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Accounting Standards


Product Description

A wide-ranging source of information for the practicing accountant, The Ultimate Accountants’ Reference, Third Edition covers accounting regulations for all aspects of financial statements, accounting management reports, and management of the accounting department, including best practices, control systems, and the fast close. It also addresses financing options, pension plans, and taxation options. The perfect daily answer book, accountants and accounting managers will turn to The Ultimate Accountants’ Reference, Third Edition time and again for answers to the largest possible number of accounting issues that are likely to arise.

From the Back Cover

The Ultimate Accountants’ Reference offers a single-source tool of best practices and control systems related to accounting regulations for all aspects of financial statements, accounting management reports, and management of the accounting department. The perfect daily answer book for the practicing accountant, it also addresses financing options, risk management, mergers and acquisitions, and taxation topics.

This revised and updated edition of Accounting Reference Desktop offers a concentrated, everyday reference manual to help financial professionals become much more efficient in researching accounting topics. New features of this improved resource tool include:

  • Up-to-date information on GAAP, IRS regulations, and new SEC regulations
  • New material on leases and options
  • More examples than the previous edition
  • The latest coverage of control systems, including twice as many controls as the previous edition
  • Double the amount of journal entries as the previous edition

Accountants, accounting managers, and finance personnel will turn to The Ultimate Accountants’ Reference time and again for quick, reliable answers to everyday issues. –This text refers to an out of print or unavailable edition of this title.

Product Details

  • Hardcover: 816 pages
  • Publisher: Wiley; 3 edition (March 8, 2010)
  • Language: English
  • ISBN-10: 047057254X
  • ISBN-13: 978-0470572542
  • Product Dimensions: 10 x 7.1 x 1.7 inches
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Product Details

  • Paperback: 1328 pages
  • Publisher: Wiley; Pap/Cdr edition (March 22, 2010)
  • Language: English
  • ISBN-10: 0470453249
  • ISBN-13: 978-0470453247
  • Product Dimensions: 9.4 x 7.4 x 3 inches
  • Shipping Weight: 3.9 pounds

Product Description

Your one-stop resource for understanding current International Financial Reporting Standards

With widespread acceptance and use of the IASB standards around the globe, the need to understand the IASB standards greatly increases. Wiley IFRS 2010 provides the necessary tools for understanding the IASB standards and offers practical guidance and expertise on how to use and implement them. The Wiley IFRS 2010 Book and CD-ROM set covers the most recent International Financial Reporting Standards (IFRS) and IFRIC interpretations. In addition, it is an indispensable guide to IFRS compliance.

  • Detailed coverage of all previously issued IAS and IFRS standards and Standing Interpretations Committee (SIC) and International Financial Reporting Interpretations Committee (IFRIC)
  • Equally valuable for preparers, auditors, and users of financial reports
  • Provides a complete explanation of all IFRS requirements, coupled with copious illustrations of how to apply the rules in complex, real-world fact situations
  • Serves as a reference guide during actual implementation of IFRS and preparation of IFRS-based financial statements

To optimize your understanding, both examples created to explain particular IFRS requirements and selections from actual published financial statements are provided throughout the book, illustrating all key concepts.

No decision taken about the timing of a possible conversion to IFRS


While the SEC approved a statement supporting the adoption of global accounting standards for U.S. companies, the Chairman Mary Schapiro cautioned that, “Incorporating International Financial Reporting Standards (IFRS) into our financial reporting system would involve a significant undertaking. We must carefully consider and deliberate whether such a change is in the best interest of U.S. investors and markets.

“The Commission also voted to approve a Work Plan developed by SEC staff that would gather information to aid the Commission as it evaluates the impact that the use of IFRS by U.S. companies would have on our securities market,” Schapiro said. The Work Plan will be completed in 2011, the target date set by the 2008 Proposed Roadmap.

Schapiro said, however, that no decision had been made about the timing of a possible conversion to IFRS. “We must still determine what this means for U.S. companies and markets; should we incorporate IFRS into our reporting system and, if so, when and how?

Source: http://www.accountingweb.com/topic/cfo/sec-approves-work-plan-assess-us-adoption-global-accounting-standards

I F R S to be mandatory only for big corporates in the first phase


The much-anticipated International Financial Reporting Standards (IFRS) is likely to be rolled out only partially in India from April 1, 2011.That’s because a core group on IFRS implementation, set up by the ministry of company affairs and headed by renowned chartered accountant Y H Malegam, is set to recommend that it be made mandatory only for big corporates in the first phase.

Source: DNA India


Central Board of Direct Taxes (CBDT) and accounting rule-maker Institute of Chartered Accountants of India (ICAI) have jointly constituted a study group to identify and address direct tax issues that will affect convergence of India’s accounting standards with International Financial Reporting Standards (IFRS).With IFRS convergence due for April 2011 and the government coming up with the new Direct Taxes Code (DTC), the suggestions of the study group finds relevance.

Source: Economic Times

New online course on IFRS 9: Financial Instruments

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There is a new course on IFRS 9 and you can take the course here: Accounting for Investments

On 12 November 2009, IASB published IFRS 9 Financial Instruments on the classification and measurement of financial assets. The present IAS 39 is proposed to be replaced in three phases as follows by International Accounting Standards Board (IASB):
Phase 1: Classification and measurement. This is presently published as IFRS 9 Financial Instruments on the classification and measurement of financial assets.
Phase 2: Impairment methodology. On 25 June IASB published a Request for Information on the feasibility of an expected loss model for the impairment of financial assets. The exposure draft published in November 2009.
Phase 3: Hedge accounting. IASB is currently conducting outreach with its constituents and intends to issue an exposure draft on hedge accounting in the first quarter of 2010.

Salient differences between IAS 39 and IFRS 9


On 12 November 2009, the International Accounting Standards Board (IASB) issued IFRS 9 Financial Instruments.

Salient differences between IAS 39 and IFRS 9


IAS 39



Financial Instruments:
Recognition and Measurement

Financial Instruments


Currently effective

Effective from 1st Jan 2013 with early adoption permitted


All aspects of Financial
assets & Financial Liabilities including hedge accounting

Only Financial assets included. Presently the standard does not include Financial liabilities, derecognition of financial  instruments, impairment and hedge accounting

of debt instruments

Fair Value Through Profit & Loss (FVPL)

Available-for-sale (AFS)

Held-to-maturity (HTM)

Loan and Receivable (LAR)

Fair Value Through Profit & Loss (FVPL)

Amortised Cost (AC)

of equity instruments

Fair Value Through Profit
& Loss (FVPL)

Available-for-sale (AFS)

Fair Value Through
Profit & Loss (FVPL)

Fair Value Through Other Comprehensive Income (FVOCI)

Basis of classification

Intention to hold till maturity, trading for short term profits, derivative, loan or receivable, or intentional designation subject to certain restrictions

Classification based on business model and the contractual cash flow characteristics

– Debt Instruments

Measured at amortised cost if classified as held-to-maturity or as loan or receivable.

Other classifications are measured at fair value.

Measured at amortised cost (AC) if business model objective is to
collect the contractual cash flows and the contractual cash flows represent solely payment of principal and interest on the principal amount outstanding.

Debt instruments meeting the above criteria can still be measured at fair value through profit or loss (FVPL) if  such designation would eliminate or reduce accounting mismatch.

If not, measured at fair value through profit or loss (FVPL)

– Equity Instruments

Measured at fair value.

Exception: Unquoted equity
investments are measured at cost where fair valuation is not sufficiently reliable.

Measured at fair value through profit or loss.

An entity can irrevocably designate  at initial recognition as fair value through other comprehensive  income, provided the equity  investment is not held for trading.


Embedded derivatives are
separated from the hybrid contract and are measured at FVPL.

No bifurcation of asset.

The financial asset is assessed in its entirety as to the contractual cash flows and if any of its cash flows do not represent either payments of principal or interest then the whole asset is measured at FVPL.

Fair value option

An entity can designate a financial asset to be measured at fair value on initial recognition.

The entity has the freedom to do so and need not satisfy any other criteria

A financial asset can be designated as FVPL on initial recognition only
if that designation eliminates or significantly reduces an accounting
mismatch had the financial asset been measured at amortised

– Debt instruments

Reclassification between the various four categories allowed under specific circumstances with the gain/loss being treated differently depending upon the movement between the classifications.

Reclassification from held-to-maturity (HTM) is viewed seriously if does not fall within the permitted exceptions.

If entity’s business model objective changes, reclassification is permitted between FVPL and AC or vice versa. Such changes should be demonstrable to external parties and are expected to be very infrequent.

– Equity instruments

Reclassification is permitted between the FVPL and AFS.

When transferred from AFS to FVPL, unrealized gain/loss is recognized in P&L based on fair value.

When transferred from FVPL to AFS, no reversal of gain/loss recognized as unrealized is permitted.

However all gain/loss on disposal of AFS are recognized in P&L by transfer from equity.

Reclassification between FVPL and FVOCI not permitted as FVOCI classification is done at the
irrevocable designation of the entity as such.

Only dividend income is recognized in P&L of assets designated as FVOCI.

Even on disposal of such assets, the gain/loss is not transferred from equity, but remains permanently in equity.


Accounting for Investments – Equities, Futures & Options –  is the first volume in this series published by John Wiley & Sons. This video gives an overview of the contents of this book. This is the first part of a series of videos that would cover the contents all the chapters in great detail.

I would appreciate if you could leave your feedback.

R. Venkata Subramani

US GAAP – codified topics

1 105 – Generally Accepted Accounting Principles
2 205 – Presentation of Financial Statements
3 210 – Balance Sheet
4 215 – Statement of Shareholder Equity
5 220 – Comprehensive Income
6 225 – Income Statement
7 230 – Statement of Cash Flows
8 235 – Notes to Financial Statements
9 250 – Accounting Changes and Error Corrections
10 255 – Changing Prices
11 260 – Earnings Per Share
12 270 – Interim Reporting
13 272 – Limited Liability Entities
14 274 – Personal Financial Statements
15 275 – Risks and Uncertainties
16 280 – Segment Reporting
17 305 – Cash and Cash Equivalents
18 310 – Receivables
19 320 – Investments—Debt and Equity Securities
20 323 – Investments—Equity Method and Joint Ventures
21 325 – Investments—Other
22 330 – Inventory
23 340 – Other Assets and Deferred Costs
24 350 – Intangibles—Goodwill and Other
25 360 – Property, Plant, and Equipment
26 405 – Liabilities
27 410 – Asset Retirement and Environmental Obligations
28 420 – Exit or Disposal Cost Obligations
29 430 – Deferred Revenue
30 440 – Commitments
31 450 – Contingencies
32 460 – Guarantees
33 470 – Debt
34 480 – Distinguishing Liabilities from Equity
35 505 – Equity
36 605 – Revenue Recognition
37 705 – Cost of Sales and Services
38 710 – Compensation—General
39 712 – Compensation—Nonretirement Postemployment Benefits
40 715 – Compensation—Retirement Benefits
41 718 – Compensation—Stock Compensation
42 720 – Other Expenses
43 730 – Research and Development
44 740 – Income Taxes
45 805 – Business Combinations
46 808 – Collaborative Arrangements
47 810 – Consolidation
48 815 – Derivatives and Hedging
49 820 – Fair Value Measurements and Disclosures
50 825 – Financial Instruments
51 830 – Foreign Currency Matters
52 835 – Interest
53 840 – Leases
54 845 – Nonmonetary Transactions
55 850 – Related Party Disclosures
56 852 – Reorganizations
57 855 – Subsequent Events
58 860 – Transfers and Servicing
59 905 – Agriculture
60 908 – Airlines
61 910 – Contractors—Construction
62 912 – Contractors—Federal Government
63 915 – Development Stage Entities
64 920 – Entertainment – Broadcasters
65 922 – Entertainment – Cable Television
66 924 – Entertainment – Casinos
67 926 – Entertainment – Films
68 928 – Entertainment – Music
69 930 – Extractive Activities – Mining
70 932 – Extractive Activities – Oil & Gas
71 940 – Financial Services—Broker and Dealers
72 942 – Financial Services—Depository and Lending
73 944 – Financial Services—Insurance
74 946 – Financial Services—Investment Companies
75 948 – Financial Services—Mortgage Banking
76 950 – Financial Services—Title Plant
77 952 – Franchisors
78 954 – Health Care Entities
79 958 – Not-for-Profit Entities
80 960 – Plan Accounting—Defined Benefit Pension Plans
81 962 – Plan Accounting—Defined Contribution Pension Plans
82 965 – Plan Accounting—Health and Welfare Benefit Plans
83 970 – Real Estate – General
84 972 – Real Estate – Common Interest Realty Association
85 974 – Real Estate – Real Estate Investment Trusts
86 976 – Real Estate – Retail Land
87 978 – Real Estate – Time Sharing Activities
88 980 – Regulated Operations
89 985 – Software
90 995 – U.S. Steamship Entities


Measured at

Changes in carrying amount (other than a designated hedge)

Impairment test required?

Financial assets and liabilities at fair value through profit or loss

Fair value

Income statement


Loans and receivables

Amortized cost

Income statement


Held-to-maturity investments

Amortized cost

Income statement



Fair value



Other financial liabilities

Amortized cost

Income statement