DIS7 Essay Example | Topics and Well Written Essays - 500 words

DIS7 - Essay Example However, the state and local pension experts oppose GASB’s requirements; since the inclusion of pension liability in the balance sheet will mean its being treated as a long-term financial obligation, like bonds and claims (GASB, 2010). This is detrimental to the accounting procedures, since the pension accounted for in the balance sheet is the amount payable and paid every year. The Statement No. 60 changed reporting requirements for joint ventures and related organizations by requiring that both parties in the joint venture or other such arrangements should report their portion of revenues received, as opposed to an earlier practice where the revenue of such ventures were reported jointly under single financial statements (GASB, 2010). The statement also requires such ventures to disclose their arrangements, including the assets, rights, guarantees, liabilities and commitments. The statement sought to improve the accounting practices by improving disclosures, while at the same time creating similarity and comparability between the financial statements of the non-governmental and governmental entities (GASB, 2010). However, the statement complicates the financial reporting for joint ventures and other such organizations, and should be improved through retaining the requirements for disclosure, but eliminating separate financial reporting requirement for the parties involved jointly. .LIFO should not be a valid inventory valuation method under IFRS, because it may not give the exact stock valuation. On the event of rising stock prices, LIFO results to the understatement of the value of closing stock. This, on the other hand, raises the valuation of the costs of goods sold; resulting to a reduction in the reported profits (Bloom & Cenker, 2009). Therefore, the consequences of US companies to using LIFO, if they move to IFRS, is that the profits earned will always be