IFRS Solutions__Unit1to8

IFRS Solutions__Unit1to8 - Incorporating International...

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Incorporating International Financial Reporting Standards (IFRS) into Intermediate Accounting SOLUTIONS MANUAL Revised June 30, 2009 Rebecca G. Fay John A. Brozovsky Jennifer E. Edmonds Patricia G. Lobingier Sam A. Hicks We express our appreciation to the Deloitte Foundation and to Carl Cronin and Greg Aliff, both Deloitte partners and Virginia Tech alums, for the encouragement and financial support that made this project possible. Any errors or omissions are solely the responsibility of the authors and not Deloitte.
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Unit 1 - Introduction 1. d 2. d 3. b 4. Students should include the following items: Countries develop their own standards or adopt those developed by others (such as the U.S. or the International Accounting Standards Board). Approximately 100 countries have adopted International Financial Reporting Standards issued by the IASB. The IASB consists of 14 board members, currently from nine countries. IASB board members are appointed by the International Accounting Standards Committee Foundation, which has 22 members representing all geographic regions. The IASB process includes the following steps: - Potential agenda items discussed in meetings open to the public - Discussion papers and exposure drafts are published for public comment - The IASB solicits comments from numerous standard-setting and regulatory bodies, as well as other users of the financial statements 5. Discussion should include the following items: Improving specific accounting standards Improving the funding and structure of the IASB Facilitating the use of interactive data Updating the education and licensing of U.S. accountants 6. 2009 – Voluntary early adoption of IFRS by select set of large companies 2011 – SEC evaluates progress toward milestones 2014 – Proposed mandatory adoption by all public companies Unit 2 – Conceptual Framework 1. d 2. c 3. a 4. Students should include the following items: Greatest difference is in the concept of capital and capital maintenance. US GAAP relies on historical cost for recognizing most financial statement elements, while IFRS lists several acceptable options – historical cost, current cost, realizable value, and present value. Additional differences are found in the elements of the financial statements. While definitions may be similar, details of the guidance result in differing classifications for items such as convertible debt.
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Minor difference found in qualitative characteristics. Both frameworks include understandability, relevance, reliability, and comparability. US GAAP also includes a focus on consistency – the ability to compare the financial statements of an entity at two different points in time. Unit 3 – Income Statement and Other Comprehensive Income
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This note was uploaded on 10/25/2011 for the course ACG 3341 taught by Professor Jomosankara during the Spring '09 term at FAU.

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IFRS Solutions__Unit1to8 - Incorporating International...

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