where did the time go?
International Financial Reporting Standards
What does IFRS stand for?
The agency that created GAAP
Who is the SEC?
it places investment/rental properties in a different category than PP&E
how does the IFRS Balance Sheet differ from GAAP?
The EU, many Asian and South American countries
who uses IFRS?
International Accounting Standards Board
what is the name of the body that makes the IFRS?
operations, debt service, tax service, residual profit
What are the major components of an income statement?
The agency responsible for updating the IFRS
What is the International Accounting Standards Board? (IASB)
it requires two periods
how many periods are required in an IFRS income statement?
it requires that all research and development costs be expensed
How does GAAP treat research and development costs?
Verbal support, but no active action
diversification
what is one way to reduce risk in equity investments?
The city headquartering the IFRS
What is London?
It presents current assets before non-current assets
what makes the GAAP balance sheet different from an IFRS balance sheet?
does not provide any specific guidance regarding software
how does GAAP treat certain intangible assets?
diversification/risk reduction in investing and the globalization of business
what are two reasons the IFRS is important in the US?
it is not forward looking, does not account for human capital or goodwill
What are the reasons a balance sheet can be misleading?
144 Countries
How many countries use IFRS?
it requires that the interest expense, the interest income, and the dividend income be accounted for in the operating activities section and dividends paid be reported in the financing section
what makes the GAAP cash flow statement different from the IFRS cash flow statement?
it does not require that living animals/plants be included in the PP&E until they can be harvested
how does the IFRS treat biological assets?
Foreign Private Issuers
What kind of businesses are allowed to use IFRS principles in their SEC filings?
reduction in equity
How is a net loss on an income statement reflected on a balance sheet?
The International Accounting Standards Committee
Who preceded the International Accounting Standards Board?
they are shown below the net income
how does GAAP treat extraordinary items/expenses in the income statement?
allows the First In, First Out inventory method
Securities Act
What document gives the SEC the power to recognize GAAP and the FASB?