Chapter 4 - INTERNATIONAL FINANCIAL REPORTING STANDARDS:...

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INTERNATIONAL FINANCIAL REPORTING STANDARDS: PART I Chapter Outline I. The International Accounting Standards Board (IASB) had 29 International Accounting Standards (IAS) and 9 International Financial Reporting Standards (IFRS) in force in September 2010. A. In 2002, the IASB and U.S. Financial Accounting Standards Board (FASB) agreed to work together to reduce differences between IFRS and U.S. GAAP. II. There are several types of differences between IFRS and U.S. GAAP. A. Definition differences. Differences in definitions can occur even though concepts are similar. Definition differences can lead to differences in recognition and/or measurement. B. Recognition differences. Differences in recognition criteria and/or guidance related to (a) whether an item is recognized, (b) how it is recognized, and/or (c) when it is recognized (timing difference). C. Measurement differences. Differences in approach for determining the amount recognized resulting from either (a) a difference in the method required, or (b) a difference in the detailed guidance for applying a similar method. D. Alternatives. One set of standards allows a choice between two or more alternative methods; the other set of standards requires one specific method to be used. E. Lack of requirements or guidance. IFRS do not cover an issue addressed by U.S. GAAP, and vice versa. F.
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This note was uploaded on 03/21/2012 for the course BACC 102 taught by Professor A during the Spring '11 term at Andhra University.

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Chapter 4 - INTERNATIONAL FINANCIAL REPORTING STANDARDS:...

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