An option too many in tangible fixed assets

Article Abstract:

The new exposure draft of the Accounting Standards Board, FRED 17, 'Measurement of Tangible Fixed Assets,' may enhance the practice of measuring tangible fixed assets (TFAs). Enabling entities to choose whether their TFAs are to be carried at cost or valuation, FRED 17 aims to eliminate the practice of carrying TFAs variedly at different dates. It also provides a better measure of asset values that can be used by analysts in appraising an entity and by entities in raising finance or resisting takeovers. However, FRED 17 does not permit directors, auditors and valuers to make judgments on the frequency of valuation. It also lessens the comparability between firms that buy or construct TFAs and between firms that capitalize borrowing costs and those that do not by giving entities the option of whether to capitalize the borrowing costs from the construction of TFAs.

Accounting Standards Board, Fixed assets

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Big talk

Article Abstract:

The International Accounting Standards Committee (IASC) faces a number of issues that can potentially cause divisions among members. Among the issues that the committee is poised to tackle after the completion of its core standards in 1998 are the differences between national standards, cooperation, determination of fair values, performance reporting and the implications of new technology on the timeliness of reporting. IASC board members also expect a slew of companies shifting to International Accounting Standards, in the belief that this would ease their operations in continental Europe and lead to worldwide acceptability and credibility. A delay is not seen to be of major consequence, notwithstanding the growing number of companies listing in the US.

Panel Discussion, International Accounting Standards Board

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Going international

Article Abstract:

The practice of financial reporting in Sri Lanka reached a turning point when parliament approved the Sri Lanka Accounting and Auditing Standards Act of 1995. The new legislation required all commercial entities classified as special business enterprises (SBEs) to comply with Sri Lanka Accounting Standards (SLASs). An accounting and auditing standards board was established to monitor compliance with these standards. SBEs can be audited only by members of the Institute of Chartered Accountants of Sri Lanka, who have to adhere Sri Lanka Auditing Standards (SLAUSs). SLAs subscribe to all International Accounting Standards (IASs) except IASs 12, 26, 29, 32 and 33. There are also many similarities between SLAUSs and International Standards on Auditing.

Sri Lanka

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