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IAS vs. Canadian GAAP
As has been stated above, Audi Company uses International Accounting Standards (IAS) to guide their records. Now although each Country’s local GAAP is headed in the directions of harmonization with IAS, most are not at this point, which leaves differences that Audi would have if compared to Canadian GAAP. Over the next few paragraphs, some of the main differences between IAS and Canadian GAAP are going to be illustrated. ... Capital assets are subject to the same sort of “lower of cost or market values” assessment as are other assets, and to overvalue any asset is a major issue in Canadian GAAP. IAS 16, Property, Plant, and Equipment, establishes two different approaches to accounting for asset impairments. ... Under this treatment, the first part of which is similar to Canadian GAAP, if the recoverable amount of a plant asset declines below carrying value, an expense is recognized in the amount necessary to reduce the carrying value to the asset’s recoverable amount.
Approximate Word count = 669
Approximate Pages = 2.7
(250 words per page double spaced)
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