Economics and Ifrs

Case 1Fiat first time IFRS adoption Abstract The European Commission has required the adoption of IAS/IFRS in order to concord financial reporting standards for European listed companies as of 1 January 2005. Converting to IAS/IFRS has stand for much more than a change in score rules and firms briny concern has been to understand the extent to which account statement differences surrounded by national GAAP and IAS/IFRS could claim their reported performance. The purpose of the elusion is to address this concern by providing evidence of the differences between Italian GAAP and IAS/IFRS. The main focus will be on Fiat group who adopted IFRS in 2004. Vraag 1 & 2 Potential red flags & Discretion of the Fiat Group; The approximately significant discrepancy between the two set of standards is in the accounting treatment of business combination, provisions, financial instruments and intangible assets with file name extension to both net income and shareholders equity; while the individual accounting differences in income taxes, and property, plant, and equipment show a significant difference sole(prenominal) on shareholders equity. Therefore it is utterly important to observe the differences in the balance statement based on IFRS and Italian GAAP.

The main accounting differences emerging from the application of IAS/IFRS compared to Italian accounting principles affect many areas, including fair value reporting, depreciation and amortization, leasing, segment reporting, revenue enhancement recognition, impairment tests, deferred taxes, and post-retirement employee benefits. Vraag 3 The disclosure of IFRS adoption; FIAT and prostate specific antigen PEUGEOT CITROËN disclosed the assumptions they theatrical roled to determine the recoverable amount, in finical the value in use of the cash-generating units (CGUs) concerned. FIAT stated that the top dog assumptions made in determining the value in the use of CGUs are the discount rate rate and the growth rate. FIAT used pre-tax discount rates between 5.5% and 16%. The... If you want to get a full essay, order it on our website: Orderessay

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