Module Behind the scenes Case studies International spotlights

Transcription

1 International and US comparative curriculum master user guide: behind the scenes, case studies and international spotlights The document provides an overview of the behind the scenes, case studies and international spotlights topics by module for easy reference. In the event that there is a deliverable that can be leveraged for another module beyond where it originates, the deliverable is referenced in the corresponding module where it can be leveraged. Module Behind the scenes Case studies International spotlights Introduction to IFRS Note: while there are no specific deliverables in these areas for this module, you may consider using those in the IFRS in global practice and Principles of IFRS modules. IFRS in global practice None A Universal Remote? covers translation differences specific to the term remote IFRS by Jurisdiction Scavenger Hunt covers an exercise in review of the current status of IFRS adoption by jurisdiction and jurisdictional regulatory awareness Principles of IFRS A View on Principles covers views on principles-based standards by the SEC and FASB A Look at China covers a look at Chinese accounting reform toward a principles-based global regime based on a study conducted by The Institute of Chartered Accountants of Scotland The Great Debate covers rulesbased versus principles-based approach Conceptual framework Users of the financial statements covers underlying principles relative to users of general purpose financial statements Faithful representation covers underlying principles relative to faithful representation as a qualitative characteristic as compared to reliability Microchip International Corporation covers overall conceptual differences and rules vs. principles approach The Definition Deliberation covers definitional differences of assets and liabilities Materiality covers management s determination of materiality for post-closing entries relative to qualitative characteristics Worldwide requires students to make assessments for a fictitious client regarding the use of its financial statements in a highly regulated environment and the role of the conceptual framework relative to standard setting. Financial statements Reporting Other Comprehensive Income covers the underlying principles for reporting other comprehensive income The Case of the Missing Definitions covers the research of definitions of key financial measures such as operating profit The Presentation Observation Station covers a review and comparison of the presentation of the balance sheet for companies within the railway industry on a global basis Fair Override? covers the true and fair override departure and its implications in global practice Inventory LIFO covers underlying principles relative to LIFO Lower of Cost or Market covers underlying principles relative to LCM Tarheel Farm, Inc. covers inventory valuation specific to agriculture The Cost of Inventory covers a principles discussion and analysis of the costs included in inventory No Go on LIFO? debates the disallowance of LIFO for financial reporting and related tax implications Behind the scenes, case studies and international spotlight master user guide 1

2 Property, plant and equipment Cost of Dismantling, Removing and Restoration covers underlying principles relative to costs for dismantling, removing and restoration Capitalization of Interest Costs covers underlying principles relative to the capitalization of interest costs Commercial Substance covers underlying principles relative to commercial substance Revaluations covers underlying principles relative to revaluations Old Line Manufacturing covers impairment and revaluations Note: also see What do you say? in the Accounting for income taxes module that covers an assessment of the tax implications for a potential PP&E transaction (includes revaluation). Fair value: Will it win the Choice Award? covers fair value reporting and revaluation Impairment Determination covers underlying principles relative to impairment determination Measurement of Impairment covers underlying principles relative to the measurement of impairment Reversal of Impairment covers underlying principles relative to reversals of impairment Depreciation covers underlying principles relative to depreciation Intangibles Note: Please see Revaluations, Impairment Determination, Measurement of Impairment, Reversal of Impairment in the Property, plant and equipment module Goodwill covers underlying principles of accounting for goodwill from a FASB perspective Sophisticated Software, Inc. covers capitalization of research and development costs and related amortization Capitalization of R&D: What do you see? covers observation of industry practices for the capitalization of research and development costs You Be the Judge covers the use of judgment in determining an appropriate amortization method for costs under a license arrangement for a toll road Current liabilities and contingencies Provisions and contingencies covers underlying principles relative to provisions and contingencies Contingency probability covers underlying principles of contingency recognition criteria as proposed in the IASB Working Draft for the proposed new standard, Liabilities Measurement of liabilities covers underlying principles regarding measurement in the IAS 37 ED Acquisition Contingencies covers contingencies, including environmental liabilities Organizational Restructuring covers restructuring costs What about the environment? Part I covers a review of the Exxon Valdez oil spill and disclosure requirements for environmental liabilities, including a review of the IFAC Sustainability Framework Part II covers a review of the adequacy of BP s disclosures regarding the Gulf of Mexico oil spill and looks into the value of its sustainability reporting Behind the scenes, case studies and international spotlight master user guide 2

3 Long-term liabilities Debt modification costs covers underlying principles relative to the treatment of debt modification costs under a modification and an extinguishment Long-term debt violation at the balance sheet date covers underlying principles relative to debt classification given a debt violation at the balance sheet date Modification or Extinguishment: A Conceptual Look covers the principles underlying derecognition relative to long-term liabilities Equity Note: Please also see Reporting Other Comprehensive Income in the Financial Statements module. Financial assets Financial Assets at Fair Value covers underlying principles relative to reporting financial assets at fair value Big Bank covers the recovery in fair value after impairment of AFS debt assets due to credit losses. Does anyone really understand how to account for financial assets? covers the complexity of accounting for financial assets and review of the IASB Discussion Paper proposing a more simplified model Liability and equity hybrids To Bifurcate or Not to Bifurcate? covers underlying principles relative to bifurcation Debt or equity? covers the classification of debt and equity instruments Jillian Enterprises: The Debt Equity Dilemma covers the analysis of financial instruments, including classification and related accounting Share based payments and earnings per share Modification of Vesting Terms covers underlying principles relative to the treatment of a reduction in costs relative to a modification of vesting terms Computation of Incremental Shares for Use in Fully Diluted Shares Outstanding covers underlying principles relative to the calculation of incremental shares for use in fully diluted shares outstanding The Clever Company covers repurchase features Revenue recognition including construction contracts Percentage-of-completion method for service contracts covers the underlying principles for the percentage-of-completion method for service contracts Guidance on Revenue Recognition covers principles for the amount of authoritative and general guidance for revenue recognition JK Software covers the revenue recognition accounting for software vendors Fly the Revenue Skies covers the revenue recognition accounting for frequent flyer programs Apples and Apples? covers revenue recognition accounting policy and disclosure considerations Too much, too little or just right? covers the IASB/FASB Discussion Paper, Preliminary Views on Revenue Recognition, regarding the proposal of a single asset-and-liability-based revenue recognition model in efforts to simplify accounting for revenue recognition Discussion on Revenue Recognition covers the Boards DP, Preliminary Views on Revenue Recognition, proposing a single asset and liability revenue recognition model and requires students to review comment letters on the DP and take opinion positions on the proposal Behind the scenes, case studies and international spotlight master user guide 3

4 Accounting for income taxes Is it really a liability? covers underlying principles relative to a deferred tax liability Uncertain tax positions and examination risk covers underlying principles relative to uncertain tax positions and assumptions for examination risk Where does it go on the financial statements? covers underlying principles relative to backward tracing and the presentation of deferred tax assets and liabilities What would you say? covers an assessment of the tax implications for a potential PP&E transaction (includes revaluation) Multinational Corporation covers tax on distributed versus undistributed income in foreign jurisdictions Advanced accounting for income taxes Pensions and other employee benefits The Corridor covers the pros and cons of the corridor approach Pension disclosures: Are they adequate? covers the adequacy of pension disclosures and considers underfunded status in an economic downturn Leases Lease Capitalization Criteria covers underlying principles relative to lease capitalization criteria Lease Disclosure covers underlying principles relative to lease disclosures Cross Country covers lessee accounting for capital/finance lease Please Lease covers lessor accounting for operating lease The Lease Line covers US GAAP bright lines approach compared to IFRS conceptual approach Leases: Would you care to comment? covers a conceptual review of the FASB/IASB joint discussion paper on leases and related comment letters Accounting changes and errors Restatement covers underlying principles relative to restatement terminology and the impracticability exception A Bad Error covers correction of an error and related disclosures Statement of cash flows Classification of interest, dividends and income taxes covers the underlying principles of classifying interest, dividends and income taxes Subsequent events Disclosure of the date to which subsequent events are evaluated covers the underlying principles for disclosure requirements of the date subsequent events are evaluated for publicly held entities Scope exception covers underlying principles of subsequent events scope exceptions Note: Please see Materiality in the Conceptual Framework module. Behind the scenes, case studies and international spotlight master user guide 4

5 Discontinued operations Terminology covers underlying principles relative to terminology differences for criteria for held-forsale classification Criteria for classification as discontinued operations covers underlying principles relative to criteria for classification as discontinued operations Financial statement presentation covers underlying principles relative to financial statements presentation for assets held for sale and discontinued operations Diversified Holdings Inc. covers discontinued operations classification, measurement and disclosure requirements Derivatives including hedging No Notional? How Do You Measure Derivatives? covers underlying principles relative to a notional amount and measuring a derivative Net Versus Gross Settlement covers underlying principles of net settlement and gross settlement Why Can t We Just Shortcut? covers underlying principles of determining hedging effectiveness Equity Inc. covers written call options and the accounting of these options Foreign currency Translation methodology covers underlying principles relative to translation methods Business combinations Subsequent measurement of preacquisition contingent liabilities covers underlying principles relative to the measurement of preacquisition contingent liabilities Disclosure of acquired contingent liabilities covers underlying principles relative to disclosures of acquired contingent liabilities Consolidations and joint ventures VIEs and Structured Entities covers underlying principles relative to VIEs and structured entities, including terminology differences, consolidation principles and reconsideration events and approaches Accounting for Joint Ventures- Proportionate Consolidation covers the arguments supporting and opposing proportionate consolidation. Investment Companies covers the Boards positions on consolidating investment companies and the IASB s August 2011 exposure draft. Method of Accounting for NCI covers a comparison of an initial, additional and sale of a NCI under both the proportionate and fair-value methods Segment and interim reporting Matrix Form of Organization covers underlying principles relative to determining an operating segment in a matrix form of organization Behind the scenes, case studies and international spotlight master user guide 5

6 Adoption of IFRS Comparability covers underlying principles relative to the objectives of comparability for first-time adopters Scope covers underlying principles relative to the scope of first-time adoption Recognition and Presentation covers underlying principles relative to recognition and presentation in a first-time adoption The impact of IFRS on the audit function Fraud in the audit of financial statements: revenue recognition covers underlying principles relative to international auditing standards that address fraud in the audit of financial statements specific to revenue recognition Fraud in the audit of financial statements: management override of controls covers underlying principles relative to international auditing standards that address fraud in the audit of financial statements specific to management override of controls Fraud in the audit of financial statements: professional skepticism covers underlying principles relative to international auditing standards that address fraud in the audit of financial statements specific to professional skepticism Austrian Airlines covers an analysis of Austrian Airlines as a going concern and the role of the auditor in making this assessment in accordance with international auditing standards Does more judgment decrease comparability between companies? covers a look at judgment in the realm of moving to IFRS and how this might impact comparability in financial reporting and the audit function The impact of IFRS on the accounting information systems function Making the Change covers a role-playing scenario in which initial assessment observations are provided to a fictitious company converting to IFRS NDK covers an overview of Nihon Dempa Kogyo Co., Ltd. and its information systems considerations in transitioning to IFRS in Japan XBRL and Financial Reporting covers the consideration of new technology utilizing XBRL as an enabler in IFRS conversion and insights about XBRL in practice The impact of IFRS on the tax function See No Go on LIFO? in the Inventory module Behind the scenes, case studies and international spotlight master user guide 6

7 Comprehensive case Intermediate I Intermediate II Topics covered This is a comprehensive case covering topics included in the Intermediate I series of curriculum. Students will review US GAAP financial statements, transactions and disclosures and prepare IFRS financial statements and disclosures. Additionally, students are required to perform a financial statement analysis comparing US GAAP financials to IFRS financials. Topics covered include the following: Financial statement presentation Classification of deferred taxes and extraordinary income Inventory LIFO reserve Fixed assets Revaluation, capitalization of net interest income, impairment and component depreciation Intangible assets Impairment and fair value Accrued liabilities Contingencies and warranties Long-term liabilities Bond discount and debt violations Equity presentation of OCI This is a comprehensive case covering multiple topics included primarily in the Intermediate II series of curriculum. Students will review US GAAP financial statements, transactions and disclosures and prepare IFRS financial statements and disclosures. Additionally, students are required to perform a financial statement analysis comparing US GAAP financials to IFRS financials. Topics covered include the following: Financial statement presentation Extraordinary income and classification of interest and dividends Accounting changes and errors Prospective change in accounting Discontinued operations criteria and cash flow presentation Leases classification and disclosures Long-term bond payable and preferred shares Debt versus equity hybrid instrument and debt versus equity contingency Investments Day one gains, gain related to foreign exchange and recovery of impairment Stock dividend Subsequent events Revenue Service contract, construction contract and multiple elements Earnings per share Weighted-average shares Behind the scenes, case studies and international spotlight master user guide 7