F1

FASB

• FASB
• Emerging Issues Task Force
• Derivative Implement Group Issues
• Accounting Principles Board Opinions
• Accounting Research Opinions
• Accounting Interpretation
• AICPA

IASB

• Cost Benefit
• Materiality

• Cost Benefit
• Timeliness
• Balance between qualitative characteristics

• Revelance-Pass Feels Terrific
• Predictive Value
• Feedback Value
• Timeliness

• Reliability
• Nobody Belies on Financials unless Verfied

• Neutrality
• Represenation Faithfulness
• Verfiabilty

• Comparabilty
• Consistency

Income from Continuing Operations(Gross)

Income from Discontinued Operations(Net)

Extraordinary Items(Net)

Acumulative Effect of Change in Accounting Principles(Net)

• Impairment Loss
• Gain/Loss from Actual Operations
• Gain/Loss on Disposal

Period Incurred

Lowest level of an entity for which operations & cash flows can be clearly distinquished both operationally and Financially

• Operating Segment
• Reporting Segment
• Reporting Unit
• Subsidiary
• An Asset Group

Major line of business or geographical areas

Subsidiary acquired exclusively with a view to resale

• All Criteria must be met:
• Mngt commits plan to sell component
• Available for immediate sale
• Active Program to locate a buyer has been initiated
• Actively Marketed

Before can be classified as 'Held for Sale' individual assets and Liabilties of component must be measured with applicable standards

GAINS/LOSS must be recognized

IFRS ONLY - NOT GAAP

• Component has been disposed of
• Is classified as 'Held for Sale'

• Results of operations
• Gain or loss on Disposal
• Impairment Loss

• NET OF TAX
• All booked period incurred

NO

Liabilties for

• Involuntary Employee termination
• Costs to terminate contracts(Rent etc.)

• Obligating event has ocurred
• Results in a present obligation
• Little or no discretion to avoid the future transfer of assets

Unusual and Infrequent(GAAP)

Not recognized for IFRS

• Changes in Accounting Estimate
• Handle prospective - don't restate

• Changes in Accounting Principle
• Handle retrospective

• Changes in Accounting Entity
• Restate

Must present 3 BS and 2 of all other FS

• If impractical to Calc
• LIFO to FIFO

Handle prospectively

Beg Inv of the year of change is the first FIFO Layer

Only recognized by GAAP

Occurs when entity being reported has changed composition

If occurs in current year all previous FS should be restated

Full Disclosure required

I.e. consolidated or combined FS presented in place of Individual companies

Correct info on FS if statement presented otherwise adjust R/E

under IFRS Only if impracticak to determine cumulative restate prospectively

Non-Owner transactions which are closed to the BS at period end

• Pension Adjustment
• Unrealized gains or losses
• Foreign currency items
• Effective portion of Cash flow hedge
• Revaluation Surplus(IFRS Only)

• Net Income
• +Other Comprehensive Income(PUFER)
• Comprehensive Income

Only FOR profit

Should not be reported on per share basis

Single Statement of Comprehensive Income + Net Income

Income statement followed by seperate statement of Comprehensive Income

A statement of changes in Equity(US only)

• Capital Stock
• Pref Stock
• Common Stock
• Paid in Capital in excess of PAR

• R/E
• Accum other Comprensive Income

Treasure Stock at Cost

requires explicit and unreserved statement of compliance

requires disclosure of judgement and estimates that mngt has amde in the process of applying accounting policies

• Footnote
• Loans to officers and officers salaries disclosure

Requires disclosure of significant estimates

• Footnotes
• Off BS transactions
• Pensions plan descriptions
• Discontinued segments
• Loans to officers

SEC

• Condensed BS
• Condensed Comprehensive Income
• Condensed Changes in Equity
• Condensed Cash Flows

IFRS allows effective tax rate to be estimated

GAAP Enacted rate only

Public Companies only

• 10% size test
• Revenues
• Assets
• Profits/Loss

75% reporting efficiency test

segmented cash flows not reported under IFRS and GAAP

• GAAP standardized definition except for
• Share based compensation
• Inventory pricing
• measurements based on specific objective
• FV measurements for used for lease classification measurements

FV does not include transaction costs but does include transportation costs

IFRS has not standardized FV

Use principal market with greatest volume for FV

Use most advantageous market if no principal market exists(Net of transaction costs)

GAAP established for measuring FV

Valuation techniques

• Market Approach - assets or liabilties
• Use identical or comparable assets

• Income Approach - assets or liabilities
• convert to one future amount including cash flows for discounted amount

Cost Approach - current replacement cost of Assets

Level 1(Most reliable) - Commodity in active market

Level 2 - Not active market

• Level 3 (Least Reliable) Mngt Inputs
• Unobservable Inputs

• 3 BS
• End of current period
• End of prior period
• Beginning of Prior Period
• 2 IS
• 2 CF's
• 2 Changes in Equity

Book Adjustments to R/E

• Disclose
• How transition from GAAP to IFRS affected reported financial position, performance and cash flow

• reconciliation from GAAP to IFRS
• reconciliation of total comprehensive income

• Opening IFRS BS uses FV for:
• financial Assets
• Fixed Assets
• Investments in Joint Ventures

Use lower of cost or NRV for Inventory

10k filed annaully

10Q quarterly

11k -Annual report of employee bene plan

• 20F Foreign issues similiar to 10k
• 40F

6k - Foreign private issuers

8k - Major Corporate events

Forms 3,4,5 Owning more than 10%

Reg 2-x form and content of requirements for interim and annual financial statement to be filed with SEC

• GAAP
• 2 BS
• 2 IS
• 2 equity
• 3 CFs

• IFRS
• 2 BS
• 2 IS
• 2 Equity
• 2 CF

Yes. Only when going TO LIFO is an adjustment made to R/E