I know this is off topic but do you know what is supposed to happen in the official rules of monopoly when the bank runs out of money? A: You draft your own 😉 Great video. Subscribed.
in 2023, isn't there a software in which companies can put in the accounting information and let preset settings present them in either IFRS or GAAP compliant format?
@@박프로-r1e The reason is really a political one, FASB cannot loose the power to regulate the accounting profession in the US. Just think about this, FASB loosing the power to tell US corporations all accounting rules on X, Y or Z topic. That is a lot of power they are not willing to switch to the IASB. My career has been an international one and I only see IFRSs not US GAAP anymore.
I know this is not much of a technicals channel, but if you could do a video on reconciling GAAP and non-GAAP accounting data from an equity research perspective I think it's gonna help a lot of folks out there.
Thank you sir for the info!! I and I’m SURE MANY OTHERS are MOST DEFINITELY APPRECIATE you taking the time to share all the info you do!! I’m the same way if I can help someone even if they end up having or making more then me IDC!! I feel great in my heart knowing how I helped changed someone life!!! AGAIN THANK YOU SIR AND KEEP UP THE HARD WORK!!! 👍
Thank you so much Sir for letting us know about this wonderful topic. I really appreciate your efforts to make such a great informative video and share with us. 👍👍
In upcoming day another principle will be show and the organisation will raise money. This is unnecessary. How an accounting system has 17 system? What's going on in future. Accounting is nothing but we are making is complex by implementing new concept.
This is a very good summary of the diff. btw US GAAP and IFRS and also why the differences won't be eliminated in the near future due to some practical reasons such as US gov. control power of the accounting standards and also tax issue even though some new standards issued by US GAAP and IFRS recently such as Revenue from contracts with customers are basically the same.
Thanks for your video Can you please elaborate your disussion on the difference between IFRS US GAAP on inventory valuation, Development costs, Reversal of unabsorbed losses, etc
I can't believe that, as an adult/mature student, I am still sat here in August 2020,having to Google and RU-vid even the most basic terminology and still struggling to understand it and already extremely exhausted. The tutors not just at university but maths tutors at secondary schools should have taught this important information day from day 1. I chose the discipline of business however once again I missed all my exams and assessments and resits due to health issues, the lockdown and other extreme struggles stifling my studies. I am sat here staring at a mostly blank table of IAS/ IFRS SSAP/FRS OLD AND NEW TERMINOLOGY and trying to find a reliable source that tells me this in clear english. This is only a starter activiity never mind the assignments and exams. If anyone can understand my concerns and believes they can help, please kindly advise, for UK based study. Thanks in advance.
theres different types of learning. i used to 'watch' these kinds of videos but when i closed my eyes not only did i understand more but i actually ended up speeding up the video. turns out that visual input for me is too much of an overload and crashes my brain because my brain ends up trying to interpret EVERYTHING even something as small as hand gestures and eye glances.
This is garbage! The IFRS is founded by the IASB, which is a long standing reputable principle-based framework used all over the world! The US needs to be a team player and avoid useless time consuming measures that hinder trade and co-operation!
When you say "GAAP" would you not specify It's " US GAAP" ? I've never heard "I F R S" prounced like "ifurs" 😂😂 I've worked across the EU in different practices and only ever heard it referred to by the individual letters " I F R S"😂😂
So fantasitic the video is. As a beginner of accounting and non-native English speaker, I can clearly get a clear and logical understanding. Thank you very much.
Thank you thank you so much for being so animated and entertaining. I seriously got more out of your video than any accounting video ever and you have proved this subject does not need to be boring. I hate monopoly. There is no "free parking" instructions included with the game. I like to play with people who give it meaning and allow players to collect money (we throw the tax dollars in the middle of the board and use that as the "free parking" space giveaway. It is my only lifeline for playing monopoly - otherwise I seem to hate the game just as much as the takeovers and merges and monopolies and oligopolies of real businesses that feed off the poor.
Oh please, don't be fooled by the spin. This isn't about giving up control, it's about accuracy. If US companies used IFRS and reported accurately they'd suddenly be a lot less profitable and their share prices would dive. Given how much executive compensation is based on share prices we couldn't possibly have that could we?
Americans are lucky. Here in the Philippines we take all exams in 1 sitting on top of having 6 subjects. but in america you can stagger in 18months. And we follow IFRS,IAS,COSO, and other american and international standards. The passing rate here is incredibly low not even reaching 20% or above. And i saw some filipinos topping some american certification and licensing exams. Almost every reviewer present examples adapted from either IAA, AICPA, IFRS, etc..
Free Parking does nothing. This is why ppl complain the game lasts too long --- people are supposed to run out of money to finish the game, not get more with silly house rules.
Hello, Thank you for this great video, like it indeed. One point to raise, though, if I may...........You provided a great example (at 3:14) and mentioned that both the Standards differ on treatment of (cost method of) Inventory for example the LIFO method. You narrated that most of the US companies follow the LIFO method in order to report lesser profits and to reduce the tax-liability. However, the Tax-Balance Sheet is prepared according to the (local) Tax-Laws and not according to the Accounting Standards. That's how the term deferred tax assets and deferred tax liabilities come in to picture. Would you like to help me understand? A detailed and productive reply would be very much appreciated. Many thanks in advance! Greets from Germany!!
I am writing after you made it 3 years back. This is good. But you have covered only two major differences. Rules vs. Principles and LIFO vs.FIFO. If any standard is rules based, it will be like a railway platform where trains will keep coming and going. So the standard will continuously change. That is a problem. Secondly LIFO is a good concept but it has some basic problems. The accounting concept is historical and not on current costs. So it conflicts. Secondly as you have rightly said it will show less profit because cost of consumption will be at current costs but the closing inventory will be in older value. That is a big problem. Tax authority will not accept and the co. will have to make separate accounts for tax. I always advocate for one accounting standard globally.
Excellent video, thanks Zach. I've been waiting for this comparison for a while. Appreciate it. I was surprised you didn't' mention the IASB, but then, they're only a function of the IFRS Foundation. One area where I slightly differ from you on the standardization of accounting frameworks, is the notion that the US would have to go ask permission to make new standards and changes. Taking your example of Commercial Space industry, it would be useful if the US, Russia, China and all the other countries (who are also working on Space expansion) to all be on the same page. Even my country, South Africa has a Space Program (given, it's only about 8 years old, but I digress). The SEC would be one of the senior consulting bodies (representing one of the largest economies in the world, if not THE largest) that the IASB would consult with prior to releasing a new standard, and the SEC would probably also be the body to facilitate the implementation thereof in the US. Yes, the US will be giving up a lot, but the US is also only giving up the US side and the majority of the planet has already given up that from their own countries. Canada, New Zealand and Australia, the EU, China and may other countries all have either fully adopted IFRS or adapted IFRS to suit their unique needs (and call it something similar). The majority of the European continent has even given up their own currency. Having said that, we are talking about a lot of money being affected, and for that reason the world is still negotiating with the US. It seems that the US is going with a "my way or the hiway" approach. Please don't see this comment as an argument or "hate", it's only my opinion. Thanks for the videos. 👍
As a US citizen, I don't see it as "My way or the highway", I see it as the US way when in the USA, the international way when abroad. If a company wants to, they can comply with IFRS standards. Many American companies do comply with IFRS standards for financial reasons. We don't need to mandate IFRS standards by law, we only need for it to be clear what standards a company complies with so investors can see if they want to make an investment or not. If a company is domestic only (and isn't looking for international investors) then why should they worry about international standards? I just can't see the US government ceding it's regulatory authority within it's own borders. Then again, I'm just studying this as a part of my accounting 101 class and I could change my mind after I learn a bit more.
Thanks for the information. I have a question, if you don't mind. I am an accounting student in Italy. I usually like to integrate my education by taking online courses and certificates, both to boost my resume, but mainly because I enjoy to learn more at my own pace without having to worry about exams. The problem is, Italian internet accounting culture is no way near as developed as the one present in the US. There are a lot of nice courses on accounting that are based on GAAP, and so far I wasn't able to find a complete accounting course based on IFRS. So, my question is: does it make sense for me to learn GAAP regardless? Is it so different that will cause confusion in my academical education?
I would focus on the accounting standards for your geographical area. For Italy, I would study IFRS. The standards change every year, so it is hard enough keeping up just with your local standards. Good luck on your studies. Thank you for watching!
The IFRS official website has resources for students and a emailing list so that you can be notified of updates. I didn't really look into those options, but I saw them on the website.
According to monopoly.wikia.com/wiki/Free_Parking, nothing happens when you land on the space of Free Parking. However in Monopoly City, if you land on the Free Parking space, you get a Rent Dodge Card. Also in computer game versions, you can alter the free space rule.
