ACCT540 Week 3 Assignment Answer the following questions with information you learned in the document , your book, and through Internet research: Why was codification needed? What is the goal of codification? What authoritative literature does the codification supersede? How is the codification structured? Include as discussion of the topic, subtopics, sections and subsections in your answer. Describe the numerical indexing system. What is a “landing page?” What is the difference between the “general topics landing page,” the “industry topics landing page” and the “subtopics landing page?” What is “pending content?” How is SEC content differentiated from FASB content? Expert Answer o Codification was needed to simplify access to ASC, improve accuracy of research, mitigate risk of non-compliance, streamline the research process, provide real-time updates, and assist with IFRS convergence o The goal of the Codification is to simplify the organization of thousands of authoritative U.S. accounting pronouncements issued by multiple standard-setters. To achieve this goal, the FASB initiated a project to integrate and topically organize all relevant accounting pronouncements issued by the U.S. standard-setters including those of the FASB, the American Institute of Certified Public Accountants (AICPA), and the Emerging Issues Task Force (EITF) o The FASB Codification will supersede all then-existing non-SEC accounting and reporting standards form on governmental entities. All other non-grandfathered, non-SEC accounting literature not included in the Codification will become non-authoritative. Include as discussion of the topic, subtopics, sections and subsections in your answer. The new Codification does not change GAAP, but all existing ... ... middle of paper ... ...graph has been superseded by Accounting Standards Update No. 2009-16.The update is as follows: The amendments in this Accounting Standards Update improve financial reporting by eliminating the exceptions for qualifying special-purpose entities from the consolidation guidance and the exception that permitted sale accounting for certain mortgage securitizations when a transferor has not surrendered control over the transferred financial assets. In addition, the amendments require enhanced disclosures about the risks that a transferor continues to be exposed to because of its continuing involvement in transferred financial assets. Comparability and consistency in accounting for transferred financial assets will also be improved through clarifications of the requirements for isolation and limitations on portions of financial assets that are eligible for sale accounting.
Switching to IFRS will help not just companies but also investors and public globally to compare financial statements. If every country has different financial standards, if would be problematic to compare how each company stands because they are not the same.
• Provides a basic level of interoperability among electronic health records (EHRs) maintained by individual physicians and organizations
FASC did not change GAAP, but it does now ask non-governmental entities to “apply the American Institute of Certified Public Accountants Technical Inquiry Service Section 5100, Revenue Recognition”.
ASC 606 will provide better insight and comparisons across financial statements. It creates standards that can be applied across multiple jurisdictions and industries. Therefore, it will streamline the process and better represent changes in revenues and liabilities that companies are expecting or are aware of. It also attempts to bring policies from the FASB and IASB closer as they both passed similar policy
You should be able to answer these questions on Wednesday/Thursday when you come to class. You can take notes if you like, or you can annotate your book (post-its work great).
In accounting, private companies are treated differently than governmental and non-profit companies. However governmental and non-profit companies use different reporting requirements from the private sector. The requirements for governmental companies use the Government Accounting Standards Board (GASB), whereas profit and non-profit companies use the Financial Accounting Standards Board. This paper will explain the purpose, discus the similarities, and differences between the GASB and FASB.
After reading the course materials, I have questions about: Having completed research activities for school and professional projects, the provided materials offer very clear and concise direction and suggestions for completing the assignment.
What is IFRS, and what is its significance in the world market? In 2001 the International Accounting Standards Board, or IASB, was created to develop a set of standards by which global financial statuses could be reported. According to financialstabilityboard.org, this set of standards, known as the International Financial Reporting Standards, or IFRS, falls under the jurisdiction of the IFRS Foundation, which is a non-profit, private and independently run entity that exists for the public interest, is based on four principle objectives. The first is to develop a single set of international financial reporting standards (IFRS). This set would be high in quality, readily understandable, easily enforceable, and acceptable world-wide. The second objective is to encourage the use of this set of standards in the international business world. Thirdly, the ISAB would like to monitor the needs of different sizes and types of businesses in different settings. The fourth objective is to promote the adoption of the IFRS by converging national accounting standards wit...
the document as a guide only. Consider this document as a primer which you can use to
Financial Accounting Standards Board. (1985). Statement of Financial Accounting Standards No. 86. Norwalk. Retrieved April 7, 2014, from http://www.fasb.org/cs/BlobServer?blobkey=id&blobnocache=true&blobwhere=1175820922177&blobheader=application%2Fpdf&blobheadername2=Content-Length&blobheadername1=Content-Disposition&blobheadervalue2=189998&blobheadervalue1=filename%3Dfas86.pdf&blobcol=url
“While LIFO offers significant benefits over FIFO from a tax reporting stand point, the United States is considering banning the use of LIFO”. Majority of the companies in the United States use the FIFO method, but they also have the choice of using LIFO under U.S.G.A.A.P. The IFRS has completely withdrawn from using the LIFO method. “Many companies believe the repeal of LIFO would result in an incredible tax increase for both large and small businesses.” Now they are focusing on blending the two accounting standards to reduce the differences between the two GAAP and IFRS. With a single set of standards for the whole world, it will be easier to deal with and to comprehend. International investors will be able to compare financial results of companies from the different countries with ease. (FIFO vs. LIFO: What is the Difference?)
Albrecht, W. S., Stice, J. D., Stice, E. K., & Skousen, k. F. (2002). Accounting Concepts and Applications. Cincinnati: South-Western.
The IASB “cooperates with national accounting standard setters to achieve convergence in accounting standards throughout the world”. Furthermore, the AASB has a specific function “to participate in and contribute to the development of a single set of accounting standards for world-wide use”. Australia has adopted the International Accounting Standards in January 2005 and it was the First country in the world to make such a statement. Since the standards was harmonized and therefore the situation became very
The accounting principles are constantly changing. Currently, there is a struggle between accountants who want to use the U.S. Generally Accepted Accounting Principles (GAAP) and the International Financial Reporting Standards (IFRS). Many companies in the United States prefer GAAP over IFRS because GAAP is more rule based, whereas IFRS is principles based. In my accounting classes, we focus on GAAP. If the U.S. decides to switch to IFRS, I will not be as well-equipped when I enter the work force. The best way to overcome this threat is to continue to monitor the situation and see if the U.S. makes the switch.
What is it exactly that makes a business thrive? Is it the popular line of production being sold? The quality of customer service? The manner in which the industry is organized? Indeed, these attentions have a significant role in a corporation, but most importantly just how well is a company running. Hence, the financial statements are the key element in any business. This provides information to shareholders, investors, and more especially to its managers, because these individuals are the ones to understand and communicate the performance of the company. Investopedia comments that “accounting standards are crucial in an efficient market, as information must be transparent, credible, and understandable.” Therefore, the FASB (Financial Accounting Standards Board) has a mission to improve accounting practices in a corporation by enhancing guidelines for accounting reports, to distinguish and solve issues in a suitable manner, and create a fair standard across the financial markets that all those who are busineess affiliated, must pertain.