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Dual Reporting for Equity and Other Comprehensive Income under IFRS and U.S. GAAP

Book Description

Under IFRS, U.S. GAAP, and the SEC rules and regulations, business enterprises must recognise measure and disclose information regarding equity items on the face of the statement of financial position, other specific statements, or in the notes to the financial statements. However, under both IFRS and U.S. GAAP there is no all-inclusive general standard on stockholders' equity.

This book clarifies the process of reporting stockholders' equity in a manner which can be reconciled under all the relevant standards.

"Not only has the author addressed the informational needs of the players in the accounting industry, he has also drawn, based on his vast experience, practical implications of reporting under both standards."Noraini Mohd Nasir, Journal of Financial Reporting and Accounting

Table of Contents

  1. Cover Page
  2. Title Page
  3. Copyright
  4. Dedication
  5. Contents
  6. PREFACE
  7. ABOUT THE AUTHOR
  8. 1 INTRODUCTION AND SCOPE OF BOOK
    1. 1.1 NATURE OF ACCOUNTING LITERATURE AND PERTINENT PRONOUNCEMENTS
    2. 1.2 PERSPECTIVES AND MAJOR IMPLICATIONS OF THE CONCEPT OF EQUITY
    3. 1.3 THE CONCEPT OF OTHER COMPREHENSIVE INCOME
    4. 1.4 THE FINANCIAL STATEMENT PRESENTATION PROJECT
    5. 1.5 MAIN INTERRELATIONSHIPS WITH OTHER PROJECTS
    6. 1.6 SIGNIFICANCE OF EQUITY
  9. 2 VIEWS ON EQUITY AND IMPLICATIONS
    1. 2.1 TERMINOLOGY AND DEFINITIONS OF TERMS
    2. 2.2 BASIC CHARACTERISTICS OF EQUITY
    3. 2.3 MAJOR IMPLICATIONS FOR COMPANIES
  10. 3 RESERVES
    1. 3.1 TERMINOLOGY AND DEFINITIONS OF TERMS
    2. 3.2 RECONCILIATION
    3. 3.3 TYPES OF RESERVES
    4. 3.4 TRACKING OF EQUITY
    5. 3.5 FUNCTION OF RESERVES
    6. 3.6 IFRS IMPLEMENTATION IN SOME JURISDICTIONS
    7. 3.7 CONSERVATISM, TRUE-AND-FAIR VIEW, AND INVESTORS' PROTECTION
    8. 3.8 PERSPECTIVES AND ALTERNATIVE MODELS
  11. 4 EQUITY SECTION OF THE STATEMENT OF FINANCIAL POSITION
    1. 4.1 TERMINOLOGY AND DEFINITION OF TERMS
    2. 4.2 SINGLE- VERSUS MULTI-STEP EQUITY SECTION
    3. 4.3 NONCONTROLLING INTEREST
    4. 4.4 OTHER CLASSIFICATIONS IN TEMPORARY EQUITY
    5. 4.5 LAYOUT OF THE EQUITY SECTION OF THE STATEMENT OF FINANCIAL POSITION
    6. 4.6 CAPITAL DISCLOSURES
    7. 4.7 EQUITY OF PARTNERSHIPS AND SIMILAR ENTITIES
    8. 4.8 NET ASSETS OF ENTITIES WITH NO CONTRIBUTED EQUITY OR WITH OWNERS' INTEREST THAT HAS CHARACTERISTICS OF EQUITY AND LIABILITIES
    9. 4.9 DISCOUNT ON ISSUANCE
    10. 4.10 INCREASING RATE PREFERRED STOCK
    11. 4.11 EQUITY ISSUANCE COSTS
    12. 4.12 SUBSCRIPTIONS RECEIVABLE
    13. 4.13 SHARES ISSUED IN EXCHANGE FOR A NOTE RECEIVABLE
    14. 4.14 TREASURY STOCK
  12. 5 ADDITIONAL PAID-IN CAPITAL
    1. 5.1 TERMINOLOGY
    2. 5.2 ADDITIONAL PAID-IN CAPITAL VERSUS OTHER PAID-IN CAPITAL ACCOUNTS
    3. 5.3 PRESENTATION OF ADDITIONAL PAID-IN CAPITAL
    4. 5.4 THE CAPITAL SURPLUS MODEL
  13. 6 RETAINED EARNINGS
    1. 6.1 TERMINOLOGY AND DEFINITIONS OF TERMS
    2. 6.2 BASIC PRINCIPLE OF RETAINED EARNINGS
    3. 6.3 CATEGORIZATION OF ITEMS THAT MAY AFFECT RETAINED EARNINGS
    4. 6.4 ITEMS THAT MAY DIRECTLY AFFECT THE BEGINNING BALANCE OF RETAINED EARNINGS
    5. 6.5 ITEMS THAT MAY AFFECT THE ENDING BALANCE OF RETAINED EARNINGS
    6. 6.6 DIRECT TRANSFER TO/FROM RETAINED EARNINGS WITHOUT PASSING THROUGH PROFIT OR LOSS
    7. 6.7 INCOME TAX RELATING TO TRANSACTIONS THAT DIRECTLY AFFECT RETAINED EARNINGS
    8. 6.8 PRESENTATION AND DISCLOSURE OF RETAINED EARNINGS
    9. 6.9 DIVIDENDS
    10. 6.10 TOWARDS A THEORY OF RETAINED EARNINGS
  14. 7 OTHER COMPREHENSIVE INCOME
    1. 7.1 TERMINOLOGY
    2. 7.2 DEFINITIONS OF TERMS
    3. 7.3 THE ALL-INCLUSIVE OR CLEAN-SURPLUS CONCEPT OF INCOME
    4. 7.4 PURPOSE OF REPORTING INCOME AND ITS COMPONENTS
    5. 7.5 LINKAGE TO THEORIES OF PERFORMANCE
    6. 7.6 LINKAGE WITH CAPITAL MAINTENANCE CONCEPTS
    7. 7.7 THE OTHER COMPREHENSIVE INCOME DILEMMA
    8. 7.8 RECYCLING
    9. 7.9 REPORTING COMPREHENSIVE INCOME AND OTHER COMPREHENSIVE INCOME
    10. 7.10 FOREIGN CURRENCY TRANSLATION ADJUSTMENT
    11. 7.11 CERTAIN LONG-TERM ITEMS
    12. 7.12 HIGHLY INFLATIONARY ECONOMIES
    13. 7.13 HEDGES OF A NET INVESTMENT IN FOREIGN OPERATIONS
    14. 7.14 AVAILABLE-FOR-SALE INVESTMENTS
    15. 7.15 CASH FLOW HEDGES
    16. 7.16 REVALUATION MODEL
    17. 7.17 CONSOLIDATION, DECONSOLIDATION, AND CHANGE IN INTEREST IN AN INVESTMENT
    18. 7.18 PENSION ACCOUNTING
    19. 7.19 RECENT DEVELOPMENTS FOR FINANCIAL INSTRUMENTS
    20. 7.20 SHADOW ACCOUNTING
    21. 7.21 TOWARDS A COMPREHENSIVE MODEL OF EQUITY AND OTHER COMPREHENSIVE INCOME
  15. 8 PRESENTATION OF TAXES ON EQUITY ITEMS
    1. 8.1 INTRAPERIOD TAX ALLOCATION TO EQUITY
    2. 8.2 INCOME TAX RECOGNIZED IN EQUITY
    3. 8.2.17 Income Tax on Dividends
  16. BIBLIOGRAPHY
    1. OFFICIAL
    2. UNOFFICIAL
  17. INDEX