different aspects of regulation work together
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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);
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