In the case “Big GAAP/Little GAAP”‚ we can see that some information is better provided in the notes. For example‚ the bank may not be aware that Forthwright Co. is in a strained financial position now because the financial statements do not show. The accounting profession has adopted a full disclosure principle that calls for financial reporting of any financial facts that are significant enough to influence the judgment of a reader. In this situation‚ several issues are left out of the reports
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GAAP (USA) To achieve basic objectives and implement fundamental qualities GAAP has four basic assumptions‚ four basic principles‚ and four basic constraints. Assumptions • Accounting Entity: assumes that the business is separate from its owners or other businesses. Revenue and expense should be kept separate from personal expenses. • Going Concern: assumes that the business will be in operation indefinitely. This validates the methods of asset capitalization‚ depreciation‚ and amortization
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GAAP – This is the General Accepted Accounting Principles‚ it is the basic principles of accounting - http://www.investopedia.com/terms/g/gaap.asp Basic Accounting Formula- means that all balances and ledgers must match at all times. If it does not then something was entered wrong in a ledger -http://www.accountingtools.com/basic-accounting-formula Transaction T account – A term used for double entry book keeping‚ a ledger with 2 separate lines separating debits and credits -http://www.investopedia
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IFRS Income Tax Accounting IFRS for SMEs: A less taxing standard? On July 9‚ 2009‚ the IASB published the International Financial Reporting Standard for Small and Medium-sized Entities (“IFRS for SMEs” or “the standard”)‚ a self-contained standard of about 230 pages designed to ease the burden of IFRS reporting for entities that do not have public accountability. Globally‚ more jurisdictions may be encouraged to replace existing local GAAP with IFRS for SMEs. As a result‚ it holds
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ADOPTION OF IFRS: IT`S BENEFITS AND IMPACTS ON FIRMS AND COUNTRIES AROUND THE WORLD The IASB was established in 2001 and since have assumed the responsibility of the standard setting from its predecessor body‚ the International Accounting Standards Committee (IASC) and began issuing International Financial Reporting Standards (IFRS). IFRS has recently been dominating the regulatory changes in accounting for listed companies around the world. Through the years‚ over 100 countries have adopted IFRS reporting
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Canadian GAAP - IFRS Comparison Series Issue # 11 – Business Combinations Both IFRS and Canadian GAAP are principle based frameworks‚ and from a conceptual standpoint‚ many of the general principles are the same. However‚ the application of those general principles in IFRS can be significantly different from Canadian GAAP. Therefore‚ to understand the magnitude of the differences between IFRS and Canadian GAAP‚ it is essential to look beyond the general principles and look at the detailed guidance
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reporting standards (IFRS) with their “Made in Canada” (Canadian Institute of Chartered Accountants [CICA]‚ 2006) generally accepted accounting practice (GAAP)‚ Canada would lie very close‚ if not on the line of convergence. Over the past few years‚ before the consideration of IFRS and leading up to the full convergence of it‚ Canada’s GAAP has been a ‘no mans land’ (Martin‚ 2009). It was becoming vastly foreign to the rest of the world‚ when it was once similar to US GAAP. As a result participants
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Porter Gervais Professor Duron 10/21/13 IFRS Rough Draft Ch.20 IFRS vs. GAAP When accounting for pensions and post-retirement benefits‚ IFRS and GAAP have similarities as well as differences. There are two pension plans that are frequently used in accounting for pensions. These two plans are known as‚ defined contribution plan and defined benefit plan. Both GAAP and IFRS separate their pension plans‚ but their accounting for defined benefit plans differ. Another major difference occurs
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Lecture on IFRS 9 and 13 02/11/2011 – Wednesday IFRS 13 Reasons for Issuing IFRS 13: * To reduce complexity and improve consistency in application when measuring fair value. Previously‚ there was limited and sometimes conflicting guidance on how to measure fair value. * To enhance disclosures for fair value. IFRS 13 was issued as part of the response to global financial crisis. * Also it is part of the convergence project to reduce differences between IFRS and US GAAP. Introduction:
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5.13.205.60 Under the first approach in 5.13.205.40‚ management of Newco concludes that a business combination has occurred in which Newco is the acquirer (as the vehicle for the new shareholders). Accordingly‚ Newco applies IFRS 3 to the acquisition of both Y and Z. 5.13.205.70 Under the second approach in 5.13.205.40‚ the transaction is analysed as follows. • It is a business combination amongst entities under common control. • Newco chooses to apply book value accounting (see 5.13.50
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