Objective of IAS 21 The objective of IAS 21 is to prescribe how to include foreign currency transactions and foreign operations in the financial statements of an entity and how to translate financial statements into a presentation currency. [IAS 21.1] The principal issues are which exchange rate(s) to use and how to report the effects of changes in exchange rates in the financial statements. [IAS 21.2] (IASPlus, Deloitte) Key definitions [IAS 21.8] -Functional currency: the currency of the primary
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US GAAP versus IFRS The basics November 2013 Table of contents Introduction..................................................................... 2 Financial statement presentation ..................................... 3 Interim financial reporting................................................ 6 Consolidation, joint venture accounting and equity method investees/associates ........................................... 7 Business combinations...........................................
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verifiability | Emphasis on Relevance | 4. Precision versus timelines | Emphasis on precision | Emphasis on timeliness | 5. Subject | Primary focus is on companywide reports | Focus on Segment reports | 6. Rules | Must follow GAAP / IFRS | Not bound by GAAP / IFRS | 7. Requirement | Mandatory for external reports | Not Mandatory | There are seven key differences between financial accounting and managerial accounting: 1. Users: Financial accounting reports are prepared for external parties
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US GAAP versus IFRS The basics December 2011 !@# Table of contents Introduction .....................................................................2 Financial statement presentation......................................4 Interim financial reporting ................................................6 Consolidation, joint venture accounting and equity method investees .............................................................7 Business combinations ...................................
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Financial Crisis Advisory Group July 28, 2009 To the Members of the International Accounting Standards Board and the US Financial Accounting Standards Board: On behalf of the members of the Financial Crisis Advisory Group (FCAG), we are pleased to present our report to the Boards about the standard-setting implications of the global financial crisis. We believe that confidence in the transparency and integrity of financial reporting is critically important to global financial stability
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largely uncertain and that the accounting standards may often be incomplete. More importantly, comparisons are made between the IFRS and Australia’s modified versions of IFRS and the results highlighted that Australia’s modified standards may sometimes be of superior quality and are more contextually relevant for Australian financial report users than the IFRS. Hence, from the above considerations, it is recommended
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November 2009 PricewaterhouseCoopers’ IFRS and corporate governance publications and tools 2009 IFRS technical publications Manual of accounting – IFRS 2010 IFRS pocket guide 2009 Global guide to IFRS providing comprehensive practical guidance on how to prepare financial statements in accordance with IFRS. Includes hundreds of worked examples and extracts from company reports. The Manual is a three-volume set comprising: • Manual of accounting – IFRS 2010 • Manual of accounting – Financial
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brief description of the major points covered in each case and problem. CASES Case 1 In this case, students are introduced to the difference in accounting for R&D costs between IFRS and U.S. GAAP and asked to comment on whether one method is better than the other, as well as whether any part of R&D should be capitalized. Case 2 (prepared by Peter Secord, Saint Mary’s University) In this real life case, students are asked to discuss the merits of historical costs vs. replacement costs
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Companies should have the leeway to report all assets at either their current market value or their original purchase price For purposes of consistency, reliability and comparability, companies should not have the freedom to report their assets at either current market or cost.Such an alternative reporting methodology would make it difficult for users of financials to make informed decisions because:1). inconsistent methods could be used from year to year (consistency); 2). companies could effectively
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November 2009 PricewaterhouseCoopers’ IFRS and corporate governance publications and tools 2009 IFRS technical publications Manual of accounting – IFRS 2010 IFRS pocket guide 2009 Global guide to IFRS providing comprehensive practical guidance on how to prepare financial statements in accordance with IFRS. Includes hundreds of worked examples and extracts from company reports. The Manual is a three-volume set comprising: • Manual of accounting – IFRS 2010 • Manual of accounting – Financial
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