Ias 39 Regulate About The Recognition And Measurement Financial Asset And Liabilities

Assets are to be recorded and valued based of the type of asset there are.

Overall. The FASB Codification Topic 320: Investments-Debt and Equity Securities is included under the financial statement asset section and offers guidance on investment instruments that represent either a creditor relationship (debt) or an ownership interest (equity) and provides standards for reporting such investments according to generally accepted accounting principles (GAAP) (FASB ASC 320-10-05-2, 2016).

Entity-wide disclosures are required under Accounting Standards Codification (ASC) 280-10-50-40 through 280-10-50-42. The disclosures are required because every corporation does not report information in a similar fashion, and the disclosures would provide comparability of the financial statements among entities. For example, if a corporation uses a geographic approach in its financial statements, disclosing certain information about the products or services sold will make comparability to other companies much easier. The disclosures will also help with comparability within an entity if they decide to choose another method of reporting operating segments in the future. There are three types of entity-wide disclosures; products and services, geographic areas, and/or major customers. Every public company has to comply with the disclosures, even if the company has one reportable segment. The only exception to the entity-wide disclosures is if it is impractical to provide the information, such as it would be extremely costly to the corporation, or if the “internal reporting systems are not capable of gathering financial information by product or service by geographic area.” A disclosure should be made when entity-wide disclosures are impractical.

The FASB Codification provides guidance on how to classify monetary and nonmonetary assets and liabilities. For typical circumstances it suggests using a classification table, and for non-typical circumstances Codification guides to refer to the definitions. To begin with, let us appeal to the definition of “inventory”. The term inventory embraces goods awaiting sale (the merchandise of a trading concern and the

The field of accounting is constantly evolving. This is true not only for the theory of accounting itself but also the entities that govern its theory and practice. Presently, the Financial Accounting Standards Board (FASB) and the International Accounting Standards Board (IASB) are faced with some of the biggest challenges to date. To understand the significance of these two boards, it is necessary to understand their histories, relations between the boards, and the standards that they set. Also how the knowledge of these boards and the field they lead, gained through the masters of science in accountancy

Asset retirement obligation requires properly allocating the asset retirement cost over the assets life of the asset. The allocation of asset retirement cost that is initiated by the asset retirement obligation includes items that that fall under FASB’s issued Statement of Financial Accounting Concepts also known as SFAC No. 6 “Elements of Financial Statements. The proper manner of allocating requires the retirement cost to be properly measured, recognized, and recorded when involving elements in the financial statements. The measurement of the asset must be measured properly at its historical cost. During the ordinary process a business has outflows or using up of its assets in which the expenses are then recognized under the SFAC No.6 as Expense Recognition Principle. During the period the assets are used up from operational procedures (delivery, and production). The expense accounts recognize

1. The IASB proposes clarifying that the classification of liabilities as either current or non-current should be based on the entity’s rights at the end of the reporting period which are

Background. Revenue is a financial statement item. Accounting for revenue contains standards and principles for revenue recognition. Revenue recognition rules and statutory requirements significantly evolved over the years. It became more detailed for the purpose so financial statement users can understand true company performance and projections.

Intangible Assets were part of the 2006 “memorandum of understanding” between FASB and IASB. Eventually, intangibles assets were cut from the list of changes to be made. In future years the problems will have to be addressed. As far as research and development costs, IAS 38 will likely be fully adopted. One major problem still being faced is the revaluation of intangible assets. Under GAAP, revaluation is strictly prohibited. Under IFRs, revaluation

Different assets, liabilities, and equity instruments are measured at fair value. The standards in U.S. GAAP and IFRS that require or permit fair value measurements are different. As a consequence, an asset, liability, or equity instrument that is measured at fair value in U.S. GAAP might not be measured at fair value in IFRS and vice versa. The Boards have separate projects to address the measurement basis in other standards (for

AASB 138 Intangible Assets is equivalent to IAS 38 as issued by the International Accounting Standard Board. This standard prescribes the accounting for intangible assets which are not dealt with specifically in another standard. In simple words, intangible assets are those non-monetary assets which do not have any physical substance. This includes Goodwill, patents, copyrights, research and development, etc. These kinds of assets do not have any physical substance, but these assets add value in the business. For example: According to Forbes, the brand value of Coca-Cola is $54.9 billion, as the brand is such asset which don’t have physical substance, it can be identify as Intangible

AASB 138 defines intangible assets as “identifiable non-monetary assets without physical substance”. Such assets include but are not limited to goodwill, trademarks, patents and research and development. AASB 138 Intangible Assets has been implemented to prescribe the accounting treatment for intangible assets that have not been specifically dealt with in any other standard. Therefore, this standard only applies to intangible assets that have not been previously dealt with. Furthermore, it can be established that this standard is an example of normative accounting theories because the standard prescribes what should be done, rather than predicts what people may do. According to AASB 138 Intangible Assets, in order for an asset to be recognised in the financial statements it must meet specific criteria. The required criterion states that the asset must be identifiable, the entity has control of the asset, future economic benefits are probable and the cost of the asset can be measured reliably.

Both the boards delivered quite some aspect of the project but a converged standard could not be achieved. Due to lack of enough support in terms of difference in jurisdiction and regulatory environment, the IASB and FASB could not work together and IASB decided to go with the forward looking impairment model. The board proposed the applicability of expected credit loss model to the financial instruments which are subject to impairment accounting.

The accounting world is shaped by stringent and clear rules, principles, standards and guidelines. These are all meant to define accounting operations and reporting discipline. With the emergence of International Accounting Standards (IAS), which was later replaced by International Financial Reporting Standards (IFRS), the accounting concepts, analysis, disclosures, reporting and presentation became easier and practical. Currently, accountants, managers and related parties find it concrete and consistent in protecting professional boundaries.

The development of accounting standards and rules is based upon conceptual framework which is part of system of financial reporting. These standards set the nature, function and limits of financial account and financial statement. In line with the suggestion of Reichel and Ramey (1987), conceptual framework is described as a set of broad ideas and principles taken from relevant fields of enquiry and used to structure a subsequent presentation. This reflects the items such as equity, expenses, income, assets and liabilities in financial statement. The International Accounting Standards Committee (IASB) is the body that developed the international conceptual framework in 1989 with the hope to attain global acceptance .The objective is to improve financial reporting which indicate the preparation of financial statement for limited company by providing updated, clear and complete set of concepts. In order to evaluate the role of conceptual framework, this essay aims to provide a discussion of the usefulness and limitations of conceptual framework in relation of International accounting standards. As mentioned above, the usefulness of conceptual framework includes consistency, comparability and credibility. Meanwhile, the limitations involve the difficulty to set up, difficulty to create the new ideas and may only benefit to certain groups.