This chapter provides illustrations of the tensions and conflicts between uniformity and uniqueness, using examples of concrete accounting standards and the reasoning behind them from the perspective of standard setters. It has long been known that there are several factors that contribute to the large...
American accounting standards board (FASBinterest rate swapsSummary This chapter presents illustrative examples of hedge accounting, such as cost flow hedge and foreign exchange hedge. Accountants are sometimes confused as to whether they should apply cash flow or fair value hedge accounting when they ...
Here is a brief summary of each. 1. IFRS IFRS is a set of global standards that businesses must adhere to when preparing their financial statements. They were developed by the International Accounting Standards Board (IASB). Generally, IFRS are more principles-based than GAAP. This means that...
The International Accounting Standards (IAS) defines an onerous contract as "a contract in which the unavoidable costs of meeting the obligations under the contract exceed the economic benefits expected to be received under it."1 The term "unavoidable costs" also has a specific meaning for ac...
A change in accounting principle is when a company changes its accounting policies and procedures. This can be done for various reasons, such as to meet the requirements of new regulations or to keep up with ever-changing industry standards. Occasionally, companies may decide to switch to another...
(GAAP), and the International Financial Reporting Standards (IFRS) dictate transparency, consistency and comparability. GAAP is for the United States, and IFRS is an international set of accounting standards. Both dictate the differences between accrued revenues and expenses and how to account for ...
Existing capital leases are not impacted by the change in lease standards apart from being referred to as finance leases. Operating lease accounting under ASC 842 and examples Under ASC 842, an operating lease is defined as any lease that doesnotmeet any of thefive criteria for a finance lease...
Investors generally pay a lot of attention to constant currency figures as they recognize that currency movements can mask the true financial performance of a company. Currency Translation Accounting Methods There are two main accounting standards for handling currency translation. ...
A change in accounting policy is required by a new IFRS or a change to an existing IFRS / IAS and the transitional provisions of those standards allow or require prospective application of a new accounting policy. Specific transitional guidance of IFRS must be followed in such circumstances. ...
Revenue recognition for SaaS companies depends on the pricing structure, whether customers are billed one-time, monthly or yearly. These examples can help you get it right.