• Service: General
  • Industry: Real Estate and Construction
  • Type: Publication series
  • Date: 8/8/2012

GAAP FOCUS – July 2012 

In this edition, we have discussed how the new consolidation rules under IFRS may have significant financial reporting implications for investment companies (IC) and fund managers, which in turn may require reassessment of previous consolidation conclusions.  The article also discusses FASB’s new proposal on accounting by investment property entities (IPE) - being a relatively new concept under US GAAP. Finally, where relevant, the accounting guidance for IC and IPE has been contrasted between US GAAP and IFRS. 

Recently, the ICAI issued a Guidance Note on Accounting for Real Estate Transactions.  A synopsis of certain key concepts and differences in the accounting for real estate transactions between the Guidance Note under Indian GAAP and IFRS is included in this newsletter. You will note that significant differences in financial reporting would continue to exist when developers/real estate entities prepare their financial statements under Indian GAAP and IFRS.

The US Congress passed the Jumpstart our Business Startups Act (JOBS Act) to encourage raising of public capital in the US by simplifying the registration and filing process and providing certain incentives and exemptions for a new category of public issuers called emerging growth companies.  Some of the key provisions of the JOBS Act, which impact financial reporting, registration statements and internal control of entities have been highlighted

The Committee of Sponsoring Organizations of the Treadway Commission (COSO) has issued a proposed update to Internal Control - Integrated Framework (proposed Framework) for public comment.  The original Framework issued in 1992 has been one of the most widely accepted frameworks for designing and evaluating systems of internal control - used also by public entities for their ICOFR evaluation under SOX. We have explained some of the key changes in the proposed Framework, including action steps that management may have to consider. 

Finally, latest update on US GAAP for private company financial statements and proposed guidance by IFRIC are discussed in this newsletter


GAAP FOCUS – July 2012
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