Bus Report - Stephanie Taylor 11/19/2010 Current...

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Stephanie Taylor 11/19/2010 Current Liabilities and Contingencies - Writing Assignment Professor: JOSEPH POLETTI Guidelines and rules set by the IASB that companies and organizations can follow when compiling financial statements. IFRS provides general guidance for the preparation of financial statements rather than setting rules for industry-specific reporting. The creation of international standards allows investors, organizations and governments to compare the IFRS-supported financial statements with greater ease. Over 100 countries currently require or permit companies to comply with IFRS standards. The IFRS were previously called the IAS. The goal with IFRS is to make international comparisons as easy as possible. This is difficult because, to a large extent, each country has its own set of rules. Synchronizing accounting standards across the globe is an ongoing process in the international accounting community. Having an international standard is especially important for large companies that have subsidiaries in different countries. Adopting a single set of world-wide standards will simplify accounting procedures by allowing a company to use one reporting language throughout. A single standard will also provide investors and auditors with a cohesive view of finances. Proponents of IFRS as an international standard maintain that the cost of implementing IFRS could be offset by the potential for compliance to improve credit ratings. Generally Accepted Accounting Principles are a widely accepted set of rules, conventions, standards, and procedures for reporting financial information, as established
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by the Financial Accounting Standards Board. They provide objective standards for judging and comparing financial data and its presentation, and limit the director’s freedom in showing an unrealistic picture through creative accounting. An auditor must certify that the provisions of GAAP have been followed in reporting an organization's financial data in order it to be accepted by investors, lenders, and tax authorities. Most large countries have their own GAAP which may differ from those of others in minor or major details. Companies use GAAP to standardize their financial statements so that investors can better use those statements to analyze a company for investment purposes. GAAP covers things such as revenue recognition, balance sheet item classification, and
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This note was uploaded on 11/30/2011 for the course BUSINE 100 taught by Professor Poletti during the Spring '11 term at Strayer.

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Bus Report - Stephanie Taylor 11/19/2010 Current...

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