InternAccting_Wk5Discussion

InternAccting_Wk5Discussion - from a bargain purchase; and...

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Week 05 Discussion - IFRS Impact on U.S. Financial Reporting The International Accounting Standards Board (IASB) website is a great resource to keep on top of International Standards. Navigate to the IASB's website and locate IFRS and IAS Summaries. Select one of the IFRSs and read through it. In your discussion, share a brief summary of your chosen IFRS and suggest how its implementation would impact U.S. financial reporting. For this discussion, I chose a IFRS Summary about business combinations. This article discusses the effects that business combinations have on information found on the financial statements. It does that by establishing principles and requirements for how an acquirer: a) recognises and measures in its financial statements the identifiable assets acquired, the liabilities assumed and any non-controlling interest in the acquiree; b) recognises and measures the goodwill acquired in the business combination or a gain
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Unformatted text preview: from a bargain purchase; and c) determines what information to disclose to enable users of the financial statements to evaluate the nature and financial effects of the business combination (IFRS, 2011). This information is used to evaluate the character and financial effect that business combinations have on current reporting periods or reporting periods that have already passed. After the business combination is reported, any adjustments that were recognized in the current reporting period that relate to business combinations must be disclosed. With all the business combinations around the implementation of this standard would greatly impact the reporting procedures of current businesses. They would have to disclose whether an impact on the financial statement occurred because of the business combination or not....
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