Financial_statements_slides

Financial_statements_slides - Financial statements...

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Financial statements
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Financial statements Page 2 Executive summary In both frameworks, the components of a complete set of financial statements are the same except that IFRS (and the SEC) requires the statement of changes in equity while US GAAP permits it. In both frameworks, the financial statement presentation is very similar. Differences between the two tend to arise in the level of specific guidance. Significant differences are as follows: Balance sheet (statement of financial position): IFRS includes a minimum list of items to be presented unlike US GAAP. However, SEC regulations have more detailed requirements than IFRS. Income statement: IFRS includes a minimum list of items to be presented unlike US GAAP. However, SEC regulations have more detailed requirements than IFRS. IFRS prohibits extraordinary items unlike US GAAP. IFRS does not define certain key income statement measures. While US GAAP does not define all these measures either, SEC regulations provide requirements and limitations on the ability of public companies to disclose non-GAAP measures.
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Financial statements Page 3 Executive summary Financial statement presentation differences (continued): Statement of comprehensive income: IFRS permits comprehensive income to be presented in one statement of comprehensive income or in two statements consisting of a separate income statement and a statement of comprehensive income similar to US GAAP. Statement of changes in equity: IFRS does not permit the components of comprehensive income to be presented in the statement of changes in equity in lieu of the statement of comprehensive income as permitted by US GAAP. Statement of cash flows: IFRS permits a choice of alternatives for the classification of interest and dividends while US GAAP does not. Notes to the financial statements: Using IFRS, most companies will experience additional financial disclosure requirements compared to US GAAP.
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Financial statements Page 4 Primary pronouncements US GAAP ASC 205, Presentation of Financial Statements ASC 210, Balance Sheet ASC 215, Statement of Shareholder Equity ASC 220, Comprehensive Income ASC 225, Income Statement ASC 230, Statement of Cash Flows ASC 235, Notes to Financial Statements ASC 250, Accounting Changes and Error Corrections ASC 260, Earnings Per Share ASC 505, Equity IFRS IAS 1, Presentation of Financial Statements IAS 7 , Statement of Cash Flows IAS 8, Accounting Policies, Changes in Accounting Estimates and Errors IAS 18, Revenue IAS 33, Earnings per Share IFRS 5, Non-Current Assets Held for Sale and Discontinued Operations
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Financial statements Page 5 Progress on convergence Phase A Addresses what constitutes a complete set of financial statements and the requirements for presenting comparative information. The FASB and IASB completed deliberations on Phase A
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This note was uploaded on 09/30/2010 for the course ACCT 3311 taught by Professor Gregsommers during the Spring '10 term at Southern Methodist.

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Financial_statements_slides - Financial statements...

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