A company's financial statements consist of the balance sheet, income statement, and statement of cash flows. The topic this week is the difference between GAAP and IFRS. Choose the financial statement that you consider most important to a business leader in Saudi Arabia.
Search the SEU library or the internet for an academic or industry-related article. Select an article that relates to your financial statement choice and the differences between GAAP and IFRS.
For your discussion post, your first step is to summarize the article in two paragraphs describing what you think are the most important points made by the authors (remember to cite the information, as appropriate). For the second step, include the reference listing with a hyperlink to the article.
Please note, do not copy the article into your post and limit your summary to two paragraphs. Let me know if you have any questions. Enjoy your search.
Embed course material concepts, principles and theories, which require supporting citations along with at least one scholarly peer reviewed reference in supporting your answer unless the assignment calls for more. Keep in mind that these scholarly references can be found in the Saudi Electronic Library by conducting an advanced search specific to scholarly references.
You need to reply to at least two peer discussion question post answers to this weekly discussion question. These post replies need to be substantial and constructive in nature.
They should add to the content of the post and evaluate/analyze that post answer. Normal course dialogue doesn't fulfill these two peer replies but is expected throughout the course. Answering all course questions is also required.
Use Saudi Electronic University academic writing standards and APA style guidelines.
Module Introduction
Readings
Note: The following readings will require you to be logged in to the Unified Login System and the Saudi Digital Library. To log in, please clickhere.
Required
Chapter 3 in Foundations of Finance
IFRS. (2015).IFRS application around the world: Jurisdictional profile: Saudi Arabia.
Recommended
Chapter 3 PowerPoint slides - Foundations of Finance
Du, N., Alford, R. M., & Smith, P. L. (2016).Do GAAP and IFRS differ in collectiblity judgments related to revenue recognition? Journal of Applied Business Research, 32(6), 1675-1686.
KPMG. (2014). IFRS compared to US GAAP: An overview.
Wieczynska, M. (2016).The "big" consequences of IFRS: How and when does the adoption of IFRS benefit global accounting firms? Accounting Review, 91(4), 1257-1283.
For Your Success
This module has two primary sections: The first page focuses on the content of financial statements and the role each statement plays in monitoring the financial performance of organizations.
The second page follows with a discussion of the differences between Generally Accepted Accounting Principles (GAAP) used in the United States and International Financial Reporting Standards (IFRS) being adopted in Saudi Arabia and globally.
Assignments required in this module
Compare your local time to US Mountain Time (Denver, Colorado, USA) to determine the time you need to submit your assignments based on your local time. Use these time zone converters to help translate your time:
Finance Principles for this module
Principle 1: Cash Flow is What Matters - We are concerned with the money in hand, not accounting profit.
Principle 5: Conflicts of Interest Cause Agency Problems - Conflicts of interest between owners and managers can create challenges for optimal efficiency and value creation in organizations.
Learning Outcomes
1. Evaluate financial statements.
2. Calculate cash flow.