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37 Cards in this Set
- Front
- Back
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Why is accounting more conservative in some countries?
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Published financial statements are the basis for taxation
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problems caused by different financial reporting practices across countries?
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1)consolidation difficult
2)additional costs when attempting to obtain financing 3)financial ratios across countries become meaningless |
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how is macro uniform class different from micro based?
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in macro-accounting rules tend to be set by the government
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what countries are on a micro based system?
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Hong Kong
Australia Canada |
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what countries are on a macro based system?
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Spain
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Reasons for establishing international accting stnds
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1)some countries dont have the resources to do it alone
2)comparability needed between worldwide operating companies 3)different results from certain countries allowable accting principles |
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What is the major problem with the original standards produced by the IASC?
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too many optional methods were allowed
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IASC formed by representatives from different
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accounting bodies
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goal of the IASB
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formulate and publish accting standards and harmonize accounting standards
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foreign currency evaluation is only needed if
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you are paying in someone else's currency
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why does the IASB have limited powers?
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private organization that cannot enforce use of its official pronouncements
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why do Japanese companies prefer using IASB standards?
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to more easily compare their companies with other country's companies
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according to IASB, IFRSs are composed of
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International financial reporting standards issued by the IASB and Int. Accting standards issued by the IASC
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what country does not permit any domestic listed companies to use IFRSs in preparing consolidating financial stmts?
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Mexico
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what is the norwalk agreement?
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between FASB and IASB to make existing standards compatible as soon as practicable and work together for the future compatibility
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FASB's initiatives to converge with IASB standards
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1)FASB eliminates differences
2)FASB considers convergence to IASB when deciding work agenda 3)joint projects |
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what is a IASB requirement that the FASB has adopted for the short-term convergence project?
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treating items like idle facility expense, excessive spoilage, and rehandling costs as current period expenses instead of cost of inventory
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where does IASB allow firms to choose between treatments?
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measuring property, plant, and equipment subsequent to aquisition.
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in Japan, special items are
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items not necessarily considered extraordinary in the US
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In the UK, a Balance sheet
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begins with fixed assets then reports current A's less current L's
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In the UK, stocks and debtors accounts represent
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stocks = inventory, debtors = receivables
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In UK financial reporting, what does turnover mean?
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net sales
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In German accounting, hidden reserves are
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created to be able to smooth income from one period to the next
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what is a major influence on german financial reporting?
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german banks because they provide major portions of financial capital
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what occurs with german type-of-cost format income statements?
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changes in inventory levels are reported as adjustments to sales
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When reporting research and development costs,
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some countries capitalize some portion of development costs
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3 main differences between GAAP and IFRSs:
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1)recognition 2)measurement 3)presentation and disclosure
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what is the IOSCO?
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International Organization of Securities Commissions
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what year did the IOSCO join the IASC's consultative group?
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1987
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who are the IOSCO's members
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stock exchange regulatiors in more than 10 countries, including the US SEC
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what is the IOSCO's objective?
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facilitate cross border securities offerings and listings by multinational issuers
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What is IAS 1?
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Presentation of financial statements, defines IFRS's as standards adopted by the IASB
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Who was the first chief accountant of the SEC?
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Carman Blough
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what is joint projects?
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FASB and IASB sharing staff resources and working on a similar time schedule.
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what does SFAS 151 say?
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to treat inventory costs as current period expenses
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what does SFAS 153 say?
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eliminates exeptions to valuing non monetary assets at FV
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what does SFAS 154 say?
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must apply accounting changes retrospectively
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