requirements or practice are: • Partial acquisitions. Non-controlling interests are measured either as their proportionate interest in the net identifiable assets (which is the original IFRS 3 requirement) or at fair value (which is the new requirement in US GAAP). • Step acquisitions: The requirement to measure at fair value every asset and liability at each step for the purposes of calculating a portion of goodwill has been removed. Instead‚ goodwill is measured as the difference at acquisition date between
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physical deterioration‚ obsolescence‚ changes in price levels‚ or other causes‚ the difference shall be recognized as a loss of the current period. This is generally accomplished by stating such goods at a lower level commonly designated as market. GAAP allows this method for determining an asset’s value so that either the original cost or the current replacement cost‚ whichever is lowest‚ is used for financial reporting purposes. For example‚ an inventory item originally purchased for $50 that has
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telecommunications firm SK Telecom Company Ltd. described 15 significant differences between South Korean and U.S. accounting rules. Under South Korean generally accepted accounting principles (GAAP)‚ SK Telecom reported 2009 net income of 1‚056 billion South Korean won (KRW). If SK Telecom had used U.S. GAAP in 2009‚ its net income would have been KRW 1‚357 billion‚ approximately 28 percent
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Introduction‚ Review of Accounting Process & Financial Statements Part I • Generally Accepted Accounting Principles (US GAAP) Generally Accepted Accounting Principles or U.S. GAAP refer to the standard framework of guidelines for financial accounting used in any given jurisdiction; generally know as Accounting Standards. GAAP includes the standards‚ conventions‚ and rules accountants follow in recording and summarizing‚ and in the preparation of financial statements (Wikipedia‚ n.d.). Although
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comparability. Next section describes the history and background of IFRS. In the third section‚ I discuss the arguments among people of internationally uniform accounting standards. In the fourth section‚ I compare the accounting differences between U.S. GAAP and IFRS. In the fifth section‚ I explain the advantages of accounting convergence for U.S. investors in depth. In the sixth section‚ I discuss certain potential IFRS implementation issues and its effect on investors. At last‚ I conclude the whole
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requires or adopt IFRS and it is expected that by 2012‚ more than 150 countries will adopt IFRS. India has also taken the step towards convergence of Indian Accounting Standards with IFRS. This article details the need for harmonization of local GAAP with IFRS‚ challenges for Corporate India etc. 1. Importance of Accounting Standards 2. Accounting Standards Across the world 3. Need of Harmonization 4. IFRS Applicability in India 5. Challenges for Corporate India 6
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visualize and harder yet to take the first step towards implementation. •It identifies and eliminates non-value add waste in the accounting process and IS reporting processes •It improves visual reporting on product lines •It adheres to all GAAP recommendations. •It does not impede Sarbanes-Oxley rules. •It realigns accounting activities to a consulting role rather than a transaction role. Lean manufacturing creates a mandate to challenge traditional cost accounting. Lean accounting
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fairness of the financial statements is stated in the audit report. Also included is a summary of any justified departures from generally accepted accounting principles (GAAP) and their effects. There are five basic types of financial audit reports. A standard unqualified report is issued when there are no material violations with GAAP‚ all proper disclosures are included‚ and the auditor is independent and received all information necessary to proceed with the audit. There can also be no changes in
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when preparing financial statements‚ an entity might apply EU-endorsed IFRS (International Financial Reporting Standards)‚ FRSSE or UK GAAP. GAAP is a principles-based system‚ which lays out the main objectives of good reporting in the subject area and then defines guidance explaining intention and relating it to some common examples. It is more flexibility under GAAP. The information is reliable and relevant and accounts can apply reporting methods to the best reflect the financial actuality for the
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Attest Function Suitable criteria Standards established or developed by groups of experts. Example: Internal control audit – standards established by a committee of experts on internal control Example: Financial statement audit – standards are GAAP. For a financial statement audit suitable criteria are referred to as the “applicable financial reporting framework.” Forms of Attestation Compilation: no assurance‚ can be not independent. Compile the adjusted trial balance to financial statement
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