Financial Accounting Standards Board

industrial sector has necessitated the adoption of common accounting policies and principles. Firms especially those operating at multinational levels largely require to embrace common set of financial reporting frameworks in a bid to enhance uniformity and consistency in financial reports. Different countries all over the world have been evident to adopt varying standard that govern the presentation and recognition of the items in financial reports. However, with the current trends towards…

businesses due to financial performance. About 70 percent of 250 CFOs and CIOs believed that outsourcing increased their financial performance (Gobble, 2013). Pharmaceutical companies look for Asian firms to assist them in reducing drug development cost. Some companies such as P&G outsourced in search for product ideas. Outsourcing benefited the businesses by reducing costs, speed development times, and getting the best product…

Accounting calls for the use of estimates in the preparation of the required financial statements. Estimates in this case relate to the use of precise amounts in financial statement elements that cannot be precisely determined. Therefore the amounts are subjective and lack precision because they are plagued by the use of subjective management foresight to determine the values utilized in the financial reports. Where the use of estimates is encouraged there is definitely a lack of accuracy and…

The circular economy is defined as an economic system that revolves around the processes of recycling, reusing and recovery of materials (Kirchherr J, Reike D, Hekkert M 229.) CE (circular economy) was first introduced as a concept in 1989 by environmental economists David W. Pearce and R. Kerry Turner and has recently been adopted by a number of countries. In 2015, Denmark, Netherlands, Japan, Sweden and Scotland agreed on CE legislation (Braw. E). The circular economy is a relatively new…

Australian airspace is currently following the airspace act of 2007 and the airspace regulations 2007. The office of Airspace Regulation exercise powers under the airspace regulations (2007) are to regulate and administer Australian airspace, including danger, prohibited and restricted areas where certain types of actions take place that may present a risk to aviation activities. Australian airspace administration is generally aligned with ICAO airspace classes and associated air traffic…

AASB 15 in place of the existing revenue standards (118, and 111); and
 Importance of Revenue recognition Revenue information remains paramount in accordance with the financial functioning of an entity. Thus, information centred on the “nature, timing, amount” and “ambiguity of revenue and cash flows” from “customer contracts” provides users of financial statements comparability on the performance/position of entities within the period. Need For Standards Conversely, limitations and…

ACCOUNTING FOR INTANGIBLES—U.S. GAAP I. GENERAL PRINCIPLES The broad principles governing the accounting for Intangible assets are laid out in APB 17. According to APB 17, Paragraph 9, a company should record costs of intangible assets acquired from others, including goodwill, as an asset. All costs incurred to develop intangible assets that are not specifically identifiable should be recorded as expenses. Where an intangible asset has been recorded, its cost should be amortized by systematic…

Accepted Accounting Principles) to IFRS (International Financial Reporting Standards). Companies, especially in the United States of America, are using a system of inconsistent accounting standards for their financial reporting. That is why FASB encourages most organizations moving to a universal system of reporting. However, the transition affects the financial data, financial compliance controls, financial reporting procedures, performance management networks, training programs and the…

They each have their own little nuances depending on transaction that it taken place, but the standards are mostly straight forwards in what the accountants are required to do. This is why it should come as no surprise that the financial disclosures in Swiss GAAP are just a stringent as they are in the US GAAP framework. The disclosure requirements in Swiss GAAP vary by the industry in which the company operates as…

of an enterprise that engages in business activities from which it may earn revenues and incur expenses, including intersegment revenues and expenses; whose operating results are regularly reviewed by the enterprise’s CODM; and for which discrete financial information is available (textbook p. 490). 2. What is a reportable segment according to FASB ASC Topic 280? What criteria are used in determining what operating segments are also reportable segments? A reportable segment is an operating…