Exchange Commission. Proposed rule. SUMMARY: The Securities and Exchange Commission (“Commission”) is proposing a Roadmap for the potential use of financial statements prepared in accordance with International Financial Reporting Standards (“IFRS”) as issued by the International Accounting Standards Board by U.S. issuers for purposes of their filings with the Commission. This Roadmap sets forth several milestones that, if achieved, could lead to the required use of IFRS by U.S. issuers in 2014 if the
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FEMSA 2007: THE FINANCIAL STATEMENT ANALYSIS IMPACT OF DIFFERENCES IN MEXICAN AND US GAAP 1. Compute the following ratios for 2007 using the financial statements prepared using Mexican FRS and expressed in pesos. [Assume the weighted average number of shares outstanding is 17,891,000] a. Current Ratio: Current assets/Current liabilities b. Inventory Turnover: Cost of Goods Sold/Average Inventory c. Profit Margin on Sales: Net Income/Net Sales d. Debt to Assets Ratio:
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CHAPTER 4 INCOME STATEMENT AND RELATED INFORMATION IFRS questions are available at the end of this chapter. TRUE-FALSe—Conceptual Answer No. Description T 1. Usefulness of the income statement. F 2. Limitations of the income statement. F 3. Earnings management. T 4. Transaction approach of income measurement. T 5. Single-step income statement. T 6. Revenues and gains. F 7. Multiple-step vs. single-step income statement. F 8. Multiple-step income statement. T 9. Multiple-step
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EXECUTIVE SUMMARY Just reading the financial section of any newspaper will tell you that today’s business world is more complex than ever. Financing arrangements are more sophisticated, tax and accounting regulations are more complicated, and borrowing and investing tactics that were never heard before are now popular. The accounting profession in Canada is under severe pressure from both national and international sources to re-orient itself to meet the changing requirements of the communities
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TERMS TO LEARN Accounting The Information system that measures business activities, processes the information into reports, and communicates the results to decision makers. Accounting Equation Assets=Liabilities+Equity Accounts Payable A short term liability that will be paid in the future Accounts Receivable The right to receive cash in the future from customers for good sold or for services performed Assets Economic resources that are expected to benefit the business in the
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Initial Recognition, Measurement, Presentation & Disclosure of Liabilities and Shareholder’s Equity A liability is a present obligation of the enterprise arising from past events, the settlement of which is expected to result in an outflow from the enterprise of resources embodying economic benefits (IASB Framework). Apart from satisfying the definition of liability, the framework has also advised the following recognition criteria to be met before a liability could be shown on the face of
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Chapter 3 ANSWERS TO QUESTIONS Q31 A primary objective of financial reporting is to provide information that is useful to present and potential investors and creditors and other users in making rational investment, credit, and similar decisions. An accounting system is the means by which a company records and stores the financial and managerial information from its transactions so that it can retrieve and report the information in an accounting statement. A doubleentry system standardizes the method
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accompanying documents have been amended by the following IFRSs: • • • • • • • IFRS 2 Share-based Payment (issued February 2004) IFRS 4 Insurance Contracts (issued March 2004) IFRS 5 Non-current Assets Held for Sale and Discontinued Operations (issued March 2004) IAS 1 Presentation of Financial Statements (as revised in September 2007)* Improvements to IFRSs (issued May 2008)* IFRS 9 Financial Instruments (issued November 2009)† IFRS 9 Financial Instruments (issued October 2010).† * † effective date
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Module 3 – Assignment 5 Practice Case Examination Backgrounder The background information relating to the Case Examination (Backgrounder) is provided to candidates in advance of the examination date. The Backgrounder contains information about both the company and the industry involved in the case. Candidates are expected to familiarize themselves with this information in preparation for the analysis that will be required during the Case Examination. Candidates should note that they will not be
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consequential amendments to IAS 38. They include IAS 16 Property, Plant and Equipment (issued December 2003), IAS 1 Presentation of Financial Statements (as revised in September 2007) and Improvements to IFRSs (issued May 2008 and April 2009). © IFRS Foundation A1027 IAS 38 CONTENTS from paragraph INTRODUCTION IN1 INTERNATIONAL ACCOUNTING STANDARD 38 INTANGIBLE ASSETS OBJECTIVE 1 SCOPE 2 DEFINITIONS 8 Intangible assets 9 Identifiability Control Future economic benefits 11 13 17
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