GAAP Rule Effect on International Accounting

Write a 2 pages paper on gaap rule effect on international accounting. GAAP Rule effect on International Accounting Summary In both the IFRS and GAAP, there are certain similarities and differences between accounting principles. In the year 2002, both IASB (International Accounting Standards Board) and FASB came to work together towards the convergence of GAAP and IFRS. A combined plan has been developed by FASB and IASB for developing revenue recognition and accounting standard concept. In the year 2008, a model had been developed that describes the revenue recognition approach. This model concentrates on asset and liability which may come from ‘enforceable agreement with a customer’. According to this model revenue will not be recognized unless the performance requirement is satisfied. The FASB and IASB proposed an approach for recognition of revenue which will form one single standard in all industry for accounting. These newly developed standards need better disclosure in balance sheet. This will help an accountant by making their job much easier because they don’t have to follow other standards. FASB has developed five steps that a company must follow for the new process of recognition of revenue. 1. A company must recognize the contract for revenue recognition. This will supply goods and services to its customer. Contracts can be in written format or may be oral. Company required segmenting the contract if the value of some goods or services is prepared independently. 2. The goods and services of contract should be accounted as different performance obligations because the goods or services are sold independently and they have different profit margin. If the good or service is similar then it must be combined with other good or service until a different performance obligation is created. 3. This is the third step in recognition process. In this process company has to determine the transaction price. This price displays the possible biased consideration that an individual expect to receive from the customer in exchange for transmitting goods or services. The revenue estimation contains estimation about variable consideration that signifies a considerable change of GAAP. A part of transaction cost differ over quantity and timing for example discounts, refunds, credits, incentives, bonuses, rebates and concessions. 4. Once company classifies the performance obligation and establishes the transaction cost, the recognition model needs to allocate the proportion of transaction cost to separate selling prices. Any discount will be assigned proportionally to every performance obligations. On satisfaction of performance obligations at the same time, the projected guidance permits them to be aggregated. 5. Finally company generates income when it satisfies the performance obligation through transmitting good or service. The total income is the amount assigned to the performance obligation through transaction cost. IASB worked directly with FASB to formulate a common approach which was related to the issue of valuation of financial asset and liability. The boards provide guidelines of the disclosure about financial instrument, including information of fair cost are shown below: The financial asset should be disclosed at fair cost through profit or loss and must be shown separately The financial liability should be considered at amortized cost. In case of loan, the liability must disclose the ‘maximum exposure to credit risk’ of any loan taken, or similar exposure to credit risk. Liability should disclose the amount of change in fair value of any associated credit or related instrument that has happened during the period when the loan was designated Financial instrument also need to disclose about ‘held–to–maturity investments’, ‘available– for–sale’ financial assets and receivables Bibliography Lamoreaux, Matthew G. & Nilsen, Kim. Convergence Milestone Journal of Accountancy, 2010.

Calculate the price
Make an order in advance and get the best price
Pages (550 words)
*Price with a welcome 15% discount applied.
Pro tip: If you want to save more money and pay the lowest price, you need to set a more extended deadline.
We know how difficult it is to be a student these days. That's why our prices are one of the most affordable on the market, and there are no hidden fees.

Instead, we offer bonuses, discounts, and free services to make your experience outstanding.
How it works
Receive a 100% original paper that will pass Turnitin from a top essay writing service
step 1
Upload your instructions
Fill out the order form and provide paper details. You can even attach screenshots or add additional instructions later. If something is not clear or missing, the writer will contact you for clarification.
Pro service tips
How to get the most out of your experience with TermPapersForMe
One writer throughout the entire course
If you like the writer, you can hire them again. Just copy & paste their ID on the order form ("Preferred Writer's ID" field). This way, your vocabulary will be uniform, and the writer will be aware of your needs.
The same paper from different writers
You can order essay or any other work from two different writers to choose the best one or give another version to a friend. This can be done through the add-on "Same paper from another writer."
Copy of sources used by the writer
Our college essay writers work with ScienceDirect and other databases. They can send you articles or materials used in PDF or through screenshots. Just tick the "Copy of sources" field on the order form.
See why 10k+ students have chosen us as their sole writing assistance provider
Check out the latest reviews and opinions submitted by real customers worldwide and make an informed decision.
Thank you so much! I appreciate what you do and all of the great help you've given me!
Customer 452483, September 6th, 2021
English 101
This writer was very quick with the draft and even faster with the revision! Thank you!
Customer 452603, May 30th, 2022
Great good
Customer 452555, February 14th, 2022
Good job. Thank you
Customer 452487, September 16th, 2021
Group Dynamics
Great job. I appreciate it.
Customer 452521, November 22nd, 2021
Good job! Thank you
Customer 452487, October 17th, 2021
Healthcare Writing & Communications
Thank you so much for all of your hard work! Appreciate it all!
Customer 452483, November 14th, 2021
Introduction to Sociology
Amazing! Thank you so much for your hard work, appreciate it!!
Customer 452483, October 24th, 2021
English 101
Amazing thank you!
Customer 452615, August 1st, 2022
Thank you so much!
Customer 452483, July 26th, 2021
On point! Appreciate all the hard work!!
Customer 452483, August 16th, 2021
Healthcare Writing & Communications
Excellent!! You’re awesome, thank you very much for all of your hard work & help!!
Customer 452483, October 24th, 2021
Customer reviews in total
Current satisfaction rate
2 pages
Average paper length
Customers referred by a friend
15% OFF your first order
Use a coupon TERM15 and enjoy expert help with any task at the most affordable price.
Claim my 15% OFF Order in Chat