should adopt IFRS, he has seen the light and has become a true believer. contrast, reason-based accounting recitation of a vast litany of blasphemies against IFRS to make one a serious, if not committed, Today, I write of of these latest abominations: the latest revision to IFRS 3 on the accounting for business combinations.
Goodwill and NCI: IASB Fakes Right and Goes Left
Perhaps the most significant development in the accounting for business combinations is that FAS 141(R) now requires the same basis of measurement for assets acquired and liabilities assumed, regardless of the percentage of a company acquired (so long as control is achieved) Discount Newport 100S Cigarettes. Therefore, if is purchasing 100% of the equity interests in the acquiree, non-controlling interests (NCI) must be measured at full fair value.
As you may be aware from reading my post "What Good Comes from Goodwill Accounting?" Online Newport Cigarette Store, I am not a big fan of recognizing under any circumstance, so I will grant that the justification for the FASB approach is not airtight. it was common knowledge that the FASB was given to understand that, by sticking its neck out to make these controversial changes to FAS 141(R), the IASB would follow suit.
Instead, the IASB renegged on its promise in the worst way imaginable: they voted to allow entities a free choicebetween partial and full fair value alternatives to goodwill and NCI measurement. What more, issuers can their choice on a transaction-by-transaction basis -- kind of like going to church one week and synagouge the next Buy Newport Cigarettes Wholesale. Not even the devoted acolyte spin this any other way except as a significant step backwards from establishing the IASB as a credible agent of quality financial reporting and protection.
And, it not just me who is outraged. Read the strongly-worded dissents* of Mary Barth and John Smith, two of the three Americans on the IASB. As to the third American, Jim Leisenring, I guess I shouldn be surprised that he capitulated to the majority. Leisenring the most prominent voice in support of FAS 133 (on hedge accounting) when he was on the FASB; standard whose middle name is inconsistency. investors when membership, and hence our influence, IFRS inevitably wanes. GAAP; these may be even worse.
First, the devilish game of managing the timing of contingent liabilities still thrives in IFRS. FAS 141(R) now requires that any non-contractual, contingent liability assumed in a business combination must be recognized at fair value, if the probability of occurrence is more likely than not. IFRS allows any contingent liability to be recognized, regardless of likelihood, if it can be reliably measured.
As I discussed in a previous post IASB of contingent liability accounting, the ubiquitous criterion of "reliable measurement" is one of those "judgement" IFRS that help management make their numbers with little chance of being challenged by auditors. Here is how this game will be played in a business combination under IFRS 3(R): if goodwill won be impaired any time soon, they will contingent liabilities to the max. The effect is to create an earnings bank of liability writedowns when unlikely events become, as anticipated, resolved without the incurrence of an actual liability. speaking of inconsistency, IFRS 3(R) provides that all assets are to be recognized, even if their fair values cannot be measured reliably. Where is the "principle" for that one?
Second, FAS 141(R) requires extensive disclosures that are to aid analysts in determining the past and future effect of a business combination on earnings and financial position Cheap Cartons Of Cigarettes. For example, FAS 141(R) requires the following disclosures:
The amount of revenue and earnings of the acquiree since the date of acquisition.
Revenue and earnings of the combined entity for the current period as though the acquisition had been consummated as of the beginning of the period
Revenue and earnings of the combined entity for the previous period, as if the acquisition had been consummated as of the beginning of the previous period Cigarettes Online Free Shipping.
Inexplicably, IFRS does not require the third item, above. financial accounting standards should be entrusted. To those who persist in practicing faith-based accounting, put IFRS accounting for business combinations in your pipe and smoke it.
*Unlike statements of the FASB, IFRS publications are not freely available. Just thought you might want to know why I didn provide a link.
That a pretty unfair attack on Leisenring with no appropriate context regarding the background of FAS 133. The alternative to FAS 133 was virtually no recognition of derivatives in financial statements. Is it perfect? No. Were compromises made? Absolutely. But it was better than what was there before. And it certainly doesn indicate a pattern of Jim "capitulating to the majority." If you ever met Jim, then you know he not real concerned with what the majority thinks.
You also should point out that Leisenring strongly dissented from a much more significant "option" that was put forth by the FASB--FAS 123. Considering that the FASB was being threatened with a shut down at that time, I say that is a pretty strong indicator of Jim independence.<br/>related article :<br/> Online Smoke Shop Tobacco
<br/> Mentol Cigarettes
<br/> Marlboro.Com Promo Codes
<br/> Newport 25S
<br/> Roll Your Own Cigarettes Supplies
|Free forum by Nabble||Edit this page|