Term
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Definition
Under IFRS, entities are directed to refer to and consider the applicability of the concepts in the Framework when developing accounting policies in the absence of a standard or interpretation that specifically applies to an item.
Under U.S. GAAP, the Conceptual Framework cannot be applied to specific accounting issues. |
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Term
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Definition
The IASB Framework states that there are three constraints: 1) timeliness, 2) balance between benefit and cost, and 3) balance between the qualitative characteristics. Under the IASB framework, materiality is a component of relevance.
U.S. GAAP has two constraints: 1) costs and benefits, and 2) materiality. |
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Term
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Definition
| The IASB does not seperately consider business and nonbusiness enterprises, but instead provides one framework that applies to all entities. |
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Term
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Definition
| The IASB Framework does not consider the use of cash flow information and present value in accounting measurements. |
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Term
| FASB conceptual framework states that the objective of financial reporting are based on: |
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Definition
| the informational needs of the external users. |
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Term
| 3 ingredients of relevance: |
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Definition
1) Predictive value
2)Feedback value
3) Timeliness |
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Term
| 3 ingredients of reliability: |
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Definition
1) Verifiability
2) Neutrality
3) Representational faithfulness |
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Term
| According to FASB conceptual framework, theprocess of reporting an item in the financial statements of an entity is: |
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Definition
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Term
| What are the FASB statements of financial accounting concepts intended to establish? |
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Definition
| The objectives and concepts for use in developing standards of financial accounting and reporting. |
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Term
| The secondary qualities of relevance and reliability are: |
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Definition
| Comparability and consistency |
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Term
| FASB statement of financial accounting concepts number 7, 5 elements of present value: |
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Definition
U the price for bearing Uncertainty
V expectations about timing Variations of future cash flow
O Other factors
T Time value of money
E Estimate of future cash flow
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Term
| The monetary unit assumption: |
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Definition
| money is the common denominatorfor economic activity and provides an appropriate basis for accounting measurement and analysis |
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Term
| What is the most authoritative source of U.S. GAAP? |
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Definition
| FASB accounting standards codification |
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Term
| Presentation order of the major components of an income and retained earnings statement, IDEA: |
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Definition
I Income (or loss) from continuing operations
D income (or loss) from Discontinued operations
E Extraordinary items
A cumulative effect of change in Accounting principle (retained earnings) |
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Term
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Definition
IFRS requies individual assets and liabilities to be measured before a component can be classified as held-for-sale.
U.S. GAAP does not require remeasurement of individual assets and liabilities. |
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Term
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Definition
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Term
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Definition
| theft by a forgeign government |
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Term
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Definition
| IFRS prohibits the reporting of any amount as extraordinary on the income statement or in the notes to the financial statements. |
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Term
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Definition
| IFRS does not include the concept of change in accounting entity. |
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Term
| A change from the cash basis to the accrual basis during the year should be reported as: |
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Definition
| Prior period adjustment resulting from the correction of an error. |
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Term
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Definition
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Term
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Definition
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Term
| "Held for sale" criteria: |
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Definition
1) Mgmt commits to a plan to sell the component.
2) The component is available for immediate sale in its present condition.
3) An active program to locate a buyer has been initiated.
4) The sale of the component is probable and expected to be completed within one year.
5) The sale of component is being actively marketed.
6) It is unlikely that significiant change to the plan to sell will be made or that plan will be withdrawn. |
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Term
| A liability recognition is only recognized when all of the following criteria are met: |
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Definition
1) An obligating event has occured.
2) The event results in a present obligation to transfer assets or provide services in the future.
3) The entity has little or no discretion to avoid the future transfer of assets or providing of services. |
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Term
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Definition
| Under IFRS, when an entity records a change in acct principle, the entity must present 3 balance sheet (end of CP, end of PP, beg of PP) and two of each other FS (CP and PP). The cumulative effect adjustment is shown as an adjustment to beginning RE and the balance sheet at the beginning of the PP (prior period). |
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Term
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Definition
| Under IFRS, comprehensive income may be reported using the single-statement approach or the two-statement approach. IFRS prohibits the presentation of comprehensive income in the statement of changes in equity. |
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Term
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Definition
Pension adjustments
Unrealized gains and losses (AFS securities)
Foreign currency items
Effective portion cash flow hedges
Revaluation surplus (IFRS only) |
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Term
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Definition
| IFRS requires an explict and unreserved statement of compliance with IFRS in the notes to the financial statements. U.S. GAAP does not have a similar requirement. |
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Term
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Definition
| IFRS requires disclosure of judgements and estimates that management has made in the process of applying accounting policies and that have a significant effect on the FS. U.S. GAA requires disclosure of significant estimates, but does not require the disclosure of judgements. |
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Term
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Definition
| IFRS requires disclosure of key mgmt compensation agreements, U.S. GAAP does not. |
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Term
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Definition
| IFRS allows the effective tax rate to be estimated using enacted or substantially enacted changes in tax rates. U.S. GAAP allows the use of enacted tax rates only. |
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Term
| Interim financials emphasize: |
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Definition
| timeliness over reliability |
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Term
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Definition
IFRS requires the disclosure of segment liabilities if such a measure is regularly provided to the cheif decision maker.
U.S. GAAP does not require the disclosure of segment liabilities. |
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Term
| Disclosure questions in general: |
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Definition
| If you are unsure, disclose the most rather than the least. |
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Term
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Definition
1) Reported revenue (internal and external)
2) Reported profit/loss
3) Assets |
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Term
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Definition
| IFRS has not standardized fair value measurements and disclosure. FV is addressed on a topic by topic basis within the IFRS standards. |
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Term
| A change in valuation technique used to measure fair value is the same as: |
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Definition
| a change in accounting estimate. |
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Term
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Definition
Level 1) identifiable and active market.
Level 2) 'Similar and active' market or 'identical and not active' market. Both level 1 and 2 are observable.
Level 3) Mgmt's assumptions based on unobservable inputs. |
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Term
| The date of transition to IFRS is: |
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Definition
| the opening balance sheet date, which would be the date of the beginning of the prior period. |
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Term
| Where do adjustments go for first time adoption of IFRS? |
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Definition
| Directly to retained earnings or if appropriate, another category of equity at the date of transition to IFRS. |
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Term
| Balance sheet is synonomous with: |
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Definition
| statement of financial position. |
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Term
| Opening IFRS financial statements: |
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Definition
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Term
| SEC requirements for annual FS: |
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Definition
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Term
| The effective income tax rate is determined by the following factors: |
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Definition
| Foreign tax rates, anticipated tax credits, capital gain rates, foreign tax credits, and available tax planning alternatives. |
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Term
| Extra disclosure requirements for development stage enterprises: |
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Definition
| present FS in accordance with GAAP and make additional disclosures such as: cumulative net losses, cumulative deficit (as part of equity), cumulative sales and expenses, cumulative statement of cash flows and supplementary "shareholder's equity." |
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