Concept explainers
International Financial Reporting Standards:
International Financial Reporting Standards (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:
Generally Accepted Accounting Principles 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 explain: Whether the treatment of bank overdrafts differs under GAAP and IFRS.
Want to see the full answer?
Check out a sample textbook solutionChapter 7 Solutions
NSU COMBO F/INTERM.ACCTG-CONNECT ACCESS
- Discuss the primary differences between U.S. GAAP and IFRS with respect to cash and receivables.arrow_forwardDiscuss the Basel disintermediated scenario and its impact on incumbent banks?arrow_forwardWhat type of banking risk includes deterioration of the value of the local currency in terms of the bank’s base currency; convertibility or transfer risks. a. Credit Risk b. Liquidity Risk c. Foreign Exchange Risk d. Interest Rate Riskarrow_forward
- Which of the following is not an example of sovereign risk? a. Changes in tax rates b. Changes in currency denominations c. Changes in exchange rates d. Changes in regulationsarrow_forwardWhich of the following is not an example of sovereign risk? a.Changes in tax rates b.Changes in currency denominations c.Changes in exchange rates d.Changes in regulationsarrow_forwardWhat is the normal balance for bank overdraft and why?arrow_forward
- Define foreign currency hedges.arrow_forwardHow do the central banks implement expansionary monetary policy using monetary policy tools? (Explain with examples)arrow_forwardGovernment policies relating to the national debt and barriers to trade do not impact the demand and supply of a currency and the exchange rate. Select one: True Falsearrow_forward
- Why are U.S. government securities viewed differently from state and local government securities in terms of default risk?arrow_forwardWhat is sovereign risk and what is the difference between rescheduling and repudiation? What is total debt service ratio and how is it calculated? Find the total debt service ratio of a country. See if you can also find an example of a country, or countries, that Western banks currently have exposure to.arrow_forwardWhat causes balance sheet (or translation) exposure to foreign exchange risk? How does balance sheet exposure compare with transaction exposure?arrow_forward
- EBK CONTEMPORARY FINANCIAL MANAGEMENTFinanceISBN:9781337514835Author:MOYERPublisher:CENGAGE LEARNING - CONSIGNMENTIntermediate Financial Management (MindTap Course...FinanceISBN:9781337395083Author:Eugene F. Brigham, Phillip R. DavesPublisher:Cengage Learning