Accounting Songs for CPA Exam: IFRS vs GAAP

MP3 Download (Right-click and Save): IFRS: King on this Street

CHORUS:
Get out your 10-key, Excel Spreadsheet
Ninja CPA, we gonna beat
Any exam, we achieve that feat
IFRS be the king on this street

VERSE 1:
International Account Standards Board issues IFRS
They do that and more
The most authoritative place you can see
That management looks for guidance accounting policies
IASB Framework
Yea, it helps to develop standards that work
But it’s not a standard itself, no it ain’t
Can’t supersede any standard’s authority
Verifiability
Different people would reach the same conclusion, are you feelin’ me?
Understandability
Easy to use and understand, that’s the plan, let’s keep goin’ and
Timeliness, uh
I need that info on time so I can decide how to do things right
IFRS don’t allow Extraordinary Items
IFRS don’t allow LIFO, it don’t like ‘em

CHORUS:
Get out your 10-key, Excel Spreadsheet
Ninja CPA, we gonna beat
Any exam, we achieve that feat
IFRS be the king on this street

VERSE 2:
Current Assets & Liabilities
GAAP only requires intent, not execution
Contingent liability
Uncertain future events, those are contingencies
IFRS, if “probable” and “measurable”
Classified as a provision, please listen
When it comes to timing or amount
Payment is uncertain, and that’s for certain
GAAP – probable, reasonably possible, or remote
Yea, now you know
Bonds can be recorded using one or two methods
Fair Value through profit or loss, or amortized cost
Deferred taxes
Uses the liability method to do the taxing
Only “probable” deferred tax assets get reported
All others, yea it’s best to ignore ‘em

CHORUS:
Get out your 10-key, Excel Spreadsheet
Ninja CPA, we gonna beat
Any exam, we achieve that feat
IFRS be the king on this street

VERSE 3:
The income statement
Income, finance costs, profit/loss
Discontinued ops and tax expense
Non-controlling interest is what you get
PP&E Valuation
Valued using one of two options, let’s state them
Cost model and revaluation model
You can remember this if my lyrics you follow
Pensions, defined benefit plans
Project-unit-credit-method
It calculates the PV
Of the defined benefit obligation