will the investment and accounting community be able to fully understand the information and make rational and informed decisions. In this discussion paper I will discuss the key requirement that participants should be financial bilingual to fully understand both sets of financial reports (IFRS and USGAAP) in order to be able to compare them, thus comparability is the main challenge facing the accounting profession and harmonization/convergence is a current and future requirement to ensure comparability
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accounting practices between countries have made it difficult to compare financial statements. (Chakrabarty, 2011; Gill, 2007; University of Pennsylvania, 2002) This is prohibitive in getting a clear picture regarding the financial status of an organization. (Chakrabarty, 2011; Gill, 2007) In the US, Generally Accepted Accounting Principles (GAAP) “are the accounting rules used to prepare and standardize the reporting of financial statements, such as balance sheets, income statements and cashflow statements
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Introduction Financial Statement: It is a formal record of the financial activities of a business, person, or other entity. In British English—including United Kingdom company law—a financial statement is often referred to as an account, although the term financial statement is also used, particularly by accountants. For a business enterprise, all the relevant financial information, presented in a structured manner and in a form easy to understand, are called the financial statements. They
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loss depending on whether some future even occurs. Depends on the 1) The likelihood that the confirming event will occur 2) What can be determined about the amount of loss Only before the financial statement date…regardless of the likelihood of the event if it happened after the financial statement day we do not accrue it. The company sold the defective products…so here the event giving rise to the potential liability has occurred. The uncertainty does not relate to the past event
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of U.S. GAAP and IFRS; how IFRS financial statements are organized and presented; differences between U.S. GAAP and IFRS; and discuss the likely timeline of the adoption of IFRS 2. Explain the advantages and disadvantages of establishing one set of accounting standards (IFRS) to be followed by all companies around the world.? The advantages of one set of accounting standards to be followed by all companies around the world include the comparability of financial statements, irrespective of the
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BUSN7050 Corporate Accounting Lecturer: Dr Sorin Daniliuc Course details • This course covers: – the characteristics of the Australian accounting environment and its financial reporting requirements for companies – accounting for owners’ equity (share capital and reserves) – accounting for liabilities (with a focus on debentures) – accounting for income tax – accounting for leases – accounting for non-current assets (revaluation, impairment) – accounting for intangible assets – a comprehensive
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consistent. Fair value reporting is deemed to be more transparent and investor-confident. However equally important is that fair value measurement is subject to constraints such as human judgment, the location and condition of the asset/liability being measured, the determination of market, the most advantageous market value as against the entity's perspective, transaction price presumption (exit price verses entry price in different markets), the bid-ask spread of financial instsruments, and transportation
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for financial statements [pic] Dear Mr. Bluff As requested, I’ve done a further research on the four items arisen and found out the disclosure requirements for each of them including errors correction, events after reporting date, recognition criteria of provision and classification of financial instruments. I also went through the financial statements and found out some omissions. Finally, due to changes in the operation in our company, I identify some challenges in financial reporting and
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Positions Held : Dec 2007 – Present: ▪ Auditor at Deloitte (Saleh, Barsoum, Abdel Aziz & Co-Egypt). Job Description: - Examine and analyze accounting records to determine financial status of establishment and prepare financial reports concerning operating procedures. - Review data regarding material assets, net worth, liabilities, capital stock, surplus, income, and expenditures. - Inspect items in books of original
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providing useful information to shareholders, with a distinct from tax reporting. The implementation of IFRS has brought about significantly greater consistency in accounting recognition and measurement and far greater disclosure of information in financial statements. The implementation of IFRS in the UK brings better resource allocation decision. Because of all these reasons UK have adopted International Financial Reporting Standards. b) Apart from the global benefits of using similar accounting
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