Accounting for Business Combinations: Contrasting IFRS 3 Converged IND AS 103 with AS 14

2014 ◽  
Vol 1 (2) ◽  
Author(s):  
Tanupa Chakraborty
Keyword(s):  
Financial Reporting ◽  
Business Environment ◽  
Global Business ◽  
Reporting Standard ◽  
International Financial Reporting Standard ◽  
Accounting Standard ◽  
Business Combinations ◽  
Common Control ◽  
Extensive Coverage ◽  
Compare And Contrast

Business combinations have become the most preferred route for business houses to achieve growth at a faster pace, given today’s intensely competitive global business environment. In regard to accounting for business combinations, the paper aims to compare and contrast the provisions of old Accounting Standard (AS) 14 on ‘Accounting for Amalgamations’ issued by the Institute of Chartered Accountants of India (ICAI) in 1995 with that of new International Financial Reporting Standard (IFRS) 3 converged Indian Accounting Standard (Ind AS) 103 on ‘Business Combinations’ issued by ICAI and notified as ‘standards’ by the Ministry of Corporate Affairs (MCA) in 2011. The paper showcases extensive coverage in Ind AS 103 vis-à-vis AS 14 not only in respect of accounting method, valuation of assets and liabilities, nature of consideration, measurement of non-controlling interest, treatment of goodwill / capital reserve or bargain purchase to mention a few, but also in its reference to various types of business combinations, including that of reverse acquisitions and business combinations under common control.

scholarly journals Akuntansi Aset Biologis – Studi Kasus PT. Bibit Indonesia

2021 ◽  
Vol 1 (11) ◽  
Author(s):  
Mohamad Dedi Junaedi
Keyword(s):  
Financial Reporting ◽  
International Accounting ◽  
Reporting Standard ◽  
International Financial Reporting Standard ◽  
Accounting Standard ◽  
Parent Stock ◽  
International Accounting Standard

Latar belakang: Setiap negara memiliki sistem akuntansi berbeda yang disesuaikan dengan kebutuhan negara tersebut. Untuk meningkatkan komparabilitas dan kualitas laporan keuangan secara global, International Accounting Standard Board (IASB) mengembangkan dan mengeluarkan International Financial Reporting Standard (IFRS) dengan tujuan untuk mengurangi peraturan pelaporan yang berbeda antar negara, mengurangi biaya pelaporan keuangan perusahaan multinasional dan mengurangi biaya analisis laporan keuangan. Tujuan penelitian: Untuk mengatahui menganalisis perlakuan akuntansi aset biologis perusahaan, menganalisis klasifikasi aset biologis, nilai pasar aktif dan metode penilian aset biologis berdasarkan PSAK 69. Metode penelitian: Metode penelitian ini mengunakan metode kualitatif. Objek penelitian dilakukan pada PT. Bibit Indonesia. Hasil penelitian: Hasil penelitian menjukkan perusahaan sudah melakukan perlakuan akuntansi aset biologis sesuai dengan PSAK 69. Namun, masih terdapat beberapa perbedaan dimana perusahaan tidak melalukan pengukuran kembali nilai aset biologis pada setiap akhir periode pelaporan. Pengukuran kembali nilai wajar aset biologis diproyeksikan untuk laporan keuangan tiga bulan ke depan. Kesimpulan: Klasifikasi aset biologis perusahaan terbagi atas ayam pembibit induk nenek dan telur tetas. Masih belum terdapat pasar aktif atas aset biologis perusahaan. Jika ingin mengukur nilai pasar sebagai salah satu aspek pengukuran nilai wajar aset biologis, perusahaan mengambil dari nilai penjualan Parent Stock Daily On Chick (PS DOC), penjualan dari final stock broiler dan penjualan culled/infertile egg. Penilaian aset biologis perusahaan menggunakan metode hybrid, yaitu untuk ayam yang masih dalam masa pertumbuhan nilai ayam diukur berdasarkan biaya. Metode perusahaan dalam menilai aset biologis telah mengikuti langkah-langkah yang dijelaskan PSAK 69. Selisih menggunakan metode proyeksi nilai wajar dengan aktual nilai wajar menyebabkan selisih yang cukup besar.

scholarly journals Contabilidade das Operações de Leasing: Análise de Possíveis Ocorrências de Lobbying no Processo de Emissão da IFRS 16

2017 ◽  
Vol 11 (4) ◽  
Author(s):  
António Cariano ◽  
Fábio Henrique ferreira de Albuquerque ◽  
Manuela Marcelino ◽  
Nuno Rodrigues
Keyword(s):  
Financial Reporting ◽  
Accounting Standards ◽  
International Accounting ◽  
International Accounting Standards ◽  
Reporting Standard ◽  
International Financial Reporting Standard ◽  
Accounting Standard ◽  
Comment Letters ◽  
International Accounting Standard ◽  
International Accounting Standards Board

Objetivo: O estudo pretende analisar a potencial existência de lobbying no processo de substituição da International Accounting Standard (IAS) 17 pela International Financial Reporting Standard (IFRS) 16, emitidas pelo International Accounting Standards Board (IASB) e relativas às locações. Método: Foram recolhidas 641 comment letters submetidas à consulta pública no âmbito do Exposure Draft revisto (2013). O estudo adota a análise de conteúdo como método, sendo os dados posteriormente submetidos a técnicas de análise estatística univariada e bivariada. Resultados: Os resultados sugerem a existência de lobbying a partir da constatação de divergências significativas entre entidades financeiras e não financeiras no que diz respeito às questões principais da norma, relacionadas com o reconhecimento e com o modelo único de contabilização das locações. Contribuições: Aferir a existência de diferenças significativas de opinião indiciadoras de lobbying no âmbito de um projeto de substituição de norma promovido pelo Iasb e, em função dos distintos interesses envolvidos (lobbies), constitui, assim, o principal contributo da presente investigação.

scholarly journals A research about adoption of international financial reporting standard on G20 countries

2016 ◽  
Vol 13 (3) ◽  
pp. 6185
Author(s):  
Murat Serçemeli
Keyword(s):  
Saudi Arabia ◽  
Financial Reporting ◽  
National Level ◽  
Current Situation ◽  
Current Status ◽  
Reporting Standard ◽  
International Financial Reporting Standard ◽  
Accounting Standard ◽  
Reporting Systems ◽  
Single Standard

The existence of particular accounting and reporting systems for companies operating in different countries creates a difficulty in making comparisons among these companies. One of the most important attempts to fix this problem is the enforcement of IFRS as a single standard in all countries. The aim of this research is to identify the current situation of G20 countries regarding the adoption of IFRS as a global standard. To this end, the current status of IFRS and the process of its adoption in G20 countries is examined in order to determine the extent of IFRS’s adoption as a global accounting standard. For this purpose, certain criteria are determined by analyzing the reports prepared by IASB on the IFRS applications in 143 countries and then content analysis of the country reports of the G20 countries are provided based on these criteria.According to the findings of the study, although it is possible to observe that all G20 countries except USA accept IFRS as the global accounting standard, this does not lead to the adoption of IFRS at the national level. Most G20 countries either adopted IFRS or making preparations for its adoption. However, the facts that IFRS is not applied in the world’s two biggest economies, USA and China, as well as in Indonesia and India and its only partial application in Saudi Arabia and its status of optional application in Japan are striking. As a result it is possible to claim that even though IFRS has expanded largely, there is still room for progress to become the single global accounting language. Current literature on IFRS usually focuses on single countries or comparisons of few countries. This study will provide a contribution to the field by presenting the current situation in the entire G20 countries.

scholarly journals The Accounting Conservatism of the Adoption of IFRS in Indonesia

2018 ◽  
Vol 3 (4) ◽  
pp. 93-104
Author(s):  
Juniarti Juniarti ◽  
Devi Tirta Raharjo ◽  
Regina Monica
Keyword(s):  
Financial Reporting ◽  
Stock Exchange ◽  
Least Square Method ◽  
Jel Classification ◽  
Accounting Conservatism ◽  
Least Square ◽  
Reporting Standard ◽  
International Financial Reporting Standard ◽  
Accounting Standard ◽  
Industrial Sectors

Objective - The Indonesian Accounting Standard Authority has required companies to adopt the International Financial Reporting Standard (IFRS) since its adoption in 2012. The new standard emphasizes relevance, while the previous standard focused on conservative issues. While the IFRS does not specifically aim to reduce conservatism, this aspect is no longer the emphasis of the new standard. There are concerns about whether the IFRS reduces conservatism and the research on this issue are still uncertain. Hence, this study aims to determine the level of conservatism in the period following the adoption of the IFRS. The study also aims to examine the outcome of the adoption of the IFRS since its adoption in Indonesia in 2012. Methodology/Technique - Using the accounting conservatism model developed by Basu (1997), the authors compare firm conservatism before and after the adoption of the IFRS. The sample includes companies listed on the Indonesian Stock Exchange between 2006 and 2016. There are 3.742 firm-years that consist of 394 companies from various industrial sectors. The data is analyzed using a Pooled Least Square method. Findings - The results show that conservatism was high prior to the adoption of the IFRS. Further, accounting earnings are more sensitive to the negative return than to the positive return before the adoption of the IFRS. However, in the post-adoption period, sensitivity to negative return has decreased. This means that the adoption of the IFRS has reduced levels of conservatism. The Indonesian Accounting Standard Authority may rely on these results to evaluate the mandatory policy of IFRS. Novelty - This study explores the prevalence of conservatism within firms prior to, and following, the adoption of the IFRS using longitudinal data. Type of Paper Empirical Keywords: Conservatism; Earning Quality; IFRS Adoption; Indonesia; Pre and Post-adoption. JEL Classification: M41, M48.

scholarly journals International Financial Reporting standard for Small and Medium-sized entities

2012 ◽  
Vol 5 (1) ◽  
pp. 54
Author(s):  
Z Koppeschaar
Keyword(s):  
South African ◽  
Financial Reporting ◽  
Financial Statements ◽  
Financial Accounting ◽  
International Accounting Standards ◽  
Small Companies ◽  
Small Company ◽  
Reporting Standard ◽  
International Financial Reporting Standard ◽  
Accounting Standard

<p>The International Financial Reporting Standard for Small and Medium-sized entities (IFRS for SMEs) was published as a standard by the International Accounting Standards Board (IASB) during July 2009. During 2007 South Africa became one of the first countries and the first country in Africa to early accept the proposed accounting standard (exposure draft of an IFRS for SMEs). The accounting standard will probably also be accepted by numerous other countries. The aim of this article is to investigate the applicability of this accounting standard. The results indicated that the IFRS for SMEs remains too comprehensive for the majority of small companies. The IFRS for SMEs does not satisfy the needs of South African users of small company financial statements, and as a result the accounting requirements should be simplified.</p><p><strong>KEYWORDS:</strong> Financial accounting; Financial reporting requirements; IFRS for SMEs; Small companies; Users of financial statements; Small company financial statements.</p>

scholarly journals The genesis of the “goodwill” concept in financial and managerial accounting

2018 ◽  
pp. 74-83
Author(s):  
Yuliia Sudyn
Keyword(s):  
Financial Reporting ◽  
Research Literature ◽  
National Standards ◽  
Managerial Accounting ◽  
Reporting Standard ◽  
International Financial Reporting Standard ◽  
Business Combinations ◽  
Significant Difference ◽  
Economic Nature ◽  
Conceptual Foundations

The paper provides an analysis of the evolution of the “goodwill” concept from 1982 up to now on the basis of definitions found in foreign and national literature. The study focuses on conceptual foundations for accounting goodwill at an enterprise. Within the study the following general and special research methods for describing economic phenomena and processes are applied: historical and logical – to identify evolutionary approaches to defining the concept of “goodwill”; generalization, grouping and comparison – to study the essence of economic concepts and reinforce their definitions; analysis, synthesis, induction and deduction – to describe the main features of goodwill which reflect the economic nature of the concept. Based on foreign and national research literature, a review of definitions for the concept of “goodwill” is presented in the chronological order. In the article, a reinforced definition is formulated, which is tailored to the current environment of doing business and requesting for information. The evolution of conceptual foundations for accounting goodwill which complies with international and national standards is described. The structure of goodwill is graphically de- picted in accordance with International Financial Reporting Standard 3 Business Combinations. It is found that goodwill at an enterprise is not always economically justified and does not indicate the existence of non-economic amenities. A significant difference is found between the interpretation of the concept of “goodwill” in accounting and economic interdisciplinary aspects. Speculative reasons for the positive variance in the implementation of integration agreements are described, which confirm the discrepancy between economic and accounting definitions of goodwill. It is pointed out that there is a need for the convergence of existing approaches in order to unify the conceptual foundations of goodwill as an accounting concept. It is proposed to record the internal goodwill on accounts as an economic embodiment of non-economic amenities that the enterprise owns.

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