Already have an account? Get multiple benefits of using own account!
Login in your account..!
Remember me
Don't have an account? Create your account in less than a minutes,
Forgot password? how can I recover my password now!
Enter right registered email to receive password!
International Accounting: A Users perspective by Shahrokh M. SaudagaranIFRS and domestic GAAP comparison
David Anderson, the CEO of Declining corporation, was discussing with his CFP, Diane Comer, whether the company should adopt IFRS for financial reporting purposes. Declining corporation is based in a country that permits the use of either IFRS or domestic GAAP."Diane, reporting under our domestic GAAP is much more costly to the company than reporting under IFRS. I understand that fewer disclosures are required under IFRS. Morever, IFRS provide more choices when it comes to applying accounting methods to our financial statements to produce the most favorable results. And, to be honest with you, the company is going to have to report its first operating loss in over 15 years if we continue to report under our current domestic GAAP. I certainly don't want that to happen while I'm CEO."
"I hear you, David, but converting to IFRS might look bad to investors. What if the public finds out that we were trying to hide the operating loss or switched to IFRS to manipulate the bottom line? That could prove even more costly in the long run, while saving the company pennies now."1. Referring to the conversation above, should Declining corporation prepare this year's financial statements in accordance with its domestic GAAP, or use IFRS? Justify your recommendation and address any concerns.2. Assume you are the CFO of Declining Corporation. How would you reply to the CEO's suggestion? Summarize your response including why you opted for or against the adoption IFRS.3. In your opinion, is there anything ethically wrong with the CEO's rationale for the adoption of IFRS? Explain.4. As Declining Corporation's auditor, would you agree to the switch IFRS?
Industrial membership of a firm was of little importance in forecasting the international correlation structure of a set of international stocks?
Denise's estate received the interest and dividends on the payment dates. What should be included in Denise's gross estate?
Maris Co. purchased a machine on January 1, 2013, for $1,200,000 for the express purpose of leasing it. The machine is expected to have a five-year life, no salvage value, and be depreciated on a straight-line monthly basis.
Prepare the companys cash budget for October in good form.
these financial statement items are for b. snyder at year-end july 31 2010. salaries payable2080 note payable
saturn issues 6.5 five-year bonds dated january 1 2011 with a 500000 par value. the bonds pay interest on june 30 and
whitlaw corporation has 150000 of gross pro?t on sales operating expenses of 60000 excluding cost recovery 4000
ash creek company is preparing its master budget for 2012. relevant data pertaining to its sales production and direct
dousmann corp.s sales slumped badly in 2014. for the first time in its history it operated at a loss. the companys
Show computations to value the ending inventory using the weighted-average cost method if 550 units remain on hand at October 31.
on february 24 amw purchased 4000 shares of kmp newly issued 6 percent cumulative 75 par preferred stock for 304000.
Gordon uses a minium desired rate of return of 12% for selecting new projets and for evaluating the three divisions using residual income (RI). The firm's weighted-average cost of capital is 8%.
Get guaranteed satisfaction & time on delivery in every assignment order you paid with us! We ensure premium quality solution document along with free turntin report!
whatsapp: +1-415-670-9521
Phone: +1-415-670-9521
Email: [email protected]
All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd