[Video] IFRS: King on this Street (IFRS vs GAAP)

  • Creator
    Topic
  • #189642
    jeff
    Keymaster

    CHORUS:

    Get out your 10-key, Excel Spreadsheet

    Ninja CPA, we gonna beat

    Any exam, we achieve that feat

    IFRS be the king on this street

    VERSE 1:

    International Account Standards Board issues IFRS

    They do that and more

    The most authoritative place you can see

    That management looks for guidance accounting policies

    IASB Framework

    Yea, it helps to develop standards that work

    But it’s not a standard itself, no it ain’t

    Can’t supersede any standard’s authority

    Verifiability

    Different people would reach the same conclusion, are you feelin’ me?

    Understandability

    Easy to use and understand, that’s the plan, let’s keep goin’ and

    Timeliness, uh

    I need that info on time so I can decide how to do things right

    IFRS don’t allow Extraordinary Items

    IFRS don’t allow LIFO, it don’t like ‘em

    CHORUS:

    Get out your 10-key, Excel Spreadsheet

    Ninja CPA, we gonna beat

    Any exam, we achieve that feat

    IFRS be the king on this street

    VERSE 2:

    Current Assets & Liabilities

    GAAP only requires intent, not execution

    Contingent liability

    Uncertain future events, those are contingencies

    IFRS, if “probable” and “measurable”

    Classified as a provision, please listen

    When it comes to timing or amount

    Payment is uncertain, and that’s for certain

    GAAP – probable, reasonably possible, or remote

    Yea, now you know

    Bonds can be recorded using one or two methods

    Fair Value through profit or loss, or amortized cost

    Deferred taxes

    Uses the liability method to do the taxing

    Only “probable” deferred tax assets get reported

    All others, yea it’s best to ignore ‘em

    CHORUS:

    Get out your 10-key, Excel Spreadsheet

    Ninja CPA, we gonna beat

    Any exam, we achieve that feat

    IFRS be the king on this street

    VERSE 3:

    The income statement

    Income, finance costs, profit/loss

    Discontinued ops and tax expense

    Non-controlling interest is what you get

    PP&E Valuation

    Valued using one of two options, let’s state them

    Cost model and revaluation model

    You can remember this if my lyrics you follow

    Pensions, defined benefit plans

    Project-unit-credit-method

    It calculates the PV

    Of the defined benefit obligation

    Need more raps? (of course you do): Economic Cycles (Across the Land)

    CPA Review

    AUD - 79
    BEC - 80
    FAR - 76
    REG - 92
    Jeff Elliott, CPA (KS)
    NINJA CPA | NINJA CMA | NINJA CPE | Another71
  • You must be logged in to reply to this topic.