IFRS vs Gaap, Financial Accounting

#questBackground:
The SEC set up the Work Plan which sets forth specific areas and factors to consider before potentially transitioning our current financial reporting system for U.S. issuers to a system incorporating IFRS. The Work Plan addresses areas of concern:
1) Sufficient development and application of IFRS;
2) The independence of standard setting for the benefit of investors;
3) Investor understanding and education regarding IFRS;
4) Examination of the U.S. regulatory environment that would be affected by a change in accounting standards;
5) The impact on issuers, both large and small, including changes to accounting systems, changes to contractual arrangements, corporate governance considerations, and litigation contingencies;
6) Human capital readiness.
On July 13, 2012, the staff of the U.S. Securities and Exchange Commission released the Final Staff Report that summarizes the observations and analyses of the staff regarding six key areas identified for study in the Work Plan for global accounting standards.
In the Introductory Note of Final Staff Report, it emphasizes that “The Commission believes it is important to make clear that publication of the Staff Report at this time does not imply—and should not be construed to imply—that the Commission has made any policy decision as to whether International Financial Reporting Standards should be incorporated into the financial reporting system for U.S. issuers, or how any such incorporation, if it were to occur, should be implemented.
Although the Staff Report is constructive and an important contribution, the Work Plan did not set out to answer the fundamental question of whether transitioning to IFRS is in the best interests of the U.S. securities markets generally and U.S. investors specifically. Additional analysis and consideration of this threshold policy question is necessary before any decision by the Commission concerning the incorporation of IFRS into the financial reporting system for U.S. issuers can occur.”


Assignment 1):
Given the uncertainty as to “whether International Financial Reporting Standards should be incorporated into the financial reporting system for U.S. issuers, or how any such incorporation, if it were to occur, should be implemented”, in particular to item 6) Human capital readiness, from the perspective of accounting education, what is your opinion on how and when in the accounting curriculum should the education of IFRS be delivered?

Note: The report should be written in double space, font 12 in word document. It should be not shorter than one page and should not be longer than two pages.



Assignment 2):
For the Sufficient development and application of IFRS, in June 2010, the Boards (FASB and IASB) gave priority to Major Joint Projects that the Boards perceived were in most need of improvement. One of the priority Major Joint Projects is presentation of other comprehensive income.

1) Find and present the corresponding FASB codification for the presentation of other comprehensive income; Compare and contrast the FASB treatment versus the IFRS treatment for the presentation of other comprehensive income;

3) Go to the sec.gov website and find the 10-ks for assigned firms (2 firms for 2 years), and examine in which financial statements they presented other comprehensive income, and fill in the excel file (to be provided on the blackboard).


Presentation of Comprehensive Income

SFAS 130 also specifies three options for reporting OCI: (1) in an income statement that includes both the components and totals of net income and comprehensive income; (2) in a separate statement of comprehensive income that begins with net income, reports each component of other comprehensive income and ends with total comprehensive income; and (3) in the statement of changes in equity.

In June 2011, the FASB issued an accounting standard that requires the presentation of comprehensive income either in a single continuous statement of comprehensive income or in two separate but consecutive statements. In the two-statement approach, the first statement should present total net income and its components, followed consecutively by a second statement that presents total other comprehensive income and its components.


Selection for the excel cell of OCI_Location (where OCI is presented):
1. a single continuous statement of comprehensive income
2. two separate but consecutive statements. In the two-statement approach, the first statement should present total net income and its components, followed consecutively by a second statement that presents total other comprehensive income and its components.
3. in the statement of changes in equity.
4. In both 2 and 3.
ion..

Posted Date: 8/8/2012 11:47:50 AM | Location : United States







Related Discussions:- IFRS vs Gaap, Assignment Help, Ask Question on IFRS vs Gaap, Get Answer, Expert's Help, IFRS vs Gaap Discussions

Write discussion on IFRS vs Gaap
Your posts are moderated
Related Questions
security service= R38570 the annual security services contract has been taken out on 1 March 2012. The fee was increased by 10% from january 2013 and the fee has already been paid

This lab assignment will correspond to developing a cash flow budget with an operating loan. There is on lab exercise listed below. Additionally, there are two assignment questions

Question: Mosman Ltd produces a single product. The projected sales for the first month of the coming year and the beginning and ending inventory data are as follows:

Efficiency Ratios - These ratios include Receivables Turnover, Inventory Turnover, Asset Turnover and Net Working Capital Turnover ratios. Efficiency ratios demonstrate the utili

what is the formulae for calculating Net income?

Q. What is primary financial purpose? The primary financial purpose of a company is typically stated to be the maximisation of shareholder wealth and Sassone plc has declared p

Purchase price $2.15 Exercised Price: $37.50 Currently Trading at $37.00 In order to make the decision on the best course of action, two tables of calculations are needed:

Part A   The contribution margin income statement of Nice Cup Company for 31 December 2011 follows: Nice Cup Company   Contribution Mar

How should I handle Booking an invoice in one month for Raw material that has not been received until the following month?

how does the concept of consistency aid in the analysis of financial system?