FI ASB
The FASB and the IASB
As a series of recent and ongoing events have made abundantly clear, there is a great need for consistency and oversight in the accounting practices of large business, and for overall standardization that will lead to increased transparency in the financial sector and the accounting industry as a whole. From the Enron scandal that occurred a decade ago to the far more recent and more potent mortgage-backed security schemes that were in large part responsible for the global recession, accounting "irregularities" and practices that are questionable both ethically and legally have led to major problems for many investors and consumers, often while racking up major profits for certain individuals that hold the real information while publishing their "creative" reports. It is for this reason that various boards developing and governing standardized accounting practices have been established, and though the degree of their influence is somewhat questionable it is certainly a step in the right direction.
Unfortunately, this step in the right direction isn't necessarily being taken in the same right direction by all pertinent and relevant individuals the accounting industry. In the United States, the Financial Accounting Standards Board (FASB) has been the private sector's selected agency of choice in achieving accounting standardization...
For example, there are many SEC registered companies, and they are not all American companies. Many of them are actually headquartered in foreign countries. In the past they had to change their accounting and financial information over to GAAP requirements, but changes are allowing companies to continue to use IFRS instead. Some of the U.S. based companies are also going to be allowed to use IFRS in order to
IFRS and GAAP Convergence Briefly describe Walmart The company establishment was in 1962 by Sam Walton. The company has grown through mergers and acquisitions to become the largest retail outlet in the globe. The main business of the company is corporate retail. The retailer offers a variety of products to its customers at a lower price compared to its competition. According to Fortune 500 ratings, the corporation ranks third among the largest
IFRS 8 Operating Segments was to a certain degree a ground-breaking law since it represented the first foray of the International Accounting Standards Board into the area of requiring companies and business to disclose information through their management. The regulation requires certain categories of business, especially publicly traded companies to disclose information regarding their products and services, operating segments, and geographic areas where they operate. In addition to the information
IFRS Human Resource Accounting The United States has a radically different accounting system than virtually every other the countries considered. The United States has their own system known as the general accepted accounting principles (GAAP). Other countries have used this system in the past, such as the UK and Germany, but there has been an international standard that has developed over the course of the last few years and virtually every other
IFRS Pension Reporting 2009 IAS 19 is the equivalent to FAS 158, but there are differences in the two standards. (Meg, 2009) Under IAS 19 the current rates of return is used on high quality corporate bonds with maturities consistent with the duration of benefit obligations, where under FAS 158, the discount rate is used at which the obligation could be effectively settled. Under IAS 19, the rate is based on
For instance, a parent company that has a low level of ownership in a subsidiary may want to lower the price paid to that subsidiary to increase parent company profits. Or, if the subsidiary has a lower dividend payout, the parent may wish to pay a high price to that subsidiary to avoid larger dividend payouts at home. Further, high import tariffs at the parent's country may lead to
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