IASC issues three new draft interpretations of international accounting standards. ...




Three New Draft Interpretations

T he International Accounting Standards Committee issued three draft interpretations of international accounting standards (IASs). The interpretations, which were issued by the IASC standing interpretations committee (SIC), were exposed for public comment and are expected to be included in upcoming IASC authoritative literature.

This marks the first time IASC interpretations have been drafted by the SIC, a body that was recently formed to provide interpretations of IASs and that is comparable to the U.S. emerging issues task force. According to IASC Secretary General Sir Bryan Carsberg, the work of the SIC will "significantly improve the worldwide comparability of financial information and increase the acceptance of IASs by regulators and investors."

The three interpretations cover

  • Whether to use one cost formula, such as last in first out (Lifo), to measure different types of inventory or whether other methods should be used.

  • Whether an entity that capitalizes borrowing costs must use the same policy for all qualified assets and periods.

  • How profits and losses that result from transactions with associates should be eliminated in consolidated financial statements.

All three drafts can be obtained on the IASCs Web site at http://www. iasc.org.uk.



SPONSORED REPORT

Tax reform complicates year-end tax planning

Get your clients ready for tax season with these year-end tax planning strategies, which address how to make the most of recent tax law changes, such as the new deduction for qualified business income and the cap on the deductibility of state and local taxes.

VIDEO

What RPA is and how it works

Robotic process automation is like an Excel macro that can work on multiple applications, says Danielle Supkis Cheek, CPA. RPA can complete routine, repetitive tasks such as data entry, freeing up employee time from lower-level chores.