Question

Roxy & Harley Part 3 Group Assignment In addition, Roxy & Harley have heard there have been several recent accounting changes as document in the FASB Codification. Your group will be assigned one of the accounting topics below on which to report the following: dl.) The main provisions of the new pronouncements d2.) How the accounting treatment of the new pronouncement differs from before d3.) The effective date(s) of the new pronouncement d4.) How the accounting treatment compares with IFRS The Topics are: 1. Extraordinary & Unusual Items 2. Income Taxes 3. Business Combinations 4. Leases 5. Recognition & Measurements of Financial Instruments 6. Earnings Per Share 7. Hedge Accounting

Answer 1

1)extraordinary and unusual itrms-

The fasb issued sn Accounting standards that simplifies income statement presrntation by rliminating the concept of extraordinary and unusual items.

A)main provision-is to eliminate. But it must include unusual nature the transaction must possess a high degree of obnormality.or infrequency of occurance. The ttansactiion should be a type which we expect it wil not occur in the future.

B)from the effective date of accounting standards update the title of this subtopic will chnage to incomestatement -unusual or infrequently occuring items.

C)proposed update will be uplied prospectiveky for extraordinary and unusual items in anual periods,iit will br effective in 2018 or earlierier fot calender year.it began dec 15 2015

D)accounting treatment- in GAAP extrordinary items shown below the statement of income but in IFRS extraordinary items will not be segregated in the income statement.

2)income taxes-

A)is designed to improve the way deffrred taxes are classfied on organisstions balancesheet.and also to reduce the complexity in financial reporting which need to provide information to users.

B)before the change in update deffered taxes presented as a net current asset or liability and net noncurrent assets or liability.

C) for public companies this changes took effect from the anual periods beginning after december 15 2016,but private compsnies, this changes was started on december 15 2017 and interim periods within anual periods beginning after december 15 2018

D)in GAAP effered taxes was shown by dividing current and non current components but in IFRS there wil not be split between current and noncurrent.instead all deffered assets and liabilities are classified as noncurrent assets.

3)business combinations-

A)it is dedigned to simplify accounting for adjustments which is made to provisional amount recognised in a business combination.

B)here accounting should create separate account for assets that is subject to the lease and any intangible assets or liability.

C)for public business this amendment took effect for fisical yeard begining after december 15 2015. But for all other entities this took place ftom december 15 2016.

D)Under IFRS, all the intangible assets or liabilities from the favorable or unfavourable market terms is incorporated into the fair value of the asset which subject to the lease amount and it should not be shown in balancesheet.

4)leases -to recognise on the balancesheet the asets and liabilities for the rights and obligations created by those leases.

B)under gaap have to mention only capital leases in balancesheet

C)for public companies dec 15 2018...for a calender year company, it eould be effective from jan 1 2019

Foe private company december 15 2020

D)lease requires lessees to recognise nrw assets and liabilities under bslansheet.

5)recognition and measurement-

A)to provide significantly impact accounting for equity investment

B)GAAP-assets or liabilities is measured at initial recognition at fair value in the financial statement and the entity acquired or issued the assets or liabilities ay an amount other thsn fair value.

C) jan 1 2018

D)gsin or loss for a financial assets or financial liability ay fair value

6)to know how the main provisions differ friom current

B)in financial stayement

C)applies to anual period beginning on or after jan 2005

D)earning per share financial statement and balancrsheet

7)hedge accounting-

A)to know the targeted improvements to the accounting guidence for hedging activities.

B)gaap-cashflow hedge results are posted to aoci and reclassified to earnings

C)will be anual periods beginning on or agter 1 january 2018

D)in IFRS gains or losses are posyed to a cash flow reserve account..