information. Off-balance sheet financing is one of the hot topics in accounting for leases because of the implications it imposes on financial reporting. This thesis will discuss these implications, as well as the continuing search for convergence of FASB and IASB as they strive to make leases as transparent and honest as possible. OFF-BALANCE SHEET FINANCING Leases: Off-Balance Sheet Financing and the Strive for Transparency Today Historical Perspective Lease accounting dates back well into the early
Words: 7464 - Pages: 30
Group 1 ACCT 5321.001 Dr. Martin Taylor FASB/IASB Exposure Draft on Leases The International Accounting Standards Board (IASB) and the Financial Accounting Standards Board (FASB) published comment a revised Exposure Draft on Leases on May 16th, 2013 and closed on September 13th, 2013. Based on this exposure, two boards claimed that the existing financial reporting of leasing activities fails to meet the needs of users of financial statements. While the existing accounting principles require
Words: 332 - Pages: 2
GAAP to IFRS 2 In today’s business, markets are demanding increasing conformity. Many countries have converted to and implemented the International Accounting Standards Board (IASB)’s accounting standards. The United States, however, still maintains its own Financial Accounting Standards Board (FASB). Both IASB and FASB have created International Financial Reporting Standards (IFRS) and U.S. Generally Accepted Accounting Principles (U.S.GAAP) respectively. These accounting standards are rules
Words: 3319 - Pages: 14
Financial Reporting Timeline The creation of: 1. Committee on Accounting Procedures Role - With the recent increase in members, the SEC delegated the responsibility of issuing pronouncements on accounting principles to the Committee. The SEC worked with the Committee on Accounting Procedures to develop standards for accounting and financial reporting and issued 51 Accounting Research Bulletins (ARBs) over its lifetime. In 1949, they updated 42 of their original ARBs and codified them.
Words: 3361 - Pages: 14
indications of unusual financial performance. Small companies are not followed by analysts, so investors must do more homework themselves. f. False. Accounting standards in the United States are set by the FASB. The IRS has no direct connection with financial accounting standards. g. False. The IASB (International Accounting Standards Board) is an international body formed to create a common set of worldwide accounting standards. h. True. A CPA (certified public accountant) is an accountant who
Words: 4644 - Pages: 19
objectives, qualitative characteristics, elements, measurement, and recognition concepts. The FASB Concepts Statements guide the board in developing accounting principles and provide understanding. These concept statements are non-authoritative and do not establish generally accepted accounting principles. Entities do not use the FASB Concept Statements in routine preparation of financial statements. (8,2) The IASB and the Interpretations Committee use conceptual framework when developing new or revised
Words: 3445 - Pages: 14
disclosures. FASB and IASB Steps Steps are taken by both the FASB and IASB to move to fair value measurement for financial instruments and are clearly defined for the GAAP or IFRS. The SEC and the FASB have both taken steps towards reporting in regards to financial accounting meaning the cooperative effort of both FASB and IASB is to create a combined measurement and reporting arrangement for fair value accounting. Also, in the works, is standardize financial statements for both FASB and IASB; proposed
Words: 580 - Pages: 3
AN EXAMINATION OF INVENTORY COSTING CONVERGENCE UNDER GENERALLY ACCEPTED ACCOUNTING PRINCIPLES AND INTERNATIONAL FINANCIAL REPORTING STANDARDS Casey Reineking Department of Accounting Murray State University Murray, KY 42071-3314 E-mail: casey.reineking@hotmail.com Don H. Chamberlain Department of Accounting Murray State University Murray, KY 42071-3314 Holly R. Rudolph Department of Accounting Murray State University Murray, KY 42071-3314 L. Murphy Smith* Department of Accounting Murray
Words: 7313 - Pages: 30
to make sure everything is uniform. The International Accounting Standards Board (IASB) and the Financial Accounting Standards Board (FASB) are two sets of standards boards that have an interesting relationship between them. Some of the topics I will cover is a brief break down of the two boards, a brief history of their relationship, and the ways the two are similar. International Accounting Standards Board (IASB) was established in 2001 when it took over for its predecessor (IASC) International
Words: 707 - Pages: 3
February 25, 2016 In Focus Accounting Standards Update No. 2016-02, Leases (Topic 842) On February 25, 2016, the Financial Accounting Standards Board (FASB) issued an Accounting Standards Update (ASU) intended to improve financial reporting about leasing transactions. The ASU affects all companies and other organizations that lease assets such as real estate, airplanes, and manufacturing equipment. The ASU will require organizations that lease assets—referred to as “lessees”—to recognize
Words: 1534 - Pages: 7
