FAR49 cards

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1

Objectives of IFRS Foundation

1 develop a single set of globally accepted financial reporting standards 2 promote the use and application of those standards 3 take account of the needs of a range of sizes and typesof entities in diverse economic settings

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IFRS Advisory Council

advises the IASB on priorities and views of interested organizations on major projects, as well as the benefits and costs of proposed standards

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IFRS Interpretations Committee

similar to the FASB's Emerging issues Task force, except that IRFS Interpretations Committee pronouncements are reviewed by the IASB before they are issued.

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International Federation of Accountants (IFC)

IFAC Is a global org for accounting and auditing organizations throughout the world. It is an independent org not under IFRS mbrella but does support the activities of the IFRS by encouraging high quality prractices by the world's accountants and aud

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IFRS Hirearchy

1 IFRS and implementation guidance dealing w/ specific issues or similar situations 2 Definitions, recognition criteria, and measurement concepts for A, L, income and expenses in framework 3 Pronouncements from other standard setting bodies

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How IFRS simplifies financial reporting for Small & Medium Size Entities

eliminated topics not relevant to SME Simplifies recognition and measurement Disclosures are reduced Revisions to standards are only once every 3 years

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Development of IFRS flow

project added to agenda conduct research and issue discussion paper public input issues exposure draft modify exposure draft finalize and issue to IFRS

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Three primary aspects GAAP address

Recognition Measurement Disclosure

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Regonition

when an item is recorded on the financial statements

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Measurement

how an item is recorded on the financial statements; dollar amount

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Disclosure

Many unrecognized amounts are reported in the footnotes to complete the portrayal of the firm's financial position and performance

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FASB

current standard setting body in the US (GAAP) does not have authority to enforce GAAP one objective in setting standards is to develop rules that are unbiased

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SEC

federal govt agency that administers the securities laws of the US (enforces GAAP)

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AICPA mission

provide members with resources, information, and leadership so that they may in turn provide valuable services for the benefit of their clients, employers, and the general public

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FASB mission

improve the usefulness of financial reporting maintain current accounting standards promtly address deficiencies in acctg standards promote international convergence improve the common understanding of the nature and purposes of informati

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External Financial Report Key Components

Income Statement Statement of Comprehensive Income Balance Sheet Statement of CHanges in Owners' Equity Statement of Cash Flows Footnote Disclosure and supplementary sschedules Auditor's Opinion

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FASB Accounting Standards Codification serves what purporse?

The FASB Accounting Standards Codification is the sole source of authoritative US GAAP for nongovernmental entities, except for SEC guidance

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Cash Flow: Operating Activities

cash flows related to transactions that flow through the income statment; inluding trading securities

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Cash Flow: Investing Activities

Cash flows related to the acquisition and disposal of long term assests and investments (other than trading -these are operating). Include purchase of plant assets and investments and sale proceeds from these items

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cash flow: financing activities

Cash flows related to the liabilites and owner's equity sections of the balance sheet. include issuing debt and equity securities, cash outlflows include retirement of debt and equity securities and dividend payments

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Purpose of Codification

to gather all authoritative literature into one place

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Sole Source of US GAAP

The Codification is the sole source of US GAAP other than SEC GAAP, for nongovernmental entities; all guidance carries the same level of authority


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Some items in other comprehensive income

unrealized gains and losses on invetsments in AFS certain pension cost adjustments foreign currency translation adjustments unrealized gains and losses on certain hedging activities


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Ingredients of Relevance

Predictive Value Confimatory Value

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Ingredients of Faithful Representation

Completeness Neutrality Free from material error

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Enhancing Qualitative Characteristics of Financial Information

Comparability, Verifiability, Timeliness, Understandability

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Comparability

quality of information that enables users to identify similarities and differences between sets ofinformation. IT must be both relevant and reliable

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When does realization occur in the accounting period?

1 - goods or services have been provided 2 - collectabililty of cash is assured 3 - expenses of providing goods and services can be determined


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IFRS Foundation

as legal entity of the entire organization, has the responsibility to ensure that the operations are sufficiently funded in order to ensure that the operations are sufficiently funded in order to ensure fulfillment of the standard-setting objectives

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IASB's due process procedures

1 - add the item to the working agenda 2 - discuss the issue 3 - prepare the discussion paper 4 - publish the discussion paper 5 - issue the exposure draft 6 - analyze comments to the exposure draft 7 - issue the IRFS

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What elements of the FASB Framework are not included in the IASB Framework

Investments by owners, distributions to owners, comprehensive income, gains, losses

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What are the five elements in the IASB Framwork?

Assets Liabilites Equity Income Expenses

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Income under IASB Framework

Includes both revenues and gains

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What are some of the purpsoes of the IASB framework

Assist the board to develop new IASs and promote harmonization of standards, assist, provide information to interested parties

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Staff Accounting Bulletins (SAB)

Provide the SEC's current position on technical isues

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When the SEC finds an accounting irregularity, what happens?

The SEC sends a "deficiency" letter to a registrant when an accounting irregularity is found

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What does the SEC strive to do?

Ensure that there is adequate information in the public domain before a company issues or trade securities.

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What is the purpose of the SEC?

Promote efficient allocation of capital by maintaining open, orderly and fair securities markets

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Financial Reporting Releases

main pronouncements published by the SEC






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What information does the 8-K provide?

Significant events affecting the company