Target Versus Tesco: Comparing The Reporting Of Cash Flows Under GAAP And IFRS
- ASU Author/Contributor (non-ASU co-authors, if there are any, appear on document)
- Dr.. Ken S. Brackney, Professor (Creator)
- Tracy Reed PhD, Associate Professor (Creator)
- Institution
- Appalachian State University (ASU )
- Web Site: https://library.appstate.edu/
Abstract: Convergence of U.S. Generally Accepted Accounting Principles (GAAP) and International Financial Reporting Standards (IFRS) has been a high-profile issue for several years. However, in a report released by the Securities and Exchange Commission (SEC) in 2012, the SEC appears to back away from adoption of IFRS, citing significant remaining differences between the two sets of standards as a part of the reason for the shift away from adoption (SEC 2012). The two standard-setting bodies, the Financial Accounting Standards Board (FASB) and the International Accounting Standards Board (IASB), are working to converge on a few more of these differences, but a sizeable number will remain. One example of a remaining difference is the reporting of cash flows. GAAP and IFRS provide guidance that is conceptually similar, but can differ significantly on detailed requirements and implementation. This paper offers a statement of cash flows assignment that faculty can use to help accounting students develop a better understanding of an often-overlooked financial statement as well as some of the significant differences between the GAAP and IFRS guidance. The assignment requires students to compare the reporting of cash flow information by two large retailing companies from different countries, Target Corporation and Tesco PLC, to gain insight into how the GAAP and IFRS guidance differs. Students must review the statements of cash flows and related note disclosures for the companies and research the relevant GAAP and IFRS standards that drive many of the differences in their reporting of cash flow information. This assignment can be used in an intermediate accounting course that covers the statement of cash flows or a separate international accounting course that includes a unit on IFRS.
Target Versus Tesco: Comparing The Reporting Of Cash Flows Under GAAP And IFRS
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Created on 1/25/2022
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Additional Information
- Publication
- Brackney, K. and Reed, T. (2015). Target Versus Tesco: Comparing The Reporting Of Cash Flows Under GAAP And IFRS, Accounting Instructor' Report. Winter 2015. Publisher version of record available at: https://www.needles-powers.com/AIR/AIR_2015_winter.pdf
- Language: English
- Date: 2015
- Keywords
- accounting, Traget, Tesco, cash flow, U.S. Generally Accepted Accounting Principles (GAAP),
International Financial Reporting Standards (IFRS),
Securities and Exchange Commission (SEC)