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Subject 5. Comparison of IFRS with Alternative Reporting Systems PDF Download
A significant number of the world's listed companies report under either IFRS or U.S. GAAP. Although these standards are moving toward convergence, there are still significant differences in the framework and individual standards. Frequently, companies provide reconciliations and disclosures regarding the significant differences between reporting bases. These reconciliations can be reviewed to identify significant items that could affect security valuation.

User Contributed Comments 21

User Comment
yxten1 what is the difference between current costs of liabilities and settlement value of liabilities? by definition provided, they sound the same to me..Anybody care to explain?
JimM I think it has to do with time and the phrase "normal course of business" in the settlement definition. Current cost is if it is paid off today. This might include a penalty for early payment, if the terms of the liability include such. Settlement cost is if it is paid off as normal. If there was an early payment penalty, it would not be included in this.
Drzewes That's a nice thing - u pay hundreds of bucks for Schweser notes and still there's no valuation basis theory there, while a review tool (AN) has got it alright.
Drzewes Great conclusion JimM
nneks JimM is right xcept on the point of penalties...Current cost of liabilities refers to paying today...ONLY. And the settlement value is the cash or cash equiv. EXPECTED to be paid to settle all accounts(liabilities)
endlessfin1te Effective financial framework:
zeiad effective financial framework = transparent +consistent+comperhensive
jpducros This details are pretty tough to remember. Any hint to do so ?
Mgtw Current value = settle NOW = early penalties
Settlement value = settle when due = no early penalties
YOUCANDOIT Key Words: reconcilations and disclosures

Different reporting systems affect security valuation.
ybavly Thanks YOUCANDOIT!
robbiecow I like the following: An Effective Framework is "Clear To C"
ankurwa10 Train (Transparency) crossing (Comprehensive) Connecticut (Consistency)
leon121 How about: Trains Come Consistently
sahilb7 Hahaha! Good one leon121!
jamcarr27 any difference between objectives-oriented and principles-based? Or are they the same thing?
spmadoff The two qualitative characteristics of financial statements are: (1) Relevance and (2) Faithful Representation. Not Reliable
nmech1984 You did it YOUCANDOIT
mali97 can someone explain diff between NRV and Fair Value ? they seem the same by definition in the curriculum
D3Er Reconciliation disclosures are no longer generally available
Patrick316 a combination of principles and rules
(sometimes referred to as “objectives oriented”). jamcarr27
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