Log in
Accounting
2
answers
0
watching
121
views

The United States requires financial statements to be prepared under GAAP but most every other country utilizes the international Financial Reporting Standards (IFRS). For many years the United States has been working toward converging GAAP rules with IFRS so that companies could have one set of rules that would apply to every county when issuing their financial statements. There are still some major differences between GAAP and IFRS. Intangible assets is one of the differences, provide an explanation of the difference in detail including what financial statements would be affected and how it would affect financial statements if we were to change our rule to match IFRS. Citations please.

Watch
2
answers
0
watching
121
views

For unlimited access to Homework Help, a Homework+ subscription is required.

Unlock all answers

Get 1 free homework help answer.
Already have an account? Log in
Share
Casey Durgan
Casey DurganLv2
30 Sep 2019
Already have an account? Log in
Share

Related questions

1. International Financial Reporting Standards (IFRS) could be used by a country by:A) adopt IFRS as its national GAAPB) allow listed domestic companies to use IFRSsC) require or allow foreign companies listed on national stock exchanges to use IFRSsD) require listed domestic companies to use IFRS in the preparation of the consolidated financial statementsE) all of the above

2. The agreement between the FASB and the IASB to make everyeffort to ensure that financial reporting standards are fullycompatible and to ensure compatibility is maintained in thefollowing document:

A) Business Combination Project (Business CombinationsProject)

B) Convergence Framework Project

C) Conceptual Research Project (Conceptual Research Project)

D) Norwalk Agreement (Norwalk Agreement)

E) Companies Act

3. There are differences between IFRS and US GAAP. The use of the lower-of-cost-or-market rule for valuing inventory and the difference in market interpretation is an example of:A) time differencesB) differences of disclosureC) recognition differencesD) differences in presentationE) measurement differences

4. Differences between IFRS and US GAAP in R & D are anexample of:

A) time differences

B) differences of disclosure

C) recognition differences

D) differences in presentation

E) measurement differences

5. Which of the following statements is believed to be trueabout the accounting convergence of those proposingconvergence?

A) Convergence would reduce feelings of nationalism.

B) Convergence is desirable because there is little differencebetween capital markets in different countries.

C) Convergence would help raise the quality of internationalaccounting practice.

D) None of the above statements is true.

6. Which of the following is considered the most importantimpediment to accounting convergence?

A) Nationalism

B) Lack of accounting knowledge

C) Language differences

D) High cost of convergence

Beginning in 2008, the Securities and Exchange Commission of the United States began to accept financial statements from Foreign Private Issuers prepared according to International Financial Reporting Standards without reconciliation to US GAAP. What factors drove this change? What evidence exists of the effect of differences in disclosure requirements on the decision to list on foreign stock exchanges? Do you think foreign companies should be allowed to enter your country’s capital market on the basis of their home country financial statements? Explain.

In the interactive lecture materials for this module, you readarticles and materials and watched various videos, which describedthe history of the convergence process between the US GAAP andIFRS, including the status of convergence today. You also reviewedreadings showing the differences that still exist today between USGAAP and IFRS on various accounting subjects. Below is a list ofsome particularly significant accounting topics or subjects wheredifferences still exist today between the US GAAP and IFRS:inventories goodwill and other intangible assets contingenciesaccounting for income taxes including uncertainty in income taxesimpairment of long-lived assets to be held or used or to bedisposed of by sale research and development ‘development’expenses. Select one of the above accounting subjects, preferably asubject personally or professionally interesting to you, and answerthe following questions related to that topic in your initialresponse. Copy and paste each question below in bold type in yourinitial response to ensure that you answer each question. Thesubject line of your initial posting should be the accountingsubject you have decided to address (for example: Inventories):Briefly explain the reason this subject was of interest to you.Describe, in an appropriate level of detail, the major differencesthat exist today between US GAAP and IFRS for that subject.Research if any progress has been made to date on converging theaccounting and/or the financial reporting for that subject betweenthe FASB and the IASB. If so, describe the progress, and if not,describe why progress has not yet been made, either from yourresearch or in your opinion or both. Provide the class with aspecific and detailed computational-based example of how thedifferences in the accounting and financial statement treatment ofthis subject could potentially affect the comparability of both thebalance sheet and the income statement prepared under US GAAP andIFRS. State your opinion on whether you believe the FASB and theIASB eventually will reach convergence on this subject, and why orwhy not. Include an explanation of your opinion and what might besome other considerations preventing or delaying convergence onthis subject.

Weekly leaderboard

Home
Homework Help 3,900,000
Accounting 580,000
Start filling in the gaps now
Log in