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Unformatted text preview: Fall 2010 Professor Keating Session #5 AC 611: Financial Accounting Problems I Elizabeth K. Keating, 2010 Session #5 AC 611: Financial Accounting Problems I US GAAP vs. IFRS Pg.2 IASB: Significant risks and rewards of ownership have been transferred from the seller to the buyer. Management involvement and control over the asset being transferred has passed from the seller to the buyer. The seller can reliably measure the amount of revenue or consideration received in the exchange. It is probable that the seller will receive economic benefits. The seller can accurately measure the costs (both past and future) of the transaction. US: Revenues are considered to have been earned when the entity has substantially accomplished what it must do to be entitled to the benefits represented by the revenues. Revenues and gains are realizable when related assets received or held are readily convertible to known amounts of cash or claims to cash. Elizabeth K. Keating, 2010 Elizabeth K....
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- Spring '11