510chapter1-2fall2009afterclass982009

510chapter1-2fall2009afterclass982009 -...

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Let’s take a tour through the world of international  Where are we? How did we get  here? Where do we go  from here? How are  standards set? What is the  structure of the  standard  setters? Who are the  standard  setters? Start What is IFRS? Is IFRS  different than  US GAAP? On your tour, click the globe icon on the bottom right hand  corner of relevant slides to return to this home screen. How does the  IASB compare  to the FASB?
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What is IFRS? IFRS stands for International Financial Reporting Standards. As indicated within the title, these standards are aimed at a global practice. Ultimately, the goal is to achieve a single set of high-quality, common accounting standards used around the world. These standards are the result of a convergence of international viewpoints.
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Is IFRS different than US GAAP? There are differences between IFRS and US GAAP but they are more alike than different for most commonly encountered transactions. IFRS is largely grounded in the same principles as US GAAP. = ? /
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Is IFRS different than US GAAP? Differences exist because the IFRS standard setters have had the advantage of: Being able to draw on the latest standard setters from around the world. – Taking a fresh approach and avoiding perceived problems that might exist in US GAAP, such as: Exceptions to the underlying principles that resulted from external pressures during the exposure process. Practice difficulties that emerged after the standard was issued. – Additionally, through an annual improvement process, the standards are reviewed to enhance their clarity and consistency.
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Is IFRS different than US GAAP? As a general rule, IFRS standards are more broad and principles based with limited interpretive guidance. The IFRS standard setters prefer to leave implementation of the principles embodied in the standards to preparers and auditors and its interpretive body. US GAAP contains underlying principles as well but is more specific and rules based with far more “bright lines,” comprehensive implementation guidance and industry interpretations. The following example is a simple illustration of principles- vs. rules-based concepts: Rules based: Your parents tell you to get a 3.2 GPA  or above and then provide 15  contingencies that might justify  acceptance of lower grades.  Principles based: Your parents tell you to do your  best to get good grades and that if  you do not, they will consider  the  substance of your reasons.
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Who are the standard setters? International Accounting Standards Board (IASB)
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This note was uploaded on 12/29/2009 for the course ACC 5100 taught by Professor Andrews during the Fall '09 term at Wayne State University.

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510chapter1-2fall2009afterclass982009 -...

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