Mexico vs. Us vs. Ifrs

2007/2008 Edition This PricewaterhouseCoopers publication is for those who wish to gain a broad understanding of the key similarities and differences between IFRS, US GAAP and Swiss GAAP FER. No summary publication can do justice to the many differences of detail that exist between IFRS, US GAAP and Swiss GAAP FER. Even if the guidance is similar, there can be differences in the detailed application, which could have a material impact on the financial statements. It needs to be stressed that this brochure deals with the main differences only. Many more pages would be needed to be

IAS 36-2 states the Impairment of Assets rule shall be applied in accounting for the impairment of all

The authoritative guidance for asset impairment is to ensure that impairment is recorded and dealt with as depreciation. The scope of the standard is writing off of assets and depreciation. According to the guidance of 360-10-35, it address how long-lived assets that are intended to be held and used in an entity’s business shall be reviewed for impairment. The impairment loss can only be recognized if the carrying amount of a long-lived assets is not recoverable and

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

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

With reference to the measurement of tangible non-current assets, critically evaluate whether financial statements prepared using IFRS’s provide useful information. Use specific examples from the annual reports of FTSE 100 companies to illustrate your points.

Mexico is a country located in North America and is bordered by the United States to the north; Mexico is known for it’s tequila, sunny climate, exotic scenery, Aztec ancient civilizations, piñatas, sombreros and articulate designs and tiles. It is a beautiful country surrounded by clear, blue sea and grainy white sand. The state of New Mexico itself has the highest percentage of Hispanic or Latinos by population in America (Wikipedia, 2015). Latinos have left an imprint in the fashion industry tremendously with famous designers such as Oscar De La Renta, Narcisco Rodriguez, Cristobal Balenciaga, and Manolo Blahnik making a name for themselves and creating unique brands. The country is known for being both rich in history and culture

Mexico 's governing political parties and political history has created what is now the Mexican adherence to a traumatic experiences of its contemporary political culture. Mexico’s contemporary political culture consist of sandals, accusations, corruption. The long standing of political corruption has evolved to be a corrupt culture in Mexico and lack of trust from citizens. One of the most known corrupt events in Mexico has been the Pemexgate. “In 2001 it was brought to light that funds from the workers union of PEMEX had been illegally used to support the campaign of Francisco Labastida, the candidate of the Institutional Revolutionary Party, or PRI, in the 2000 elections, in which Mr. Fox won” (Milloy, 2002). PEMEX is the second largest petroleum company stationed in Mexico that is used in the states of Mexico and is exported to other countries. This partnership made many elites richer and elected officials in a asymmetrical and illegal technique. Another example of corruption in Mexico crime rates that have not been solved due to corruption with in the law enforcement. In the city Juarez, Mexico there has been a reports of hundreds of women have been sexually assaulted, abused and then killed over the past

The first source which will be evaluated in depth is an article called, “Mexico-United States Relations” written in 1991 by a publishing group called Houghton Miffin. The origin of this source is valuable because Houghton Miffin is an educational and trade publisher and publishes educational resources for teachers, students, and parents specifying that they are an expert in the educational field which increases the reliability of the

IASB. 2010, "The Conceptual Framework for Financial Reporting" IFRS, pp. A21- A38, viewed 23 April 2014,

Mexico is a country located at the southern portion of North America and it is made up of thirty-one states. Mexico is the third largest country in Latin America, with one of the largest populations. El tamaño de Mejico es un quinto del tamaño de Estados Unidos.

There are a number of differences between GAAP and IFRS in the area of accounting for pensions and other post-retirement and postemployment benefits (Deloitte, 2004). Some differences will result in less earnings volatility, while others will result in more. Under IFRS, a company can adopt a policy that would allow recognition of gains/losses in other comprehensive income. Gains/losses treated in accordance with this election would not be subsequently recycled through the income statement. This election generally reduces the volatility of pension expense recorded within the company’s income statement because gains/losses would be recorded only within other comprehensive income. Other policy elections available under IFRS for gain/loss recognition are similar to those under GAAP. Under IFRS, companies are not required to present the full-funded status of the postemployment benefit plans on the balance sheet. However, companies are required to disclose the full-funded status within the notes to the financial statements. GAAP permits the use of a calculated asset value to spread market movements over periods up to five years in the determination of expected returns of plan assets. IFRS prohibits the use of calculated value and required that the actual fair value of plan assets at each measurement date be used. Differences between GAAP and

With complete notion and awareness of how each country has their set of rules, “the goal of IFRS is to provide a global framework for how public companies prepare and disclose their financial statements” (Rouse, 2011). This view is meant to provide general guidelines, as well as international comparisons through conventional and edifying means. To bring broader and vivid objectives, IFRS replaced IAS, the older standards, in order to bring a more comprehensive and simplified accounting procedures.

It’s important to call that under US GAAP, estimates of useful and residual value, and the method of depreciation, are reviewed only when events or changes in circumstances indicate that the current estimates or depreciation method are no longer appropriate. Unlike IFRS, the revaluation of property, plant and equipment is not permitted.

Under IFRS, profit sharing to employees and board of directors is recognized when incurred in the income statement (using