a470 mod2 db
Compare FASB (GAAP) Methodology with IASB (IFRS)
At a recent staff meeting, the VP of Finance appeared confused. The controller has assured him that the parent company and each of the subsidiary companies had properly accounted for all transactions during the year. After several other questions, the VP finally asked, “If it has been recorded properly, then why must you spend so much time and make so many changes to the amounts reported by the individual companies when you prepare the consolidated financial statements each month? You should be able to just add the reported balances together.”
Provide an answer to the VP of Finance, using a memo format. Support your response by including FASB references. Compare and contrast the FASB (GAAP) methodology with that on IASB (IFRS).
Please use the following information below to access the FASB Codification:
FASB Codification (Links to an external site.)
Username: aaa61374
Password: 2adT8DM
Reminder: Your initial posting should be 250-500 words
you can start like this:
I understand your concern about the time being spend monthly on consolidated financial statements. however, rest assured this is a necessary process. Lets look at an example involving another company, destiny owns mini subsidiaries. transactions often occur between destiny and its subsidiaries affiliates like pixa entertainment and destiny merchandises. For companies like this, all inter-company sales and assets must be eliminated otherwise…………………
I totally comprehend your genuine concern about the time that is being spent on the consolidated financial statements each month. However, be rest assured that this process is necessary for the running of the organization. Looking at an example which involves a different company, called Disney contains ownership of mini subsidiaries. The transactions that normally occur between the subsidiaries and Disney makes an affiliation like Disney merchandise or Pixar entertainment.