IFRS Solutions__Unit1to8

IFRS Solutions__Unit1to8 - Incorporating International...

Info icon This preview shows pages 1–4. Sign up to view the full content.

View Full Document Right Arrow Icon
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.
Image of page 1

Info iconThis preview has intentionally blurred sections. Sign up to view the full version.

View Full Document Right Arrow Icon
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.
Image of page 2
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 1. a 2. d 3. e 4. d 5. The proposed model requires use of a single statement of comprehensive income with a subtotal for net income; it classifies items as operating, investing, or financing and presents subtotals for each category.
Image of page 3

Info iconThis preview has intentionally blurred sections. Sign up to view the full version.

View Full Document Right Arrow Icon
Image of page 4
This is the end of the preview. Sign up to access the rest of the document.

{[ snackBarMessage ]}

What students are saying

  • Left Quote Icon

    As a current student on this bumpy collegiate pathway, I stumbled upon Course Hero, where I can find study resources for nearly all my courses, get online help from tutors 24/7, and even share my old projects, papers, and lecture notes with other students.

    Student Picture

    Kiran Temple University Fox School of Business ‘17, Course Hero Intern

  • Left Quote Icon

    I cannot even describe how much Course Hero helped me this summer. It’s truly become something I can always rely on and help me. In the end, I was not only able to survive summer classes, but I was able to thrive thanks to Course Hero.

    Student Picture

    Dana University of Pennsylvania ‘17, Course Hero Intern

  • Left Quote Icon

    The ability to access any university’s resources through Course Hero proved invaluable in my case. I was behind on Tulane coursework and actually used UCLA’s materials to help me move forward and get everything together on time.

    Student Picture

    Jill Tulane University ‘16, Course Hero Intern