They define HRA as "the measurement and reporting of the cost and value of people in organizational resources." Thus the concept of HRA can be basically examined from two dimensions (Vyas, N
GAAP Convergence and IFRS: What you Need to Know about the IASB and FASB's Joint Projects." (2013, June)
Since they have different approaches, the two accounting methods for customer loyalty programs can result in significantly varying accounting. Conceptual Approach: As previously mentioned, IFRS and GAAP differ in their conceptual approaches where the former is principles-based while the latter is rules-based (Forgeas, 2008)
1 and 0.7% of yearly revenue to transit from GAAP to the global accounting rules (Johnson, 2009)
Due to these arguments and concerns, financial executives within the country and around the world wonder if the United States will ever become a complete IFRS convert. Actually, some financial executives and managers have stated that IFRS adoption faces some resistance at the Securities and Exchange Commission (Quinn, n
This will in turn enable investors from across the globe to invest in the best financial instruments anywhere in the world other than their own country or region. As companies in various countries adopt these accounting rules, there have been recent initiatives to educate people about them including professionals, students, and investors (Smith, 2009)
A.: Since January 1, 2011, International Financial Reporting Standards (IFRS) has been the required framework for most of the financial markets across the globe (Stahlin, Harris, Arnold & Kinkela, 2013)
Notably, these opponents do not necessarily propose the rejection of a global accounting standard that serves as a universal financial language regardless of the validity of their argument. In addition, the removal of differing accounting systems through IFRS adoption may exert pressure on countries where strict financial reporting standards have been lacking (Subler, 2012)
However, the United States Securities and Exchange Commission is yet to determine whether to convert or converge with International Financial Reporting Standards. Actually, SEC announced that it would make the final decision in 2011, which implies that the earliest year that IFRS would be implemented through conversion would be 2015 (Wright & Hobbs, 2010, p
IFRS Generally Accepted Accounting Practices (GAAP) refers to the set of guidelines and the resulting framework used to standardize accounting practices in the United States. The purpose of the GAAP is to assure that third parties who wish to view the financial information of a certain business entity can understand them in a manner that is free from bias or inconsistencies (Colson, 2005)
At present, about 100 countries are on the IFRS and only two are still using the U.S. GAAP (Epstein & Jermakowicz, 2008)
At present, about 100 countries are on the IFRS and only two are still using the U.S. GAAP (Epstein & Jermakowicz, 2008)
Aside from functional changes, such as these, the philosophical basis for the statements will differ as well. Managers will have greater discretion under the IFRS in terms of where they wish to place certain elements of their operation (McLaughlin, 2009)
The GAAP is the standard in the United States. However, other countries have their own set of standards, which might have degrees of similarity or be quite different from the GAAP (Wells, 2010)
Globalization has meant the need to create a set of International standards that will allow the same degree of consistency and lack of bias that the GAAP has provided for the United States. In 1989, the International Financial Reporting Standards (IFRS) were developed to help fulfill this role (West, 2008)
Profit maximization, as indicated by the profit maximizing price function, is also derived from variables besides the effective marginal tax rates in both parent and subsidiary countries. These variables include the level of ownership in the subsidiary, the dividend payout ratio of the subsidiary and the tariff on the goods transferred (Fowler, 1978)
A well-known way intra-group trading leads to improved profitability is tax avoidance. Since each country has a different tax rate, multinational companies can increase their profits by lowering prices in countries where tax rates are high and raising them in countries with a lower tax rate (Singh, 2007)
By following the principle of GAAS, the independent auditing firm has provided expert opinion by maintaining that the financial statement of the company presents fairly consolidated financial position of Apple. (Annual Report, 2010)
By following the principle of GAAS, the independent auditing firm has provided expert opinion by maintaining that the financial statement of the company presents fairly consolidated financial position of Apple. (Annual Report, 2010)
With difficulties facing organizations in the analysis and interpretation of financial statement across nations, the investors, business organizations, and regulators are now realizing the importance of common international accounting standard in the financial reporting chain. (Chakrabarty, 2011)