show that the Group’s profit was favorable was very vital. The Fiat Group first-time adopted IFRS and the reporting date of its first IFRS statement was December 31‚ 2005. After changing to IFRS‚ R&D costs were affected the most. Under Italian GAAP‚ R&D costs incurred were capitalized or charged to operating expenses. For the Fiat Group‚ it has primarily expensed its R&D costs when they were incurred. Under IFRS‚ the Group has capitalized
Premium International Financial Reporting Standards Generally Accepted Accounting Principles Financial statements
An Insight on IFRS versus U.S GAAP & Implications of IFRS adoption on Financial Statement and Accounting Quality Q2) Principle and rule-based accounting reflect different approaches to accounting. The pros and cons of rule-based accounting (RBA) and principle-based accounting (PBA) are as discussed. (1) RBA deters creative accounting as rules reduce opportunistic discretion unlike PBA which is more subjective and ambiguous.On the other hand‚ others argue that rules are a means to circumvent
Premium International Financial Reporting Standards Financial statements Generally Accepted Accounting Principles
Reporting Standards project‚ what some of the major changes in Generally Accepted Accounting Principals will be‚ and how theses changes will effect the preparation of the financial statements. It will then provide positive and negative reviews from users‚ ending with an overall opinion on the usefulness of the proposed changes. Status of Project Currently‚ the memorandum on revenue recognition is in the re- deliberation phase‚ and has been since March 13‚ 2012; when the comment period on the last
Premium International Financial Reporting Standards
Accounting Homework assignment Ch1-2 Chapter 1 CA1-1 1. GAAP is the term used to indicate the whole body of FASB authoritative literature. Ans: True 2. Any company claiming compliance with GAAP must comply with most standards and interpretations but does not have to follow the disclosure requirements. Ans: False – All company that is claiming compliance with GAAP must follow all standards and interpretations especially disclosure requirements
Premium Balance sheet Generally Accepted Accounting Principles Financial statements
and transactions of a similar type (Financial Accounting Standards Board). It is preferred that consistent use of the same accounting principle from one accounting period to another is used because it enhances the utility of financial statements for users by facilitating analysis and understanding of comparative accounting data. Consistent use provides a dimension of high-value financial statements that assist in analysis and enhance comparability (Bloom and Fuglister 2006). However‚ there are times
Premium International Financial Reporting Standards Financial Accounting Standards Board Financial statements
Chapter 1: Auditing: Integral to the Economy TRUE/FALSE 1. The need for assurance services arises because the interests of the users of information may be different from that of the interests of those responsible for providing information. ANS: T PTS: 1 OBJ: Demand for Assurances NAT: AACSB-Analytical skills | AICPA BB-Critical thinking 2. An audit of financial statements is a form of attestation service. ANS: T PTS: 1 OBJ: Auditing Defined NAT: AACSB-Analytical skills | AICPA BB-Critical
Premium Auditing Financial audit Audit
Definition of Accounting 3. Activities of Accounting 4. Bookkeeping & Accounting Compared 5. Uses of Accounting Data 6. Reasons for Using Accounting Data 7. Ethics in Accounting 8. Generally Accepted Accounting Principles 9. IFRS & GAAP Compared 10. Accounting Equation 11. Assets 12. Liabilities 13. Owners Equity 1. Brief History of Accounting:- Accounting is the language of Business. The father of Accounting LUKAS PACIOLI. Who is a citizen of Italy. First book:
Premium Balance sheet Generally Accepted Accounting Principles Financial statements
2012. <http://www.fasb.org/>. "IAS 1." IAS Plus. Global Services Limited‚ June 2011. Web. 04 Nov. 2012. <http://www.iasplus.com/standard/ias01.htm>. "IFRS vs. GAAP Financial Statement Presentation." Jesse Ebert ’s Blog. Word Press‚ 2011. Web. 04 Nov. 2012. <http://aftertheperiod.wordpress.com/2011/11/28/ifrs-vs-gaap-financial-statement-presentation/>. "Shaking Up Financial Statement Presentation." Journal of Accountancy. AICPA‚ 2008. Web. 04 Nov. 2012. <http://www.journalofaccountancy
Premium Financial statements Generally Accepted Accounting Principles Balance sheet
rely on the same underlying financial data. In addition to the to the differences in who the reports are prepared for‚ financial and managerial accounting also differ in their emphasis between the past and the future‚ in the type of data provided to users‚ and in several other ways. These differences are discussed in the following paragraphs. Emphasis on the Future: Since planning is such an important part of the manager’s job‚ managerial accounting has a strong future orientation. In contrast‚
Premium Management Financial statements Generally Accepted Accounting Principles
practices used in accounting for them seems to fall short when it comes to representing the needs of users of the financial statements. Many significant intangible assets go unrecognized on financial statements due to the current accounting standards. Due to the importance of these intangibles to many companies‚ the identification of them would better satisfy the needs of financial statement users. However‚ a trade off between reliability and relevance exists when trying to account for certain intangible
Premium Management Psychology Risk