CRITICAL ANALYSIS OF NATIONAL AND INTERNATIONAL ACCOUNTING REGULATIONS ON
|
|
- Barrie Hoover
- 5 years ago
- Views:
Transcription
1 CRITICAL ANALYSIS OF NATIONAL AND INTERNATIONAL ACCOUNTING REGULATIONS ON TRANSACTIONS WITH BUSINESS ENTITIES Prof. Sorinel Domnişoru, Ph.D Lect. Daniel Goagără, Ph.D University of Craiova Faculty of Economics and Business Administration Craiova, Romania Abstract: The purpose of this article is to highlight how specific combinations of national entities, viewed through the appropriate accounting regulations, comply or not the information needs required by international accounting bodies, specifying the methods by which it may be achieving greater good convergence in this regard. The manner which these aims are achieved depends largely on the efficiency of financial reports released by the local entities. JEL classification: M41, M42. Key words: combination of entities, mergers, acquisitions, international reglementation. 1. INTRODUCTION The emergence of an economic entity is based on a "productive projects, namely the creation and organized distribution of goods and services", representing therefore to carry out one or more activities whose duration can be set right by the articles of association. The merger allowed the companies to provide important technical structures, leading to increased competitive ability. Studying the evolution of economic entities shows that only those who have reached a certain level of activity were able to invest in research and development to enable them to maintain or create a technological lead over competitors. Economic development and the existence and development of financial markets have facilitated the emergence and subsequent expansion of powerful economic entity, able to dominate the market and have the ability to invest in shares. The ability to buy freely, financial market equity determined to obtain a degree of control or influence over the issuer, which led to groups of companies. 2. CORRELATIONS AND DEBATES Transactions, mergers and acquisitions, we believe that fall within the scope of IFRS 3 "Business Combinations" and FAS 141, "Business Combinations". By adopting the IASB IFRS 3, March 2004, suspended the implementation of the old standard IAS 22, in force since At the same time published the revised standards IAS 36 "Impairment of Assets" and IAS 38 "Intangible Assets", review these 43
2 rules appeared as a necessity arising from changes in accounting economic entity combinations. The adoption of IFRS 3 was the result of numerous discussions, both practitioners and theoreticians, who was devoted to the methodology of accounting for combinations of economic entities. The old standard, IAS 22, allowing specific recording accounting transactions using either the pooling of interests method or the purchase method. This created the premise that economic transactions economic entity type combinations are highlighted in accounting by using different methods, which inevitably led to the emergence of significant differences in the reporting of financial results. In this situation, given that the same type of economic transactions were used different accounting methods rightly, analysts and other users of information released from the accounts have raised the issue of the difficulty of comparing the financial results of the various entities. At the same time, there was a need for better information regarding intangible assets because they represent an important economic source for many entities and an increasing proportion of the assets acquired in transactions of mergers and acquisitions, accounting for the emergence synergistic effect. While the purchase method recognized all intangible assets acquired in combinations of economic entities (either separately or as goodwill), when using the pooling of interests method only those intangible assets expected to register the acquiring entity were recognized. Meanwhile, the management of business entities indicated that differences in accounting from the use of the pooling of interests method and the purchase method affects the competitiveness of the market transactions of mergers and acquisitions. Taking into account the views of theorists and practitioners, and that standards bodies worldwide, including the USA, Canada and Australia, they decided to eliminate the pooling of interests method, the entry into force in July 2001, FAS 141, to suspend the application of Opinion 16, the IASB adopted IFRS 3. As a result, the combination of economic entities is required to be accounted for using the purchase method, which states that the fair value of assets acquired, liabilities assumed and contingent liabilities are measured at the acquisition date. The adoption of this standard has not ended the debate on these issues, but they continue and focuses on reconsidering the term contingent liabilities. Thus in 2008 the IASB adopts a new version of IFRS 3. If the initial version of the standard transactions, mergers and acquisitions is presumed to be addressed within the scope of its improved version, approved in 2008, since its objective is the definition specifies that transactions relating to mergers will be considered fit the category combinations economic entities will be treated in line with IFRS 3. The application of IFRS 3 and FAS 141 improved financial reporting information as balance entities engaged in economic entity combinations will be prepared taking into account the economic substance of the transactions. Applying these standards, we believe that generates positive effects that are mentioned below. A better reflection of the investments made in the acquiree, justified by the fact that the acquisition method requires the recording of transactions with business entities on the basis of exchange, so that users are provided with information on the total purchase price paid to acquire another entity. This allows a better assessment of future performance related investments. Such information could not be provided when using the pooling of interests method. 44
3 Improve the comparability of financial information reporting because all combinations of economic entities are accounted by using a single method, so specialists are able to compare the financial results of transactions involved similar economic entity. All assets acquired and liabilities assumed in transactions of this type are recognized and measured in the same way regardless of the nature of exchange - ie whether the entity acquires securities issued or exchange value. Providing financial information about the assets acquired and liabilities assumed, the economic entity combinations more complex, resulting from the application of explicit criteria for recognition of intangible assets separately from goodwill. This additional information is required, among other things, to be made available to specialists for a better understanding of resource assets acquired and the ability to make future profits and cash flow. In the spirit of IFRS 3, a combination of economic entity is defined as a transaction or other event in which the acquirer obtains control of one or more business entities. Specify that the difference between the old version of IFRS 3 and approach 2008 is that transactions, mergers (merger by acquisition and merger meeting) are also economic entity combinations IFRS spirit. To determine if a transaction falls within the scope of IFRS 3, we consider it necessary to determine whether the entity meets the definition of "business". From the analysis of IFRS 3, "Business" is defined as an integrated group of activities and assets conducted and managed in order to generate a profit, lower costs or other economic benefits to investors, owners and other participants, if an entity acquires a group of assets or a separate legal entity that does not meet the definition of "business" as IFRS 3, the transaction should not be accounted for as a combination of economic entities. Acquiring a legal entity in itself does not prove the existence of a combination under IFRS 3 reasoning. We exemplify such that if one asset represents a legal entity, it is impossible for the purchase of such an entity to be considered a combination of economic entities, but rather believe that the transaction will be treated as an acquisition of an asset. In general, it is considered that the following types of transactions meet the definition of economic entities combinations: purchase of all assets, liabilities and rights of the assets of an entity, which can be done either by issuing shares or by the transfer of cash or cash equivalents or other assets; purchase only a portion of the assets, liabilities and rights of an entity that together satisfy the requirements of the definition of "business" or the transfer of cash or cash equivalents or other assets; establishment of a new legal entity in which all assets, liabilities and activities combined companies will be maintained. Combining economic entities can generate cash payments, issuance of securities, assumption of debt or other assets in exchange for sacrificing business acquisition. Where an entity purchases all assets and liabilities relating to a manufacturing operation to another entity, the transaction will be considered in line with IFRS 3 as the activities and assets of a business acquired is consistent with the reasoning of this standard. However, if an entity buys only hardware assets of a company in liquidation, the transaction will be considered out of IFRS 3, because the hardware by itself can not be considered an integrated group of assets and activities, and no other assets (software) and Provider (development facilities and services) may be used to provide a benefit of 45
4 investors and other economic advantages. In this case, the transaction will be accounted for as a purchase of assets at their fair value. From the analysis of the provisions of IFRS 3 we see that there are three exceptions to the general principles of economic entities combinations. First, IFRS 3 does not apply to combinations of economic entities that" businesses" were combined to create an association, joint venture (joint ventures). Secondly, the provisions of IFRS 3 does not apply to combinations involving entities or businesses under common control, both before and after the transaction. Such transactions have been defined in the standard as "a combination in which entities, in the end are controlled by the same party or parties, both before and after operation, and the transitional control is - transient". In the process of determining whether a such operation is conducted between two companies under common control should be considered contractual commitments involving all the stakeholders. If an entity is not included in the same consolidated financial report does not mean, in itself, it is not currently control. Transactions economic entity type combinations involving companies under common control are not required to apply IFRS 3, but may apply other methods considered as meeting the requirements of accounting policies. For example, two entities A and B are both controlled entity C. For economic and fiscal entity C decide to reorganize the group structure and result in the entity B is purchased by an entity A. This transaction is not covered by IFRS 3, in the transaction because both entities are controlled by the entity C, both before and after. Generally, in this situation, the entity elects to effect the transfer of assets and liabilities at the amount they have registered in the books. Anyway entity A is not prevented from applying IFRS 3 if desired. In the third case, the provisions of the standard does not apply when business combinations involving two or more mutual entities. The initial version specify and IFRS 3 does not apply when several separate entities come together to form a reporting entity. The amendments of 2008 these operations were included within the scope of IFRS 3. I have reviewed some aspects of IFRS 3, to demonstrate that a combination of economic entities can generate fusions between two or more companies in which either one of their assets and liabilities are transferred to the other, and the first company is dissolved - merger by absorption - or the assets and liabilities of both companies are transferred to a third new company and both the original companies are dissolved - merger by fusion -. If initially there was ambiguity regarding the classification of transactions for mergers and acquisitions within the scope of IFRS 3, we believe that this lack of precision has been removed by the adoption of the new version of the standard in Also, the economic entity combinations, and therefore mergers and acquisitions, it is necessary to observe some basic principles of the standard. First, a combination represents a purchase and will be reflected in the accounts using the purchase method because it involves a transaction in which the assets are transferred, the liabilities are assumed and their acquirer in exchange for issuing securities or cash transfers. Secondly, the acquisition date, the acquirer shall include in its results of operation results acquiree and recognize identifiable assets and liabilities on the balance 43 A transaction or other event in which an acquirer obtains control of one or more businesses. Transactions sometimes referred to as true mergers or mergers of equals are also business combinations as that term is used in this IFRS. - IFRS 3 (2008). 46
5 sheet of the acquiree, and the goodwill arising from the acquisition. Third, a combination of economic entities is required to be carried at its cost, represented by the amount of cash or cash equivalents - securities issued - paid or the fair value at the transaction date plus costs directly attributable to the acquisition. Assets and liabilities are measured at their fair value at the transaction date and marketable securities issued by the acquirer are measured at the market price on the date of transaction. Using the purchase method in accordance with IFRS 3 requires several steps: Step 1: Determining whether the transaction or event is a combination of economic entities in the spirit of IFRS 3; Step 2: Dentifying the acquirer; Step 3: Determining the acquisition date; Step 4: Recognising and measuring the identifiable assets acquired, the liabilities assumed and any interest not involving control; Step 5: Evaluation and determination of the components of the combination of economic entities; Step 6: Identification and assessment of goodwill or any other gain on negotiation; Step 7: Subsequent measurements and accounting for the transaction. Regarding regulations in Romania 44, accounting plan, fusion operation is treated as a capital increase in the acquiring company and the acquired company dissolution without liquidation of the merger by absorption, and a society that created used set, ie a dissolution without liquidation if the mergers meeting. The acquiring company shall prepare an inventory of all property items and, based on it, draw up a balance sheet fusion basis financial negotiations. The net assets of the acquiring company shall be submitted as input fusion contribution can be determined based on book values or the values correct (corrected). As we noted no IFRS 3 is not recommended that intake be determined based on the carrying values, unless the fusion seeks an internal restructuring of the group of companies, which implies that the absorbed corporation controlled by the acquiring company or both companies are calling the common control of another entity. Therefore, the use of fair values in determining intake, this means the appearance revaluation differences, which can be an added value or a negative value. The acquired company accounts need arises registration of clearing mutual obligations absorbing entity - if any - the transfer of assets and liabilities, equity and debt cancellation to shareholders, receipt and distribution of securities in the acquiring company. Will perform the same operations and economic entities cease to exist in a merger meeting. The acquiring company shall prepare a balance sheet at the same time as the company being acquired, the basis of reference for the negotiation of the merger. The accounts of the acquiring company will register the property received as contributions from whichever entity absorbed in the merger, capital increase and decrease Treasury - if the merger was intended to grant a consultancy. If later found that some goods have been omitted in the draft merger they accounted null value and if they are omitted debts for acquiring exceptional expenses which may be incurred merger premium. If the acquiring company accounting question first fusion, which is the positive difference 44 OMPF 1376/2004 approving the Methodological Norms regarding the Recognition of major merger, division, dissolution and liquidation of companies and the withdrawal or exclusion of associates of the companies and their tax treatment published in the Official 1012/
6 between the value of assets received as contributions and the amount that will be increased capital of the acquiring company, representing in fact " right of entry " to be paid by new shareholders acquiring entity. The first merger is included in equity and destination may increase legal reserves, incurring expenses resulting from the merger operations, the establishment of reserves other than the legal establishment of provisions for transactions that originate from the company being acquired. From an accounting perspective, the differences between the carrying amount of the contributions made by the company being acquired and their fair value can be recorded either in account equity - revaluation - or management accounts as income or extraordinary expenses. Given this, accounting for mergers, Norms College of Accounting in our country recommends using two methods, the conventionally method of accounting earnings and capitalization method or net book value method. method of accounting earnings draws French and consists of using the income and expense accounts, the default calculation of the merger, the transmission assets of the acquiring company or the company being acquired ceases to exist from companies newly established company. capitalization method or the method involves subtracting the net book value of asset tracking and liabilities transferred by entities acquired or cease to exist, including regulation of the transfer of equity using off-balance sheet account 892 "Closing Balance". Taking these elements by the acquiring or newly formed entities is through off-balance sheet account 891 "Opening balance". 3. CONCLUSIONS Comparative analysis of the international and national rules aimed Recognition economic transactions with entities in our country finds that regulations were not adapted to the requirements of IFRS 3. Adapting to this standard becomes, at one time to achieve accession to the European Union, a special importance due to increasing economic transactions with entities domiciled in different states. This raises the need for uniform coverage of mergers and acquisitions transactions, so that the information provided by financial statements to be consistent and to enable a more accurate transactions. REFERENCES 1. Drăgan C, Brabete V., Mihai M. 2. Feleagă N., Feleagă L. 3. Hennie van Greuning Business Accounting. EEC Directives, National Regulations, IFRS, Lambert Academic Publishing, Contabilitate consolidată, o abordare europeană şi internaţională, Editura Economică, Bucureşti 2007 Standarde Internaţionale de Raportare Financiară. Ghid practic, World Bank,, Ed. Irecson 4. Săcărin M. Contabilitate aprofundată, Editura Economică, Bucureşti Vasilescu L. Performanţă şi risc în activitatea firmelor, Editura Universitaria, Craiova,
ISSUES ABOUT THE EVALUATION OF THE FINANCIAL INSTRUMENTS AND TAX IMPLICATIONS
ISSUES ABOUT THE EVALUATION OF THE FINANCIAL INSTRUMENTS AND TAX IMPLICATIONS Camelia-Cătălina, Mihalciuc 1 Anişoara, Apetri 2 Teodora, Oleniuc 3 Abstract: Accounting assessment is a process with tax implications
More informationFINANCIAL REPORTING IN PUBLIC INSTITUTIONS AND NON-FINANCIAL ENTITIES. SIMILARITIES AND DIFFERENCES
FINANCIAL REPORTING IN PUBLIC INSTITUTIONS AND NON-FINANCIAL ENTITIES. SIMILARITIES AND DIFFERENCES Ec. Daniela Vitan, master student University 1 Decembrie 1918 Faculty of Science Alba Iulia, Romania
More informationThe New Accounting and the IFRS Requests. The Payment Based on Shares (IFRS 2)
EUROPEAN ACADEMIC RESEARCH Vol. II, Issue 12/ March 2015 ISSN 2286-4822 www.euacademic.org Impact Factor: 3.1 (UIF) DRJI Value: 5.9 (B+) The New Accounting and the IFRS Requests. The Payment Prof. univ.
More informationPreliminary Exposure Draft of. International Actuarial Standard of Practice A Practice Guideline*
Preliminary Exposure Draft of International Actuarial Standard of Practice A Practice Guideline* under International Financial Reporting Standards IFRS [2005] A Preliminary Exposure Draft of the Subcommittee
More informationA CRITICAL STUDY REGARDING THE ELABORATION OF THE CASH FLOW STATEMENT USING THE DIRECT METHOD IN ROMANIA
A CRITICAL STUDY REGARDING THE ELABORATION OF THE CASH FLOW STATEMENT USING THE DIRECT METHOD IN ROMANIA ŢĂRAN MOROŞAN ADRIAN LECTURER PH. D., LUCIAN BLAGA UNIVERSITY OF SIBIU, ROMANIA adrian.morosan@ulbsibiu.ro
More informationACCOUNTING AND FISCAL ASPECTS SPECIFIC TO THE DIFFERENCES FROM THE REVALUATION AND THE CESSION OF THE FIXED ASSETS RADU BĂLUNĂ, MARIA SANDU
ACCOUNTING AND FISCAL ASPECTS SPECIFIC TO THE DIFFERENCES FROM THE REVALUATION AND THE CESSION OF THE FIXED ASSETS RADU BĂLUNĂ, MARIA SANDU Key words: fixed assets, revaluation, fair value. 1847 Radu BĂLUNĂ,
More informationCombinations involving entities or businesses under common control or formation of a joint venture are excluded from the scope.
Business combinations A business combination involves the bringing together of separate entities or businesses into one reporting entity. Full IFRS and IFRS for SMEs require the use of the purchase method
More informationImpairment of Assets. IAS Standard 36 IAS 36. IFRS Foundation
IAS Standard 36 Impairment of Assets In April 2001 the International Accounting Standards Board (the Board) adopted IAS 36 Impairment of Assets, which had originally been issued by the International Accounting
More informationMastering impairment testing and principles: Extract MASTERING IMPAIRMENT TESTING AND PRINCIPLES EXTRACT
Mastering impairment testing and principles: Extract MASTERING IMPAIRMENT TESTING AND PRINCIPLES EXTRACT CPA Australia Ltd 2014 1 Contents Course overview 1 Learning objectives 1 Knowledge assessment 1
More informationIFRS Viewpoint. Common control business combinations
Accounting Tax Global IFRS Viewpoint Common control business combinations What s the issue? How should an entity account for a business combination involving entities under common control? This is an important
More information[May 15 Draft] International Actuarial Standard of Practice A Practice Guideline*
[May 15 Draft] International Actuarial Standard of Practice A Practice Guideline* Business Combinations under International Financial Reporting Standards IFRS [2008] Subcommittee on Actuarial Standards
More informationImpairment of Assets IAS 36 IAS 36. IFRS Foundation
IAS 36 Impairment of Assets In April 2001 the International Accounting Standards Board (the Board) adopted IAS 36 Impairment of Assets, which had originally been issued by the International Accounting
More informationFINANCIAL REPORTING WORKSHOP, MOMBASA Consolidated Financial Statements and Business Combinations -IFRS 10, IFRS 11 IFRS 3 & IPSAS 40 Presentation by:
FINANCIAL REPORTING WORKSHOP, MOMBASA Consolidated Financial Statements and Business Combinations -IFRS 10, IFRS 11 IFRS 3 & IPSAS 40 Presentation by: CPA Stephen Obock Monday, 9 October 2017 Uphold public
More informationThe Professional Judgment and the IAS/IFRS Referential
The Professional Judgment and the IAS/IFRS Referential VIORICA MIRELA ȘTEFAN-DUICU Lecturer, the Department of Economic Sciences Nicolae Titulescu University 185 Calea Văcărești, 4 th District, Bucharest
More informationIFRS-JGAAP comparison. English version 2.0 [equivalent of Japanese version 3.0]
- comparison English version 2.0 [equivalent of Japanese version 3.0] Contents Contents... 2 Introduction... 3 Presentation of Financial Statements, Assets Held for Sale and Discontinued Operations...
More informationThis version includes amendments resulting from IFRSs issued up to 31 December 2008.
IAS 36 International Accounting Standard 36 Impairment of Assets This version includes amendments resulting from IFRSs issued up to 31 December 2008. IAS 36 Impairment of Assets was issued by the International
More informationFINANCIAL REPORTING FOR GROUP ENTITIES UNDER IFRS
FINANCIAL REPORTING FOR GROUP ENTITIES UNDER IFRS IAS 28 Investments in Associates and Joint Ventures Conf.univ.dr. Victor-Octavian Müller victor.muller@econ.ubbcluj.ro www.econ.ubbcluj.ro/~victor.muller
More informationCONCEPTUAL AND PRACTICAL DIMENSIONS. REORGANIZATION OF PUBLIC INSTITUTIONS AS MERGING BY ABSORPTION
CONCEPTUAL AND PRACTICAL DIMENSIONS. REORGANIZATION OF PUBLIC INSTITUTIONS AS MERGING BY ABSORPTION Cristina Otilia Tenovici, Assist. Prof., PhD, Constantin Brâncoveanu University of Pitești Abstract:
More informationBURSA DE VALORI BUCURESTI SA
CONSOLIDATED FINANCIAL STATEMENTS PREPARED IN ACCORDANCE WITH INTERNATIONAL FINANCIAL REPORTING STANDARDS AS ADOPTED BY THE EUROPEAN UNION 31 DECEMBER 2017 CONTENTS Independent Auditor s report - Consolidated
More informationNon-current Assets Held for Sale and Discontinued Operations
International Financial Reporting Standard 5 Non-current Assets Held for Sale and Discontinued Operations In April 2001 the International Accounting Standards Board (IASB) adopted IAS 35 Discontinuing
More informationRe: Request for Information Post-implementation Review IFRS 13 Fair Value Measurement
Mr Hans Hoogervorst Chairman International Accounting Standards Board 30 Cannon Street London EC4M 6H United Kingdom Email: commentletters@ifrs.org 22 September 2017 Re: Request for Information Post-implementation
More informationAdviser alert The Road to IFRS a practical guide to IFRS 1 and first-time adoption (Revised Guide)
Adviser alert The Road to IFRS a practical guide to IFRS 1 and first-time adoption (Revised Guide) November 2012 Overview The Grant Thornton International IFRS team has published a revised version of the
More informationInternational Accounting Standard 36 Impairment of Assets. Objective. Scope IAS 36
International Accounting Standard 36 Impairment of Assets Objective 1 The objective of this Standard is to prescribe the procedures that an entity applies to ensure that its assets are carried at no more
More informationCIMA Managerial Level Paper F2 FINANCIAL MANAGEMENT (REVISION SUMMARIES)
CIMA Managerial Level Paper F2 FINANCIAL MANAGEMENT (REVISION SUMMARIES) Chapter Title Page number 1 The regulatory framework 3 2 What is a group 9 3 Group accounts the statement of financial position
More informationCash Flows (IAS) - Concrete Aspect of the Convergence Accounting in the New Context of Economy
EUROPEAN ACADEMIC RESEARCH Vol. II, Issue 12/ March 2015 ISSN 2286-4822 www.euacademic.org Impact Factor: 3.1 (UIF) DRJI Value: 5.9 (B+) Cash Flows (IAS) - Concrete Aspect of the Convergence Accounting
More informationCorporate Watch. pwc. FRS 103 Improving the transparency and comparability of acquisition accounting. *connectedthinking. July / August 2004 Issue
Corporate Watch July / August 2004 Issue FRS 103 Improving the transparency and comparability of acquisition accounting On 31 March 2004, the International Accounting Standards Board (IASB) published International
More informationBusiness Combinations under International Financial Reporting Standards
Draft of Research Paper Business Combinations under International Financial Reporting Standards Practice Council June 2009 Document 209064 Ce document est disponible en français 2009 Canadian Institute
More informationEvents after the Reporting Period
IAS Standard 10 Events after the Reporting Period In April 2001 the International Accounting Standards Board (the Board) adopted IAS 10 Events After the Balance Sheet Date, which had originally been issued
More informationNon-current Assets Held for Sale and Discontinued Operations
International Financial Reporting Standard 5 Non-current Assets Held for Sale and Discontinued Operations In April 2001 the International Accounting Standards Board (IASB) adopted IAS 35 Discontinuing
More informationREVENUE RELATED TO ORDINARY ACTIVITIES ACCORDING TO IFRS AND ROMANIAN REGULATIONS
REVENUE RELATED TO ORDINARY ACTIVITIES ACCORDING TO IFRS AND ROMANIAN REGULATIONS ECOBICI NICOLAE ASSOCIATE PROFESSOR PHD, CONSTANTIN BRANCUSI UNIVERSITY OF TARGU JIU e-mail: nycu2004ro@yahoo.com Abstract
More informationGENERAL NOTES. 1. General Information
ISAGEN S.A. E.S.P. NOTES TO FINANCIAL STATEMENTS AS OF DECEMBER 31, 2017 and 2016 (Amounts expressed in million COP $ and in thousands of United States Dollars USD, unless otherwise indicated) GENERAL
More informationOCTOBER The Road to IFRS a practical guide to IFRS 1 and first-time adoption
OCTOBER 2012 The Road to IFRS a practical guide to IFRS 1 and first-time adoption Important Disclaimer: This document has been developed as an information resource. It is intended as a guide only and the
More informationIAS 1 Presentation of Financial Statements - A Closer Look
MPRA Munich Personal RePEc Archive IAS 1 Presentation of Financial Statements - A Closer Look K S Muthupandian The Institute of Cost and Works Accountants of India 19 May 2008 Online at https://mpra.ub.uni-muenchen.de/41617/
More informationINTERNATIONAL ACCOUNTING TREATMENT REGARDING REVENUE
INTERNATIONAL ACCOUNTING TREATMENT REGARDING REVENUE ECOBICI NICOLAE PHD ASSOCIATE PROFESSOR, CONSTANTIN BRANCUSI UNIVERSITY OF TARGU JIU, FACULTY OF ECONOMICS AND BUSINESS ADMINISTRATION, ROMANIA e-mail:
More informationIFRS 3 BUSINESS COMBINATIONS. Presented By: CA. NIRMAL GHORAWAT B. Com (Hons), ACA
IFRS 3 BUSINESS COMBINATIONS Presented By: CA. NIRMAL GHORAWAT B. Com (Hons), ACA OBJECTIVE Specify the Financial Reporting by an Entity when it undertakes a Business Combination. 2 CORE PRINCIPLE All
More informationConsolidated and Separate Financial Statements
International Accounting Standard 27 Consolidated and Separate Financial Statements This version was issued in January 2008 with an effective date of 1 July 2009. It includes subsequent amendments resulting
More informationDIVERGENCE IN THE RECOGNITION AND MEASUREMENT OF INCOME AND EXPENSES
DIVERGENCE IN THE RECOGNITION AND MEASUREMENT OF INCOME AND EXPENSES Mihaela-Andreea Năstasie Romanian Academy Institute of World Economy Bucharest, Romania Claudiu Valentin Şerban University of Craiova
More informationGroups of companies and their particularities in the credit institutions
International Journal of Business Marketing and Management (IJBMM) Volume 2 Issue 3 March 2017, P.P.33-38 ISSN : 2456-4559 www.ijbmm.com Groups of companies and their particularities in the credit institutions
More informationCHAPTER 2 CONSOLIDATION OF FINANCIAL INFORMATION
CHAPTER 2 CONSOLIDATION OF FINANCIAL INFORMATION Accounting standards for business combination are found in FASB ASC Topic 805, Business Combinations and Topic 810, Consolidation. These standards require
More informationACCOUNTING POLICIES. for the year ended 30 June MURRAY & ROBERTS ANNUAL FINANCIAL STATEMENTS 13
12 MURRAY & ROBERTS ANNUAL FINANCIAL STATEMENTS 13 ACCOUNTING POLICIES for the year ended 30 June 2013 1 PRESENTATION OF FINANCIAL STATEMENTS These accounting policies are consistent with the previous
More informationAdviser alert Example Consolidated Financial Statements 2014
Adviser alert Example Consolidated Financial Statements 2014 September 2014 Overview The Grant Thornton International IFRS team has published the 2014 version of Reporting under IFRS: Example Consolidated
More informationINTERNATIONAL FINANCIAL REPORTING STANDARD FOR SMALL AND MEDIUM-SIZED ENTITIES- A NEW CHALLENGE FOR THE EUROPEAN UNION
INTERNATIONAL FINANCIAL REPORTING STANDARD FOR SMALL AND MEDIUM-SIZED ENTITIES- A NEW CHALLENGE FOR THE EUROPEAN UNION Ana-Maria Pascu 1 Alexandru Ioan Cuza University of Iaşi pascuanamaria26@yahoo.com
More informationNew Zealand Equivalent to International Accounting Standard 36 Impairment of Assets (NZ IAS 36)
New Zealand Equivalent to International Accounting Standard 36 Impairment of Assets (NZ IAS 36) Issued November 2004 and incorporates amendments to 31 December 2015 other than consequential amendments
More informationInterests in Joint Ventures
International Accounting Standard 31 Interests in Joint Ventures This version includes amendments resulting from IFRSs issued up to 31 December 2009. IAS 31 Financial Reporting of Interests in Joint Ventures
More informationSOLUTIONS MANUAL FOR ADVANCED ACCOUNTING 12TH EDITION BY HOYLE SCHAEFER DOUPNIK Link download full of Solution Manual:
SOLUTIONS MANUAL FOR ADVANCED ACCOUNTING 12TH EDITION BY HOYLE SCHAEFER DOUPNIK Link download full of Solution Manual: Link download full of Test Bank: http://testbankair.com/download/solutions-manual-for-advanced-accounting-12thedition-by-hoyle-schaefer-doupnik/
More informationBusiness Combinations II
April 2006 IASB Update is published as a convenience to the Board's constituents. All conclusions reported are tentative and may be changed or modified at future Board meetings. Decisions become final
More informationCONSIDERATIONS APPLICABLE INTERNATIONAL ACCOUNTING REGULATIONS OF WAGES AND RELATED RIGHTS
CONSIDERATIONS APPLICABLE INTERNATIONAL ACCOUNTING REGULATIONS OF WAGES AND RELATED RIGHTS NĂSTASIE MIHAELA ANDREEA PHD STUDENT UNIVERSITY OF CRAIOVA FACULTY OF ECONOMICS AND BUSINESS ADMINISTRATION CRAIOVA,
More informationSECTION 18 BUSINESS COMBINATIONS AND GOODWILL
30 May 2008 To: Members of the Hong Kong Institute of CPAs All other interested parties EXPOSURE DRAFT OF PROPOSED AMENDMENTS TO SMALL AND MEDIUM- SIZED ENTITY FINANCIAL REPORTING FRAMEWORK (SME-FRF) AND
More informationIAS Impairment of Assets. By:
IAS - 36 Impairment of Assets International Accounting Standard No. 36 (IAS 36) Impairment of Assets Objective 1. The objective of this Standard is to establish procedures that an entity applies to ensure
More informationCHAPTER 2 CONSOLIDATION OF FINANCIAL INFORMATION
CHAPTER 2 CONSOLIDATION OF FINANCIAL INFORMATION Accounting standards for business combination are found in FASB ASC Topic 805, Business Combinations and Topic 810, Consolidation. These standards require
More informationDRAFT LETTER. Comments should be sent to by 19 April 2010
DRAFT LETTER Comments should be sent to commentletter@efrag.org by 19 April 2010 (Questions related to the draft letter are included in the appendix) Pierre Delsaux Director European Commission B-1049
More informationGroup accounting policies
81 Group accounting policies BASIS OF ACCOUNTING AND REPORTING The consolidated financial statements as set out on pages 92 to 151 have been prepared on the historical cost basis except for certain financial
More informationIFRS disclosure checklist 2008
IFRS disclosure checklist 2008 PricewaterhouseCoopers IFRS and corporate governance publications and tools 2008 IFRS technical publications IFRS Manual of Accounting 2008 Provides expert practical guidance
More informationInternational Financial Reporting Standard 5. Non-current Assets Held for Sale and Discontinued Operations
International Financial Reporting Standard 5 Non-current Assets Held for Sale and Discontinued Operations CONTENTS paragraphs BASIS FOR CONCLUSIONS ON IFRS 5 NON-CURRENT ASSETS HELD FOR SALE AND DISCONTINUED
More informationNon-current Assets Held for Sale and Discontinued Operations
IFRS 5 International Financial Reporting Standard 5 Non-current Assets Held for Sale and Discontinued Operations This version includes amendments resulting from IFRSs issued up to 31 December 2008. IAS
More informationIFRS News Special Edition
IFRS News Special Edition The new Standards on consolidations, joint arrangements and related disclosures are part of a package that merits the attention of all companies with significant involvement in
More informationALCATEL-LUCENT CONSOLIDATED FINANCIAL STATEMENTS AT DECEMBER 31, 2014
February 6, 2015 ALCATEL-LUCENT CONSOLIDATED FINANCIAL STATEMENTS AT DECEMBER 31, 2014 CONSOLIDATED INCOME STATEMENTS... 2 CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME... 3 CONSOLIDATED STATEMENTS OF
More informationSimilarities and Differences A comparison of IFRS and US GAAP
Similarities and Differences A comparison of and October 2007 Contents Page Preface 2 How to use this publication 3 Summary of similarities and differences 4 Accounting framework 12 Financial statements
More informationAnalysis of International Accounting Regulations with Regards to Fair Value
Analysis of International Accounting Regulations with Regards to Fair Value Diana COZMA IGHIAN dianaighian@yahoo.com University of North, Baia Mare, Romania Abstract Unifying the economical-financial information
More informationACCOUNTING TREATMENT OF DEFERRED INCOME TAXES ACCORDING TO THE REQUIREMENTS OF THE ROMANIAN ACCOUNTING REGULATIONS
ACCOUNTING TREATMENT OF DEFERRED INCOME TAXES ACCORDING TO THE REQUIREMENTS OF THE ROMANIAN ACCOUNTING REGULATIONS Bunget Ovidiu-Constantin West University of Timi oara, Faculty of Economics and Business
More informationGAAP Update. MI IASA 2015 Fall Conference
GAAP Update MI IASA 2015 Fall Conference Agenda Accounting Standards Updates (ASUs) Issued GAAP Insurance Updates Employee Benefit Plans Updates Updates on Known and Anticipated Projects 1 GAAP Guidance
More informationACCOUNTING POLICIES 1 PRESENTATION OF FINANCIAL STATEMENTS. for the year ended 30 June BASIS OF PREPARATION 1.2 STATEMENT OF COMPLIANCE
14 MURRAY & ROBERTS ANNUAL FINANCIAL STATEMENTS 15 ACCOUNTING POLICIES for the year ended 30 June 2015 1 PRESENTATION OF FINANCIAL STATEMENTS 1.1 BASIS OF PREPARATION These consolidated and separate financial
More informationClassification and Measurement: Limited Amendments to IFRS 9
Exposure Draft Classification and Measurement: Limited Amendments to IFRS 9 Proposed amendments to IFRS 9 (2010) Comments to be received by 28 March 2013 Securities and Exchange Board of India (SEBI) welcomes
More informationOrganismo Italiano di Contabilità OIC (The Italian Standard Setter) Italy, Roma, Via Poli 29 Tel. 0039/06/ fax 0039/06/
Organismo Italiano di Contabilità OIC (The Italian Standard Setter) Italy, 00187 Roma, Via Poli 29 Tel. 0039/06/6976681 fax 0039/06/69766830 Mr. Alan Teixeira Senior Project Manager IASB 30 Cannon Street
More informationcontents 3 Shareholders equity: share capital and reserves 78 1 The IASB: history, current structure and processes 2
Contents v contents Foreword xi Preface xiii About the authors xv Acknowledgements xvii PART 1 Framework 1 1 The IASB: history, current structure and processes 2 1.1 National accounting standards 4 1.2
More informationCHAPTER 2 CONSOLIDATION OF FINANCIAL INFORMATION
Chapter 02 Consolidation of Financial Information Hoyle, Schaefer, Doupnik, Fundamentals 7e CHAPTER 2 CONSOLIDATION OF FINANCIAL INFORMATION Accounting standards for business combination are found in FASB
More informationSUMMARY OF IASB WORK PLAN AS AT 14 NOVEMBER 2017
SUMMARY OF IASB WORK PLAN AS AT 14 NOVEMBER 2017 Page Standard-setting and Related Projects... 2 Conceptual Framework... 2 Disclosure Initiative Definition of Materiality... 3 Rate-regulated Activities...
More informationIFRS News. Special Edition. New consolidations standards. June 2011
IFRS News Special Edition June 2011 The new Standards on consolidations, joint arrangements and related disclosures are part of a package that merits the attention of all companies with significant involvement
More informationIFRS disclosure checklist 2011
www.pwc.com/ifrs IFRS disclosure checklist 2011 IFRS disclosure checklist 2011 Introduction The IFRS disclosure checklist has been updated to take into account standards and interpretations effective
More informationUniversità degli studi di Pavia Facoltà di Economia a.a Lesson 7 International Accounting Lelio Bigogno, Stefano Santucci
Università degli studi di Pavia Facoltà di Economia a.a. 2013-2014 Lesson 7 International Accounting Lelio Bigogno, Stefano Santucci 1 IAS/IFRS: IAS 36 Impairment of Assets 2 History of IAS 36 May 1997
More informationMr. Stig Enevoldsen Chairman Technical Expert Group EFRAG Avenue des Arts BRUXELLES. Dear Mr Enevoldsen,
Date Le Président Fédération Avenue d Auderghem 22-28 8 November 2005 des Experts 1040 Bruxelles Comptables Tél. 32 (0) 2 285 40 85 Européens Fax: 32 (0) 2 231 11 12 AISBL E-mail: secretariat@fee.be Mr.
More informationFASB Emerging Issues Task Force
EITF Issue No. 09-2 FASB Emerging Issues Task Force Issue No. 09-2 Title: Research and Development Assets Acquired and Contingent Consideration Issued In an Asset Acquisition Document: Issue Summary No.
More informationTRANSITIONAL PROVISIONS AND EFFECTIVE DATE
IFAC B Meeting Agenda Paper 7.4 June 2010 Vienna, Austria Page 1 of 19 Objectives TRANSITIONAL PROVISIONS AND EFFECTIVE DATE 1. To consider the approach to transitional provisions and effective dates for
More informationThe basics December 2011
versus The basics December 2011!@# Table of contents Introduction... 2 Financial statement presentation... 4 Interim financial reporting... 6 Consolidation, joint venture accounting and equity method
More informationIFRS Newsletter Special Edition New Consolidations Standards
IFRS Newsletter Special Edition New Consolidations Standards July 2011 The new standards on consolidations, joint arrangements and related disclosures are part of a package that merits the attention of
More informationAre You IFRS Ready? Frank Brod Corporate Vice President, Finance & Administration Chief Accounting Officer Microsoft Corporation
Are You IFRS Ready? Frank Brod Corporate Vice President, Finance & Administration Chief Accounting Officer Microsoft Corporation Agenda IFRS Overview FASB and IASB Convergence Activity Memorandum of Understanding
More informationAssets available for sale - 720,338 TOTAL ASSETS 5,476,537,589 6,035,355,458
3 CONSOLIDATED STATEMENT OF FINANCIAL POSITION AT 31 DECEMBER 2013 AND 2012 (Amounts expressed in euro) (Translation of consolidated financial statements originally issued in Portuguese. In case of discrepancy
More informationMULTINATIONALS ENTERPRISES INFLUENCE ON ACCOUNTING IN ROMANIA
Carmen NISTOR Monica PUIU Doctoral School of Economics and Business Administration, University of Alexandru Ioan Cuza, Iaşi, România MULTINATIONALS ENTERPRISES INFLUENCE ON ACCOUNTING IN ROMANIA Keywords
More informationAt this meeting, the Interpretations Committee discussed the following items on its current agenda.
IFRIC Update From the IFRS Interpretations Committee January 2014 Welcome to the IFRIC Update IFRIC Update is the newsletter of the IFRS Interpretations Committee (the 'Interpretations Committee'). All
More information14 BUSINESS ACCOUNTING STANDARD BUSINESS COMBINATIONS I. GENERAL PROVISIONS KEY DEFINITIONS
APPROVED by Resolution No. 10 of 10 December 2003 of the Standards Board of the Public Establishment the Institute of Accounting of the Republic of Lithuania (Revised version of Order No. VAS-10 of 19
More informationNon-current Assets Held for Sale and Discontinued Operations
International Financial Reporting Standard 5 Non-current Assets Held for Sale and Discontinued Operations This version includes amendments resulting from IFRSs issued up to 31 December 2009. IAS 35 Discontinuing
More informationIFRS: A comparison with Dutch Laws and regulations 2016
IFRS: A comparison with Dutch Laws and regulations 2016 Table of contents Preface 3 Instructions for use 4 Application of IFRS 5 Summary of main points 7 Statement of financial posistion 1 Intangible
More informationBusiness combinations
May 2004 The International Accounting Standards Board met in London on 18 and 19 May 2004, when it discussed: Business combinations (phase II) Consolidation Financial instruments Financial risk disclosures
More informationBusiness Combinations Summary of the IASB s proposals for a new approach to business combinations and non-controlling interests
A SSURANCE AND A DVISORY BUSINESS S ERVICES I NTERNATIONAL FINANCIAL R EPORTING S TANDARDS!@# Business Combinations Summary of the IASB s proposals for a new approach to business combinations and non-controlling
More informationInvestments in Associates
International Accounting Standard 28 Investments in Associates This version includes amendments resulting from IFRSs issued up to 31 December 2009. IAS 28 Accounting for Investments in Associates was issued
More informationIFRS Consultancy Services. IFRS convergence for unlisted companies in KSA
IFRS Consultancy Services IFRS convergence for unlisted companies in KSA contents 01 IFRS- Road map 02 Key differences between SOCPA and IFRS in certain critical areas 03 Convergence process 04 Our Approach
More informationInternational Financial Reporting Standards Disclosure Checklist 2004
International Financial Reporting Standards Disclosure Checklist 2004 Meeting all IFRS requirements www.pwc.com/ifrs PricewaterhouseCoopers (www.pwc.com) is the world s largest professional services organisation.
More informationIFRS: A comparison with Dutch Laws and regulations 2017
IFRS: A comparison with Dutch Laws and regulations 2017 Table of contents Preface to the 2017 edition 3 Instructions for use 4 Application of IFRS 5 Summary of main points 7 Statement of financial position
More informationPATRIA BANK GROUP INTERIM CONSOLIDATED AND SEPARATE FINANCIAL STATEMENTS FOR THE PERIOD ENDED AT 30 JUNE
PATRIA BANK GROUP INTERIM CONSOLIDATED AND SEPARATE FINANCIAL STATEMENTS Prepared in accordance with International Financial Reporting Standards as adopted by the European Union INTERIM CONSOLIDATED AND
More informationDiploma in IFRS. Units with Learning Outcomes and Assessment Criteria
Diploma in IFRS Units with Learning Outcomes and Assessment Criteria Unit 1-IASB and regulatory framework Understand the need and role of the regulatory system Describe the impact of globalization Describe
More informationThe Effects of Changes in Foreign Exchange Rates
International Accounting Standard 21 The Effects of Changes in Foreign Exchange Rates This version includes amendments resulting from IFRSs issued up to 31 December 2009. IAS 21 The Effects of Changes
More informationNZ International Accounting Standard 27 (PBE) Consolidated and Separate Financial Statements (NZ IAS 27 (PBE))
NZ International Accounting Standard 27 (PBE) Consolidated and Separate Financial Statements (NZ IAS 27 (PBE)) Issued November 2012 excluding consequential amendments resulting from early adoption of NZ
More informationFirst-time Adoption of International Financial Reporting Standards
International Financial Reporting Standard 1 First-time Adoption of International Financial Reporting Standards In April 2001 the International Accounting Standards Board (IASB) adopted SIC-8 First-time
More informationIAS Investment in Joint Ventures. By:
IAS - 31 Investment in Joint Ventures International Accounting Standard No. 31 (IAS31) Investments in Joint Ventures Scope 1. This Standard applies to accounting for interests in joint ventures and to
More informationHKAS 36 Revised December 2016January Hong Kong Accounting Standard 36. Impairment of Assets
HKAS 36 Revised December 2016January 2017 Hong Kong Accounting Standard 36 Impairment of Assets HKAS 36 COPYRIGHT Copyright 2017 Hong Kong Institute of Certified Public Accountants This Hong Kong Financial
More informationThe basics November 2013
versus The basics November 2013 Table of contents Introduction... 2 Financial statement presentation... 3 Interim financial reporting... 6 Consolidation, joint venture accounting and equity method investees/associates...
More informationBUSINESS COMBINATIONS PURCHASE METHOD PROCEDURES. Financial Accounting Standards Advisory Council September 2003
BUSINESS COMBINATIONS PURCHASE METHOD PROCEDURES BACKGROUND Financial Accounting Standards Advisory Council September 2003 In 1996, the Board added a project to its agenda to broadly reconsider the accounting
More informationEN Official Journal of the European Union L 320/161
29.11.2008 EN Official Journal of the European Union L 320/161 INTERNATIONAL ACCOUNTING STANDARD 28 Investments in associates SCOPE 1 This standard shall be applied in accounting for investments in associates.
More informationFull text edition Grant Thornton International Ltd. All rights reserved. PDF created with pdffactory Pro trial version
Full text edition 2008 Grant Thornton International Ltd. All rights reserved. 2008 Grant Thornton International Ltd. All rights reserved. Member firms of the Grant Thornton International organisation are
More informationFinancial section. rec tic el // a n n u a l r e po rt
04 // Financial section 79 04 rec tic el // a n n u a l r e po rt 2 0 0 8 // Table of contents I. // DEFINITIons 81 II. // FINANCIAL STATEMENTS 82 II.1. Consolidated income statement 82 II.2. Consolidated
More information