...GAAP & IFRS Convergence Eileen Walker Strayer University 3/1/2013 Professor Lightweis ACC304 By definition, convergence is the “coming together from different directions, especially a uniting or merging of groups or tendencies that were originally opposed or very different” (Bloomsbury Publishing, 2009). As it applies to accounting, convergence is the “collaborative efforts of the FASB and the International Accounting Standards Board (IASB) to both improve U.S. generally accepted accounting principles (U.S. GAAP) and International Financial Reporting Standards (IFRS) and eliminate the differences between them” (IASB-FASB Update Report to the Financial Stability Board Plenary on Accounting Convergence, 2012). While efforts towards convergence have been on-going since 2002, there still remains much to be resolved between the two entities. Whether or not convergence may be completed and implemented within the next five years remains to be seen, and will most assuredly be contingent on the resolution of several key differences. In an April 2010 report published by The Finance Professionals’ Post, some of the major differences between GAAP and IFRS were as follows: * Inventory Valuation – Last In First Out (LIFO) is permitted under GAAP, but not under IFRS. GAAP requires carrying amount at lower or cost or market while inventories reported under IFRS are carried at lower of cost or net realizable value. Companies using LIFO would have to revalue inventory...
Words: 1998 - Pages: 8
...1. Describe what accounting convergence means and assess the likelihood of the convergence being completed and implemented in the next five (5) years? Accounting convergence is a process or goal to establish one set of accounting standards that can be used internationally by attempting to eliminate the differences in the International Financial Reporting Standards (IFRS) and the US Generally Accepted Accounting Principles (US GAAP). Convergence also seeks to establish understandability amongst users and enforceable by regulators (Erchinger, Melcher, 2007). The International Accounting Standards Board (IASB) and the Financial Accounting Standards Board (FASB) have been trying to implement a global acceptable standard for financial reporting since the end of 2002 onwards (Fogarty, 2011). However to this day in 2013 the convergence of both IFRS and US GAAP has yet to be completed and implemented. The likelihood of the convergence being completely finished and implemented seems possible but yet so far as both the IASB and FASB have already been trying for ten years to get it completed despite the hurdles they have endured. In November 2007 the Securities and Exchange Commission (SEC) voted 4-0 in favor of eliminating the requirements that forces foreign companies with U.S listings to reconcile their results with to U.S GAAP therefore companies with a year end of 2007 are no longer required to follow these set of principles (Fogarty, 2011). 2. Evaluate and describe the...
Words: 1269 - Pages: 6
...GAAP and IFRS Convergence Kenneth DeWitte Strayer University 1. Describe IFRS and GAAP and what convergence means. The International Financial Reporting Standards (IFRS) is the accounting framework used by the European Union, Japan, Canada, and other world economic leaders. The IFRS is based on the tenets of understandability, reliability, and comparability. It is based off the International Accounting Standards (IAS) and had the opportunity to be built from accounting ideas and principles used across the world. In recent years it also has had the chance to look at the United States Generally Accepted Accounting Principles (GAAP) and modify the rules to enhance clarity and consistency, intentionally setting itself apart from U.S. GAAP. United States GAAP is an aggregate of rules that show how to account for transactions and also present the transactions with reliability, consistency, and full disclosure. This amounts to a level of clarity that even someone not very knowledgeable about business can make a confident decision when investing. These rules were brought together by the Financial Accounting Standards Board (FASB). It is more specific than the IFRS requiring less interpretation and more consistent action taken by all businesses, leading to comparability through financial statements. The convergence of these two accounting frameworks is a must for both foreign and domestic businesses. There are some problems between the two systems coexisting. This has led to...
Words: 1121 - Pages: 5
...IFRS and GAAP Convergence Janette Renea Anderson Professor David Ochwangi Intermediate Accounting 303 May 22, 2012 IFRS and GAAP Convergence Currently, more and more companies large and small are doing business world-wide and creating a growing need for international accountancy standards for everyone. The globalization of business and finance has led more than 12,000 companies in almost a hundred countries to adopt IFRS. In 2005, the European Union (EU) began requiring companies incorporated in its member states whose securities are listed on an EU-regulated stock exchange to prepare their consolidated financial statements in accordance with the International Financial Reporting Standards (IFRS). Australia, New Zealand and Israel have essentially adopted IFRS as their national standards. Canada, which previously planned convergence with U.S. Generally Accepted Accounting Principles (GAAP), now plans to require IFRS for publicly accountable entities in 2011. The Accounting Standards Board of Japan (ASBJ) and the International Accounting Standards Board (IASB) plan convergence by 2011. (Journal of Accountancy, 2008) To start an explanation of ‘Convergence’ I would first need to explain a ‘conceptual framework’. The definition of a conceptual framework is a coherent system of interrelated objectives and fundamentals that can lead to consistent rules and that prescribes the nature, function, and limits of financial accounting and financial statements (Intermediate...
Words: 984 - Pages: 4
...The International Accounting Standards Board (IASB) was formed in an attempt to bring uniform accounting standards within international countries through its issuing of the International Financial Reporting Standards (IFRS). Today, over 100 countries including Canada, India, and Japan have adopted these standards for financial reporting. The growth of multinational companies such as Coca Cola and the increasing desire of cross-border investing have made it apparent that the U.S.accounting standards known as the Generally Accepted Accounting Principles (GAAP) issued by the Financial Accounting Standards Board (FASB) can no longer remain separate from IFRS. Under the request of the Securities and Exchange Commission (SEC), FASB and IASB signed the Norwalk Agreement, which promised the convergence of GAAP and IFRS by as early as 2015. As a result, it appears that the importance of FASB will decline as IASB becomes the primary responsibility holders of the new merging accounting standards. What advantages and disadvantages can come of GAAP and IFRS integration? Once finalized, the convergence of GAAP and IFRS will create high quality financial reporting that will be uniform amongst companies both domestic and abroad. This will allow investors to interpret and compare financial statements from domestic and foreign countries according to the same accounting standards, which will enable them to make better investment decisions.As the ease of interpretation of financial records increases...
Words: 292 - Pages: 2
...IFRS and GAAP Convergence Mercy Hudson Strayer University I have read and understand Strayer University’s Academic Integrity Policy. I promise to conduct myself with integrity in the submission of all academic work to the University and will not give or receive unauthorized assistance for the completion of assignments, research papers, examinations or other work. I understand that violations of the Academic Integrity Policy will lead to disciplinary action against me, up to and including suspension or expulsion from the University. I understand that all students play a role in preserving the academic integrity of the University and have an obligation to report violations of the Academic Integrity Policy committed by other students. Chevron Corporation, an American multinational energy corporation is active in more than 180 countries. Chevron is one of the world’s six ‘super major’ oil companies. For the past five years, Chevron has been continuously ranked as one of America’s five largest corporations. Chevron’s headquarters is in San Ramon, California (Fox, 2012). It is engaged in every aspect of the oil, gas, and geothermal energy industries, including exploration and production; refining, marketing and transport; chemicals manufacturing and sales; and power generation. Chevron was originally known as Pacific Coast Oil Company in 1979, where they made their oil discovery in Pico Canyon north of Los Angeles, California (2012)....
Words: 1734 - Pages: 7
...in doing their business. International Financial Reporting Standards (IFRS) and US generally accepted accounting principles (GAAP) are two main accounting principles that is widely used in the majority of the companies. However, there will be still conflict in the interpreting and understanding each other financial statements due to these two different approaches. Therefore, to overcome this problem, International Accounting Standards Board (IASB) and Financial Accounting Standards Board (FASB) are working on it by taking the necessary steps as time passes to close down the gap and standardised the accounting principles globally making it easier for all parties. (157 words) 1.0 Introduction In the world of globalization, a number of countries had been experiencing the convergence of their local GAAP and IFRS in order to apply the international accounting standard to suit the growing business world. This does not left out the people of the United States who are also trying to converge the accounting standards of US GAAP and IFRS in order to close down the gap between the accounting standards. FASB and IASB are the main international bodies assisting the Securities and Exchange Commission (SEC) to achieve this goal. 2.0 Benefits 2.1 Facilitate international business and economy growth There are a number of benefits that people can gain from the convergence of US GAAP and IFRS. For example, the convergence of these accounting standards will...
Words: 2197 - Pages: 9
...Devine Hamdani 10/1/11 Project 1 US GAAP Convergence with IFRS As the business world has become more global, regulators, investors, large companies and auditing firms began to realize the importance of the establishment of a single set of high quality accounting standards. With a common accounting language around the world, investors will be able to have greater comparability and greater confidence in the transparency of financial reporting worldwide. IFRS, acronym for International Financial Reporting Standards are financial reporting standards that have been adopted by International Accounting Standard Board (IASB). Increasing number of publicly held companies in many countries are now requiring or allowing the use of IFRS for the preparation of financial statement. In the United States, the Securities and Exchange Commission (SEC) have also proposed a “Roadmap” in incorporating the convergence of US Generally Accepted Accounting Principles (US GAAP) to IFRS with the help of Financial Accounting Standards Board (FASB) and IASB. The IASB and FASB, committed to improving IFRS and US GAAP and achieving their convergence, are also committed in providing public transparency and accountability by reporting their process in achieving their goals. In 2006, the IASB and FASB began to set out their plans of completing major projects in their issued Memorandum of Understanding (MoU). These priority major projects comprises of their joint projects on financial instruments...
Words: 1678 - Pages: 7
...Pros & Cons of GAAP and IFRS Convergence The International Accounting Standards Board (IASB) was formed in an attempt to bring uniform accounting standards within international countries through its issuing of the International Financial Reporting Standards (IFRS). Today, over 100 countries including Canada, India, and Japan have adopted these standards for financial reporting. The growth of multinational companies such as Coca Cola and the increasing desire of cross-border investing have made it apparent that the U.S.accounting standards known as the Generally Accepted Accounting Principles (GAAP) issued by the Financial Accounting Standards Board (FASB) can no longer remain separate from IFRS. Under the request of the Securities and Exchange Commission (SEC), FASB and IASB signed the Norwalk Agreement, which promised the convergence of GAAP and IFRS by as early as 2015. As a result, it appears that the importance of FASB will decline as IASB becomes the primary responsibility holders of the new merging accounting standards. What advantages and disadvantages can come of GAAP and IFRS integration? Once finalized, the convergence of GAAP and IFRS will create high quality financial reporting that will be uniform amongst companies both domestic and abroad. This will allow investors to interpret and compare financial statements from domestic and foreign countries according to the same accounting standards, which will enable them to make better investment decisions.As the ease...
Words: 787 - Pages: 4
...¨ TECHNISCHE UNIVERSITAT BERLIN Fakult¨t IV – Elektrotechnik und Informatik a Fachgebiet Intelligente Netze Prof. Anja Feldmann Juhoon Kim, Franziska Lichtblau, Arne Ludwig, Philipp Richter, Florian Streibelt 10th Assignment: Network Protocols and Architectures, WS 13/14 Question 1: (20 points) Fairness of TCP: AIMD vs. AIAD Refer to the figure on the right which illustrates the convergence of TCP’s additive-increase, multiplicative-decrease (AIMD) algorithm. The figure shows the throughput by the two TCP connections 1 and 2. Suppose that instead of a multiplicative-decrease TCP decreases the window size by a constant amount. Would the resulting additive-increase, additive-decrease converge to an equal share algorithm? Justify your answer using a diagram similar to the figure on the right. Full bandwidth utilization line Equal bandwidth share Connection 2 throughput D B E C A Connection 1 throughput Question 2: (10 points) Resource Allocation: Congestion Control Discuss how the Internet would look like if every flow would be based on UDP and does not use congestion control. Question 3: (10 points) Security of ARP Explain the principle of ARP spoofing and discuss a way to defend against it. Question 4: (10 points) Switching Loops For redundancy reasons it might be a good idea to have a switch connected to several switches instead of only one. Have a look at the Figure below and explain why it can cause problems having switches S2 and S3 connected to both switches...
Words: 307 - Pages: 2
...SECURE ROUTING IN WIRELESS SENSOR NETWORKS By [Name] The Name of the Class (Course) Professor (Tutor): The Name of the School (University): The City and State The Date: Abstract. Wireless sensor networks (WSANs) are a group of sensors and actors that are linked by a wireless medium for the purpose of performing distributed sensing and action on a given task. This involves the sensors collecting information about the surrounding physical environment and sending the information to the actors which take the decisions and perform some needed action basing on the information received from the sensors about the surrounding environment. These sensor networks are sometimes referred to as wireless sensor and actuator networks. They monitor physical or environmental conditions such as sound, pressure, temperature among others and send the collected data to the required location. Effective sensing and acting requires a distributed local coordination methods and mechanism among the sensors and the actors in addition to this, sensor data should be valid in order for right and timely actions to be performed. This paper describes secure routing in wireless sensor networks and outlines its threats on security. Keywords: Wireless sensor and actor networks; Actuators; Ad hoc networks; Sybil attack; Real-time communication; Sinkhole; Routing; MAC; adversary. Introduction With the recent rapid improvement on technology, many networking technologies have been created to make...
Words: 5106 - Pages: 21
...CCNPv7 ROUTE Chapter 4 Lab 4-3, Redistribution Between EIGRP for IPv6 and OSPFv3 Topology [pic] Objectives • Review EIGRP and OSPF configuration. • Summarize routes in EIGRP. • Summarize in OSPF at an ABR and an ASBR. • Redistribute into EIGRP. • Redistribute into OSPF. Background Two online booksellers, Example.com and Example.net, have merged and now need a short-term solution to inter-domain routing. Since these companies provide client services to Internet users, it is essential to have minimal downtime during the transition. Example.com is running EIGRP while Example.net is running a multi-area OSPF. Because it is imperative that the two booksellers continuously deliver Internet services, you should bridge these two routing domains without interfering with each router’s path through its own routing domain to the Internet. The CIO determines that it is preferable to keep the two protocol domains shown in the diagram during the transition period, because the network engineers on each side need to understand the other’s network before deploying a long-term solution. Redistribution will be a short-term solution. In this scenario, R1 and R2 are running EIGRP while R2 is the OSPF autonomous system border router (ASBR) consisting of areas 0, 10, and 20. You need to configure R2 to enable these two routing protocols to interact to allow full connectivity between all networks. In this lab...
Words: 3338 - Pages: 14
...Vehicular Adhoc Network (VANET) is an outgrowth of Mobile Adhoc Network (MANET), in which the mobile vehicles on road and the stationary roadside units (RSU) constitutes the nodes and communicate with each other on the fly (Fig. 1); Vehicle to Vehicle (V2V) and Vehicle to Roadside Unit (V2R). VANET can be categorised under hybrid architecture that consists of both infrastructure and infrastructure less features. VANET nodes are capable of self organising and managing the information in a distributed fashion with or without any centralised authority. Road Side Units (RSU) supported by DSRC standard [2] acts as gateways or fixed access points to vehicles in mobility and provides interim connectivity to vehicles. One of the major advantages of VANETs over MANETs is the unlimited battery power generated on the fly. VANET plays a major role in defining safety measures by streaming communication between vehicles, infotainment and telematics. In any generic network phenomena the concept of routing and its characteristics are highly linked with Quality of Service (QoS). The United Nations Consultative Committee for International Telephony and Telegraphy (CCITT) Recommendation E.800 has defined QoS as: “The collective effect of service performance which determines the degree of satisfaction of a user of the service”. The major concern of VANET routing is that whether the performance can satisfy the throughput and delay requirements of such media streaming applications. Unavailability...
Words: 1550 - Pages: 7
...A Delay-based Optimum Routing Protocol Scheme for Collision Avoidance Applications in VANETs Gayathri Narayanan1,a, Neethu Sathianadhan2,b and Sruthi Sanjiv Gangadharan3,c 1,2,3 Department of Electronics and Communication Engineering Amrita School of Engineering, Amritapuri Campus Kollam – Kerala, India agayathrin@am.amrita.edu, bneethu91ammu@gmail.com, csruti.sanjiv_g@ymail.com Keywords: Broadcast, Multi-hop, VANETs, Delay, Routing Protocols, AODV, Cluster-based routing, OSPF. Abstract — Broadcast transmissions are currently finding extensive applications in vehicular ad-hoc networks, albeit primarily in the research phase. Given the importance of knowing the updated network details of each node in the network, and also considering the fact that the delay in transmission of messages is a crucial factor in collision avoidance, it is imperative to implement a broadcast network which will ensure minimum delay in transmission of messages between the nodes. In this paper, we primarily implement a multi-hop broadcast vehicular network for collision avoidance. We consider the mobility and traffic density of vehicles and simulate the end-to-end delay in message transmission for a sparse and dense network scenario. In order to ensure high reliability and get the optimum delay, we extend the scenario to include three different routing protocols – AODV, Cluster-based routing and OSPF – and perform a comparison based on the end-to-end transmission delay to determine the...
Words: 4169 - Pages: 17
...create an environment that is warm and inviting as well as nurturing. As Michael Fullen states in his book, Leading in a Culture of Change, I want to “foster leadership in others, thereby making themselves dispensable in the long run”. I want to be a leader of leaders or a leader producer. In the chaos field of education, we will be tackled with many daily problems. I agree with the Heifetz (1994, p15 from Fullan p.3) in that we need to learn as leaders how to mobilize people to tackle “…tough problems”. Leadership is not so much in the solutions but in getting people to identify problems and mobilize them to address those problems. The book goes on to discuss convergence of many ideas and skills to be effective. The one type of leader is no longer effective in addressing many types of problems. I have added convergence as a descriptor of my leadership styles and will revisit that later. One component of this convergent style includes Moral Purpose. As a leader in education, I want to create an inviting learning environment in my school community where school is a positive place of many levels of environments coming together in a positive way. I want to create an environment where the teachers are open to discuss ideas and to see me as part of the team to facilitate positive change in the school environment. Another component that is an important part of my leadership style is the ability to understand change. In my observation, change is a given. We are in a fast changing environment...
Words: 898 - Pages: 4
