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International Accounting & Project Management

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Application: IFRS vs. U.S. GAAP
1. In this week's Discussion, you studied revenue recognition standards and related accounting issues for companies operating in international markets. Due to the scope of international markets and the differences in IFRS and U.S. GAAP accounting standards, accountants are also challenged with issues related to provisions, contingent liabilities and assets, employee benefits, and share-based payments.
For this Assignment, select two of the following topics: Provisions, Contingent Liabilities, and Contingent Assets (IAS 37); Employee Benefits (IAS 19); and Share-Based Payment (IFRS 2). Consider the accounting standards related to your selected topics. Think about the major differences between IFRS and U.S. GAAP financial reporting requirements for the recognition and measurement of your topics, as well as the impact of these reporting differences on multinational companies.
I will write a 2- to 3-page paper differentiating between IFRS and U.S. GAAP financial reporting requirements for the recognition and measurement of your selected topics. Evaluate the impact of the reporting differences of your topics on multinational companies.

2.Final Project: Project Charter
The project charter is one of the more important project documents. It authorizes the project, provides the purpose and justification for the project, and provides the criteria to judge project success.

For this assignment, read the St. Dismas Assisted Living Facility case study on pages 111-112 of the Mantel text, as well as Chapter 3, pages 79-83. Create a project charter. Your project charter must be at least two pages, double-spaced, and include:

◦A statement about the purpose and justification for the project
◦A high-level description of the project requirements
◦A list of the primary project objectives and how success in meeting the objectives will be measured
◦Assumptions and constraints
◦High-level risks
◦Major project milestones
◦High-level/preliminary budget estimate
◦Key stakeholder analysis matrix including communications needs
◦Project approval procedure

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International Accounting
The two topics selected are contingency assets, and employee benefits.
The IASB issued an exposure draft to replace 1AS 37 which is Provisions, Contingency Liabilities and Contingent Assets. The IFRC 21 is an interpretation of IAS 37 which sets out the criteria for the recognition of a liability. The IFRC 21 is effective for annual periods beginning on or after January 1, 2014.
In case of US GAAP the contingency assets are recognized according to ASC 800 fair value measurement if the fair value can be determined during the measurement period. Otherwise, those assets are recognized at the acquisition date in accordance with ASC 450. Contingency assets that do not meet either of the criteria are accounted for in accordance with other applicable provisions. In case of IFRC the contingency assets are not recognized. In case of US GAAP if the contingency assets are recognized at fair value there should be a rational basis for subsequently measuring and accounting for those assets and liabilities depending on their nature. The IAS 37 provides overall guidance for recognition and measurement criteria of provision and contingencies. In IFRS disclosures regarding provisions and contingency assets may be omitted if they can be expected to seriously prejudice the position of the entity in dispute with other parties. A similar exception does not exist under the US GAAP.
The effect of these provisions on the accounts of multinational companies is that under the US GAAP multinational companies can record contingency assets at fair value. This situation occurs regularly because large multinational companies frequently make acquisitions. In contrast contingency assets are not recognized under the IFRS.
Employee benefits reflect 1AS 19. The IAS 19 is effective for financial years beginning on or after January 2013. Under the IFRS employee benefits include formal plans or agreements, legislative requirements, and informal practices that create constructive obligation. Also, employee benefits include short term benefits, post employment benefits, and other long term employee benefits. All IFRS requirements are included in IAS 19.5 but in US GAAP employee benefits are covered in different areas such as compensation (ASC 710), Compensation (ASC 715), Compensation (ASC 712), and Compensation (ASC 718 related to Share based payments). The main differences are that IFRS gives guidance about short term benefits. In contrast US GAAP does not specifically address short term benefits. According to IFRS profit sharing and bonus plans are recognized when and only when there is present legal or constructive obligation to make payment and a reliable estimate can be made. In contrast, US GAAP requires that if a bonus is based on attaining a specific goals over a period of time is accrued based on the results ...

Solution Summary

The response provides you a structured explanation of project management and international accounting issues . It also gives you the relevant references.

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Toyota Inc. Accounting - Proposal and project completion

The purpose of the Final Project is to apply the concepts and techniques of the module to the analysis of real-world situations or problems. Students are expected to use diverse sources of information and to carry out an original analysis rather than summaries or rehash existing work. Students are encouraged to use situations and data from their own experience where possible.

Your task for is to prepare and hand in a Project Proposal for Toyota Corp. that includes the nature of the project, the sources of information you plan to use, and the most important concepts and techniques to be applied.

Then, after creating the proposal, complete the project.

You are required to complete a course project that reveals mastery in application of the management accounting and finance concepts emphasized in the course. This involves reporting on Toyota Inc and the management accounting and finance practices that affect the value of the chosen firm or industry. This project should be a formal business report that provides both specific processes and strategies involving budgeting, costing, capital decision making, capital acquisition, and cost of capital structure of the chosen firm. These processes and strategies are to be supported with management accounting concepts.

Your tasks are to:
1. Assess the budgeting process and procedures for the organization with regards to preparation techniques, uses for evaluation, differences between business units/divisions, etc.
2. Analyze how the organization collects, stores, and prepares management accounting information, particularly the use of a management accounting system (MAS) and how information is disseminated throughout the organization.
3. Evaluate the costing process and procedures of the organization with respect to method or approach utilized.
4. Assess the capital decision making process within the organization with regards to what methods are utilized, how such methods are chosen, how projects are selected and managed, and what measures are employed to evaluate performance.
5. Evaluate the criteria or mechanisms used by the organization for deciding how best to acquire capital and analyze the capital structure of the company.
Your Final Project should follow the given outline:
1. Brief description of company
2. Description of firm's budgeting process
3. Management accounting information system
4. Costing process
5. Capital decisions
6. Capital acquisition and structure
7. Conclusion

Your Final Project should also include a section on how and where you obtained the information sources as well as the methodology used to perform any analysis. This project should follow a structured approach and should be prepared and presented as a professional business report.

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