Analysis Of The Canadian GAAP And IFRS

The assessed value placed on the subject is proportionally lower than the superior comp and higher than the inferior comp and it is within the acceptable range of market value. For that reason, the review appraiser feels that the subject does not suffer unfairness in the market, and cannot, therefore, justify a reduction at this

| Finished goods are stated at the lower of cost and net realisable value determined on the basis of moving

> During a depreciable asset’s useful life, its revenue-producing ability declines because of wear and tear.

The U.S is moving toward IFRS (Forgeas, 2008). In the near future, all US company may need to report financial statements under IFRS. This makes the adaptation of IFRS unavoidable. Recently, some large multinational

At 30 June 2014, the balance of the revaluation surplus is $400 000, of which $300 000 relates to the factory land and $100 000 to the buildings. On this same date, independent valuations of the land and building are obtained. In relation to the above assets, the assessed fair values at 30 June 2014 are:

A property’s highest and best use is defined as “A principle of appraisal and assessment requiring that each property be appraised as though it were being put to its most profitable use (highest possible present net worth), given probable legal, physical, and financial constraints. The principle entails first identifying the most appropriate market, and, second, the most profitable use within that market. The concept is most commonly discussed in connection with underutilized

The cost approach is used to determine the assessed value of commercial, industrial, institutional, agricultural and other non-residential properties. As for residential properties, a market adjusted cost approach (a combination of the cost approach and the direct comparison approach) is currently used for all. The cost approach is based on the assumption that an informed purchaser would pay no more for a property than it would cost to purchase a similar piece of land, on which a building could be constructed with similar characteristics. The land value is determined by the assessor analysing sales of vacant land in the geographic area of the subject, and then adding the cost of replacing the building(s), less depreciation and other improvements.

The recoverable amount of an asset or a cash-generating unit is the higher of its fair value less costs

There are several differences between the International Financial Reporting Standards (IFRS) and the U.S. Generally Accepted Accounting Principles (GAAP). The IFRS is considered more of a "principles based" accounting standard in contrast to U.S. GAAP which is considered more "rules based." By being more "principles based", IFRS, arguably, represents and captures the economics of a transaction better than U.S. GAAP. As a team me collaborated to answer the following seven questions.

Differences Between GAAP and IFRS and Implications of Potential Convergence - Boundless Open Textbook. (n.d.). Retrieved February 5, 2015, from https://www.boundless.com/accounting/textbooks/boundless-accounting-textbook/introduction-to-accounting-1/conventions-and-standards-21/differences-between-gaap-and-ifrs-and-implications-of-potential-convergence-131-7049/

1. Introduction 2. Analysis of current position 3. Analysis of new project 3.1 Methodologies and processes of Valuation 3.2 processes of Valuation 4. Conclusion

The treatment required under IFRS is that it provides specialised extractive industry guidance only in respect of expenditure incurred on exploration for and evaluation of (E&E) mineral resources after obtaining a legal right to explore and before achieving technical feasibility and commercial viability. There is no industry-specific guidance on the recognition or measurements of pre-exploration expenditure or development expenditure. Pre-E&E expenditure is generally expensed as it is incurred. Entities identify and account for pre-exploration expenditure, E&E expenditure and development expenditure separately. Each type of E&E cost may be expensed as it is incurred or capitalised, in accordance with the entity’s selected accounting policy. Capitalised E&E costs are classified as either tangible and intangible assets, according to their nature. The test for recoverability of E&E assets can combine several cash-generating units, as long as the combination is not larger than an operating segment. Stripping costs incurred during the production phase of surface mining are included in the cost of inventory extracted during the period, if appropriate, or are capitalised as a non-current asset if they

It is specified in the notes to the financial statements that Plant and Equipment assets are stated at historical costs cost accumulated depreciation and any accumulated impairment losses. Land and buildings are measured at fair value less accumulated depreciation on buildings and leasehold land any impairment losses recognised at the date of the revaluation. Valuations are performed with sufficient frequency to ensure that the carrying amount of a revalued asset does not differ materially from its fair value. The assets residual values, useful lives and amortisation methods are reviewed, and adjusted if appropriate, at each financial year end. The company’s investment properties in Australia and properties held in joint venture entities are all subject to a semi-annual review to a fair market value every reporting period. The properties were independently valued made by external valuers or reviewed internally by the Property Review Committee and the directors of the company which shows that it is in accordance with the Accounting Standards on measurement after recognition (paragraphs 29-66). It is also stated in the report that the depreciation method used is straight line method. The valuation for the 30 June 2015 financial year resulted in a net increase.

The US Generally Accepted Accounting Principles (GAAP) is a set of international accounting rules which originated from the United States. US GAAP can be defined as a set of accounting principles, standards and procedures that companies use to compile their financial statements (Elliott & Elliott, 2008). The International Financial Reporting Standards (IFRS) on the other hand are accounting rules originating from the United Kingdom. International Financial Reporting Standards (IFRS) are a set of accounting rules designed with a common global language for business affairs so that financial accounts of companies are understandable and comparable across international boundaries (Devinney, Pedersen & Tihanyi, 2010).

Now the basis for all future transactions relating to this building would also be at its cost, i.e. $12 million. For example: The depreciation would be charged on $12 million and not on $15 million. Similarly when the asset is sold in future, the profit or loss on sale would be based on the cost price actually paid for it. Since the original or