Measurement was based on values at time of individual equity acquisition THE

Measurement was based on values at time of individual

This preview shows page 15 - 23 out of 28 pages.

Measurement was based on values at time of individual equity acquisition
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THE PRIMARY REASONS THAT THE FINANCIAL ACCOUNTING STANDARDS BOARD (FASB) ISSUED FAS 141R AND FAS 160
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To partly enable U.S companies to join more than 100 nations worldwide that currently utilize IFRS in their financial reports. To eliminate differences between the U.S.GAAP and the IFRS To help enhance convergence between the U.S GAAP and the IFRS To help U.S parent corporation and its subsidiaries strengthen their global financial competitiveness
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CHANGES TO BE AWARE OF IFRS
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Changes in investment policies and strategies Changes in the accounting records and arrangement of financial statements and consolidated financial statements Changes in global human resource management Changes in inventory records of supply chain management
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THE PRINCIPLE DIFFERENCES BETWEEN IFRS AND GAAP
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The International Financial Reporting Standards (IFRS) - the accounting standard used in more than 110 countries - has some key differences from the US Generally Accepted Accounting Principles (GAAP). At the conceptually level, IFRS is considered more of a "principles based" accounting standard in contrast to U.S. GAAP which is considered more "rules based." By being more "principles based", IFRS, arguably, represents and captures the economics of a transaction better than U.S. GAAP.
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Some of differences between the two accounting frameworks Intangibles The treatment of acquired intangible assets helps illustrate why IFRS is considered more "principles based." Acquired intangible assets under U.S. GAAP are recognized at fair value, while under IFRS, it is only recognized if the asset will have a future economic benefit and has measured reliability. Intangible assets are things like R&D and advertising costs.
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