What terms commonly used under ifrs are synonymous with common stock and balance sheet?

Write a 700- to 1,050-word summary of your team's discussion regarding IFRS versus. GAAP. The summary should be structured in a subject-by-subject format. Include an introduction and a conclusion. Your discussion should include the answers to the following:

· IFRS 2-1: In what ways does the format of a statement of financial or position under IFRS often differ from a balance sheet presented under GAAP?

· IFRS 2-2: Do the IFRS and GAAP conceptual frameworks differ in terms of the objective of financial reporting? Explain.

· IFRS 2-3: What terms commonly used under IFRS are synonymous with common stock and balance sheet?

· IFRS 3-1: Describe some of the issues the SEC must consider in deciding whether the United States should adopt IFRS.

· IFRS 4-1: Compare and contrast the rules regarding revenue recognition under IFRS versus GAAP.

· IFRS 4-2: Under IFRS, do the definitions of revenues and expenses include gains and losses? Explain.

· IFRS 7-1: Some people argue that the internal control requirements of the Sarbanes-Oxley Act (SOX) of 2002 put U.S. companies at a competitive disadvantage to companies outside the United States. Discuss the competitive implications (both pros and cons) of SOX.

Format the paper consistent with APA guidelines.

Use your Financial Accounting text and at least two additional scholarly-reviewed references.

I have the answers for the above questions. They are included below. I need an introduction which should be discussing the topic of the essay with a transition and a conclusion.

IFRS 2-1

IFRS does not prescribe a particular format/ order or classification of accounts on the statement of financial position. In most scenarios, companies report assets in the reverse order of liquidity. There are particular items must appear on the face of the balance sheet. A sample of the order of accounts on the statement of financial position is illustrated as below.

· Long Term Assets

· Current Assets

· Shareholder Equity

· Long Term Liabilities

· Current Liabilities

GAAP specifically prescribes that all ordered based on their degree of liquidity. Thus, cash is not usually reported first while nor current assets are stated last. Entities could give rise to either a classified or non-classified balance sheet. Items on the face of the balance sheet are generally presented in decreasing order of liquidity. A typical GAAP balance sheet will be as follows.

· Current Assets

· Long term Assets

· Current Liabilities

· Long Term liabilities

· Shareholder Equity

IFRS 2-2

Do the IFRS and GAAP conceptual frameworks differ in terms of the objective of financial reporting? Explain.

Yes, they do differ in terms. The IASB and the Interpretations Committee uses the conceptual framework (the Conceptual Framework) when developing new or revised IFRS's and interpretations, or amending existing IFRS's. The Conceptual Framework is a point of reference for prepares of financial statements in the absence of specific guidance in IFRS. Transactions with shareholders in their capacity as shareholders are recognized directly in equity. US- Like IFRS, the FASB Concept Statements (the Conceptual Framework) establish the objectives and concepts that the FASB uses in developing guidance. Unlike IFRS, the Conceptual Framework is non-authoritative guidance and is not referred to routinely by preparers of financial statements.

Like IFRS, transactions with shareholders in their capacity as shareholders are recognized directly in equity. However, the determination of when a shareholder is acting in that capacity differs from IFRS in some cases.

The list of Goes on to tell the differences of the IFRS and the GAAP, in terms of reporting here is the link to the rest of the differences.

https://www.kpmg.com/Global/en/IssuesAndInsights/ArticlesPublications/IFRS-GAAP-comparisons/Documents/IFRS-compared-to-US-GAAP-2012.pdf

IFRS 2-3

 What terms commonly used under IFRS are synonymous with common stock and balance sheet? the first that is Balance Sheet is synonymous with the "Statement of Financial Position". and the second one Common Stock is synonymous with "Share Capital Ordinary" when viewing an IFRS financial statements.

IFRS 3-1

Describe some issues the SEC must consider in deciding whether the United States should adopt IFRS-

Some issues would be-

1.Transition from GAAP to IFRS.

2.Protections of Investors.

3.Promotion of capital formation.

4.Maintain of orderly markets

to list a few all of these issues must be considered and cannot be compromised, before deciding to adopt to IFRS.

IFRS 4-1

GAAP rules change based on the industry that a company is in, for example, a business in the software business will not have the same standards as a business in real estate. IFRS has a universal rule for giving revenue recognition for all companies in all industries. IFRS also forbids the completed contract method that under GAAP forces a completed structure before a revenue can be recognized. GAAP also makes a software company recognize revenue over a service period where IFRS will allow a software company to understand full revenue upfront.

IFRS 4-2: Under IFRS, do the definitions of revenues and expenses include gains and losses? Explain.

The definitions of revenues and expenses both include gains and losses. Revenues can result from every day activities within the company. A few examples of revenues are sales, interest, rents and fees. Gains are sometimes but not always from every day business activities. Within the definition of income gains are shown as other items. Some examples could be unrealized gains on trading securities or a gain made from the sale of a long term asset. Although expenses and losses are both included in its definition, expenses do result from every day activities while running a business.

IFRS 7-1

After analyzing some of the resources I have read, a major issue of competitive implication of SOX is the IT challenges. A precarious SOX IT challenge is to properly manage immense and amassed amounts of business data and information that verifies accuracy at a productive rate. So constructing a database capable of handling the vast amounts of information required by SOX would put the United States in a competitive advantage than disadvantage.

IT managers desire technology solutions that satisfy control requirements without sacrificing performances (). Because a database needs to manage and operate in proficiency, time and cost are the challenge within the challenge.

Lotus Workplace for Business Controls and Reporting, IBM Tivoli management solutions and IBM Global Services Business Consulting Services are supplying integrated software and services that will assist the basis of risks and controls and asses the effectiveness of those controls. Even though there are problems to face, the advantages of having a support system like IBM and Lotus will solve the issues. Some have concluded that Lotus is a cost effective avenue to evaluate controls while minimizing the impact on a day to day operations.