Discuss the major similarities and differences between U.S. GAAP and IFRS.
Book: Miller- Nobles, T., Mattison, B., & Matsumura, E.M. (2018). Financial and Managerial Accounting (Custom 6th ed.). Pearson Education, Inc. (Vitalsource E-text) ISBN# 9781323821718
Discussion question 2
1). Define the accrual basis of accounting, and why it is generally preferred over the cash basis?
2). Describe the two main types of adjusting entries (deferrals and accruals), and give at least 1 example of EACH of the 2 types. (ie, You should have 2 complete journal entries – 1 deferral entry, and 1 accrual entry – Be sure to have a debit account and a credit account with amounts in your entry)
3). Explain what an Unadjusted Trial Balance is, and the relationship between the Unadjusted Trial Balance, adjusting journal entries, and the Adjusted Trial Balance.
4). Finally, what do we do with the Trial Balance, and what statements is it used to produce?
Discussion question 3
This week, we will be reviewing Chapter 5 on Merchandising Operations. Companies like Wal-Mart, Target, and Amazon are all examples of companies that purchase inventory from suppliers, and then sell those products to consumers.
1). Describe the 2 formats for the income statement of a merchandising company, and list the respective sub-totals found in each income statement format. (You should describe some of the accounts found on each type of income statement).
2). a) Describe purchase discounts and purchase returns & allowances.
b) Describe the 2 shipping terms methods companies use when delivering products, and how freight costs are accounted for.
3). Sales on Account – Many sales are made on account (on credit) instead of with cash or a credit card. Assume that your new company purchases products for resell to customers, and your plan is to sell those products at a profit. Make the appropriate journal entries to record the sale (on account – ie., on credit) assuming your company sells 4 of those products to a single customer. (You should select any price you wish to pay to your vendor for the purchase). Hint – There will be 2 entries… Be sure to include both the sale to the customer, as well as the impact of the reduction of inventory through cost of goods sold.
Discussion question 4
In this week’s discussion, we will be looking at some of the differences between U.S. GAAP and IFRS, which is the set of accounting rules followed by just about every industrialized nation outside the U.S. While there are many similarities between the two systems, there are also some significant differences. After learning a little bit about some of the similarities and differences, please reflect somewhat on how these differences might impact financial statement analysis, or if you think they actually would.
Review the sections on international accounting (IFRS) (See pages 9, 10, 59, 184, 267, 339, 376, 431, 489, 556, 568, 571, 668, 701.)
1. Discuss the major similarities and differences between U.S. GAAP and IFRS.
2. Which of the differences do you find most interesting?
3. If there is a convergence between U.S. GAAP and IFRS, would you choose the U.S. GAAP or IFRS method? Why?