OBJECTIVE:

A strategic review of this area should consider the current and likely future international accounting environment to explain the differing approaches of IASC, US GAAP and UK GAAP and their impact on the Lender.

APPROACH

The International Accounting Environment

• Accounting diversity
• The need for accounting harmonisation
  IASC; US GAAP and UK GAAP C their history and objectives

The Standards-

• IAS 1 C presentation of financial statements and disclosure of accounting policies
• IAS 2 C inventory and IAS 4 C depreciation accounting
• IAS 5 - disclosure
• IAS 8 C profit or loss

Cashflow

• The concept of accruals
• Exercise: Construction of a simple cashflow statement
• IAS 7 C Cashflow statements vs. US GAAP C presentational differences
• Exercise: Cashflow interpretation

IAS: A Further Review

• IAS 10 C contingencies and post balance sheet events
• IAS 11-13: Construction contracts, income tax and presentation of current assets and liabilities
• IAS 14-16: Segment reporting; price manipulation; property; plant and equipment
• IAS 17: Accounting for leasing

Case Study C International Telecom Company

• Delegates examine the accounting differences highlighted by the application of different GAAPs to the business results
• IAS: A Further Review of the Standards
• IAS 18-22: Revenue; retirement benefit costs; accounting for government grants; the effects of changes in foreign exchange rates; business combinations

Case Study C The Effect of Accounting Anomalies on Ratio Analysis 

• Review of an Multinational Corporate, analysis and interpretation of the ratios under IAS and US GAAP. IAS 23-33: borrowing costs; related party enclosures; reporting in hyperinflationary economics; and joint ventures
• Exercise: IAS 27: consolidation C understanding the differences between investments, associates and subsidiaries
• Accounting update C Exposure Drafts

Case Study

A review and analysis of an annual report of an international corporate and comparison under US GAAP and IAS