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Chairman, Presidents, fellow accountants, ladies and gentlemen. Good afternoon. It is a great pleasure to be here in Istanbul in the Heart of Asia and Europe to address the 12th World Congress of Accounting Historians . Thank you for your kind invitation Turkey has a special place in Asia & Europe because it is the only land way to access to Europe by Asian countries. I myself have studied about Osmani government and understand about 150 years Turkey government was the governor of west European and Middle East countries.
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Accounting has been called the language of business and accounting standards are grammar of this language. we must have a solid grounding in its fundamentals. Accounting information has been useful for hundreds of years. The double-entry framework was first described in a book written by Luca Pacioli, a fifteenth-century Italian monk and mathematician, although its origins can be traced back another 300 years. The formal structure for processing financial transactions is at least 700 years old. What is the definition of accounting? Accounting is the process of providing quantitative information about economic entities to aid users in making decisions concerning the allocation of economic resources. The term accounting theory is commonly used, but it has no unified, standardized definition. Very closely related to the realm of accounting theory is the area of measurement. Measurement is concerned with the process of assigning numbers to the attributes or characteristics of the elements being measured. In addition to accounting, accountancy has emerged as a profession, alongside the professions of medicine and law.
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1987: Peat Marwick International and KMG merger forms KPMG 1989: Arthur Andersen/Price Waterhouse merger collapses in September. Ernst & Young is formed from Ernst & Whinney and Arthur Young. Touche Ross and Deloitte Haskins Sells merge to form Deloitte & Touche 1990: The 'Guinness Four' are found guilty of fraud 1991: Robert Maxwell drowns. BCCI collapses. Polly Peck and Coloroll scandals lead to Ian Cadbury's report on good corporate governance 1995: Deloitte & Touche creates Deloitte Consulting. Barings collapses 1996: Ian and Kevin Maxwell cleared of fraud, Coopers & Lybrand's audits of Maxwell companies face JDS investigation. KPMG produces the first annual report by an accountancy firm, which reveals senior partner Colin Sharman earns a total package of 740,000 1998: Coopers & Lybrand and Price Waterhouse form PricewaterhouseCoopers. JDS turns the spotlight on Arthur Andersen in connection with the 50m overstatement of profits by Wickes
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2000: European Commission announces in July that it intends to make IAS mandatory from 2005. The IASC completes its three-year restructuring programme and creates the International Accounting Standards Board, effective from April 2001. Ernst & Young sells consulting arm to Cap Gemini 2001: SEC's Enron investigation begins. Big Five issue a joint statement in December insisting that self-regulation remains the best policy following the collapse of Enron 2002: Andersen's Houston office admits to shredding documents relating to Enron. WorldCom is accused of $4bn fraud, which drags Andersen into another scandal. Andersen UK acquired by Deloitte. SEC implements SarbanesOxley 2003: Grant Thornton is dragged into 4bn accounting 'black hole' at Parmalat. Deloitte & Touche rebrands as simply 'Deloitte'. Higgs and Smith reports take an evolutionary step on from Cadbury and Turnbull 2004: The Financial Reporting Council is revamped. Inland Revenue merges with Customs & Excise.
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The role of the Accounting Standards Board (ASB) is to issue accounting standards. It is recognized for that purpose under the Companies Act 1985. It took over the task of setting accounting standards from the Accounting Standards Committee (ASC) in 1990. The ASB also collaborates with accounting standard-setters from other countries and the International Accounting Standards Board (IASB) both in order to influence the development of international standards and in order to ensure that its standards are developed with due regard to international developments. Accounting standards developed by the ASB are contained in 'Financial Reporting Standards' (FRSs). Soon after it started its activities, the ASB adopted the standards issued by the ASC, so that they also fall within the legal definition of accounting standards. These are designated 'Statements of Standard Accounting Practice' (SSAPs). Whilst some of the SSAPs have been superseded by FRSs, some remain in force. Accounting standards apply to all companies, and other kinds of entities that prepare accounts that are intended to provide a true and fair view. The Foreword to Accounting Standards explains the authority, scope and application of accounting standards. 9
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IASB Framework
While not a standard, the IASB Framework for the Preparation and Presentation of Financial Statements serves as a guide to resolving accounting issues that are not addressed directly in a standard. Moreover, in the absence of a standard or an interpretation that specifically applies to a transaction, IAS 8 requires that an entity must use its judgment in developing and applying an accounting policy that results in information that is relevant and reliable. In making that judgment, IAS 8.11 requires management to consider the definitions, recognition criteria and measurement concepts for assets, liabilities, income, and expenses in the Framework. The IASB adopted the Framework in April 2001. It had originally been adopted by the IASC in 1989. Currently, the IASB is working on a Project to Revise the Framework.
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What is IFRSs
The term International Financial Reporting Standards (IFRSs) has both a narrow and a broad meaning. Narrowly, IFRSs refers to the new numbered series of pronouncements that the IASB is issuing, as distinct from the International Accounting Standards (IASs) series issued by its predecessor. More broadly, IFRSs refers to the entire body of IASB pronouncements, including standards and interpretations approved by the IASB and IASs and SIC interpretations approved by the predecessor International Accounting Standards Committee. [On this website, consistent with IASB policy, we abbreviate International Financial Reporting Standards (plural) as IFRSs and International Accounting Standards (plural) as IASs.]
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IFRS
International Financial Reporting Standards Preface to International Financial Reporting Standards IFRS 1 First-time Adoption of International Financial Reporting Standards IFRS 2 Share-based Payment IFRS 3 Business Combinations IFRS 4 Insurance Contracts IFRS 5 Non-current Assets Held for Sale and Discontinued Operations IFRS 6 Exploration for and Evaluation of Mineral Assets IFRS 7 Financial Instruments: Disclosures IFRS 8 Operating Segments Framework for the Preparation and Presentation of Financial Statements Framework for the Preparation and Presentation of Financial Statements
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Segment Reporting IAS 15 Information Reflecting the Effects of Changing Prices Withdrawn December 2003 IAS 16 Property, Plant and Equipment IAS 17 Leases IAS 18 Revenue IAS 19 Employee Benefits IAS 20 Accounting for Government Grants and Disclosure of Government Assistance IAS 21 The Effects of Changes in Foreign Exchange Rates IAS 22 Business Combinations Superseded by IFRS 3 effective 31 March 2004. IAS 23 Borrowing Costs IAS 24 Related Party Disclosures
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IAS 25 Accounting for Investments Superseded by IAS 39 and IAS 40 effective 2001. IAS 26 Accounting and Reporting by Retirement Benefit Plans IAS 27 Consolidated and Separate Financial Statements IAS 28 Investments in Associates IAS 29 Financial Reporting in Hyperinflationary Economies IAS 30 Disclosures in the Financial Statements of Banks and Similar Financial Institutions Superseded by IFRS 7 effective 2007. IAS 31 Interests In Joint Ventures IAS 32 Financial Instruments: Presentation Disclosure provisions superseded by IFRS 7 effective 2007. IAS 33 Earnings Per Share IAS 34 Interim Financial Reporting IAS 35 Discontinuing Operations Superseded by IFRS 5 effective 2005. IAS 36 Impairment of Assets IAS 37 Provisions, Contingent Liabilities and Contingent Assets IAS 38 Intangible Assets IAS 39 Financial Instruments: Recognition and Measurement IAS 40 Investment Property IAS 41 Agriculture
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FASB
Since 1973 the FASB has been the organization designated to establish authoritative financial accounting and reporting standards (Statements of Financial Accounting Standards, SFAS) for business and other private-sector entities. Its mission is to be responsive to the entire economic community and to operate in full view of the entire community through a due-process system.
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SEC
Under the Securities and Exchange Act of 1934, the SEC has statutory authority to establish financial accounting and reporting standards for publicly-held companies. Recent accountingrelated scandals, such as Enron, prompted the SEC and Congress to get more directly involved in the oversight of the standards setting process and the monitoring of corporate governance. In August 2002, as part of the Sarbanes-Oxley Act, the SEC's Public Company Accounting Oversight Board (PCAOB) was created to crack down on corporate accounting scandals. Authorized to conduct inspections and discipline accountants, the oversight board supplants the self-regulation of CPAs who audit public companies.
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IASB
Formed in January 2001, the ISAB replaced its predecessor, the International Accounting Standards Committee (IASC), as the international standards setting body. Looking towards greater formalization of international accounting standards, IASB is structured similarly to the FASB. It is currently the focus of the IASB, in collaboration with the FASB and other accounting focused organizations, to "converge" standards and develop a single, universally accepted set of biding international accounting standards. The IASC, and now IASB, issue a series of standards known as International Financial Reporting Standards (IFRS), formerly called International Accounting Standards (IAS).
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What is IFAC?
The International Federation of Accountants (IFAC) is an association of national professional accountancy organizations that represent accountants employed in public practice, business and industry, the public sector, and education, as well as some specialized groups that interface frequently with the profession. IFAC works to develop the profession globally and to harmonies professional standards worldwide to enable accountants to provide services of consistently high quality in the public interest across political borders. Currently, IFAC has 155 member bodies and associates in 118 countries, representing over 2.5 million accountants.
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Originally, the AICPA, the memberships association for CPAs, was the body responsible for defining accounting standards. 1939-1959 - issues Accounting Research Bulletins (ARB) 1959-1973 - Accounting Principles Board (APB) issues series of opinions 1973 - Accounting Principles Board dissolved and standards setting responsibility is transferred to FASB. The AICPA continues its role as authoritative body for establishing auditing standards (Statement of Auditing Standards, SAS) In 1973, the AICPA shifted its focus to supporting it membership and constituency and bringing to the attention of the FASB and SEC issues that it determined important to the accounting and auditing professional communities. While the AICPA continued issuing auditing standards, this responsibility is now being assumed by the Public Company Accounting Oversight Board (PCAOB), a body created by the Sarbanes-Oxley Act of 2002. The Oversight Board's recent authorization to become directly involved with issues auditing standards could have significant impact on the current standards setting process. AICPA has given a thumbs up to a Securities and Exchange Commission plan that would allow U.S. corporations to abandon generally accepted accounting principles and report their financial results using international accounting standards. This concept release was issued on the heels of a separate SEC proposal that would permit foreign companies filing with the SEC to use IFRS without reconciling to U.S GAAP.
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PCAOB (USA)
Formed in 2002 to oversee the audit of public companies that are subject to the securities laws in the preparation of informative, fair and independent audit reports. The Board's authority includes: ..Registering public accounting firms that prepare audit reports for issuers ..Conducting inspections of registered public accounting firms ..Conducting investigations and disciplinary proceedings and impose appropriate sanctions ..Enforcing compliance by registered public accounting firms relating to the preparation and issuance of audit reports and the obligations and liabilities of accountants ..Establishing auditing, quality control, ethics, independence, and other standards relating to the preparation of audit reports for issuers
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POB (UK)
The Professional Oversight Board contributes to the achievement of the Financial Reporting Council's own fundamental aim of supporting investor, market and public confidence in the financial and governance stewardship of listed and other entities by providing: Independent oversight of the regulation of the auditing profession by the recognized supervisory and qualifying bodies Monitoring of the quality of the auditing function in relation to economically significant entities Independent oversight of the regulation of the accountancy profession by the professional accountancy bodies Independent oversight of the regulation of the actuarial profession by the professional actuarial bodies and promoting high quality actuarial work. The Professional Oversight Board for Accountancy has changed its name as of 5 May 2006 to the Professional Oversight Board. This reflects the extension of its board's remit to include oversight of the regulation of the actuarial profession.
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AADB (UK)
The Accountancy & Actuarial Discipline Board ("AADB") is the independent, investigative and disciplinary body for accountants and actuaries in the UK. It has up to eleven members. The AADB is responsible for operating and administering an independent disciplinary scheme (the Accountancy Scheme) covering members of the following accountants' professional bodies:- the Association of Chartered Certified Accountants, the Chartered Institute of Management Accountants, the Chartered Institute of Public Finance and Accountancy and the Institute of Chartered Accountants in England and Wales; The Institute of Chartered Accountants of Ireland and the Institute of Chartered Accountants of Scotland. The AADB will operate & administer a separate independent disciplinary scheme (the Actuarial Scheme) covering members of the Faculty & Institute of Actuaries, which will be adopted as soon as necessary formalities have been completed. The focus of the AADB is on cases of public interest; other cases will continue to be dealt with by the individual accountancy body of the member concerned or by the Faculty & Institute of Actuaries. The normal channel of reference to the AADB for 'public interest' cases will be the accountancy or actuarial body primarily concerned. However, the AADB also has the power to call in cases whether or not they have been referred to it by an accountancy body. The AADB will also have the power to call in actuarial cases. The AADB was formerly known as the Accountancy Investigation & Discipline Board (AIDB). It changed its name to the AADB on 16/08/2007. 29
GAAS
Generally Accepted Auditing Standards (GAAS). Established by the AICPA, these standards govern the conduct of external audits by public accountants. The Statement of Auditing Standards (SAS) provide guidelines for the auditors' field work and financial reporting. They frame the format and contents of the Auditor's Report or Opinion, which is the formal expression of their examination of a company's financial statements. In May 2003, the PCAOB was given the official go-ahead to assume responsibility for establishing GAAS. It remains to be seen exactly how the PCAOB's new role will play out, its impact on the AICPA's responsibilities, and the form in which the two entities will co-exist.
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GAS
Governmental Accounting Standards (GAS). While GAAP defines the accounting for public and private business entities, there also exist standards specific to governmental organizations. Organized in 1984 to establish standards of financial accounting and reporting for state and local governmental entities, the Governmental Accounting Standards Board (GASB), began issues these standards to guide the preparation of external reports for these types of organizations.
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A single board collectively responsible for the success of the company. Checks and balances: Separate Chief Executive and Chairman. A balance of executive and independent nonexecutive directors. Strong, independent audit and remuneration committees. Annual evaluation by the board of its performance. Emphasis on objectivity of directors in the interests of the company. Transparency on appointments and remuneration. Effective rights for shareholders. A Code of good practice based on extensive consultation with practitioners, and operating on the basis of the 'comply or explain' principle.
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Approval of regulations governing the selection of public accountants Requirement for the use of public accountants report
1970
Approval of operational regulations governing the appointment of persons licensed for the inspection of corporation- type companies
Foundation of the Audit Firm, Inc. Use of public accountants report is made a requirement/approval of the Articles of Association of the Center of Public Accountants
1971 1972
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1993
1995
Approval of the regulations governing the determination of the public accountants qualifications
1999
Formulation of the Iranian Association of Certified Public Accountants Articles of Association Formulation of the regulations governing the use of the public accountants services and reports
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2000
Formulation of guide for elections to the supreme council of the Iranian Association of Certified Public Accountants
2001
Announcement of the first group of public accountants and the convening of the first general meeting of the Iranian Association of Certified Public Accountants
2004
The second electing of high council of Iranian Association of Certified Public Accountants (IACPA)
2007
The third electing of high council of Iranian Association of Certified Public Accountants (IACPA)
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In the Name of God The Law of Using the Professional Services of the Qualified Accountants as Certified Public Accountants (Enacted by the Parliament on 1993) For the purposes of financial monitoring of the manufacturing, commercial and service sections and to obtain assurance about the reliability of the related financial statements, the interest of public, stockholders, and other interested individuals, hereby permission was granted to the executive branch to make the appropriated arrangements, as required to use the professional services of public accountants under the following circumstances:
A. B. C. D.
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Auditing and legal inspecting of the public corporations or applicants of registration in the stock exchange. Auditing and legal inspecting of other corporations. Auditing of non-corporate entities and also for profit and non-for-profit institutions. Auditing and legal inspecting of companies and institutions subject of paragraphs a and b of article 7 of the legal articles of association of the Audit Organization dated 1987. Tax auditing of personal and legal entities tax returns. (The text does not include the subparagraphs of the law)
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USE OF Certified Public ACCOUNTANTS AND ACCEPTANCE OF RETURNS BY TAX ASSESSORS (1)
State tax organization issued a notice to all manufacturing, trading and services entities as follows: According to the Law on the Use of Specialized and Professional Services of Qualified (Official) Accountants ratified on 11.01.1994 and the Amendment made by the Islamic Consultative Assembly in the said Law on 16.02.1994 as well as Article 2 of the Executive Regulation of Note 4 of the above Law ratified in the form of a decree by the Council of Ministers on 03.09.2000, the following taxpayers are under the obligation to appoint the statutory Inspectors of their companies from among the auditing firms being members of the IACPA. Appointment may be made from among natural persons accepted as official accountants by IACPA by taxpayers mentioned in Sub-clause f below, only: Companies accepted by or applying for acceptance by the Stock and Negotiable Instruments Exchange as well as the companies affiliated to the said companies. Public joint stock companies as well as their subsidiary and affiliate companies. The companies described in Sub-clauses a & b of Article 7 of the Audit Organization in due compliance with the procedure set forth in Note 1 of Article 132 of the Public Accounts Law. Branches and representative offices of foreign companies which are registered in Iran pursuant to the permission granted under the Law Authorizing Registration of Branches and Representative Offices of Foreign Companies, ratified 1997 (Liaison offices excluded).
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Iran, IAS, UK, and US GAAP Comparison: Consolidated Financial Statements Iranian Accounting Standards comparison with International Accounting Standards
Iranian Accounting Standards International Accounting Standards (IAS) Standard No. 1 2 3 4 5 6 Standard Title Presentation of Financial Statements Cash Flow Statement Revenue Accounting for Contingencies Events After the Balance Sheet Date Reporting Financial Performance Standard No. Standard Title Presentation of Financial Statements Cash Flow Statement Revenue Provisions, Contingent Liabilities and Contingent assets Events After the Balance Sheet Date Net Profit or Loss for the Period, Fundamental Errors and Changes In Accounting Policy Intangible Assets Inventories Construction Contracts Accounting for Government Grant and Disclosure of Government Assistance Property, Plant and Equipment Related Party Disclosures Borrowing Costs Presentation of Financial Statements Accounting for Investments The Effects of Changes in Foreign Exchange Intangible Assets Consolidated Financial Statement and Accounting for Investments in Subsidiaries Business Combination Accounting for Investments in Associates Leases Interim Financial Reporting Financial Reporting of Interest in Joint Ventures --Segment Reporting Agriculture Accounting and reporting by retirement benefit plan Investing property
IAS 1 IAS 7, except for (a) IAS 18 IAS 37 IAS 10 IAS 8 IAS 38 IAS 2 IAS 11 IAS 20 except for (b) IAS 16 IAS 24 IAS 23 IAS 1 IAS 25 IAS 21 except for (c ) IAS 38 IAS 27 except for (d) IAS 22 IAS 28 except for (e) IAS 17 IAS 34 IAS 31 --IAS 1 except for (f)
IAS 41 IAS 26 IAS 40
7 8 9 10
Accounting for Research and Development costs Accounting for Inventories Accounting for Long-term Construction Contracts Accounting for Government Grants
11 12 13 14 15 16 17 18
Accounting for Fixed Tangible Assets Related Party Disclosures Accounting for Borrowing Costs Presentation of Current Assets and Current Liabilities Accounting for Investments Foreign Currency Exchange Accounting for Intangible Assets Consolidated Financial Statement and Accounting for Investments in Subsidiaries Business Combination Accounting for Investments in Associates Accounting for Leases Interim Financial Reporting Accounting for Joint Ventures Financial Reporting of Development- stage Enterprises Segment Reporting Agriculture Retirement Benefit plan Real Estate & Construction
19 20 21 22 23 24 25 26 27 28
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ISA 401 ISA 402 ISA 505 ISA 530 ISA 570 ISA 700 ISA 710 ISA 720 ISA 810 ISA 1010
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ISA Glossary
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Subject Accompanying Parents Separate Financial Statements with consolidated financial statements The main criterion of subsidiary definition Exempt subsidiaries Mandatory
UK Comparable to IAS
US Comparable to IAS
Control
Subsidiaries under temporary control or server long term restriction Based on carrying amounts Should be included in equity
Comparable to Iran
Not specified
Should be presented between liabilities and equity Comparable to Iran Allowable Not amortized Comparable to Iran
Elimination of intra-group balances and transactions Assigning unrealized gains and losses to minority Goodwill amortization Allowable difference between reporting dates
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6.
7.
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NASs Nos.
1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27
Subject
Presentation of Financial Statements Cash Flow Statements Revenue Accounting for Contingencies Accounting for Events After the Balance Sheet Date Reporting Financial Performance Accounting for Research & Development Costs Accounting For Inventories Accounting for Long-term Contracts Accounting for Government Grants Accounting for Tangible Fixed Assets Related Party Disclosures Accounting for Borrowing Costs Presentation of Current Assets & Current Liabilities Accounting for Investments Foreign Currency Translation Accounting for Intangible Assets Consolidated Financial Statements and Accounting for Investments in Subsidiaries Business Combinations Accounting for Investments in Associates Accounting for Leases Interim Financial Reporting Accounting for Joint Ventures Financial Reporting by Development Stage Entities Segment Reporting Agriculture Retirement Benefit Plans
IASs Nos.
1 7 18 10 10 8 38 2 11 20 16 24 23 1 32,39 21 38 27 22 28 17 34 31 N/A 14 41 26
Explana tions
--Note A --------------Note B --------Note C Note D --Note E --Note F ------Note G Note H Note I ---
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Explanations
Note A (NAS # 2 and IAS # 7) With the exception of the following requirements, application of NAS No. 2, results into compliance with IAS No. 7: Returns on Investments, and Servicing of Finance and Income Tax activities have been segregated from the other major classifications used in the cash flow statements. (b) Cash equivalents have been excluded from the definition of cash. Note B (NAS # 10 and IAS # 20) With the exception of the following requirements, application of NAS No. 10 results into compliance with IAS No. 20: (a) If an accounting treatment for government grants is specified in statutory regulations, the treatment should be followed by the entity. (b) When the evaluation bases of non-monetary assets received, are specified in the statutory regulations, the application of these bases is acceptable provided that it does not result in reflecting the granted assets in more than the fair value at the time of transfer.
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Note C (NAS # 15 and IAS # 32 & 39) With the exception of the following requirement application of NAS No. 15 results into compliance with IAS No. 32, 39: The most current financial instruments in Iran are shares and the instruments like options, futures and forward hardly exist in Iran. Accounting Standard 15, Accounting for Investments, permits using either the fair value or cost for measuring current and long-term investments. Note D (NAS # 16 and IAS # 21) With the exception of the following requirements, application of NAS No. 16 results into compliance with IAS No. 21: (a) Exchange differences arising on foreign currency assets and liabilities of government entities should be, according to substances of the Article 136 of the General Inspection Act approved in Sharivar 1366 (August 1987), included in the account of translation reserve of foreign currency assets and liabilities and classified as equity. If at the end of the financial period, the reserve account balance is debit, the amount will be included in loss and gain of the period. Also, net exchange differences which, in the order mentioned above, result in a change in exchange reserve during the period, should be included in comprehensive income statement of the period. (b) Exchange differences arising on a monetary item that, in substance, forms part of an entitys net investment in a foreign entity should be classified as equity in the entitys balance sheet and be presented in comprehensive income statement until the disposal of the net investment. The differences, at the time of investment disposal, should be taken into account of accumulated loss and gain. (c) Exchange differences arising on a foreign currency liability accounted for as hedge of an entitys net investment in a foreign entity should be classified as equity in the entitys balance sheet and be included in comprehensive income statement until the disposal of net investment. The differences, at the time of net investment disposal should be taken into account of accumulated loss and gain. (d) On the disposal of a foreign entity, the cumulative amount of the exchange differences on foreign currency items which relate to that foreign entity and which have been recognized as equity, should be taken in to account of accumulated loss and gain on disposal. Note E (NAS # 18 and IAS # 27) With the exception of the requirements relating to the proper accounting treatment of the debit balance of the minority interests account, application of NAS No. 18 results into compliance with IAS No. 27: Profits or losses arising in a subsidiary should be apportioned between controlling and minority interests in proportion to their respective interests held over the period. When losses attributable to the minority interest result in debit balance, the controlling interest should be adjusted to the extent that it has any commercial or legal obligations to provide finance that may not be recoverable in respect of the accumulated losses attributable to the minority interest.
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Note F (NAS # 20 and IAS # 28) With the exception of the following requirements, application of NAS No. 20 results into compliance with IAS No. 28: (a) An investment in an associate that is included in the separate financial statements of an investor that issues consolidated financial statements should be carried at cost after deduction of perpetual impairment provision or revaluation amount as an allowed alternative treatment, conforming to the investors accounting policies on longterm investments, according to NAS No.15, Accounting for Investments. (b) When the investor does not issue consolidated financial statements, the amounts related to the associate should be presented under equity method as following: (a) preparation and presentation of total financial statements, or (b) disclosure of supplementary information in explanatory notes of the investors financial statements. Note G (NAS # 24) There currently exists no specific International Accounting Standard relating to this subject. Note H (NAS # 25 and IAS # 14) With the exception of the following requirements, application of NAS No. 25, results into compliance with IAS No. 14: (a) According to IAS No. 14, the dominant source and nature of an entitys risks and returns should govern whether its primary reporting format will be business segments or geographical segments. Detailed information is normally presented in the primary format and the secondary format contains condensed information. NAS No.25 has excluded the application of the primary and secondary format in order to narrow the extent of personal judgments and unnecessary technical complexity. (b) According to IAS No. 14, segment revenue should include an entitys share of profits and losses of associates, joint ventures, or other investments accounted for under the equity method. Such requirements do not exist in NAS No. 25.
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Note I (NAS # 26 and IAS # 41) With the exception of the following requirements, application of NAS No. 26 results into compliance with IAS No. 41, Agriculture: (a) According to IAS No. 41, Agriculture, all biological assets should be measured at fair value less costs estimated on disposal, unless the fair value is not reliably determinable. However, according to this standard, with a reference to environmental conditions of the country and lack of an active market for biological productive assets, these assets should be measured at cost, according to NAS No. 11, Accounting for Tangible Fixed Assets. (b) According to IAS No. 41, Agriculture, a government grant related to biological productive assets recognized at fair value less costs estimated on disposal, is recognized as income (if not conditioned) when it is collectible and (if conditioned) when the conditions are satisfied. However, according to this standard, all government grants related to biological productive assets are recognized according to NAS No. 10, Government Grants.
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Standard Number
5-50 10 20 21 22 23 24 25 30 31 32 40 50 51 52 53 54 55 56 57 58 60 61 62 70 71 72 80 91 92 93 105 107 340
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What Will the Next 15 Years Bring? The single greatest change agent facing accounting in the next 15 years is technology. Emerging trends in technology will fundamentally alter the way in which both business and accounting will be conducted. The measurement and reporting of business transactions, long considered a core competency of accountants, will be challenged by the information economy, forcing accountants to justify their role in business. The foundations of the profession will be eroded by the opposing demands of emerging services and established values.
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The prospects for accountants have never looked better: There is a growing demand for the provision and analysis of information in the new economy. But the value chain that accountants used to dominate, that between the firm and the long-term shareholder, is now on the margins of a wider environment marked by day traders, continuous media coverage, and rapid equity shifts. Accountants have yet to come up with a strategy, much less products, for how they will take a larger share of this marketplace. While continuous reporting and assurance are promising, there is no guarantee that the market will grant accountants a monopoly on these products; their legally protected role as auditors might actually be an artificial barrier to tackling competitive threats head on. It makes little difference to the emerging global economy whether its information processing needs are carried out by professionals called "accountants" or someone else. But that choice will clearly determine the future of the profession.
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Sources: Accounting in 2015 CPA Journal By Michael Alles, Alexander Kogan, and Miklos A. Vasarhelyi
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Sources:
1- Accounting in 2015 CPA Journal by Michael Alles, Alexander Kogan, and Miklos A. Vasarhehyi 2- www.IASPLUS.com 3- www.frc.org.uk 4- www.audit.organization.ir 5- www.IFAC.com
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