Making the Right Comparisons: Novartis AG

2007 ◽  
Vol 22 (4) ◽  
pp. 721-733 ◽  
Author(s):  
Elaine Henry ◽  
Ya-Wen Yang
Keyword(s):  
Financial Performance ◽  
Financial Reporting ◽  
Financial Statements ◽  
International Financial Reporting Standards ◽  
Reporting Standards ◽  
Generally Accepted Accounting Principles ◽  
Financial Reporting Standards ◽  
Accounting Principles ◽  
The Right ◽  
Analytical Skill

This case introduces the concept of convergence between International Financial Reporting Standards (IFRS) and U.S. Generally Accepted Accounting Principles (GAAP). The scenario involves a securities analyst's evaluation of Novartis AG's financial performance under IFRS and U.S. GAAP, and provides an opportunity to examine the issues giving rise to differences under the two sets of standards. Based on the company's 20-F disclosure, the case uses the reconciliation footnotes to recast the company's IFRS financial statements to U.S. GAAP. The analytical skill of adjusting financial statements is useful beyond the IFRS-to-U.S. GAAP context.

scholarly journals Case Study: Differences Between US And International Financial Statements

2011 ◽  
Vol 7 (5) ◽  
pp. 101-102
Author(s):  
Dolores Rinke
Keyword(s):  
Financial Reporting ◽  
Financial Statements ◽  
International Financial Reporting Standards ◽  
Reporting Standards ◽  
Generally Accepted Accounting Principles ◽  
Financial Reporting Standards ◽  
Accounting Principles ◽  
Us Gaap

This case examines the differences in format and terminology in financial statements between US Generally Accepted Accounting Principles (GAAP) and International Financial Reporting Standards (IFRS). Students download the financial statements of two different companies in the same industry; i.e., Nokia (reporting under IFRS) and Motorola (reporting under US GAAP). Questions related to the differences in format and terminology are addressed.

scholarly journals Continued Impact of International Financial Reporting Standards on U.S. Generally Accepted Accounting Principles

2020 ◽  
pp. 1-12
Author(s):  
Sylwia Gornik-Tomaszewski ◽  
Victoria Shoaf
Keyword(s):  
Financial Reporting ◽  
Accounting Standards ◽  
Fair Value ◽  
International Financial Reporting Standards ◽  
Reporting Standards ◽  
Generally Accepted Accounting Principles ◽  
Financial Reporting Standards ◽  
Accounting Principles ◽  
Value Measurement ◽  
The Impact

The milestone outcomes of over a decade of close cooperation between the Financial Accounting Standards Board (FASB) and the International Accounting Standards Board (IASB) on the convergence of U.S. Generally Accepted Accounting Principles (U.S. GAAP) and International Financial Reporting Standards (IFRS) have been highly publicized in the professional media. Great attention has been paid to such joint FASB and IASB projects as accounting for business combinations, fair value measurement, and revenue recognition. The impact of U.S. GAAP on IFRS has also been discussed and highlighted in many professional and academic resources. It should come as no surprise since FASB is considered a world leader in creating high-quality standards through an exemplary standard-setting process. In this paper, we look at the least noticed outcome of the convergence process: the impact of IFRS on U.S. GAAP. We reviewed all of the Accounting Standards Updates (ASUs) to the FASB Accounting Standards Codification®, from the first issued in June 2009 to 2016, and listed instances where U.S. GAAP was significantly modified to reflect international solutions. These examples of U.S. GAAP modifications indicate that the impact of IFRS on U.S. GAAP continued well after the bilateral cooperation between FASB and IASB effectively ended in 2014. Furthermore, look at the most recent FASB pronouncement let us conclude that the FASB continues to be engaged in seeking comparable global accounting solutions.

scholarly journals De toekomst van IFRS in Europa: gaat de bom vallen?

2015 ◽  
Vol 89 (4) ◽  
pp. 120-121
Author(s):  
Ralph ter Hoeven
Keyword(s):  
Financial Reporting ◽  
Accounting Standards ◽  
International Financial Reporting Standards ◽  
International Accounting ◽  
International Accounting Standards ◽  
Reporting Standards ◽  
Generally Accepted Accounting Principles ◽  
Financial Reporting Standards ◽  
Accounting Principles ◽  
Jaar Geleden

Het is inmiddels 20 jaar geleden dat de Europese Unie een beslissende keuze maakte in het ontwikkelen van een eigen GAAP (Generally Accepted Accounting Principles; dus stelsel van accountingregels). De keuze luidde: no, non, nein, não, nej, nee: er zou geen eigen EUGAAP worden ontwikkeld. Wel werd er voorzichtig gewezen op de toenmalige International Accounting Standards (IAS); inmiddels omgedoopt tot International Financial Reporting Standards (IFRS). Kortom Lidstaten werden vrijgelaten in de keuze van een GAAP voor beursgenoteerde ondernemingen en een beetje aangemoedigd om daarbij aan IAS te denken. Vijf jaar later, rond de millenniumwisseling dus, volgde er een update van de Europese accountingstrategie waarin niet geheel verrassend werd geconstateerd dat jaarrekeningen op de EU-kapitaalmarkt niet vergelijkbaar waren.

scholarly journals Wereldstandaard financiële verslaggeving: IFRS of US GAAP?

2002 ◽  
Vol 76 (12) ◽  
pp. 565-573
Author(s):  
Ruud Vergoossen ◽  
Frans Van Der Wel
Keyword(s):  
United States ◽  
Financial Reporting ◽  
International Financial Reporting Standards ◽  
Reporting Standards ◽  
Generally Accepted Accounting Principles ◽  
Financial Reporting Standards ◽  
Accounting Principles ◽  
Verenigde Staten ◽  
Us Gaap

De roep om een wereldstandaard voor de financiële verslaggeving is groot. De Europese Unie heeft gekozen voor de International Financial Reporting Standards (IFRS) die in 2005 worden ingevoerd, terwijl de Verenigde Staten blijven vasthouden aan de United States Generally Accepted Accounting Principles (US GAAP). Dit artikel gaat in op de implementatie van de IFRS in de Europese Unie en de obstakels die een consistente interpretatie en toepassing van de IFRS in de weg kunnen staan. Daarna worden de IFRS vergeleken met de US GAAP en komt de positie van de IFRS in de Verenigde Staten aan de orde. In een korte slotbeschouwing wordt een drietal scenario’s geschetst om te komen tot een wereldstandaard. Het scenario waarbij de IFRS en de US GAAP naar elkaar toegroeien, lijkt, gegeven de omstandigheden, het meest realistisch en wenselijk (convergentiestrategie).

scholarly journals Estudio de las pequeñas empresas de Cúcuta sobre la convergencia a las normas internacionales de información financiera para PYMES

Respuestas ◽  
2014 ◽  
Vol 19 (2) ◽  
pp. 6-14 ◽  
Author(s):  
Yurley Katherine Criado-Alzate ◽  
Anny Consuelo Rangel-Castilla ◽  
Eduardo Solano-Becerra
Keyword(s):  
Financial Reporting ◽  
Small Businesses ◽  
Financial Statements ◽  
Community Services ◽  
International Financial Reporting Standards ◽  
Reporting Standards ◽  
Economic Sectors ◽  
Generally Accepted Accounting Principles ◽  
Financial Reporting Standards ◽  
Accounting Convergence

Antecedentes: La convergencia a las NIIF para PYMES, es un paso para internacionalizar la economía regional, ya que dichos estándares son aplicados en una gran cantidad de países y su objetivo es generar información financiera de alta calidad y comparable a través del tiempo del mismo ente y con las demás empresas que conforman los diferentes sectores económicos. Objetivo: Con la investigación se busca realizar un diagnóstico de las Pequeñas empresas de actividades Inmobiliarias, Servicios Comunitarios, Educación y Empresariales sobre las condiciones en que se encuentran para afrontar el proceso de convergencia voluntaria a las Normas Internacionales de Información Financiera (NIIF) para PYMES a su vez determinar la aceptación de iniciar un proceso de acompañamiento en la etapa de transición y seguimiento año 2013. Métodos: La metodología utilizada consiste en un modelo de encuesta estructurada aplicada a los contadores y administradores de las pequeñas empresas que se encuentren registradas y vigentes en la Cámara de Comercio de Cúcuta y seguidamente vigiladas o inspeccionadas por la Superintendencia de Sociedades Regional Cúcuta. Resultados: Los resultados reflejan el conocimiento que tienen los encargados del área contable y financiera sobre las NIIF para PYMES y la falta de claridad que tienen sobre algunos aspectos relacionados con los estados financieros que definen la etapa de transición y cual es procedimiento a seguir para converger de principios de contabilidad generalmente aceptados a Norma Internacional de información financiera para PYMES. Conclusión: Las Pequeñas empresas de los Sectores económicos aún no han iniciado un proceso de convergencia voluntaria a las NIIF para PYMES, hasta el momento solo se tiene claridad de la existencia de la Norma y las posibles implicaciones en el área contable y financiera, así mismo se manifiesta la falta de preparación del personal directamente involucrado el proceso.Palabras clave: Contabilidad, Convergencia, Estudio, NIIF, Normatividad, PYMES. Abstract Background: The convergence to the NIIF for SMES is a step to internationalize the regional economy, since the above mentioned standards are applied in a great quantity of countries and his aim is to generate financial information of high quality and comparably across the time of the same entity and with other companies that shape the different economic sectors. Objective: With research seeks to make a diagnosis of Real Estate Small business activities, Community Services, Education and Business on the conditions in which they are to meet the voluntary process to International Financial Reporting Standards (IFRS) convergence for SMEs in turn determine the acceptance of initiating a process of accompaniment in transition and tracking 2013. Methods: the methodology is a structured survey model applied to the accountants and managers of small businesses that are registered and current at the Chamber of Commerce of Cúcuta and then monitored or inspected by the Superintendence of Cúcuta Regional Societies. Results: The results reflect their knowledge keepers accounting and financial area on IFRS for SMEs and the lack of clarity they have on some aspects of the financial statements that define the transition and what procedure to follow to converge of generally accepted accounting principles to International financial Reporting Standards for SMEs. Conclusion: The Small businesses of economic sectors have not yet started a process of voluntary IFRS for SMEs convergence, so far only one has clarity of the existence of the Standard and the possible implications for the accounting and financial area, also unpreparedness of staff directly involved process manifests.Keywords: Accounting, Convergence, IFRS, Study, Normativity, SMEs.

scholarly journals An assessment of the challenges of adopting and implementing IFRSS for SMEs in South Africa

2016 ◽  
Vol 14 (2) ◽  
pp. 212-221 ◽  
Author(s):  
Sikhwari Rudzani ◽  
Manda David Charles
Keyword(s):  
South Africa ◽  
Financial Performance ◽  
Financial Reporting ◽  
Financial Statements ◽  
Limpopo Province ◽  
International Financial Reporting Standards ◽  
Reporting Standards ◽  
Accounting Profession ◽  
Financial Reporting Standards ◽  
Vhembe District

The purpose of this study is to assess the challenges faced by small and medium sized enterprises (SMEs) in adopting and implementing International Financial Reporting Standards (IFRS) for SMEs in South Africa. There is a perception that, although SMEs are required to use IFRS for SMEs in South Africa, many of these entities are finding it difficult to adopt or implement the IFRS for various reasons including lack of the necessary expertise. The objective of the study is to establish, empirically, the reasons and, subsequently, to determine the attributing causes of the problem, if that was the case. The study is based on a sample of randomly selected number of SMEs in Vhembe district, Thohoyandou, Limpopo province, South Africa. The study findings show that many SMEs in Vhembe District (67%) have adopted IFRS for SMEs in various forms and degree, but, generally, SMEs still find challenges in implementation due to lack of resources. For compliance purposes, however, even those SMEs which have not substantially implemented the IFRS for SMEs are expected to prepare their financial statements by referring to the guidelines. Consequently, this raises a problem when comparing financial performance of various SMEs whose financial statements are prepared using different approaches. The study findings serve as a reminder to the accounting profession about the challenges that SMEs face when they attempt to adopt IFRS for SMEs

Uncertain Tax Positions: Reconciling the Existing Guidance

2009 ◽  
Vol 7 (1) ◽  
pp. 121-132
Author(s):  
Steve L. Gill ◽  
Damon M. Fleming ◽  
G. E. Whittenburg
Keyword(s):  
Financial Reporting ◽  
International Financial Reporting Standards ◽  
Reporting Standards ◽  
Generally Accepted Accounting Principles ◽  
Financial Reporting Standards ◽  
Disclosure Requirements ◽  
Accounting Principles ◽  
Specific Item

ABSTRACT: Multiple revisions in recent years to IRC §6694, IRC §6662, U.S. Generally Accepted Accounting Principles (GAAP), and International Financial Reporting Standards (IFRS) have created conflicting recognition and disclosure requirements for uncertain tax positions. This paper reviews the existing recognition thresholds under these various standards—“reasonable basis,” “substantial authority,” and “more-likely-than-not”—and discusses scenarios in which the standards may cause reporting conflicts between tax and financial reporting. This paper also reviews the extant disclosure guidance for uncertain tax positions included in tax and financial reporting, with a particular emphasis on the newly issued proposed IRS regulations regarding general and specific-item disclosures for tax return preparers.

Composition and characteristics of the financial statements elements in accordance with IFRS

2020 ◽  
pp. 36-42
Author(s):  
Mohammad Tariq Jassim
Keyword(s):  
Financial Reporting ◽  
Financial Statements ◽  
International Financial Reporting Standards ◽  
International Accounting ◽  
Reporting Standards ◽  
Financial Reporting Standards ◽  
Current Trends ◽  
Similarities And Differences ◽  
Qualitative Characteristics

In a market economy, the role of International Financial Reporting Standards is increasing. In order to understand their significance in modern conditions it seems necessary to consider the peculiarities of evolution of IFRS formation. The article reflects actual issues concerning the role and significance of International Accounting and Reporting Standards in modern conditions. The author has defined the necessity of applying International Accounting and Reporting Standards by Russian companies. The article highlights the main elements and users of financial statements prepared on the basis of IFRS, and analyzes the similarities and differences that exist in the formation of financial statements, based on the requirements of IFRS and RAS. The main qualitative characteristics of financial statements are considered in detail. Based on the results of the research, the author has identified current trends in the transition to international financial reporting standards.

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