Other examples of assets include but are not in any way limited to plant and machinery, cash, goodwill etc. Distinction between Current and Long-term Assets Current assets can be defined as all those resources and cash an entity expects to either use up or turn to cash within a period of less than one year (Needles and Powers, 2010)
S. companies, the benefits of IFRS-style revenue recognition will accrue mainly to multinationals, something that harms small business growth opportunities (Hail, Leuz & Wysocki, 2010)
regulators, in particular to the Securities Exchange Commission. There is concern that IFRS has a higher variance of net income changes, higher change in cash flows and a lower negative correlation between accruals and cash flows, all of which lead to concerns in the United States about the reliability of financial statements produced under IFRS (Pologeorgis, 2013)
S. GAAP on the issue of revenue recognition, and the new system might need to simply choose one or the other, rather than attempting to integrate both (Wustermann & Kierzek, 2005)
The inherent characteristic of a principles-based framework is the potential of different interpretations for similar transactions. This situation implies second-guessing and creates uncertainty and requires extensive disclosures in the financial statements" (Forgeas, 2008)
GAAP. However, the Security and Exchange Commission is looking to switch to IFRS by 2015, the system used in the European Union and many other countries (Loque, 2013)
GAAP, effective at the reporting date, is required for a company's first U.S. GAAP financial statements" (Romeo, 2008)
). As the world embraces globalism, it is even more important to have a way to read and understand financial documents, regardless of the country or region of origin (Godfrey and Chalmers, eds
IFRS enables the accountants to make their professional evaluation of transactions in the business. IFRS prevents atomization of the accounting process, which may yield errors in the organization (Bandyopadhyay & McGee, 2012)
The company is able to formulate ways of reducing costs to increase the revenue generated. Walmart can design new product or serve customers differently to ensure that market share increases (Tyson, 2011)
The increase in operating expenses will reduce the profitability of the organization in a volatile economy. Increased operating expenses may lead to the closure of some of the outlets owned by the company (Bohusova & Nerudova, 2009)
The use of a uniform accounting standard ensures that the investor can peruse strategies such as global diversification. The funds saved from unification of accounting standards channeled into other activities will increase the revenue generated (Fosbre, Kraft & Fosbre, 2009)
S. And otherwise) may be using IFRS (Bradshaw, et al
Theories and Debates Anytime that changes are made or changes are being discussed, there will be theories created and debates started as to what will be done and why it should (or should not) be done. There are many companies that want to see the changeover to IFRS standards, and nearly an equal number of companies that want to keep the GAAP standards they are used to (Crovitz, 2008)
It came from other companies that merged and consolidated, however, because the aerospace and defense industries had been going strong in the United States for many years before that. Defense contractors were one of the strongest companies in the country beginning in the 1950s (Edwards, 1979)
companies to spend time learning how to use the IFRS system, which will require a degree of time and effort (AICPA, 2008). Currently, the IFRS system is more strongly principles based, while a more rules based approach is taken by the GAAP (Gucenme & Arsoy, 2005)
This means that it is subject to GAAP accounting standards as opposed to IFRS rules. The company was founded in 1995 (Hartung, 2010)
BAE Systems Profile/Analysis BAE systems is a British company. It deals with security, aerospace, and defense, and is considered to be multinational (Sparaco & Morrocco, 1997)
Right now, however, current discussion does not allow for a compromise. It is focused on a one-or-the-other approach in that either the GAAP standards or the IFRS will prevail (Spiceland, et al
Many companies were around before BAE and were bought up by the company over time. These included Marconi and Vickers Shipbuilding (Spiegel, 2004)