Gaap Essay

412 words - 2 pages

GAAP reporting requirements for share-based payment and SPE

. . Generally SPEs help in the financing of certain assets or services and keeping the associated debt off the balance sheet of the sponsors. They also transform certain financial assets, such as trade receivables, loans, or mortgages, into liquid securities.

Formation of SPEs enable companies to remove debt from their balance sheet to they can meet certain ratios or loan covenants. According to SFAS 140, Accounting for Transfers and Servicing of Financial Assets and Extinguishment of Liabilities, any assets transferred to an SPE should be accounted for ...view middle of the document...

SFAS 140 also stipulates that, a qualifying SPE should not be consolidated in the financial statements of the transferor or its affiliates. The only time when an enterprise can include subsidiaries in its consolidated financial statements is when it has a controlling financial interest. Controlling interest is when a parent company has more than 50% of the voting stock in a subsidiary.

GAAP requirements for share-based payment

SFAS 123R, Share-based payment requires reporting entities to recognize in their financial statements the costs resulting from all share-based payment transactions at fair value.

public companies to recognize compensation cost from most share-based payment arrangements with employees. The audit will review the measurement of each equity instrument, to ensure the equity instruments awarded to employees are measured at fair value as of the grant date. The fair value in this case need to be based on either observable market prices of identical or similar equity or liability instruments in active markets, or on an established valuation technique. The audit will also determine if the company has more than one share-based payment and if so, full details will need to be disclosed. In reviewing the cash inflows and outflows, SFAS 123R requires excess tax benefits to be reported as a financing cash inflow on the statement of cash flows rather than as a reduction to income tax paid.

Other Papers Like Gaap

Ifrs 13 Summary Essay

302 words - 2 pages IFRS 13 Summary: Differences between IFRS 13 and Topic 820 under US GAAP •Largely consistent with Topic 820. •IFRS 13 goes further than US GAAP by requiring a quantitative sensitivity analysis disclosure for Level 3 financial instruments that are measured at fair value •IFRS 13 does not currently provide guidance on Investment Company accounting. Topic 820 provides guidance on investment company accounting •Minor wording and styling

Case Essay

2508 words - 11 pages Globalization of Accounting: GAAP and IFRS by Michael Jamgochian Will the United States ever switch to the Metric System? Will there ever be a global currency? Will GAAP ever be trumped by IFRS? These are all valid questions when speaking about the globalization of the United States at large. It seems as though the United States holds dear its standard methods of measurement. When making a calculation, whether it is units of measurement or financial

Rsm220-Week 01 Slides

2259 words - 10 pages in standard setting • Standard setting in a political environment GAAP • GAAP hierarchy •Professional judgement • Role of ethics Challenges Facing Financial Reporting • Globalization of companies and capital markets • Impact of technology • Changing nature of the economy • Increased requirement for accountability 2 The Canadian Financial Reporting Environment Role of Financial Reporting • Financial statements and financial reporting

Accounting

9328 words - 38 pages International Financial Reporting Standards to United States’ generally accepted accounting principles. Your job is to examine these financial statements, explore any differences noted between each of the financial statements and U.S. GAAP, and highlight some issues to be included in a financial analysis of China Eastern Airlines for possible inclusion in an investment portfolio. W INTRODUCTION alt Gregory is a junior portfolio analyst at Chartgood

Europe's Enron: Royal Ahold

1062 words - 5 pages Europe’s Enron: Royal Ahold, N.V. 1. As shown in Exhibit 3, Royal Ahold decided to fully consolidate the company’s financial data into their financial statements. The problem was that they only held 50 percent ownership in these companies. Under Dutch GAAP, they were only supposed to consolidate the amounts equivalent to their ownership in those companies. They were able to include the entire amount of their partnership companies by

Term Sample

305 words - 2 pages 3-30 (Rules of Conduct) There currently are 11 rules in the Code Professional Conduct. Listed below are circumstances pertaining to these rules. Required: a) Identify the rule to which each circumstances relates b) Indicate one other circumstance that pertains to each rule identified in (a) above. 1. Members shall not express an opinion that the financial statements are presented in conformity with GAAP unless the pronouncements of the

Health Care Financial Accounting

1006 words - 5 pages are done following generally accepted accounting principles). The question I really like to ask then is "How good are the health care organizations' financial management and do they have accurate financial report records"? GAAP Generally accepted accounting principles (GAAP) usually are regarded as the set of guidelines for financial accounting and the jurisdiction of every accounting standards. Following these accounting guidelines

Acct 553 Wk5 Hw

414 words - 2 pages are based on tax code vs. Generally Accepted Accounting Principles (GAAP;) e.g., MACRS is used for tax depreciation, but it isn't GAAP. Usually, book income is designed for general purpose financial reporting; e.g., banks, investors, shareholders, etc. Taxable income only applies to taxing authorities. Occasionally, some smaller companies just say screw it and keep their books on a tax basis, but they're pretty unusual. 17- 1 Identify and

Ifrs

344 words - 2 pages decisions and provide statements under fair value measurement. The collaboration of FASB and IASB, will be one of the most important changes in financial reporting to take place in years; best of both worlds as I would like to call it. The convergence of US GAAP to IFRS will bring have a major impact in our financial system. Accountants and regulatory bodies from all over the world are advocates of the convergence to IFRS; The SEC if fully

General Accounting

1538 words - 7 pages provide both academic and practical knowledge the nurse manager can translate readily to manage an organization or an individual nursing unit (Finkler, Kovner & Jones, 2007). For nurses to begin to understand generally accepted accounting principles (GAAP) recognizing that accounting shares two similar domains with nursing, science, and art. Though this concept may seem counter intuitive at first as accountings defining principles

Ahold

2545 words - 11 pages continuing.          Europe's Enron: Royal Ahold Europe’s Enron: Royal Ahold, N.V. 1. As shown in Exhibit 3, Royal Ahold decided to fully consolidate the company’s financial data into their financial statements. The problem was that they only held 50 percent ownership in these companies. Under Dutch GAAP, they were only supposed to consolidate the amounts equivalent to their ownership in those companies. They were able to include the entire amount of

Related Essays

Gaap Essay

267 words - 2 pages Generally Accepted Accounting Principles in Healthcare Generally Accepted Accounting Principles (GAAP) are the accounting standards used in the United States that provide an outlet for organization to record and report their financial information in a standardized manner (Richards, n.d.). This has proven to be of particular importance in the healthcare arena where many areas of finances can be ambiguous or gray. Additionally, the principles

Gaap V Ifrs Essay

359 words - 2 pages Presentation Differences between US GAAP and IFRS The following represents a partial list of differences related to the Presentation of the Balance Sheet and Income Statement between US GAAP and IFRS (keep in mind that Presentation differences do not give rise to differences in financial results; they are merely different ways to present the same data): Statement Affected | Issue | US GAAP | IFRS | Income Statement | Basic presentation

Ippa Essay

705 words - 3 pages Comparing IFRS to GAAP Paper Ashley Connors ACC/290 Sharon Powers Comparing IFRS to GAAP Paper The comparison between the IFRS and GAAP and how they differ from one another. The accounting industry has many guidelines that need to be followed by accountants, analysts, and organizations. The internal Accounting Standards Board issued standards (IFRS) that have been adopted by the United States and several countries out of the U.S. In

Busi Essay

457 words - 2 pages management, reliability, and stability , there are some procedure that must be followed most use the Generally Accepted Accounting Principles, corporate compliance, and the value of ethics.   When discussing General Accepted Accounting Principles (GAAP) it is describe as a set of accounting standards that are approved by many companies.   GAAP principles are put together by a group that’s known as the Financial Accounting Standards Board