Question

Discuss the impact of adopting IFRS reporting on equity-based accounting for financial reporting and tax payments....

Discuss the impact of adopting IFRS reporting on equity-based accounting for financial reporting and tax payments. Then, recommend a strategy for companies adopting IFRS to minimize the impact of the accounting treatment.

Examine the potential results of measuring the fair market value of the equity-based compensation at the grant date on financial statements under GAAP only. Provide recommendations you would make to minimize any distortions in fair market value

Homework Answers

Answer #1

There is direct bearing on overall improvements of financial reporting and tax payments that indicate the importance of equity based accounting as a result of adopting IFRS reporting.

IFRS develops standards for the accounting of transactions where an entity trades equity items for the recording of goods and services.

It also accounts for transactionswhere an entity could be looking at a liability in exchange for services, which are based on the fair value of the equity item. IFRS requires entities to disclose a range of details.

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