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Chapter 1

Chapter 1. Introduction To Canadian Advanced Accounting. International Convergence. The Problem Multi-nationals operate in many different countries. Multi-nationals raise funds in many different capital markets. Creates need for international standards. International Convergence.

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Chapter 1

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  1. Chapter 1

    Introduction To Canadian Advanced Accounting
  2. International Convergence The Problem Multi-nationals operate in many different countries. Multi-nationals raise funds in many different capital markets. Creates need for international standards.
  3. International Convergence The Solution: Adoption of IFRSs Already in place in Europe Canada: Publicly accountable by 2011 Non-publicly accountable under discussion U.S. is moving towards convergence
  4. Content Of This Text Reflects CICA Handbook to 1st quarter of 2009 Additional emphasis on concepts Discussion of current and anticipated IFRSs Examples of the application of IFRSs
  5. Canadian standards to be After the 2011 changeover date, there will be 4 separate sets of Canadian standards Standards for publicly accountable enterprises Standards for private enterprises Standards for not-for-profit organizations Standards for public sector (government) entities Text will focus on standards for publicly accountable enterprises
  6. Investments In Equity Securities Separate Legal Entities Cash or Other Consideration Investor Investee Equity Securities
  7. Investments In Equity Securities Strategic Investments Control present: Subsidiary Significant influence present: Significantly Influenced Company (includes associated company) Joint control present: Joint Venture
  8. Investments In Equity Securities Non-Strategic Investments (Section 3855) Held-For-Trading Objective is generating a profit from short term fluctuations in price Available-For-Sale Non-strategic investments that are not classified as held-for-trading
  9. Business Combinations Separate Economic Entities Business Entity A Business Entity B Combined Entity
  10. Business Combinations Classification Current view is that all business combinations involve an acquirer This means they must be treated as a purchase (acquisition of assets)
  11. The Overlap Investments In Equity Securities Business Combinations The Overlap
  12. The Overlap Investments In Equity Securities Separate legal entities Business Combinations One economic entity Overlap: Business combinations where the combining entities remain legally separate (consolidations)
  13. Standards Business Combinations CICA Section 1582: Business Combinations CICA Section 3064: Goodwill and Intangible Assets IFRS No. 3: Business Combinations IAS No. 38: Intangible Assets
  14. Standards Equity Investments CICA Section 1590: Subsidiaries CICA Section 1601/1602: Consolidated Statements/Non-Controlling Interests IAS No. 27: Consolidated and Separate Financial Statements
  15. Standards Significantly Influenced Companies CICA Section 3051: Investments IAS No. 28: Investments In Associates
  16. Standards Joint Ventures CICA Section 3055: Interests In Joint Ventures IAS No. 31: Interests In Joint Ventures
  17. End Of Chapter 1
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