Ifrs Essays (Examples)

IFS and GAAP Convergence

Briefly describe Walmart

The company establishment was in 1962 by Sam Walton. The company has grown through mergers and acquisitions to become the largest retail outlet in the globe. The main business of the company is corporate retail. The retailer offers a variety of products to its customers at a lower price compared to its competition. According to Fortune 500 ratings, the corporation ranks third among the largest corporations in the globe. The selling point of the company is by ensuring that the customer can find any product in the stores at a competitive price. The company sells its products at a lower price to attract and retain customer. The company helps producers to enable them produce quality products. The company assists through funding, technical advice and promise of a ready market. The producer in turn markets their goods to the company at a discount. The…

For example, there are many SEC registered companies, and they are not all American companies. Many of them are actually headquartered in foreign countries. In the past they had to change their accounting and financial information over to GAAP requirements, but changes are allowing companies to continue to use IFS instead. Some of the U.S. based companies are also going to be allowed to use IFS in order to help foreign investors better understand how they match up with competitors from other countries (AICPA, 2008). In the next few years, all companies (U.S. And otherwise) may be using IFS (Bradshaw, et al., 2010).

When addressing the disclosure levels to which companies have to adhere, IFS and GAAP are not so different. The differences generally come into play with the specifics of the issue, because there are certain documents in which specific information needs to be provided, and those documents can…

IFS 8 Operating Segments was to a certain degree a ground-breaking law since it represented the first foray of the International Accounting Standards Board into the area of requiring companies and business to disclose information through their management. The regulation requires certain categories of business, especially publicly traded companies to disclose information regarding their products and services, operating segments, and geographic areas where they operate. In addition to the information being based on internal management reports, these entities should also disclose information about their major customers. This requirement has generated several concerns and contentions that have become common characteristics of the implementation of IFS 8 Operating Segments (Crawford, Extance, Helliar & Power, 2012). This has in turn resulted in the emergence of concerns on whether the requirements of this regulation can be logically criticized as inadequate.

equirements of IFS

As previously mentioned, IFS 8 Operating Segments requires certain categories of…

IFRS

Human Resource Accounting

The United States has a radically different accounting system than virtually every other the countries considered. The United States has their own system known as the general accepted accounting principles (GAAP). Other countries have used this system in the past, such as the UK and Germany, but there has been an international standard that has developed over the course of the last few years and virtually every other country in the world besides the U.S. has adopted this system. However, even the U.S. has received a lot of pressure from countries such as China, who has started the conversion but has formerly prepared their financial statements in what was known as China GAAP to avoid any trade disruptions

However, China has been working diligently to replace older systems such as the Chinese Accounting Standards (CAS) with the International Financial Reporting System (IFRS). It is estimated that…

IFRS Pension Reporting 2009

IAS 19 is the equivalent to FAS 158, but there are differences in the two standards. (Meg, 2009) Under IAS 19 the current rates of return is used on high quality corporate bonds with maturities consistent with the duration of benefit obligations, where under FAS 158, the discount rate is used at which the obligation could be effectively settled. Under IAS 19, the rate is based on current market expectations over the life of the obligation, where under FAS 158 the rate of return on the plan assets is the expected long-term rates over the life of the obligation. The cost recognized is calculated almost the same way under both standards with the exception being under FAS 106, the temporary deviations from the plan can be added or subtracted.

IFRS methodology is very similar to U.S. GAAP with deferred recognition of actuarial gains and losses except…

For instance, a parent company that has a low level of ownership in a subsidiary may want to lower the price paid to that subsidiary to increase parent company profits. Or, if the subsidiary has a lower dividend payout, the parent may wish to pay a high price to that subsidiary to avoid larger dividend payouts at home. Further, high import tariffs at the parent's country may lead to lower prices at the exporting subsidiary in another country. Likewise, high export tariffs in the subsidiary's country may lead to lower prices as well.

True, IFRS does not recognize does not directly recognize intra-group sales as direct profit generating transactions. However, indirect advantages of recognizing profits in specific countries come into play to impact profits.

ibliography

Fowler, D.J. (1978). Transfer prices and profit maximization in multinational enterprise operations. Journal of International usiness Studies (1978) 9, 9 -- 26.

Singh, K. (2007,…

Herz (2013) notes that the end of convergence will essentially bring about an era where IFS is, for the most part, the de facto standard around the world. However, the process has also compelled the IASB to be more responsive to its constituents.

For Australians, involvement in ASAF signals the beginning of the final stages of convergence, where the remaining non-IFS major economies are brought into the process. Many countries with GAAP has similar principles to each other, since their systems were influenced heavily one another. The AASB (2009) notes that Australia has been in line with the EU timetable for IFS adoption. In this respect, Australia should be ahead of the United States. PWC (2013) notes that this is the case, at least for publicly-traded entities. Not-for-profits do not yet have to meet the provisions of IFS reporting, and the same is true for public sector entities. Foreign companies…

However, financial reporting as a system has its limits. It cannot stabilize the world economy, save the environment and help investors understand the financial condition of a company all at once. On a theoretical level, the people guiding the development and improvement of IFRS need to take this reality into consideration.

Transparency is most certainly a role of IFRS, arguably the most important one. The more difficult IFRS makes fraud, for example, the better it is. Stability, however, is not a critical role of IFRS. International financial reporting standards can and do have a direct impact on the transparency of financial statements; they have only a minor and tangential impact on the state of the global economy. hile the value they provide in terms of improving liquidity is appreciated, global economic stability is determined by a wide range of other factors, most of which have little to do with financial…

IFRS Transition

The SEC Proposal for Transition to IFRS

This essay examines the SEC's proposed ork Plan for transitioning IFRS into the U.S. Financial Reporting System. This paper presents arguments in favor of convergence because of the benefits it presents.

History of Convergence Efforts

The history of convergence efforts for IFRS reporting includes several milestones. In October 2002, the Financial Accounting Standards Board (FASB) and International Accounting Standards Board (IASB) issued a memorandum of understanding (MOU) known as the Norwalk Agreement. This agreement marked an important step toward formalizing their commitment to converging U.S. And international accounting standards (FASB, 2002).

The agreement describes the efforts of both boards to propose changes to U.S. And international accounting standards that reflect common solutions to "certain specifically identified differences" (FASB, 2002, para. 2). By eliminating these differences, the Boards expect to improve comparability of financial statements across national jurisdictions. FASB Chairman Robert Herz…

The impact of these changes will be far-reaching. Those engaged in the financial sector will feel that greatest impact. However, the impact of these changes will be felt by everyone, including the American public. They will feel the changes by greater transparency and the ability to compare financial statements with greater equitability. It is expected that the IFS will increase public trust in the financial statements of companies.

Much of the literature that is currently available on the IFS conversion is limited to publications to help companies understand and implement the changes. At the present time, the results and affects of the conversion have not been addressed by the academic world. The changes are currently in process and the results of them are yet to be seen. Therefore, this is an area of research that will have to be addressed in the future. At the present time, any opinions regarding…

IFR No.39 hedge accounting requirements, accounting for investments in derivative financial instruments, criteria for hedge accounting recognition, and deferral of recognition of periodic unrealized fair value changes.

IFR No.39 hedge accounting requirements

IFR 39 permits hedge accounting under certain circumstances as long as the hedging relationship is:

Thoroughly and fully spelled out and defined as well as the circumstances in which it will be used, the objective, the nature of the risk, and how the entity will assess the hedging instrument's effectiveness

It is regularly assessed and determined to be effective

It is determined to be effective in achieving changes in fair value or cash flows attributable to the hedged risk as is written, and that this effectiveness can be reliably measured (Deloitte IA 39)

Accounting for investments in derivative financial instruments,

If an embedded derivative is separated, the host contract is accounted for under the appropriate standard. If the…

(2007) discover that foreign possession rises in corporations that willingly adopt International Accounting Values.

Lastly, to support the article regarding Should U.S. Adopt IFRS? Khorana (2010) uses a study that involved utilizing 44 nations from the similar U.S. investment information that has been set as the one used in Khuran's study, Gordon and Shima (2010) display that U.S. stockholders deal more of their impartiality reserves in nations after adoption of IFRS and that the asset increase is related with the nation's lawful morals and implementation administration. Likewise, Amiram (2009) combines all speculation data, not just recognized and large custodial properties, from the International Financial Fund for 53 stockholder and 81 investee nations. He discovers augmented foreign equity assets about mandatory IFRS adoption and that the growth is superior for nations that do have corruption that is not as high and improved depositor shield.

In conclusion, in this paper, I think…

Segmental Information

In general, IFS 8 Operating Segments place a requirement on specific classes of entities (particularly those entities that have publicly traded securities) to disclose information concerning their respective operating segments, products and services, the geographical areas in which they compete as well as their major customers (IFS 8 Operating Segments, 2014). The information that is provided by corporations pursuant to these requirements is based on internal management reports concerning the measurement of disclosed segment information as well as the identification of operating segments (IFS 8 Operating Segments, 2014). Although its proponents argue that the IFS 8 Operating Segments are adequate for their intended purposes, critics counter that they are inadequate for certain applications. To determine the facts, this paper reviews the relevant literature to provide a timely discussion concerning whether the requirements of IFS 8 Operating Segments can reasonably be criticised as being inadequate followed by a summary…

Some mergers and acquisitions (M&as) did not generate any goodwill because they were accounted for using the pooling-of-interests method. In 1969, Leonard M. Savoie (then Executive Vice President of the AICPA) stated that he expected the then-prevailing accounting pronouncement authority, the Accounting Principles Board (APB), to abolish the pooling of interests method. However, the death-knell for this accounting method was not sounded until 2001 with the issuance of SEAS No. 141. Thereafter, whenever the purchase price of an acquisition exceeds the fair market value of the acquired company's net assets, the assignment of cost to goodwill is mandatory. (26)

According to Hake (2004), although the presence of goodwill on a balance sheet represents an expectation of higher profit, there is a cost associated with its accumulation: "Because goodwill is currently treated as a nonregenerating asset, accounting practice requires that it be removed from the balance sheet as it depreciates. The…

Investors will have to adjust and discount IFRS figures, one additional dollar of IFRS profit indicates slightly lesser incremental economic health and, if the underlying assumptions of accounting are accepted, slightly lesser ability to pay down debt and pay dividends in the future than one dollar of income calculated under GAAP.

Reaction

Capital markets are becoming more global and demand for a single set of high-quality global accounting standards is increasing. IFRS if consistently applied by issuers and their auditors will be understood by investors throughout the world. The transition to IFRS will require, at the very least, a change in mindset. Because IFRS is principle driven instead of rules driven I believe there will be a tremendous scrabble for clarification regarding accounting procedures in the U.S. because the highly litigious nature of our nation. Furthermore the end of LIFO may impact investment in certain companies. Nonetheless IFRS will benefit…

International Financial eporting Standards (IFS)

Generally Accepted Accounting Principles (U.S. GAAP)

US GAAP is the general accounting principles, standard, and procedures that the U.S. companies follow to prepare their financial statements. GAAP has combination of accepted standards that the companies should follow when recording and reporting their accounting information. For example, GAAP has set up the rules that companies should follow when preparing the financial data such as balance sheet, revenue recognition, and outstanding shares recognition.

GAAP also mandates the companies to have consistence, relevance, reliable, and comparable accounting standards. One of the main objectives for setting up GAAP is to assist the investors to have minimum level of consistency when analyzing the financial statement of a company.

The basic four accounting principles that GAAP lays down are as follows:

Historical Cost Principle: GAAP makes it mandatory for companies to consider the acquisition of costs.

evenue ecognition Principle: This refers…

In other words, with respect to the dilemma between IFRS and U.S. GAAP, the view provided by the article is that recent changes have actually manifested a far more intensive process of oversight in the latter than is proposed by the former.

To the point, Ramanna & Cheng report that "despite the attempts at convergence, as of 2005, significant differences between U.S. GAAP and IFRS remained. The differences were due in large part to the attendant capital market institutions in the U.S. that had shaped the nature of U.S. GAAP over the course of the 20th century. For example, a strong tradition of civil litigation and criminal liability had given rise to an extensive body of GAAP interpretations in the U.S." (Ramanna & Cheng, 6) This highlights an issue of primary importance not just where Canada is concerned but also where the credibility of an International Accounting Standards Board is…

Accounting includes recording, summarizing, and reporting of the economic activities and events of an organization. It is pertinent in business decision-making and the management and control of operations. The financial statements reported by a company include the income statement, balance sheet, statement of retained earnings and statement of cash flows. Globally, there are two sets of accounting standards, the Generally Accepted Accounting Principles (GAAP) and International Financial Reporting Standards (IFRS). In particular, the GAAP are more often than not employed in the United States whereas IFRS are more often than not employed in Europe and international expanses. IFRS are regarded as being more principles-based and U.S. GAAP as being more rules-based. The establishments responsible for setting the IFRS and GAAP are the International Accounting Standards Board (IASB) and Financial Accounting Standards Board (FASB) respectively (Gaspar et al., 2016). The purpose of this paper is to discuss the difference between GAAP…

Financial Statement from GAAP to IFSFinancial statements are prepared either in GAAP or IFS. The translation of the financial statements from GAAP to IFS implies that items within the incomes statement as well as the balance sheet will be treated in a different way. The items within the income statement and the balance sheet are treated using different rules and approaches under the different accounting approaches. The item selected in this analysis that I will be specifically addressing is inventory. The convergence between GAAP and IFS is a substantial undertaking and will influence business operations in the future. With respect to inventory, it appears that there are two aspects of consideration. One the one hand, there is the exclusive and sole use of First-In, First-Out (FIFO) approach. On the other hand, there is the allowing of both the First-In, First-Out and Last-In, First-Out (LIFO) approaches. In the contemporary, GAAP is…

Introduction

In 2016, the chief accountant of the SEC, James Schnurr, announced that he would not recommend that the SEC should mandate, or even offer the choice, for US companies to use International Financial Reporting Standards (IFRS). This announcement was believed to be the "death knell" for the convergence between GAAP and IFRS, a project that had already stretched more than a decade with only moderate success (Katz, 2015).

The Merits of Convergence

When the convergence project was originally proposed, there were several benefits cited that made the case for regulators to pursue the project. The biggest argument was that capital markets are becoming increasingly global, therefore it was valuable to converge all major accounting standards. If every nation in every country used the same accounting standards, that would reduce the transaction costs associated with the flow of capital. In theory, this would spark an increase in cross-border investment, and…

The potential implications of international standards are illustrated by this example. There are two issues at play. The first issue is that comparability is poor here. Apple\\'s financial statements were produced according to US GAAP, which is by far the best standard for producing understandable financial statements. Samsung\\'s statements are produced using Korean IFRS. In terms of comparability, there are differences between how these two different methodologies arrive at some of these numbers. One of the major differences between GAAP and IFRS is with revenue recognition (IAS, 2018). Even with numbers that are seemingly consistent, such a top line revenue, the fact that they are compiled differently under the different systems makes it more challenging to compare companies like this.
The other issue is obvious from the times interest earned calculation. In the case of Apple, there isn\\'t one because Apple has a net gain from interest, because of its…

For the layperson who is likely to be invested in a stock, a company or a mutual fund, this does reflect a core obstacle to effective decision-making. Indeed, as with many aspects of globalization, the implications of international accounting standards as a concept would only arrive at many of its conflicting points after a period of unencumbered idealism. Again, as the more general discussion on globalization denotes, the implications of a multinational framework for commercial exchange had long been done with a pronunciation of interests to the benefit of the world public. Namely, the assistance which could be provided through the opening of trade barriers in a general sense to the developing sphere, for one instance of commonality, might be seen at the base of the philosophical impetus for both the process of globalization and the symbiotic drive to create universal standards for financial reporting. At this time, it faces…

International Financial eporting Standards

IFS and Canada

Canada was one of the first prominent nations involved in the North American Free Trade Agreement to consider switching their financial reporting to the International Financial eporting Standards. For years, Canada had been under the pressure of the United States to adopt a system aligned with the GAAP. Still, growing opportunities across the globe made the adoption of the IFS in Canada a better option. It was announced in early 2008 that the move was going to be made in Canada. Canada officially adopted the IFS standards in January of 2011 (PWC, 2014). Actually, the IFS standards were quite similar to the already existing Canadian GAAP standards. Thus the transition, for most businesses, was not extremely different than what they had encountered in the past.

The country made the official decision to adopt the IFS over their own GAAP system came in a…

Then again, even the sites that allow for such commentary often don't receive any. PwC IFS hasn't received any comments in the past month on any of its articles, for instance, though it does provide accurate and fairly up-to-date information. Part of the reason for this could be the fact that this blog, like many others in the accounting world, are run by large firms -- Price Waterhouse Coopers, in this case. Though this does not mean there is necessarily a bias at work in the blog, and indeed certain differing opinions are allowed, the fact that the information on such blogs is so directly under the control of a single for-profit entity means it must be regarded as at least slightly suspect. As these resources are also free, however, there is no harm in regularly browsing them.

eferences

Accounting and Business esearch. Accessed via EBSCO 8 October 2009.

Accounting…

Organizations Establish ules for the Creation or Use of Accounting Information:

- Securities and Exchange Commission

- New York Stock Exchange

Internal evenue Service

Describe what kind of rules each makes, why they make them, and how they enforce them. Which organizations make laws, and which publish guidelines? What is the difference? What are the different consequences for those who bend various sets of rules? (Causey Enron case) How might Causey's defense be stronger or weaker under IFS guidelines rather than GAAP?

The rules that govern the three organizations may not be specifically made by that organization, but they are enforced by it. The Securities and Exchange Commission (SEC) is not a law or even rule making body, but the members do suggest legislation and, as one of its main functions, enforces the laws that have been passed by congress (SEC, 2012). The New York Stock Exchange (NYSE) is a…

Turning a Hobby into a Business: This is Where the Cowboy ides Away with a Profit

I was fortunate to spend part of my childhood on a working cattle ranch. I learned how to ride horses, rope, work cattle, shoot, and hunt. Though my uncle, who owned the cattle ranch, sold it when I was still relatively young, I have always considered "cowboying" to be one of my hobbies. I have not pursued the professional rodeo route of my hobby. While I have respect for those men and women that earn their livings in the rodeo, to me, being a cowboy or cowgirl is about having the practical skills one needs to live on a ranch. I have kept in contact with my uncle's old ranch acquaintances, and I have worked part-time on their ranches, keeping up my skills. For a long time, I thought that the skills I acquired…

Accounting

The role of financial statements in investing is that they provide a consistent format that can be used by potential investors and other stakeholders to evaluate a company. There are several components that facilitate this happening. For publicly-traded firms, Generally Accepted Accounting Principles (GAAP) play a key role in the creation of financial statements. GAAP is a common set of accounting principles and procedures that companies use to compile their financial statements (Investopedia, 2012). ith companies having to produce their statements according to a common set of criteria, the information is easier to compare not only between different years at the same company, but also against other firms in the industry and all other publicly-traded firms.

The IFRS is essentially the international version of GAAP. Financial statements in many countries, especially those in Europe, are produced according to IFRS. There are a many areas where GAAP and IFRS diverge,…

Accounting

Several terms and definitions are valuable to understand financial statements. In the United States, financial statements of public corporations are produced in accordance with the U.S. Generally Accepted Accounting Principles. These principles govern how the information for financial statements is compiled and presented. The purpose of these principles is so that all stakeholders can easily understand the statements and make comparisons across both time and across different companies, because the statements are produced and presented in a consistent manner. The International Financial eporting Standards (IFS) are the international equivalent of GAAP. While several countries utilize a national version of GAAP (U.S., Canada, UK, etc.), more than 100 countries use IFS, making this set of standards the most widely-adopted in the world. There is a move to converge national GAAP standards with IFS, including a multi-year project to converge U.S. GAAP with IFS. For now, however, IFS represents a different…

Adaptive Practices: Global Economy and Accounting Standards

Now that the economy has become much more global, everyone from major corporations to sole proprietorships is able to do business across the country and across the world through the internet. There is no longer any need to only do business in one's home town - or even one's home country - and that makes for all kinds of issues and changes that have to be addressed. One of those issues is the way accounting is handled. The International Financial eporting Standards (IFS) were started back in the 1970s, and many of them have carried forward into the present day (Bradshaw, 2010). They have also been joined by other, newer requirements, most notably between 1989 and 2001 (International, 2007). The Boards that are required to create and care for these standards have also been changed and adjusted over time. Currently, the International Accounting…

U.S. Auditing Standards and IFS

The International Financial eporting Standards (IFS) are a set of international accounting standards created by the International Accounting Standards Board (IASB). These standards are rapidly becoming the global norm for financial reporting in public entities. ecently, a study led by the International Federation of Accountants (IFA) cited that a convergence to IFS was crucial for the global economic growth and development. Another key driver for the convergence has been the need for reliability in fiscal reporting and accounting (Tapscott, Eccles & Krzus, 2013). With this backdrop, this paper highlights efforts the ASB is making to clarify the auditing standards. It also looks at the differences between ISA's and U.S. Auditing Standards. Finally, the paper reveals how the efforts of the ASB and the IAAB are similar to the FASB and the IASB.

Efforts the Auditing Standards Board making to clarify auditing standards

This is the…

Accounting forms the overall backbone of the financial world. Financial markets are predicated on consumer and user confidence. Without confidence, consumers attempting to make financial decisions will be doing so using inaccurate and incomplete information. The lack of transparency regarding the truthfulness of reported numbers creates uncertainty within the capital markets. This uncertainty regarding the accuracy of information ultimately undermines the overall financial system, causing harm to society in the process. Investors will require higher rates of return, individuals will become unlikely to invest, and innovation could become stifled, harming the quality of life for society overall. Accounting standards, particularly those from the IFRS, are required to help maintain confidence in the reliability of reported financial performance. These standards, such as IFRS , are often amended to reflect the economic realities of business transactions. These changes, although well intended, may often have unintended consequence. This is particularly true for IFRS…

1-6 Summary

The accounting convergence project of the FASB and IASB has proceeded slowly, despite a new deadline of 2014 from the SEC. There remain several key issues that are bogging down the conversion process. This dissertation will outline where American public companies stand on this issue. It will attempt to ascertain how much they understand about the convergence process and how prepared they are for full conversion to international financial reporting standards.

orks Cited:

AICPA. (2010). IFRS primer for audit committees. AICPA. In possession of the author.

American Bar Association (2010) Program: International financial reporting standards: Implications of accounting convergence for business lawyers. American Bar Association. Retrieved November 2, 2011 from http://www.americanbar.org/content/dam/aba/publishing/business_law_today/buslaw_blt_content_2010_11_0005.pdf.

Barth, M., Landsman, ., Lang, M. & illiams, C. (2011). Are IFRS-based and U.S. GAAP-based accounting amounts comparable? Stanford University orking Paper No. 78.

Bratton, . (2011). Heedless globalism: The SEC's roadmap to accounting convergence. University of…

Lease Accounting Changes

The author of this report is asked to answer to three major questions, all relating to the recent changes in accounting for leases under the Australian accounting standard both before and after the country's adherence of the IFS (IFS, 2013). The first point to answer to is the standard prior to the IFS update relating to accounting for leases. The second point is to provide for the present approach taken by the Australian IFS on the question of recognition, measurement, and presentation of leases and the reasoning behind said approach. Finally, a summary of future global developments relating to the changes with the current IASB standard for accounting for leases and how this all might affect the Australian standards going forward is also requested.

Questions Answered

Per a recent publication by PriceWaterhouseCoopers, there is a clear and precise explanation of the changes at hand and how things…

Internationally, a broader array of criticism was noted with both exposure drafts, and with certain problems persisting in Exposure Draft #2 that had first been identified in Exposure Draft #1. Specific issues that were brought to the attention of the IASB by many different letter writers included a lack of clarity in the ultimate specific purpose of the proposed amendments, remaining confusion regarding the definition of specific terms and the recording of very specific classes and sets of obligations and situations, and the fact that present-day valuations for many obligations and liabilities that fall under IAS 37 were probably entirely inaccurate, as these liabilities would be discharged when they became due (IASB 2010). In general, these issues were more specific than those cited with Exposure Draft #1.

Given the specific issues that were raised in the comment letters to Exposure Draft #2 as well as the trend that exists in…

This can be defined at the system level of the consultancy's network architecture. Finally the firewall of the systems will be defined also through the definition of system parameters throughout the network operating system running the entire firm (Malecki, 2012). There will be little resistance to change for each of these implementations as they are designed to protect and streamline the work being completed in the firm. There will also be a clearer sense of accountability over data security once the Practice Leaders and senior consultants realize that if they accidentally lose their iPhone, iPad or laptop all data will be erased immediately, which forces them to be more vigilant how they uses these systems and also how they are backed up.

Impact of the egulatory Environment

As the proposed research and advisory firm is a private corporation, it does not need to comply with the Sarbanes-Oxley (SOX) Act as…

As, the Delphi methodology will help us to determine the various opinions of the experts. While qualitative research will organize these views and allow us to study different aspects of the problem. This is the point that we will be taking a more balanced approach in dealing with these issues. (What is Qualitative Research 2010)

Purpose/Perceived Value

The purpose of this study will help us to understand specific factors. That are affecting why so many businesses, are opposed to implementation of IFRS standards. Once this takes place, we will then look at possible solutions for addressing these issues and what steps can be taken to increase compliance. These elements are important, because the combination of them will help us to understand all aspects of the problem. This is the point that we will have a full comprehension of the issues and the challenges associated with implementing any kind of changes.…

This will of course change the methods in which companies in the U.S. do their accounting and report financial information, but a change in accounting methods should not lead to a major change in the way these companies actually perform their business.

If the transition to IFRS rather than GAAP is expected to change a company's business practices, it is only a sign that the transition needs to be made that much sooner. If a company makes business decisions based on the way it will be able to report that decision's financial effects, rather than on the real value of that decision, there is clearly something wrong with the accounting methods the company is using. The recent financial meltdown largely caused by questionable accounting practices (and tangentially exacerbated by a lack of international standardization in these practices) is definitely evidence that such practices need to be changed, and with an…

Business

How would you characterize the differences in corporate structuring and ownership rights for various countries around the world?

There are different ownership types. People can structure their businesses or organizations under one of several organizational structures. The types include: sole proprietorship; general partnership (composed of two or more persons who agree to contribute money, labor, and/or skill to a business and run it together); a limited liability company (LLC) (formed by one or more individuals or entities through a special written agreement that details the structure of the LLC); a Corporation; a limited partnership; and a limited liability partnership (LLP).

A limited partnership is composed of one or more general partners and one or more limited partners. The general partners manage the business and share in its profits and losses. The limited partners share in the profits of the business, but losses are limited to the extent of their…

.....mission of the Emerging Issues Task Force (EITF) exerts upon the Financial Accounting Standards Board (FASB)

The Emerging Issues Task Force (EITF) was established with the main purpose of addressing and coming up with resolve for current issues being faced by professionals in the accounting field, which were not addressed by announcements of the Financial Accounting Standards Board (FASB). Prior to the establishment of ETIF in 1984, the FASB constantly faced challenges of not being able to offer well-timed and sensible solutions to developing practice problems. The EITF was therefore designed to disseminate and propagate carrying out guidance within the structure of the Accounting Standards Codification to decrease multiplicity when it comes down to it on a well-timed basis. In their field of profession, accountants experience a wide range of issues that are not comprehensively addressed in accounting pronouncements, and, which necessitate prompt resolve. In addition, such professionals insist that…

Purpose/Perceived Value

The findings of this report will be valuable to two different audiences. The first consists of accounting regulatory bodies. These bodies are working towards convergence and are presently struggling with the resistance from the business community. Understanding the nature of that resistance is key to finding ways of overcoming it. For the large publicly traded corporations themselves, this report will help them understand why they and their peers are resistant, and this will shed light on whether or not that resistance is justified. Convergence is coming whether the corporate world is ready for it or not, but the key for corporations is to understand what convergence is, why it is important, and which elements of their resistance are not worth the effort. For both parties, it is important to work together to make the convergence process as smooth as possible, and that is going to take a greater…

That was the year that significant changes were made in the Securities Act and the rules for bringing class action lawsuits were adjusted and modified. Because of those changes, it became more important from a litigation standpoint to ensure that conservatism was used in accounting valuation. Because there are empirical differences between the contracting and litigation perspectives, there have been many discussions regarding them in the past and that will likely continue well into the future. Each accounting firm must do what it feels is in the best interest of both itself and its clients, but the avoidance of lawsuits is a highly significant issue to consider when a company is planning to focus on a particular accountancy option.

C. Income Tax Perspective

Because income taxes are so closely tied to earnings, it only stands to reason that there would be an accounting valuation issue as it relates to conservatism…

alternative accounting methods that have become increasingly popular. There are various merits and demerits of obtaining each of the accounting method for a firm however a company must choose the accounting method carefully as it proves to be a vital decision for the success of a company.

Accounting Methods are the guidelines and the basic rules based on which the businesses prepare and maintain their financial records. There have been a vast development in the accounting methods and practices over the years; however the two main accounting methods remain the same which are a) IFS (International Financial eporting Standards) b) U.S. GAAP (Generally Accepted Accounting Principle)

IFS (International Financial eporting Standards) were deigned to cater to the globalization of the businesses by providing an accounting method which is comparable and understandable beyond the regional boundaries. It was initiated to standardize the accounting methods for European nations by the European Council,…

Business Description

The business created is an automated restaurant. Autodine Restaurant is a business venture that is expected to flourish and prosper in the forthcoming periods. This is an advanced business idea purposed to appeal to consumers within the market. The restaurant will provide meals and services similar to any 4-star hotel within the nation, and providing exclusive meals every Friday night. The general staffing plan is that human beings will cook the meals served within the restaurant. The rest of the work such as washing dishes, cleaning floors and serving of meals to the customers will be automated. The robots undertaking these services will be fully functional, being able to hear and understand different languages conveyed by consumers and being able to communicate in return (Cumming, 2012). In addition, the robots will be programmed to welcome the clients at the reception. This is meant to add to the appeal…

studied appeared a business accounting publications. A partial list publications article selected: The Accounting eview, Barrons, Wall Street Journal, Business Week, Fortune, Barrons, and Wall Street Journal.

GAAP article review:

Crovitz, Gordon L. (2008, September 8).Closing the information GAAP. The Wall Street

Journal. etrieved November 22, 2010 at http://online.wsj.com/article/SB122083366235408621.html

GAAP article review:

Crovitz, Gordon L. (2008, September 8).Closing the information GAAP. The Wall Street

Journal. etrieved November 22, 2010 at http://online.wsj.com/article/SB122083366235408621.html

The Wall Street Journal is famous for its pro-business, conservative editorials. So perhaps it is no surprise that in 2008, Journal editorial writer Gordon L. Crovitz praised the Securities and Exchange Commission (SEC)'s decision to mandate a shift to international accounting standards, in a phasing out of GAAP (Generally Accepted Accounting Principles) by 2016 for all U.S. firms. The Journal writer said that this was reflective of the "remarkably quickening pace of acceptance of a true lingua franca for…

EITF as relates to the FASB

The Emerging Issues Task Force, abbreviated as the EITF, was formed in the year 1984. The EITF works to assist the FASB (Financial Accounting Standards Board) to improve financial reporting by providing timely identification, identification, discussion and resolution of issues in accounting which are within the FASB framework known as the Accounting Standards Codification. The framework represents the source of authoritative standards of accounting in general and reporting and is to be applied to nongovernmental entities. They are issued side by side to those of the SEC (Securities Exchange Commission) Beresford, 1998()

The EITF promulgates the guidance of implementation of financial and reporting procedures within the FASB framework in order to reduce the diversity in practice on a basis that is timely. The EITF was also created to minimize the need of the FASB to spend crucial effort and time to address narrow issues…

Business Plan

The business that I am going to start is a small coffee microroastery and shop. The company will perform two basic functions. The first is a product function, the roasting of coffee beans. Green beans will be received by the company, roasted, and then both used in the shop and made available for a variety of retail channels. The second function will be a service function, based on the production and serving of beverages and light snacks. The staffing plan will be simple. The owner/manager/roaster will perform most of the management tasks associated with the shop. There will be an assistant manager who doubles with barista duties, as well as 4-6 part-time staff members, filling 3 FTEs in the barista/service function. This plan is based on experiences at other, similar operations, in addition to meeting a few other needs. One is the need to keep costs down, and…

IASB

The International Accounting Standards Board (IASB) currently has three types of active projects on their agenda. These include an agenda consultation project, financial crisis related projects, and memorandum of understanding projects. The following is a summary of these current active projects, their timetables established for the achievement of milestones, as well as the conceptual frameworks involved in the projects.

The first type of project currently active on the agenda of the IASB is an agenda consultation project in which the IASB initiated a formal public agenda consultation for the first time in July 2011. This consultation was focused on the future work plan of the IASB, and was aimed at obtaining input from the public regarding the work plan and its direction and balance. The agenda consultation was conducted with broad public participation, including awareness through conferences in Europe, North America, and South America, in which small group meetings…

Hedging may be used to reduce risk. The three predominant types of hedging activities are fair value hedges, cash flow hedges, and foreign currency hedges. In this assignment, you will examine how hedging activities are reported.

Download (attached file) and complete the computational problem, which illustrates hedge computations. how or explain the calculations.

The current price of his bushel slightly decreased in July at $9.98 and then increased in December at $10.09.

In July, he sold 100,000 bushels at $9.99 with spot price being $10.00. He lost nothing.

In December the spot price was $9.98; the price decreased. He sold at $9.95 per bushel and actually made a profit of $4,000.

In December, however, the spot price for soybeans ($10.09) was higher than his future offset price making it non-profitable for him, $10,000

He won $4,000, he lost $1,000. His liability was $6,000

Compare and contrast the requirements for investments…

Business Plan

Description of the Business

The business is a gourmet candy shop. The shop will sell gourmet candy that has been sourced from all over the world. The shop will operate with one storefront location, and there will be an Internet/mail order component as well.

The rationale for the business is simply. There is a growing trend towards hedonistic approaches to dining. We have seen in the past few years the rise of the bacon fetish, high end craft beer and coffee, cupcakes, the move of fine dining to the mass market and a full embrace by Americans of better quality indulgent goods. Much of this trend can be credited to the aging of the population, as people seek to maximize pleasure. They have the financial means to treat themselves, and seek to balance this hedonism with a desire to be healthy. The intersection of these ideals is where…

International Financial Reporting Standards or IFRS

This refers to a set of accounting standards created and introduced by the International Accounting Standard oard or IAS (Centroid 2013). The objective is establish a single global standard for producing financial statements for all public enterprises (Centroid).

Positive and Negative Consequences of International Accounting Harmonization

The harmonization of international accounting is envisioned to enhance business decisions and to assert influence over the economic milieu (eke 2010). When it proves workable and effective, harmonization will produce new types of analysis and data and integrate indicators, which characterize how businesses in certain countries are managed. As it is, subsidiaries of multinational companies utilize national accounting rules in converting and consolidating frameworks of unified financial statements in reporting them. The application of a precise or suitable international accounting system will be helpful to such multinational businesses in the conduct of their managerial functions globally (eke).

Interpreting…

Preparers, auditors, and users of financial statements must encourage and support compliance with the substance and form of the international standards; (3) the adoption and implementation of the international standards require action at both the national and international levels. At the national level, it is important that governments, regulators, and national standard setters place international convergence as a priority on their agendas. At the international level, it is important that the international standard setters establish processes and procedures that facilitate national input and lead to the development of high quality standards that are globally accepted; (4) Finally, it is clear that to achieve international convergence, action is necessary at all points along the information supply chain that delivers financial reporting. Boards of directors and management, who have the primary responsibility for financial reporting, as well as auditors, standard setters, regulators, and other participants in the financial reporting process, such as…

hese preferences aside, American multinationals like PepsiCo and Procter & Gamble, are examining how a possible shift away from GAAP would affect their revenue recognition, taxation, and hedge accounting in the near and far future. In many cases, the overall, self-interested impression is positive as IFRS tend to make a company's returns look higher. But for smaller U.S. companies without an outreach abroad, the advantages of a switch to IFRS are less clear, as they have not been keeping two books all along like multinationals. More time-consuming (an estimated 18-24 months) headaches and paperwork as companies switch to IFRS seem likely -- and a tremendous financial drain is almost certain upon all organization's revenues during the period of transition. "Procter & Gamble hasn't pinned down an exact number, but expects a conversion project would cost tens of millions of dollars" (Johnson 2008, p. 2). European companies who have already switched…

Southwest Airlines. What types of budgets would you recommend for the company? Why?

Currently, the type of accounting standard that is being utilized by Southwest Airlines is Generally Accepted Accounting Principals (GAAP). This is the basic benchmark that has been implemented by many U.S. companies to more accurately account for: their budgets, expenses, assets and liabilities. Over the years, it has become common for most corporations to follow these different standards. ("2010 Annual Report," 2010) ("Generally Accepted Accounting Principles," 2011)

However, Southwest takes this process one step further by also including Pro Forma accounting standards as an alternate way of evaluating the company. This is when you are anticipating that certain events have occurred in the future and are listing them as revenues in the current quarter (such as: future earnings on a large contract that was signed). The idea with using this approach is to see how these revenues…

IAS 17 Leases

Explain the key features of the current accounting standard. You should use at least one illustrative example for lessee accounting from a published set of financial statements to illustrate the effect of the standard

IAS 17 accounting standard establishes and elucidates the pertinent accounting procedures and also disclosures that are supposed to be employed in accounting by lessors and also lessees. The lessor is the owner of the underlying asset while the lessee is the party that opts to make use of the asset at that point in time. One of the key features of the accounting standard is the classification between an operating lease and a finance lease. A financial lease is a contract or agreement whereby all of the risks and the rewards that are characteristic to the ownership of the asset are transferred to the lessee. On the other hand, an operating lease is…

globalization has been pushing many countries to create standards for accounting procedures that can be used around the globe. This is designed to improve transparency and the accuracy of financial information that is being provided (IFRS guidelines). To fully understand how this is taking place we will examine the differences between IFRS and GAAP standards. This will be accomplished by carefully examining the accounting procedures used by Apple and Philips. Once this occurs, is when we will have the greatest insights as to underlying differences between both procedures.

Is there a difference in approach to valuation by U.S. GAAP and IFRS?

To fully understand the dissimilarities between the two standards we will examine several different factors to include: the way an expense / asset are accounted for, how current / long-term assets are calculated and the way current / long-term liabilities are determined. Once this takes place is when we…

Accounting

International Accounting and Auditing Standards

International public sector accounting standards (IPSAS) are developed and put forth by the International Public Sector Accounting Standards Board of the International Federation of Accountants (IFAC). International private sector accounting standards are known as International Financial Reporting Standards (IFRS). They are put together and put forth by the International Accounting Standards Board (IASB), a self-governing standard generating body of the International Accounting Standards Committee Foundation. The IFRS for SME's is a self enclosed standard, intended to meet the requirements and abilities of small and medium-sized entities (SME's), which are anticipated to comprise over ninety five per cent of all corporations worldwide. It is constructed on the basis of full IFRSs, yet, a lot of the principles for distinguishing and gauging assets, liabilities, earnings and expenses have been cut down, subjects not relevant to SME's have been left out, and the amount of necessary revelations…

How should the $25 Referral Credit be recorded in Runway's income statement?

In accordance to ASC 605-50-45 Revenue Recognition, a cash consideration handed to a consumer by a vendor or retailer is deemed a decrease in the selling prices of the products or services retailed. This would imply that these cash considerations would be deemed as an expense and a decline in the revenue to be generated by the vendor. Nonetheless, the cash consideration can be deemed as an expense if it solely meets two requirements. First, the cash consideration has to give rise to an identifiable benefit that is separable from the purchase of the recipient, in the sense that the vendor could have achieved the benefit through a third party, and not the purchaser. Secondly, the value that is provided has to be reasonably approximated by the vendor (IAS Plus, 2016).

In this case, Runway does meet these…

1. How should the $25 Referral Credit be recorded in Runway's income statement?

In accordance to ASC 605-50-45 Revenue Recognition, a cash consideration handed to a consumer by a vendor or retailer is deemed a decrease in the selling prices of the products or services retailed. This would imply that these cash considerations would be deemed as an expense and a decline in the revenue to be generated by the vendor. Nonetheless, the cash consideration can be deemed as an expense if it solely meets two requirements. First, the cash consideration has to give rise to an identifiable benefit that is separable from the purchase of the recipient, in the sense that the vendor could have achieved the benefit through a third party, and not the purchaser. Secondly, the value that is provided has to be reasonably approximated by the vendor (IAS Plus, 2016).

In this case, Runway does meet…

" (Lee, 2009)

Core labor standards are stated by Lee (2009) to be "more or less the basic labor rights: that is, the International Labor Organization (ILO) core labor standards that have been confirmed by the UN Global Compact and adopted or discussed by the GRI and ISO 26000." (Lee, 2009) Those standards include the following: (1) a guarantee of the three labor rights (organizing, collective bargaining, and collective action) based on freedom of association, (2) a ban on forced labor, (3) a ban on child labor, and (4) no discrimination in labor. (Lee, 2009) Stated as important secondary standards are those as follows: (1) responsibility for employment; (2) industrial safety and health; and (3) training and education. (Lee, 2009) Lee states that western multinational companies "...are capable of investment, innovation, and reporting for SR, because they have been exposed to the CSR movement for some time. Thus companies in…

valuing a business, including asset-based approaches, earnings-based approaches and market value approaches (Ward, 2016). Asset-based approaches views the business as its net asset base, but this can be inaccurate because the valuation of the assets on the balance sheet might be stale-dated. Valuation on a liquidation basis only makes sense if the business is to be liquidated; if it is a going concern, then it is probably worth more than liquidation value on those assets.

The market-based approach looks at what other similar businesses have sold for. There are a couple of drawbacks to this approach. First, you have to choose a similar company that has recently sold. There might not be any. Further, the choice of "similar company" might not actually be that similarity. There might be material differences in your corollary that render the comparison inaccurate.

The earnings-based approach is rooted in the idea that a business is…