IFRS and GAAP Convergence Research Paper Example | Topics and Well Written Essays - 1500 words

IFRS and GAAP Convergence - Research Paper Example The company has two main investments in Shanghai, China, and its Onstar branch gives the company safety, information services and security (Chandler, 1964). 2.0 The SEC’s Position on Convergence of GAAP and IFRS The main purpose of the Security Exchange Commission (SEC) is to safeguard the investors and sustain the integrity of the securities markets. The SEC stipulates that publicly traded firms in the United States should report important financial and other facts to the general public, which gives a universal set of information, on the basis of which investors can make decisions whether the securities of the firm are a viable source of venture. The firms must follow the IFRS procedures of accounting, which are beneficial to different firms in unique ways. Even though the schedule for the US firms to shift from GAAP to IFRS is not yet set, such a move, through convergence or conversion, is largely appreciated and accepted by majority of the multinational corporations. Genera l Motors has made some steps in relation to the convergence of GAAP to IFRS though other firms hesitated. International Financial Reporting Standards as they are commonly known are beneficial to the General Motors Company given that they provide principles for financial reporting. IFRS ensures the requirements and provisions under them are followed to the letter by the firm and its subsidiaries to ensure uniformity in reporting and production of financial statements. IFRS were adopted by the International Accounting Standard Boards to ensure transparency in the manner in which the financial statements are prepared and presented to the stakeholders. IFRS replicates a dominantly regulation-based approach to building accounting standards as opposed to the GAAP, which was based principally on rules approach. 3.0 IFRS for the financial statements Balance sheet After the IFRS in the balance sheet are adopted, the guidelines stipulated under the standards will enable General Motors to have a uniform method of reporting the assets, liabilities and the equities of the firm in all the subsidiaries and the parent company. Notably the guidelines are provided by the International Accounting Standards Committee, which is currently known as the International Accounting Standards Board. According to the guidelines, the balance sheet names and utilization rely upon the US policies and the type of organization. General Motors follows the standards set by the board, which enables the business to provide a summary of values for all the items included in the balance sheet. Cash Flow Statement There are various differences that come out under the US GAAP and IAS 7 principles for the cash flow statements. The IAS 7 stipulates that the cash flow statement must comprise of both cash and cash equivalents. The United States GAAP allows use of only cash or cash equivalents. IAS 7 allows bank overdraft in particular nations to be put in the cash equivalents as opposed to being taken as a section of financing activities. IAS 7 permits interests paid to be considered as an operating activity or financing activity. The United States GAAP stipulates that interest paid be considered as operating activity. Moreover, the US GAAP (FAS 95) provides that when the direct method is applied to project the operating activities of the statement of cash flow, an additional schedule must also project the statement of

Business Process for Amazon.com Essay Example | Topics and Well Written Essays - 1000 words

Business Process for Amazon.com - Essay Example Running business is not only keeping organization's website on Internet and driving it simply; It has a full modus operandi that shows the business to consumer; compel them to make business to hat organization, upgrading the site as required, etc. Tamba Internet (1994 - 2007), clearly says in their website "All successful e-commerce sites follow two vital rules: Goods are clearly and attractively displayed for maximum visual impact; and the customer experience is simple and pleasurable." This statement perfectly fits upon the website commonly known as Amazon.com. The basic work flow of the business is known to be the business process. There are number of different activities from buying a product from the vendor to selling it to the customer; from finding out the vendor to advertising to attract customers; from settling up the prices to buy stock to gaining the profit. All of these basic activities when define in a flow collectively, business process is specified. Business is the name to purchase and sell the product in a manner to earn profit. For, e-commerce the business, CEO of the company shows up the structure of the business by drawing different boxes following each other. Each of the box at that time represents the task or activity perform by the workers or equipments, as an essential step to perform business. This is what the CEO is drawing called as Business Process Diagram. These activities take the input and produce an output which is the input of the other activity. This is known to be the flow of business where internal inputs are shared to produce different major productive outputs. Business Process For Amazon.Com Amazon.com is a real world wide famous website, diversifying its business in many directions using a single web site. This is one of the major e-commerce website doing the biggest business with number of customers and variety of stocks. It is a online shopping e-commerce website. According to David Forbes in his review to Spring Time for IT (2003) told that to implement the whole Amazon.com on to the technical grounds it was a difficult task. As people didn't understand the requirements of the technical industry. Though, employees weren't appreciatively contributing to explain their views and ideas to the designer. However, IT itself is nothing to start of some business process management but its only what designers made it to process at best and it can only be possible if people get cooperative. Leaving decision making upon IT system from the beginning level wasn't good idea as IT may help taking decision but it can only possible if the System is known with the past up and down facts of the business and though in beginning the Subject Matter Experts should come forward and tell each and every functionality they requires to have in the business process management system. Furthermore, cost for making this IT system may gives a hard time but after noticing the Kodak who spent 1billion dollar for its ERP system then to spend much for IT system is worthy enough as later it saves many cost and will help to get many customers to cover the loss. Though, Amazon has converted his whole business in IT in form of Amazon.com. The real meaning while defining the word business is specified to buy and sell something in regard to earn profit. Now, Amazon was online and can be accessible to the entire world just by few clicks