intended audiences. Generally Accepted Accounting Principles (GAAP) is the set of standards used in the United States. International Financial Reporting Standards (IFRS) is the set of standard accepted internationally. Each set of rules has similarities and differences. The Financial Accounting Standards Board (FASB) is the entity responsible for developing GAAP and the International Accounting Standards Board (IASB) is the organization responsible for the IFRS development (Beltratti, Spear, &
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DOI: 10.2308/acch-50087 COMMENTARY Some Conceptual Tensions in Financial Reporting American Accounting Association’s Financial Accounting Standards Committee (FASC) Yuri Biondi, Jonathan Glover, Karim Jamal (Chair and principal co-author), James A. Ohlson, Stephen H. Penman, Shyam Sunder (invited principal co-author), and Eiko Tsujiyama SYNOPSIS: We examine four key conceptual tensions that are at the heart of many financial reporting dilemmas: stocks versus flows, ex ante versus ex post, conventions
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Pat Maccon IFRS Versus GAAP If aiming to invest in emergent markets or to get involved in any kind of business, it is relevant to acknowledge the world’s two main accounting systems: Generally Accepted Accounting Principles (GAAP) and International Financial Reporting Standards (IFRS). GAAP standards provide direction for almost every accounting setting, including inventory accounting methods and procedures. GAAP is used principally in the United States, although the Security and Exchange Commission
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Accounting on Business and Our Society Adrian Smith Accounting 100 Prof. Eric Osei A Financial statement is a record of financial activities of a business entity. Main objective of financial statements is to provide information about financial position, performance and changes in financial position, and flows of cash in the business organization which in turn is essential in making decisions. In order for financial statements to provide the necessary information, they have to abide by the principles
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Principles) but also needs to learn the IFRS (International Financial Reporting Standards). There are a number of differences between these two systems. For the purposes of this report, we will cover the difference associated with fair value measurements, depreciation, plant assets, contingent liabilities and the differences and similarities associated with accounting for liabilities. Fair value measurements have been a topic of discussion for FASB (Financial Accounting Standards Board) and the IFRS
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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 information they deem important instead of using standardized financial reporting. I disagree with this method of disclosure because it would be time consuming
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PART A With most International Accounting Standards offering more than one method of preparation for each accounting item, has the accounting professional effectively legalised creative accounting into a regulatory framework. (a) Discuss why people would use creative accounting in the Financial Statements and what methods would they incorporate. (10marks) (b) Critically evaluate the above statement using examples and extracts from the International Accounting Standards to illustrate your
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117 does allow creditors to make appropriate risk evaluations of a firms statement of financial position”’. Leases are a common financial tool used by many businesses and individuals on a daily basis to transfer the ownership of many different types of assets. Creditors are largely involved with many leases and company balance sheets as they are always interested in making valued judgements of their financial position with the current leasing disclosure requirements providing some discrepancies
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| | | | | | | | | | | | | Lease period: 5 years | | | | | | | | Economic life: 8 years | | | | | | | | I would suggest that this is a financial lease. Although according to AASB 117 (par 10 c), the major part of the assets economic life is less than 75%, which not only suggest it is a financial lease, there are some conditions to support it is. The relationship between MLP and Fair Value is 89.42%, which is almost equal to 90%(AASB 117, par 10d). Ballarat Ltd bears
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Convergence Project Financial Accounting Standards Board and International Accounting Standards Board By: Lydia Ferdin Our world is changing and sometimes in business, there are times when we must change our policies, standards, and guidelines as well to keep up with the natural changes in our environment. This leads to the idea of convergence as it relates to accounting. One of the world’s greatest naturalist and Greek professor Heraclitus (535 BC - 475 BC), once coined the theory and phrase
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