1. Introduction to Accounting Preparing for a User’s Perspective
What are US GAAP and IFRS and how do they benefit management, investors and creditors?
Debits and Credits Trainer
By Kevin C. Kimball, CPA
with support from
Free Jan. 2014
Available on the Google Play Store

2. General Purpose Financial Statements
What Are ?
United States Generally Accepted Accounting Principles (US GAAP)
International Financial Reporting Standards (IFRS)
General Purpose Financial Statements
& Guidance

3. CAP APB FASB SEC Private Companies Public Companies
1939 Committee on Accounting Procedure
APB
1951 Accounting Principles Board
Private Companies
FASB
1973 Financial Accounting Standards Board
SEC
Public Companies
1934 Securities Exchange Commission

4. FASB US GAAP for public co’s US GAAP for private co’s
Can you help us create US GAAP for public co’s?
We’d love to.
FASB
US GAAP for public co’s
US GAAP for private co’s

5. US GAAP FASB Accounting Standards Codification Private Companies
For a Good video on the ASC see Jeff Sailor Seminars
FASB Accounting Standards Codification
US GAAP
100 General Principles 200 Presentation of Financial Statements 300 Assets
400 Liabilities 500 Equity 600 Revenue 700 Expenses 800 Broad Transactions 900 Industry
- 330 Inventory

6. Wow! I found that quickly.
And I got it right.
Wow! I found that quickly.
FASB Accounting Standards Codification (ASC)
100 General Principles 200 Presentation of Financial Statements 300 Assets
400 Liabilities 500 Equity 600 Revenue 700 Expenses 800 Broad Transactions 900 Industry
Management

7. 2013 Apple 1 1976 FASB Accounting Standards Codification (ASC)
100 General Principles 200 Presentation of Financial Statements 300 Assets
400 Liabilities 500 Equity 600 Revenue 700 Expenses 800 Broad Transactions 900 Industry

8. Old US GAAP New US GAAP ABC Company Statement of Cash Flows
For the year ended 12/31/87
Operating cash flows
Investing cash flows
Financing cash flows
= Change in cash
+ Beginning cash
= Ending cash
ABC Company
Sources and Uses of Working Capital
For the year ended 12/31/86
Sources of funds
Uses of funds
= Change in funds
+ Beginning funds
= Ending funds
Old US GAAP
New US GAAP

9. Unofficial US GAAP Official US GAAP - Less efficient - More efficient
- Less effective
- More effective

10. International Financial Reporting Standards
Past: IASC
Now: IASB
IFRS adoption by country report from pwc

11. IFRS
IFRS for SMEs
IAS 1, 2, 7, 8, 10, 11, 12, 16, 17, 18, 19, 20, 21, 23, 24, 26, 27, 28, 29, 32, 33, 34, 36, 37, 38, 39, 40, 41, IFRS 1, 2, 3, 4, 5, 6, 7, 8, 9, 10, 11, 12, 13

12. IASB FASB IFRS US GAAP Single set of world-wide accepted standards?
Could Improve Efficiency & Effectiveness

13. How does US GAAP benefit
investors
creditors?
efficient
effective

14. How do US GAAP and IFRS help make investors and creditors more efficient?
$5.6 B
$6.2 B
Compare statements quicker
Find GAAP faster
Russian GAAP
US GAAP
Analyze earlier (no translation needed)

15. How do US GAAP and IFRS help make investors and creditors more effective?
I don’t get it.
I get it.
A = L + OE
Net Income
Cash
US GAAP

16. Not sure I got that conversion right.
$200 per 100 liter
$200 per 30 gallons
$200 per g
$200 per 30 g

17. K-IFRS
K-IFRS
US GAAP
US GAAP

18. International companies may choose IFRS or US GAAP.

19. IFRS US GAAP Private & Public GAAP is helping me be more EFFICIENT.
GAAP is helping me be more EFFECTIVE.

20. Introduction to Accounting Preparing for a User’s Perspective
What are US GAAP and IFRS and how do they benefit management, investors and creditors?
Debits and Credits Trainer
By Kevin C. Kimball, CPA
with support from
Free Jan. 2014
Available on the Google Play Store