Introduction: Accounting principlesare set of rules to record and measure the economic activity in a business, methods used to measure economic activity is different around the world. Many factors influences development of accounting standards in a country, including its economy, legal, educational and political systems, etc. these differences have led to significant diversity in accounting standards from one nation to another. The lack of uniform set of accounting standards creates problems for companies, and its users. Significant steps have been taken by global economies to overcome this barrier, one of them is to move towards a single set of globally accepted reporting standards.
The standard setting process of IASB
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ADVANCED FINANCIAL ACCOUNTING IA
- Define International Financial Reporting Standards.arrow_forwardIdentify and explain the difference between the two systems of regulation, stating clearly which system you believe describes the International Financial Reporting Standards (IFRS)arrow_forwardExplain the role of the International Accounting Standards Board (IASB) in relation to International Financial Reporting Standards (IFRS).arrow_forward
- compare key concepts of fi nancial reporting standards under IFRS and US generally accepted accounting principles (US GAAP) reporting systemarrow_forwardThe US GAAP provides rules and guidance for what two primary financial reporting purposes? A. Recognition and measurement B. Risk assessment and presentation C. Recognition and presentation D. Initial and subsequent meaarrow_forwardThe US GAAP provides rules and guidance for what two primary financial reporting purposes? A. Recognition and measurement B. Risk assessment and presentation C. Recognition and presentation D. Initial and subsequent measurementarrow_forward
- Identify the minimum balance sheet items that should be included in financial reportingaccording to the International Accounting Standard 1arrow_forwardThe US GAAP provides rules and guidance for what two primary financial reporting purposes?arrow_forwardDiscuss the principles and characteristics of the International Financial Reporting Standards (IFRS) and how they differ from Generally Accepted Accounting Principles (GAAP). What are the advantages and challenges of implementing IFRS globally?arrow_forward
- International fi nancial reporting standards are currently developed by which entity? B . Th e International Accounting Standards Board.arrow_forwardYou are required to discuss and report on methodologies usedwhen conducting Financial Reporting Research under the U.S. GAAP Process in comparison with the requirements of IFRSarrow_forwardAccording to the IASB, IFRS comprise interpretations issued by the SIC and IFRIC, anda. International financial reporting standards issued by the IASB only.b. International accounting standards issued by the IASC only.c. International financial reporting standards issued by the IASB and international accounting standards issued by the IASC.d. International financial reporting standards issued by the IASB and statements of financial accounting standards issued by the FASB.arrow_forward
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