International Financial Reporting Standards
IFRS and Canada
Canada was one of the first prominent nations involved in the North American Free Trade Agreement to consider switching their financial reporting to the International Financial Reporting Standards. For years, Canada had been under the pressure of the United States to adopt a system aligned with the GAAP. Still, growing opportunities across the globe made the adoption of the IFRS in Canada a better option. It was announced in early 2008 that the move was going to be made in Canada. Canada officially adopted the IFRS standards in January of 2011 (PWC, 2014). Actually, the IFRS standards were quite similar to the already existing Canadian GAAP standards. Thus the transition, for most businesses, was not extremely different than what they had encountered in the past.
The country made the official decision to adopt the IFRS over their own GAAP system came in a new development that shows less dependency on the United States for the country. Canada has worked on fully implementing the system for the last few years now. The official announcement came in 2008. What was supposed to be concluded in 2011 ended up lagging on until 2012 and now some reports saying 2015 (PWC, 2013). There are still changes that are being set for January of 2015, which is when the U.S. GAAP standards will stop being exempted for certain domestic companies (PWC, 2013). Thus, the process of implementing the system did take...
International Financial Reporting Standards (IFRS) Generally Accepted Accounting Principles (U.S. GAAP) US GAAP is the general accounting principles, standard, and procedures that the U.S. companies follow to prepare their financial statements. GAAP has combination of accepted standards that the companies should follow when recording and reporting their accounting information. For example, GAAP has set up the rules that companies should follow when preparing the financial data such as balance sheet, revenue recognition,
S. GAAP," 2012). In other circumstances, IFRS requires the combination of two or more transactions when they are linked in a manner that the commercial impact can only be understood through referring to the transactions as a whole. Customer Loyalty Programs: Under IFRS accounting standards, loyalty or award programs in which a customer earns credit depending on their purchase of goods and/or services should be accounted for as multiple-element arrangements. Therefore, these
International Regulation, Accounting Standards and Australia Background and Need for Regulation International regulation is a necessity in the finance arena as the world bears a high rate of interconnection, particularly via banking and accounting. In 2008, Europe was given international accolades for its attempts to strengthen the world financial system and protect nations all over the world from a serious crisis. "Europe led the way last year in facing down the
EasyJet Financial Reporting Recent History Regarding Corporate Accounting Policy The recent corporate accounting practices of easyJet Airlines reflects financial accounting policies at the company, which were in disapproval by Sir Stelios Haji-Ioannou, founder -- easyJet (Waller, 2008) . The Board of Directors are responsible for drafting and adopting of company accounting policies. Sir Stelios' rejection of the boards annual accounts is reflective of the agency/principle problem such that the board is now
FASB and IASB: The Financial Accounting Standards Board is an organization in the private sector that establishes financial accounting and reporting standards in the United States since 1973. The standards established by this organization govern the preparation of financial reports by various companies. The mission of the Financial Accounting Standards Board is to set up and enhance financial accounting and reporting standards to provide information and direct the public. On the
FASB Impacts The Financial Accounting Standards Board (FASB) was established with the Sarbanes-Oxley Act of 1933 (SOX) to establish accounting standards for protection of investors and other users of financial statements. Standards implemented by FASB have the full effect of law and holds public accounting firms accountable for assurance that financial statements are accurate and fairly presented to the investing public. It is vital to the accounting profession that public accounting
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