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ACC 430 Assignment 2 SU12020

The document summarizes key points from Chapter 3 of the textbook "International Accounting" regarding global accounting standards. It discusses that setting global standards aims to prevent financial scandals by increasing comparability and harmonization between countries. It also outlines the steps needed to comply with IFRS 1, including recognizing and reclassifying assets and liabilities and applying IFRS in measurement. Finally, it evaluates Jardine Matheson's financial statements and finds they comply with most IAS 1 requirements, though some categories are renamed.

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121 views2 pages

ACC 430 Assignment 2 SU12020

The document summarizes key points from Chapter 3 of the textbook "International Accounting" regarding global accounting standards. It discusses that setting global standards aims to prevent financial scandals by increasing comparability and harmonization between countries. It also outlines the steps needed to comply with IFRS 1, including recognizing and reclassifying assets and liabilities and applying IFRS in measurement. Finally, it evaluates Jardine Matheson's financial statements and finds they comply with most IAS 1 requirements, though some categories are renamed.

Uploaded by

Shannon
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as DOCX, PDF, TXT or read online on Scribd
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Shannon Peed

SU12020

ACC 430

Assignment 2

Chapter 3 Problem 10:


Discuss the lessons referred to above concerning the objectives of the current efforts at
setting global standards for accounting and financial reporting.

Setting global standards for accounting and financial reporting is essentially for that reason
of trying to attempt to prevent accounting/financial scandals. The goal is to have a
Comparability between different international account systems in different countries as well
as Harmonization of the standards to allow different nations to understand and protect
against possible accounting/financial scandals. Parmalat is a prime example that a large
scandal can happen in any country.

Chapter 3 Problem 13:


Identify the steps that you will need to take in your department to comply with the
requirements of IFRS 1.

According to IFRS 1, in preparation for opening IFRS balance sheets the following is
required:
1) Recognition of all assets and liabilities required by IFRS
2) De-recognition of any assets or liabilities that are previously recognized if IFRS does not
permit recognition.
3) Reclassify assets, liabilities or components of equity that were previously recognized
under previous GAAP that may be classified under a different category under IFRS
4) Apply IFRS in measuring all recognized assets and liabilities.

Doupnik, T. S., & Perera, H. (2015). International accounting (4th ed.). New York, NY: McGraw-
Hill Education.
Chapter 3 Case 3-1:
Access Jardine Matheson’s most recent annual report on the company’s Web site
(www.jardine-matheson.com). Review the company’s consolidated financial statements to
evaluate whether the financial statements presented comply with the presentation
requirements in IAS 1, Presentation of Financial Statements. Document your evaluation.

Jardine’s most recent annual report presents its consolidated income statement, balance
sheet, cash-flow statement, and statement of changes in equity. Jardine’s income
statement presents the minimum required to align with the IAS 1. The company classifies
its assets and liabilities under current and non-current to align with IAS 1 requirements.
Jardine does not separate it’s retained earning s from other revenues, this is not aligning
with IAS 1 requirements but they do not withhold the information as it is simply renamed
and categorized into a different category. There are also a number of considerable different
wording/naming of categories with Jardine compared to IAS 1, while these differences could
cause issues within the international accounting realm they are still technically displaying
the required categories that IAS 1 requires. Some examples include: IAS 1 uses Property,
plant and equipment as a term but Jardine Matheson replaces it with Tangible assets and as
stated above IAS 1 states Retained Earnings as its own but Jardine Matheson words it as
Revenue and other reserves.

Doupnik, T. S., & Perera, H. (2015). International accounting (4th ed.). New York, NY:
McGraw-Hill Education.

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