scholarly journals GLOBAL DIVERSITIES IN FINANCIAL REPORTING: COMPARATIVE ANALYSIS OF INVENTORY VALUATION METHODS IN RELATION TO US GAAP AND IFRS

2018 ◽  
Author(s):  
Sandra Zajmi ◽  
◽  
Marko Paic ◽  
Keyword(s):  
Comparative Analysis ◽  
Financial Reporting ◽  
Valuation Methods ◽  
Us Gaap

A comparative analysis of the use of fair value and alternative valuation methods in IFRS

2021 ◽  
Vol 22 (9) ◽  
pp. 986-1000
Author(s):  
Viktor G. GET’MAN ◽  
Vladislav S. KARTASHOV
Keyword(s):  
Comparative Analysis ◽  
Comparative Study ◽  
Conceptual Framework ◽  
Financial Reporting ◽  
Systems Analysis ◽  
Scientific Research ◽  
Fair Value ◽  
Valuation Methods ◽  
Advantages And Disadvantages ◽  
Data Grouping

Subject. This article analyzes the various types of value used in IFRS to assess assets and liabilities. Objectives. The article aims to conduct a comparative analysis of the types of value used in IFRS when assessing assets and liabilities, and identify the features of the use of fair value as a type of value, considering the use of certain levels of fair value and restrictions on their use. Methods. For the study, we used the systems analysis, comparative study method, information structuring, data grouping, deduction, and other methods of scientific research. Results. The article summarizes the advantages and disadvantages of each of the valuation methods described in the Conceptual Framework for Financial Reporting – IFRS. It systematizes the standards that use certain types of value, and analyzes the features of the use of fair value. The article also identifies factors that affect the ability to measure a higher level of fair value. Conclusions. Fair value is one of the most used valuation methods in international accounting practices. However, the use of fair value in estimating the value of reporting items is limited due to the complexity and high cost of its qualitative valuation. This makes companies use alternative valuation methods.

On the issue of assessing the adequacy of the reserves of insurance companies with various methods for determining the loss of business

2020 ◽  
pp. 46-53
Author(s):  
Margarita Naslednikova ◽  
Alexandr Zamalov
Keyword(s):  
Comparative Analysis ◽  
Health System ◽  
Financial Reporting ◽  
Accounting Standards ◽  
Insurance Companies ◽  
Insurance Company ◽  
Reporting Standards ◽  
Loss Ratio ◽  
Qualitative Characteristic ◽  
Financial Reporting Standards

The article discusses methods for calculating the loss ratio of insurance companies, including compulsory medical insurance, which is the basis for building a health system; su’ciency of formed reserves, which are created in connection with the possibility of losses. Variants of interpretation of calculated indicators into a qualitative characteristic of the insurance company. A comparative analysis of the calculation of indicators of loss-making of insurance companies and the adequacy of the formation of reserves of insurance companies according to Russian accounting standards and in accordance with the requirements of international financial reporting standards.

scholarly journals Regulatory Arbitrage in the Intersection of Accounting Standards and Tax Laws: The Case of Synthetic Leases

2020 ◽  
Vol 0 (0) ◽  
Author(s):  
Jan Friedrich
Keyword(s):  
Financial Reporting ◽  
Balance Sheet ◽  
Accounting Standards ◽  
Regulatory Arbitrage ◽  
Regulatory Changes ◽  
Tax Laws ◽  
The Usa ◽  
Tax Benefits ◽  
Sophisticated Instrument ◽  
Us Gaap

AbstractThis paper focuses on the interplay between accounting standards and tax laws in the context of regulatory arbitrage by examining the development of synthetic leases especially in the USA. In a synthetic lease, the lease remains off balance sheet for financial reporting by the lessee, while depreciations and interest expenses can be deducted for tax purposes. Exploring the evolving structures of synthetic leases over the last 30 years, the paper demonstrates how financial engineers have been able to perpetually re-structure this sophisticated instrument to keep it off-balance sheet instrument notwithstanding regulatory changes. Specifically, it shows that the most recent revision of lease accounting standards in 2016 – that intended to mark the end of off-balance sheet leases under IFRS and US-GAAP – resulted in reviving the demand for synthetic leases as the tax benefits outweigh the structuring costs. Contributing to the debate on the shift towards international accounting convergence (including US-GAAP and IFRS), the paper argues that attempts to limit regulatory arbitrage may also consider the reciprocal linkages between accounting standards and tax laws. For instance, tax laws should be considered as a means to limit regulatory arbitrage in financial reporting.

scholarly journals Nível de convergência dos princípios contábeis brasileiros e norte-americanos às normas do IASB: uma contribuição para a adoção das IFRS por empresas brasileiras

2011 ◽  
Vol 22 (56) ◽  
pp. 155-173 ◽  
Author(s):  
Valdiney Alves Oliveira ◽  
Sirlei Lemes
Keyword(s):  
Financial Reporting ◽  
Sao Paulo ◽  
International Financial Reporting Standards ◽  
São Paulo ◽  
Reporting Standards ◽  
Financial Reporting Standards ◽  
Big Four ◽  
Us Gaap

A presente pesquisa teve como objetivo avaliar em que nível as informações contábeis divulgadas nos mercados: brasileiro e norte-americano atendem aos requisitos da adoção inicial das IFRS - International Financial Reporting Standards. A adoção das IFRS por companhias abertas brasileiras nas suas demonstrações contábeis consolidadas foi exigida pela Comissão de Valores Mobiliários (CVM) na Instrução CVM 457/07. Por meio de uma pesquisa descritiva quanto aos seus objetivos e utilizando-se dos procedimentos técnicos de pesquisa documental e de análise de conteúdo clássica, foram analisadas as demonstrações contábeis elaboradas para o ano de 2008 de acordo com os US GAAPs e os BR GAAPs de 20 empresas brasileiras listadas simultaneamente na Bolsa de Valores de Nova York (NYSE) e na Bolsa de Valores de São Paulo (BOVESPA) e calculou-se o índice de disclosure proposto na pesquisa de Lopes e Rodrigues (2007). A pesquisa apontou para índices de disclosure calculados para o Form 20F maiores do que aqueles calculados para as Demonstrações Financeiras Padrão (DFP), confirmando um nível de convergência maior entre US GAAP e IFRS e sugerindo que, em função da adoção das IFRS as demonstrações contábeis em BR GAAP tendem a se modificar substancialmente aumentando o nível de divulgação. Além disso, os resultados confirmam para a amostra, o exposto na literatura selecionada de que o setor de atuação e o tamanho da empresa influem diretamente no disclosure das informações. Em relação aos auditores, o fato de as demonstrações serem auditadas pelas empresas globais de auditoria conhecidas como Big Four não foi determinante na extensão do disclosure.

Accounting Standards and Earnings Quality — Evidence from Registered ADRs

2018 ◽  
Vol 21 (04) ◽  
pp. 1850022
Author(s):  
Yaseen S. Alhaj-Yaseen ◽  
Kean Wu ◽  
Leslie B. Fletcher
Keyword(s):  
Financial Reporting ◽  
Earnings Quality ◽  
Accounting Standards ◽  
Securities And Exchange Commission ◽  
High Quality ◽  
Reporting Standard ◽  
International Financial Reporting Standard ◽  
The Us ◽  
Us Gaap

This paper examines the changes in earnings quality of registered American Depositary Receipts (ADRs) as a result of switching accounting standards. We aim to shed light on the potential impact of International Financial Reporting Standard (IFRS) adoption on US firms. A suboptimal approach to achieve this goal is through examination of US firms’ surrogates such as ADRs. Unlike previous studies, we made a distinction between registered and unregistered ADRs and affirmed that registered ADRs are the closest surrogates with which to conduct our analysis because they are exclusively required to adhere to the Securities and Exchange Commission (SEC)’s stringent disclosure requirements. When cross-listing their equity on the US exchanges, foreign issuers can file their financial reports with the SEC using IFRS, US GAAP (generally accepted accounting principles), or their domestic GAAP with reconciliation to US GAAP. An improvement in earnings quality is documented when ADRs adopt US GAAP or IFRS versus domestic GAAP. However, when the comparison is made between US GAAP and IFRS, no difference in earnings quality is documented. These results indicate that switching to high-quality accounting standards is likely to improve earnings quality. This improvement is maximized when the difference between reporting standards is high and minimized if otherwise. Our conclusion is that the adoption of IFRS in the US is unlikely to change earnings quality of local issuers. Moreover, we drew a distinction between reconciliation with and adoption of high-quality accountings standards and find that while the former can enhance earnings quality, the latter can further improve it.

scholarly journals Accounting Profession Is Ready For International Financial Reporting Standards: Financial Statements Comparable Enough

2010 ◽  
Vol 26 (6) ◽  
Author(s):  
Dahli Gray
Keyword(s):  
Financial Reporting ◽  
Financial Statements ◽  
The Other ◽  
Matched Pairs ◽  
Accounting Firms ◽  
The Road ◽  
Financial Reporting Standards ◽  
Big 4 ◽  
And Training ◽  
Us Gaap

Comparative analysis of three matched pairs of corporations revealed that there are more similarities than differences where one used IFRS and the other used US GAAP. "mso-spacerun: yes;"Since US GAAP focuses on usefulness of information rather than uniform reporting, the use of IFRS is just another variation on a theme that has existed for decades. The Big 4 accounting firms provide guidance and training for practitioners, professors and students that ease the road to understanding.

scholarly journals Development of the common standard for revenue recording as a part of the US GAAP and IAS/IFRS systems convergence

2009 ◽  
Vol 57 (6) ◽  
pp. 29-44
Author(s):  
Hana Bohušová
Keyword(s):  
Comparative Analysis ◽  
Revenue Recognition ◽  
New Approach ◽  
Joint Project ◽  
Starting Point ◽  
Significant Difference ◽  
The Us ◽  
Limited Application ◽  
General Standard ◽  
Us Gaap

The most significant difference between US GAAP and IFRSs is in the area of general approach. IFRSs are based on basic accounting principles1 with limited application guidance, US GAAPs are based especially on rules with specific application guidance. FASB and IASB initiated their joint project on revenue recording to converge IFRS and US GAAP in this area. The main objective of this paper is comparative analysis of revenue recognition under both systems, evaluation of the most significant differences in revenue recognition and measurements as a starting point for the preparation of the new general standard for revenue recognition and the new approach to the revenue recognition development.In this paper, the current approaches to revenue recognition under both systems are compared. The most significant difference is the general approach to revenue recognition. There is the Conceptual Framework where revenue is defined, two standards on revenue recognition and interpretations concerning revenue recognition and measurement in the IAS/IFRS. On the other hand, there are many standards and guidance concerning revenue in the US GAAP. Revenue is defined in the Statements of Financial Accounting concepts (CON 5, CON 6). There is not any general standard for revenue recognition under the US GAAP. The most significant differences in revenue recognition concern the long-term contracts and deferred payments. Despite this difference, there are many similarities between both systems.Based on the results of the comparative analysis which was done in the paper, a new approach for re­ve­nue recognition based on principles for the new general standard for revenue recognition common for both systems is being developed.

scholarly journals ANALISIS PENERAPAN SISTEM PENGENDALIAN INTERN PENJUALAN KREDIT PADA PT. NUSANTARA SURYA SAKTI BENGKULU

2021 ◽  
Vol 14 (1) ◽  
Author(s):  
Indah Fitria
Keyword(s):  
Control System ◽  
Comparative Analysis ◽  
Financial Reporting ◽  
Internal Control ◽  
Research Network ◽  
Generally Accepted Accounting Principles ◽  
Know How ◽  
Accounting Principles ◽  
Internal Control System ◽  
Effectiveness And Efficiency

ABSCTARCT            This internal control system is run to provide reasonable assurance about the achievement of objectives that is, reliability of financial reporting, compliance with applicable laws and regulations, effectiveness and efficiency of operations. Therefore it is necessary to evaluate the internal control system to the sale to maintain the survival of the company and the achievement of corporate objectives The purpose of this study Knowing to know how the implementation of internal control system of credit sales at PT. Nusantara Surya Sakti Bengkulu and whether the system of internal control system of credit sales at PT. Nusantara Surya Sakti Bengkulu has fulfilled the Internal Control System based on generally accepted accounting principles (PABU)This study uses a type of comparative analysis research. This method is a presentation of data derived from the problems faced by the company, from the problems that are analyzed by using an approach based on existing theories then compare with what is realized in the object of researchThe results of research network designation procedures that form the credit sales system at PT. Nusantara Surya Sakti Bengkulu is sales order procedure, delivery procedure, billing procedure, account receipt procedure, and sales distribution procedure. In the procedure that forms the credit sales system at PT. Nusantara Surya Sakti Bengkulu is running well. Keywords: Implementation, internal control system, credit sales

Long-Lived Asset Impairments in the Shipping Industry and the Impact on Financial Statement Ratios: Comparing U.S. GAAP and IFRS Standards

2013 ◽  
Vol 3 (2) ◽  
pp. 76 ◽  
Author(s):  
James Penner ◽  
Jerry Kreuze ◽  
Sheldon Langsam
Keyword(s):  
Financial Reporting ◽  
Financial Statement ◽  
Shipping Industry ◽  
Generally Accepted Accounting Principles ◽  
Financial Reporting Standards ◽  
Asset Impairment ◽  
The Difference ◽  
Asset Impairments ◽  
The Impact ◽  
Us Gaap

In this paper, we investigate asset impairment standards particularly as they relate to differences between United States generally accepted accounting principles (US GAAP) and international financial reporting standards (IFRS) for the impairment of long-lived assets in the shipping industry and the corresponding impact on financial statement analysis ratios.  Our study provides evidence that return on assets and asset turnover ratios diverge significantly as a result of the difference between US GAAP and IFRS on asset impairments within the shipping industry.  Reporting differences between US GAAP and IFRS can impede the comparability of financial reporting.  Asset impairment accounting differences can have significant differences for companies reporting under these two accounting standards.

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