We use cookies to give you the best experience possible. By continuing we’ll assume you’re on board with our cookie policy

Mexican Gaap vs Us Gaap Essay Sample

essay
The whole doc is available only for registered users OPEN DOC
  • Pages:
  • Word count: 601
  • Category: costs

A limited time offer!

Get a custom sample essay written according to your requirements urgent 3h delivery guaranteed

Order Now

Mexican Gaap vs Us Gaap Essay Sample

Inflation Effects of inflation should be recorded on the financial statement.Included in the results of operations is a gain or loss from monetary position that represents the inflation gain or loss from maintaining net monetary liabilities or assets, respectively. In the U.S. GAAP no gain or loss on monetary position is recognized in the financial statements. Deferred Taxes Mexican GAAP recognizesDeferred tax effects for all transactions that are affected in different periods. Deferred income tax assets and liabilities are determined by comparing the financial statement and tax basis of assets and liabilities and multiplying the difference by the enacted tax rate. U.S. GAAP requires an asset and liability approach for financial accounting and reporting for income taxes. Deferred tax assets are reduced by a valuation allowance when it is more likely that some or all of the deferred tax assets will not be realized. Employee Profit Sharing Current and deferred employee profit sharing expense is included in provisions under Mexican GAAP. The provision for current and deferred employee profit sharing is expensed as incurred as an operating expense for U.S. GAAP purposes.

Purchase Accounting The excess of the purchase price over the net book value is recorded as goodwill and amortized over a period not to exceed twenty years.Negative goodwill is recorded as a deferred credit and amortized over a period not to exceed five years. The purchase method of accounting requires to record at fair value the assets acquired and liabilities assumed. The difference between the purchase price and the sum of the fair value assets less liabilities assumed is recorded as goodwill. Goodwill is amortized over a period not to exceed forty years.Negative goodwill should be allocated to proportionately reduce the values assigned to noncurrent assets Consolidation An entity should consolidate all subsidiaries in which it has control. An entity should consolidate all subsidiaries in which it has a controlling financial interest represented by the direct or indirect ownership of a majority voting interest, except those in which control of the subsidiary is temporary or significant doubt exists regarding the entity’s ability to control the subsidiary. Derivative Financial Instruments Mexican GAAP requires the recognition of certain derivatives on the balance sheet, also requires that all gains and losses on derivative hedging instruments be recorded in current earnings. US GAAP requires that all derivative financial instruments are recognized at fair value as either assets or liabilities purposes.

Preoperating Costs Preoperating costs are permitted to be capitalized and amortized over a period of time estimated to generate the income necessary to recover such expenses. Preoperating costs are expensed as incurred. Capitalized Financing Costs The capitalization of financing costs could be taken as part of the cost of assets under construction but is not require. The capitalization of interest during construction should be taken as qualifying assets. Minority Interest Minority interest is presented as a separate component within the stockholders’ equity section of the consolidated balance sheet and is reported separately from consolidated net income in the income statement. Minority interest is included as a separate income or expense on the income statement. Statement of Cash Flows Requires a statement of changes in financial position which identifies the sources and uses of resources determined based on the differences between the beginning and ending financial statement balances in constant pesos. provided by operations. Requires a statement of cash flows describing the cash flows provided by or used in operating, investing and financing activities. Non-cash transactions are excluded from the statement of cash flows. Comparative financial statement 3 year comparative financial statement presentation 1 year presentantion of comparative financial information.

We can write a custom essay

According to Your Specific Requirements

Order an essay
Get Access To The Full Essay
icon
300+
Materials Daily
icon
100,000+ Subjects
2000+ Topics
icon
Free Plagiarism
Checker
icon
All Materials
are Cataloged Well

Sorry, but copying text is forbidden on this website. If you need this or any other sample, we can send it to you via email.

By clicking "SEND", you agree to our terms of service and privacy policy. We'll occasionally send you account related and promo emails.
Sorry, but only registered users have full access

How about getting this access
immediately?

Become a member

Your Answer Is Very Helpful For Us
Thank You A Lot!

logo

Emma Taylor

online

Hi there!
Would you like to get such a paper?
How about getting a customized one?

Can't find What you were Looking for?

Get access to our huge, continuously updated knowledge base

The next update will be in:
14 : 59 : 59
Become a Member