BU527 Lecture Notes - Lecture 9: Treasury Stock, Revenue Recognition, Financial Statement
Document Summary
Fiat has 2 key accounting policies italian gaap and ifrs. Fiat"s key accounting policies which are affected due to difference between those two policies are development costs, property, plant and equipment, revenue recognition, treasury stock, sales receivable and write-off of deferred costs. Question 2: summarize the differences between fiat"s key accounting methods under italian. Following are the 5 common differences between fiat"s accounting methods under ifrs and. Italian gaap: write-off of deferred costs, treasury stock, property, plant and equipment (ppe, development costs, revenue recognition. Things that characterizes the difference between the two sets of methods under ifrs and italian. Gaap are: substance over form for example: recognition of revenue, less flexibility for example: recognition of research and development cost, more transparency required for financial statement users. From the perspective of a minority investor in the company"s shares, ifrs would provide better information about the economic performance of fiat.
