Considering the preceding induction to accounting standard setters, which entity would you expect to have authority...
Considering the preceding induction to accounting standard setters, which entity would you expect to have authority to adopt IFRS as the applicable reporting standards in the United States? Explain.
Homework Answers
Ans. The U.S. Securities and Exchange Commission has said it won't switch to International Financial Reporting Standards, but will continue reviewing a proposal to allow IFRS information to supplement U.S. financial filings. GAAP has been called "the gold standard" of accounting. However, some argue that global adoption of IFRS would save money on duplicative accounting work, and the costs of analyzing and comparing companies internationally.
IFRS are sometimes confused with International Accounting Standards (IAS), which are the older standards that IFRS replaced. IAS was issued from 1973 to 2000, and the International Accounting Standards Board (IASB) replaced the International Accounting Standards Committee (IASC) in 2001.
IFRS covers a wide range of accounting activities. There are certain aspects of business practice for which IFRS set mandatory rules. A company must also give a summary of its accounting policies. The full report is often seen side by side with the previous report, to show the changes in profit and loss. A parent company must create separate account reports for each of its subsidiary companies.
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Considering the preceding induction to accounting standard
setters, which entity would you expect to have authority...
Which of the following is true about the International Accounting Standards Board (IASB)? The IASB has...
Which of the following is true about the International Accounting Standards Board (IASB)? The IASB has been working with the FASB in recent years to achieve convergence of International Financial Reporting Standards (IFRS) and U.S. GAAP. The goal of the IASB is to develop a single set of high quality, understandable, enforceable, and globally accepted financial reporting standards based upon clearly articulated principles. The SEC has delegated full authority to the IASB to be the accounting standards setting body in...
Which of the following is true about the International Accounting Standards Board (IASB)? The IASB has...
Which of the following is true about the International Accounting Standards Board (IASB)? The IASB has been working with the FASB in recent years to achieve convergence of International Financial Reporting Standards (IFRS) and U.S. GAAP. The goal of the IASB is to develop a single set of high quality, understandable, enforceable, and globally accepted financial reporting standards based upon clearly articulated principles. The SEC has delegated full authority to the IASB to be the accounting standards setting body in...
Assignment Questions: 1. One of the differences between Managerial Accounting and Financial Accounting is reporting flexibility....
Assignment Questions: 1. One of the differences between Managerial Accounting and Financial Accounting is reporting flexibility. Financial reporting is restricted by Generally Accepted Accounting Principles whereas reporting in Managerial Accounting has fewer rules. a) Why is it permissible to violate Generally Accepted Accounting Principles when preparing reports used strictly by company management? b) Should external users always have the same information as internal users? Explain. 2. The United States uses accounting standards developed by the Financial Accounting Standards Board (FASB)...
The United States uses accounting standards developed by the Financial Accounting Standards Board (FASB) known as...
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Assignment Questions: 1. One of the differences between Managerial Accounting and Financial Accounting is reporting flexibility....
Assignment
Questions:
1.
One of the
differences between Managerial Accounting and Financial Accounting
is reporting flexibility. Financial reporting is restricted by
Generally Accepted Accounting Principles whereas reporting in
Managerial Accounting has fewer rules.
a)
Why is it
permissible to violate Generally Accepted Accounting Principles
when preparing reports used strictly by company
management?
b)
Should external
users always have the same information as internal users?
Explain.
2.
The United States
uses accounting standards developed by the Financial Accounting
Standards Board (FASB)...
с 22-10 Researching GAAP AICPA Adapted Sometimes a business entity may change its method of accounting...
с 22-10 Researching GAAP AICPA Adapted Sometimes a business entity may change its method of accounting for certain items. It may classify the change as a change in accounting principle, a change in accounting estimate, or a change in reporting entity. The following are three situations faced by Hyde Company relating to accounting changes Situation I Hyde determined that the depreciable lives of its fixed assets are presently too long to fairly match the cost of the fixed assets with...
Considering the trends in ionization energies, would you expect sodium or potassium to be more reactive?...
Considering the trends in ionization energies, would you expect sodium or potassium to be more reactive? Explain. Considering the trends in atomic radii, would you expect cesium or radon to have the larger radius? Explain. Compare the ionization energies of sodium and rubidium and then compare the electron affinities of chlorine and iodine. Which of the following chemical combinations of the elements would be the most exothermic - Na and Cl, Na and I, Rb and Cl, or Rb and...
Which of these species would you expect to have the lowest standard entropy (S°)? a) liquid...
Which of these species would you expect to have the lowest standard entropy (S°)? a) liquid bromine b) gaseous fluorine c) solid iodine d) gaseous chlorine e) gaseous hydrogen
Assignment Questions: 1. One of the differences between Managerial Accounting and Financial Accounting is reporting flexibility. Financial reporting is restricted by Generally Accepted Accounting Principles whereas reporting in Managerial Accounting has fewer rules. a) Why is it permissible to violate Generally Accepted Accounting Principles when preparing reports used strictly by company management? b) Should external users always have the same information as internal users? Explain. 2. The United States uses accounting standards developed by the Financial Accounting Standards Board (FASB)...
Assignment
Questions:
1.
One of the
differences between Managerial Accounting and Financial Accounting
is reporting flexibility. Financial reporting is restricted by
Generally Accepted Accounting Principles whereas reporting in
Managerial Accounting has fewer rules.
a)
Why is it
permissible to violate Generally Accepted Accounting Principles
when preparing reports used strictly by company
management?
b)
Should external
users always have the same information as internal users?
Explain.
2.
The United States
uses accounting standards developed by the Financial Accounting
Standards Board (FASB)...
с 22-10 Researching GAAP AICPA Adapted Sometimes a business entity may change its method of accounting for certain items. It may classify the change as a change in accounting principle, a change in accounting estimate, or a change in reporting entity. The following are three situations faced by Hyde Company relating to accounting changes Situation I Hyde determined that the depreciable lives of its fixed assets are presently too long to fairly match the cost of the fixed assets with...
Considering the trends in ionization energies, would you expect sodium or potassium to be more reactive? Explain. Considering the trends in atomic radii, would you expect cesium or radon to have the larger radius? Explain. Compare the ionization energies of sodium and rubidium and then compare the electron affinities of chlorine and iodine. Which of the following chemical combinations of the elements would be the most exothermic - Na and Cl, Na and I, Rb and Cl, or Rb and...
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