Question

(a) Does U.S. GAAP require that companies disclose information about the assumptions and estimates they make...

(a) Does U.S. GAAP require that companies disclose information about the assumptions and estimates they make in their financial statements?

(b) Does IFRS require that companies disclose information about the assumptions and estimates they make in their financial statements?

Explain.

Business   Accounting   
0 0
Add a commentTranscribed image text
Next >

Homework Answers

Answer #1

Solution:-

(a) Does U.S. GAAP require that companies disclose information about the assumptions and estimates they make in their financial statements:-

The FASB does not explicitly require companies to disclose information about the assumptions and estimates made in the financial statements.

(b) Does IFRS require that companies disclose information about the assumptions and estimates they make in their financial statements:-

IFRS requires a disclosure about the assumptions and estimates made in the financial statements. IFRS also requires that companies disclose the judgments that management has made in determining appropriate accounting treatments for amounts reported on the financial statements.

0 0
Know the answer?
Your Answer:

Post as a guest

Your Name:

What's your source?

Earn Coins

Coins can be redeemed for fabulous gifts.

Log In

Sign Up

Not the answer you're looking for?
Ask your own homework help question
Similar Questions
(a) Does U.S. GAAP require that companies disclose their accounting policies? Explain. (b) Does IFRS require...
(a) Does U.S. GAAP require that companies disclose their accounting policies? Explain. (b) Does IFRS require that companies disclose their accounting policies? Explain.
GAAP refers to guidelines for accounting information in the United States. The acronym GAAP in this...
GAAP refers to guidelines for accounting information in the United States. The acronym GAAP in this statement refers to: True or False: The accounting guidelines required in the United States are called Generally Accepted Accounting Principles (GAAP). True or False: IFRS are a global set of accounting standards; however, these standards are not yet utilized in any country. True or False: IFRS are established by the Financial Accounting Standards Board (FASB). The acronym IFRS standards for: True or False: Both...
1. The Balance sheet and Income statement per U.S. GAAP and IFRS need to provide comparative...
1. The Balance sheet and Income statement per U.S. GAAP and IFRS need to provide comparative information to the users of these financial statements. Per US GAAP, the Income statement needs to include: a. 2 years of comparative data – Current Year and Previous Year b. 3 years of comparative date – Current Year and 2 Previous Years c. U.S. GAAP does not specify the number of periods to be presented; they just have to be comparative. 2. According to...
1. Which of the following statements related to U.S. GAAP and IFRS is not true? Multiple...
1. Which of the following statements related to U.S. GAAP and IFRS is not true? Multiple Choice Both U.S. GAAP and IFRS include guidance for adjusting entries. Both U.S. GAAP and IFRS prepare the same four financial statements. U.S. GAAP does not require items to be separated by current and noncurrent classifications on the balance sheet. U.S. GAAP balance sheets report current items first. IFRS balance sheets normally present noncurrent items first. 2. A company records the fees for legal...
Which of the following accounting principles does the Securities and Exchange Commission (SEC) require U.S. firms...
Which of the following accounting principles does the Securities and Exchange Commission (SEC) require U.S. firms to use when filing their financial statements? - International Accounting Standards Board (IASB) - International Financial Reporting Standards (IFRS) - Generally Accepted Accounting Principles (GAAP) - National Advisory Accounting Standards (NAAS) - Financial Accounting Standards Principles (FASP)
Which of the following statements about International Financial Reporting Standards (IFRS) is NOT true? A. IFRS...
Which of the following statements about International Financial Reporting Standards (IFRS) is NOT true? A. IFRS sets out broad and general principles that accountants should follow when preparing financial statements. B. IFRS offers simplicity but also possibly more leeway for accounting malpractice than does GAAP. C. In 2008, the Securities and Exchange Commission (SEC) announced its plan to convert U.S. companies from GAAP to IFRS. D. IFRS leaves LESS room for discretion than GAAP does. 2. Rogue Corp. has sales...
products, processes, and/or ideas that may provide future value. Under U.S. GAAP, all R&D costs are...
products, processes, and/or ideas that may provide future value. Under U.S. GAAP, all R&D costs are expensed in the year incurred (no asset recorded). For example, if a company spent $1,000,000 cash on R&D in 2017, U.S. GAAP would require the following journal entry: R&D Expense 1,000,000 Cash 1,000,000 Thus, the $1,000,000 expenditure would result in a $1,000,000 (pre-tax) reduction in income for 2017. Under IFRS, research costs are expensed (similar to U.S. GAAP). However, development costs are capitalized (recorded...
Looking at some of the differences between U.S. GAAP and IFRS, which is the set of...
Looking at some of the differences between U.S. GAAP and IFRS, which is the set of accounting rules followed by just about every industrialized nation outside the U.S.  While there are many similarities between the two systems, there are also some significant differences.  After learning a little bit about some of the similarities and differences, please reflect somewhat on how these differences might impact financial statement analysis, or if you think they actually would. what is a differences that exist...
Given the global nature of the financial​ markets, investors, (1)_, are frequently making investments in companies...
Given the global nature of the financial​ markets, investors, (1)_, are frequently making investments in companies that are located all over the world. While many companies located outside the U.S. prepare financial statements in accordance with (2)_, financial statements of​ U.S.-based entities are based on (3)_. (4)_ in the basis of presentation make the analysis of U.S. and​ non-U.S.-based company financial statements (5)_. (1) a.abroad, b. both in the U.S. and abroad, c. in the U.S. (2) a. IFRS, b....
Companies engage in research and development (R&D) in order to develop new products, processes, and/or ideas...
Companies engage in research and development (R&D) in order to develop new products, processes, and/or ideas that may provide future value. Under U.S. GAAP, all R&D costs are expensed in the year incurred (no asset recorded). For example, if a company spent $1,000,000 cash on R&D in 2017, U.S. GAAP would require the following journal entry: R&D Expense 1,000,000 Cash 1,000,000 Thus, the $1,000,000 expenditure would result in a $1,000,000 (pre-tax) reduction in income for 2017. Under IFRS, research costs...
ADVERTISEMENT
Need Online Homework Help?

Get Answers For Free
Most questions answered within 1 hours.

Ask a Question
ADVERTISEMENT