Concept explainers
International Financial Reporting Standards (IFRS):
IFRS is a set of accounting standards which are developed by independent (Non-profit) organization called as International Accounting Standards Board (IASB). It is universally accepted set of standards which states the rules and practice for accounting practice.
Generally Accepted Accounting Principles:
They are commonly known as GAAP. It is a collection of generally practiced and followed rules and standards of accounting. GAAP provides global guidelines for preparation and disclosure of financial statements of public companies. It is created and developed by International Accounting Standards Board (IASB).
To describe: Whether a company can combine the accounts receivables from the ordinary customers and from related parties in their financial statement under GAAP and IFRS.
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Chapter 7 Solutions
INT.ACCOUNTING-CONNECT+PROCTORIO PLUS
- Singletary Associates has accounts receivable due from normal credit customers and also has an account receivable due from a director of the company. Singletary would like to combine both of those receivables on one line in the current assets section of their balance sheet and in the disclosure notes. Is that permissible under U.S. GAAP? Under IFRS? Explain.arrow_forwardWhat is the applicable financial reporting framework in the U.S. known as? a. The Internal Revenue Code b. IFRS c. GAAP d. GAASarrow_forwardExplain and analyze the effect of differences between IFRS and U.S. GAAP related to the financial reporting of: Current liabilities Provisions Employee Benefits Share-based payment Income taxes Revenue Financial instruments Leasesarrow_forward
- Do all transactions by U.S. companies with foreign parties require special accounting procedures by the U.S. companies? Explain.arrow_forward1. Why don’t the additions and deductions from the bank balance on a bank reconciliation require adjustment by the company? 2. Do all transactions by U.S. companies with foreign parties require special accounting procedures by the U.S. companies? Explain.arrow_forwardwhat are disadvantages of national or international accounting uniformity?arrow_forward
- Why is the effective-interest method of amortization required under the International Financial Reporting Standards?arrow_forward"How do the principles of revenue recognition under the International Financial Reporting Standards (IFRS) impact the timing and amount of revenue recorded in a company's financial statements?"arrow_forwardWhich one of the following is financial instrument is used by the exporter and importer to fulfill their short term financial requirement? O a. Treasury Bills O b. Bankers' acceptances C. Certificate of Deposits O d. Commercial Papersarrow_forward
- Do commonwealth bank (Australia) follow cash or accural accounting?arrow_forwardWhich of the following is essentially unsecured? A• Certificate deposits B• Treasury bills C• Commercial papers D• Repurchase agreementarrow_forwardWhich of the following is a negotiable written promise (by a bank) for a U.S. dollar deposit at a bank located outside the United States or in U.S. International Banking Facilities.? a.Certificate of Deposits b.Bankers acceptances c.Eurodollar CD d.Repurchase agreementarrow_forward
- Principles of Accounting Volume 1AccountingISBN:9781947172685Author:OpenStaxPublisher:OpenStax College