Introduction International Accounting Standards Committee (IASC, 2003) define an asset as a resource controlled by the entity as a result of past events and from which future economic benefits are expected to flow to the entity. In a business model assets act as inputs, either directly (plant, machinery, inventory) or indirectly (goodwill, patents, investment property) to provide products and services to the customer. As assets are expected to generate future benefits, the income generated by these
Introduction In 2008, the Securities and Exchange Commission (SEC) issued a road map for the United States (US) to implement International Financial Reporting Standards (IFRS) that would eventually lead to the dissolution of US Generally Accepted Accounting Principles (US GAAP) (Cox 2008). US GAAP is rules based system of accounting that contains over 25,000 detailed pages of guidance, whereas IFRS is a principles based system of accounting that contains 2,500 pages of guidance. IFRS allows accountants
How would International Financial Reporting Standards affect the quality of Canadian accounting information? INTRODUCTION Globalization has a great impact on today’s economy. The differences of accounting regulations and practices in various countries have become a noteworthy obstacle to globalization and economic development. International Financial Reporting Standards (IFRS) mitigates global business barriers. In order to adapt to the increasingly global business environment, public companies
The International Financial Reporting Standards (IFRS) identified the five ele-ments of financial statements as the following: (1) assets, (2) liabilities, (3) capi-tal, (4) income, and (5) expenses. The first element, assets, are “resources controlled by the enterprise as a result of past events, and from which future economic benefits are expected to flow to the enterprise” (IFRS, 2010, pg.17). These future economic benefits may directly or indirectly flow into the company cash assets or cash
companies must comply with the regulations as recommended by the International Financial Reporting Standards (IFRS). Disputes concerning convergence issues and compliance may arise between companies and the auditors. In the case of dispute, the companies and the auditor should consider alternative dispute resolving mechanisms which are faster, less expensive and less adversarial than traditional litigation. Reason for Conflict: Audited financial statements may be a source of dispute between the auditor
21. General-purpose financial statements are the product of a. financial accounting. b. managerial accounting. c. both financial and managerial accounting. d. neither financial nor managerial accounting. 22. Users of financial reports include all of the following except a. creditors. b. government agencies. c. unions. d. All of these are users. 23. The financial statements most frequently provided include all of the following
GAAP and International Financial Reporting Standards and Disclosures Introduction The United States Generally Accepted Accounting Principles (GAAP) and the International Financial Reporting Standards (IFRS) have both similarities and differences that must be explored. In 2002 the similarities became more concrete and the differences were mitigated with the Norwalk Agreement, which was a memorandum of understanding between the United States and the International Accounting Standards Board (Financial
Accounting Reporting Criteria Paper Accounting reporting criteria includes many factors and covers many elements. From Fundamental Financial Accounting Concepts, “accounting is so important that it is often called the language of business. In fact, accounting affects not only individual businesses but also society as a whole” (Edmonds, Edmonds, McNair, Olds, & Schneider, 2006, p. 4). Global business requires added consideration in the way of accounting reporting criteria. With heightened consumer
Abstract The study focused on the adoption process of International Financial Reporting Standards (IFRS) on a developing economy, with particular reference to Nigeria. The paper is based on the data obtained from literature survey and archival sources in the context of the globalization of International Financial Reporting and the adoption of International Financial Reporting Standards (IFRS).Nigeria has embraced IFRS in order to participate in the benefits it offers, including attracting foreign
have switched to the International Financial Reporting Standards (IFRS) for their financial reporting, as well as the continued efforts made between the IFRS and US Generally Accepted Accounting Principles (US GAAP), it is evident that international convergence is an overall appealing idea for global reporting. With that said, for decades now US GAAP has worked with IFRS to create a universal standard; and while progress has been made to diminish variances between the standards, there are still large