Required Reading Chapter 1 of the textbook INCLUDING the IFR

Required Reading: Chapter 1 of the textbook INCLUDING the IFRS Insights (pages 29-34) EY Introduction to IFRS (posted under Resources on Tracs) IFRS.org IFRS Adoption by country (https://www.pwc.com/us/en/cfodirect/assets/pdf/pwc-ifrs-by country-2016.pdf) Required Submission: After reading the above items, answer the following questions in complete sentences. Grammar, spelling and punctuation will be considered in grading. Your submission should be no more than TWO pages; use single spaced 12-point type. You may double space between each question. Number your answer to each question but do NOT copy the question on your assignment. This project MUST be submitted electronically as an attachment via the Assignments tab on TRACS. This assignment is due NO LATER than midnight on Wednesday, January 31, 2018. Early submissions are accepted; NO LATE assignments will be accepted for ANY reason. 1. What are IFRS? (1 pt.) 2. What does the IASB do? (1 pt.) 3. What accounting methods/versions are used by Mexico, Bolivia, Germany, Macedonia, China, and Republic of Congo? (1 pt.) 4. What are the advantages of converting to IFRS? (1 pt.) 5. Who are the key players in the U.S. regarding the development and adoption of IFRS? (1 pt.) 6. Discuss three benefits of a single set of high-quality accounting standards. (1 pt.) 7. Discuss the difference between a principles-oriented approach and a rules-oriented approach to developing financial accounting standards; which standards-setting board uses which approach? (2 pts.) 8. Give two examples of specific differences between IFRS and U.s. GAAP. (1 pt.) 9. Briefly indicate several reasons why it is important to learn about IFRS. (2 pts.)

Solution

1) IFRS is a set of accounting standards developed by an independent, not for profit organisation called the international accounting standards board.

The goal of IFRS is to be provided provide a global framework how public company prepare and disclosure thire financial statements ,IFRS provide general guidelines for preparation of financial statements, rather than settings of rule for industry specific reporting.

2) IASB responsible for developing international financial reporting standards, previously known as international accounting standards and promoting the use and application of these standards.

3) Mexico, Bolivia Germany Macedonia chain and republicof Congo IFRS use as a accounting method.

4) the convergence to IFRS has improved the comparability of financial statements in the EU.

All the company preparing thire consolidated financial statements underone reporting standards have the improve the comparability not only for investors but also stakeholders who use the financial statements.

5) the kye player are securities and exchange commission which is responsible for the supervision and regulations of the security industry and has oversight responsibility for the FASB .

6) IFRS standards has focused on the effects this would have on lager multinational companies.

These proposed changes have repercussions for small businesses as well

Small businesses can be help you better understand how these proposed changes could affect your small businesses financial reporting and your evaluation of potential investors.

7) rule based accounting is basically a listed of detailed rules that must be be followed when preparing financial statements. principal based accounting such as general accepted accounting principles is used as a conceptual basis for accountants.

8) gaap a company is allowed to use the last in first out method for inventory estimate. But IFRS LIFO methods not allowed for valuation of inventory.

A company development cost can be capitalised under IFRS . Buying case of gaap , development cost is expensesed the year they occur and not allowed to be capitalised.