International Accounting

International accounting

TABLE OF CONTENT
Introduction......................................................................................................................................1
Main body........................................................................................................................................1
1.Accounting policies chosen by entities from the standards......................................................1
2. Findings...................................................................................................................................3
Conclusion.....................................................................................................................................14
REFERENCES..............................................................................................................................15

Introduction
International accounting (IA) is the special discipline which is focused by using accounting
standards which are considered as relevant in US. This study will discuss accounting policies
which entities can select from the standards. Further research will be conducted on 20 companies
and preparing financial statements as per IFRS. This report will also present findings in the form
of charts.
Main body
1.Accounting policies chosen by entities from the standards.
IAS 16:
This principle is made for property, equipment which include assets and plant. There
carrying amounts are also measured along with depreciation charges (Carnegie, 2017).
Recognition of impairment losses with the relation to this. As plant, equipment and property are
considered as the tangible items. These items are mostly used for the production of goods and
services. Itcan be also given on the rental basis to other. It is expected to be used more than 1
year. The price of the equipment, plant and property is seen as an asset. It is estimated that the
economic benefits which are related to the items will go with the entity and product’s costs will
be reliably measured. The purchase price of these items include import duty and purchase taxes
which are non refundable. The price for installing and removing the item will relate to
inventories produced within the period.
IAS 38:
It is the intangible assets which show the accounting needs in terms of intangibleassets. It is non
monetary asset which does not include physical substance and are also not identifying. Intangible
assets fulfil the recognition criteria which are measured with costs and also uses relevant model
or on systematic basis amortisation is done on the useful lives. The standard is also revised and
on the intangible assets it is applied so as to acquire in business combinations. It can also apply
to other intangible assets for annually. The main objective of this accounting standard is the
treatment of intangible assets.
IAS 40:
This standard applies to accounting of investment property which is purchased for the purpose of
rental earning or for capital appreciation purpose (Jacomossi and Biavatti, 2017). The properties
are measured on the basis of costs and with the expectations. It is measured on the basis of cost
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model or other model which is known as fair value model. When changes occur in the fair value
with regards to fair value model and recognition in the profit and loss. Examples of the
investment property are land which is purchased for long term capital, land that is purchased for
not knowing future use, within an operating leased building leased out, vacant building etc.
Property which is purchase for the use of production of goods and services or office use are not
considered as the investment property and not comes under IAS 40. Property which is made on
third party behalf is also not the investment property. One model between fair value and cost
model are to be adopted by business for investment purpose.
IAS 2:
It includes the requirements to account the types of inventory. The required inventories are
measured on the low costs and on net reliable value (IAS 2 — Inventories., 2021). The main aim
of this standard is to give the accounting treatment for the inventories. It is also helpful in giving
directionsfor cost determination of inventories and recognition of the expense which include
write down to NRV. It is also helpful in providing guidance in regards of cost formula which are
used for assigning cost to the inventory. Assets are included in the inventories which are used for
salein the ordinary business. IAS 2 does not include the inventories which are work in process
for the construction purpose, financial instruments and biological assets which are used in
various agricultural activities.
IFRS 3:
It is the business combinations which shows accounting when other business takes control on the
business. It can be done through mergers and acquisitions. For the acquisition method these types
of business combinations are used (IFRS 3 — Business Combinations., 2021). Assets and
liabilities are measured at the fair value on the date of acquisition. Revised version of this
accounting standard is also issued. This standard will provide relevant, reliable and comparative
information related to business combinations and also shows its effects. It frames principles on
the basis of recognition and measures assets and liabilities. It is also useful for determining
goodwill and other disclosures.
IAS 1:
It is the financial statement presentation which fulfils all the requirements related to financial
statements which include like how they should be made, minimum needs of the content and
concepts which include going concern. This standard needs the financial statements set so as to
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