Table of Contents
Chapter 1 - Introduction to IFRS - Section 1................................................................................... 8
1.1 The IASB Structure................................................................................................................................ 8
1.1.1 IFRS
Foundation...................................................................................................................................... 9
1.1.2
International Accounting Standards Board (IASB)........................................................................ 10
1.1.3
International Financial Reporting Committee (IFRIC).................................................................. 10
1.1.4
Standards Advisory Council (SAC).................................................................................................... 10
Chapter 1 – Section 1 Review Questions.......................................................................................... 11
Chapter 1 - Introduction to IFRS - Section 2................................................................................ 12
1.2 IASB Due Process..................................................................................................................................... 12
1.2.1 Setting
the agenda................................................................................................................................. 12
1.2.2 Project
Planning.................................................................................................................................... 13
1.2.3
Development and publication of a discussion paper...................................................................... 13
1.2.4
Development and publication of an exposure draft........................................................................ 14
1.2.5
Development and publication of an IFRS......................................................................................... 15
1.2.6
Procedures after an IFRS is issued..................................................................................................... 16
1.3 International Financial
Reporting Standards (IFRS)................................................ 16
Chapter 1 – Section 2 Review Questions.......................................................................................... 18
Chapter 2 - IFRS Financial Statements - Section 3................................................................... 20
2.1 Framework for the Preparation
and Presentation of Financial Statements 20
2.1.1 Purpose
and status................................................................................................................................. 20
2.1.2 Scope........................................................................................................................................................ 21
2.1.3 The
objective of financial statements................................................................................................. 22
2.1.4
Underlying assumptions....................................................................................................................... 22
2.1.5 Qualitative
characteristics of financial statements........................................................................ 22
2.1.6 The
elements of financial statements.................................................................................................. 23
2.1.7
Recognition of the elements of financial statements....................................................................... 24
2.1.8 Measurement
of the elements of financial statements..................................................................... 25
2.1.9 Concepts
of capital and capital maintenance................................................................................. 26
Chapter 2 – Section 3 Review Questions.......................................................................................... 28
Chapter 2 - IFRS Financial Statements - Section 4................................................................... 30
2.2 Presentation of Financial
Statements................................................................................ 30
2.2.1
Statement of Financial Position......................................................................................................... 30
2.2.2
Statement of Comprehensive Income.................................................................................................. 33
2.2.3
Statement of Changes in Equity.......................................................................................................... 35
2.2.4
Statement of Cash Flows...................................................................................................................... 37
2.2.5 Notes to
the Financial Statements...................................................................................................... 39
Chapter 2 – Section 4 Review Questions.......................................................................................... 41
Chapter 3 - U.S. GAAP & IFRS: What is the
Difference? - Section 5.................................. 45
3.1 Revenue recognition......................................................................................................................... 46
3.2 Expense recognition........................................................................................................................... 47
3.2.1
Share-based payments........................................................................................................................... 47
3.2.2 Employee
benefits.................................................................................................................................. 49
3.3 Assets............................................................................................................................................................. 50
3.3.1
Long-lived Assets.................................................................................................................................... 50
3.3.2
Inventory.................................................................................................................................................. 51
3.3.3
Intangible Assets.................................................................................................................................... 51
3.3.4
Impairment of Assets.............................................................................................................................. 52
3.3.5 Leases
(current model).......................................................................................................................... 53
Chapter 3 – Section 5 Review Questions.......................................................................................... 56
Chapter 3 - U.S. GAAP & IFRS: What is the
Difference? - Section 6.................................. 59
3.4 Liabilities.................................................................................................................................................. 59
3.4.1
Provisions and contingencies.............................................................................................................. 59
3.4.2 Income
taxes............................................................................................................................................ 59
3.5 Other U.S. GAAP & IFRS
Differences............................................................................................ 60
3.5.1
Financial instruments........................................................................................................................... 60
3.5.2 Business
combinations.......................................................................................................................... 63
3.5.3
Subsequent events.................................................................................................................................. 63
3.5.4 Related
parties........................................................................................................................................ 64
3.5.5
Earnings-per-share................................................................................................................................ 64
Chapter 3 – Section 6 Review Questions.......................................................................................... 66
Chapter 4 - Convergence - Section 7................................................................................................... 69
4.1 The History of Convergence........................................................................................................ 69
4.1.1 The
convergence timeline..................................................................................................................... 70
4.1.2 The
Norwalk Agreement........................................................................................................................ 73
4.1.3
Memorandum of Understanding......................................................................................................... 73
Chapter 4 – Section 7 Review Questions.......................................................................................... 75
Chapter 4 - Convergence - Section 8................................................................................................... 76
4.2 The Joint Projects................................................................................................................................. 76
4.2.1
Conceptual Framework Project.......................................................................................................... 77
4.2.2
Business Combinations........................................................................................................................ 79
4.2.3 Leasing..................................................................................................................................................... 79
4.2.4 Revenue
Recognition............................................................................................................................. 81
Chapter 4 – Section 8 Review Questions.......................................................................................... 83
Chapter 5 - Adoption - Section 9............................................................................................................. 84
5.1 First-time Adoption (IFRS 1)............................................................................................................. 84
5.1.1
Objective & scope.................................................................................................................................. 84
5.1.2 Key
Dates................................................................................................................................................. 85
5.1.3
Recognition & measurement................................................................................................................ 85
5.1.4
Disclosures.............................................................................................................................................. 88
Chapter 5 – Section 9 Review Questions.......................................................................................... 90
Chapter 5 - Adoption - Section 10........................................................................................................... 92
5.2 The Impact of Adoption..................................................................................................................... 92
5.2.1
Technical accounting challenges....................................................................................................... 92
5.2.2 Tax
consequences................................................................................................................................... 93
5.2.3 Internal
processes and statutory reporting impact......................................................................... 94
5.2.4
Technology infrastructure impact...................................................................................................... 95
5.2.5
Organizational changes....................................................................................................................... 96
Chapter 5 – Section 10 Review Questions....................................................................................... 98
Review Answers.................................................................................................................................................. 99
Glossary................................................................................................................................................................ 129
Index.......................................................................................................................................................................... 133
Final Examination......................................................................................................................................... 137
CPASelfstudy.com Course Evaluation.......................................................................................... 153