Essentially, IFRS 4 allows insurance contracts to continue to be accounted for
under local GAAP methods,"as long as they can be identified as insurance contracts," said Nagari, whose London-based group is developing a "global interpretation" of IFRS, along with PwC's position on the implications of IFRS 4 for insurance contracts.
Further, the taxpayer must attach a statement to the Form 3115, describing all items marked to market that will no longer be accounted for
under that method.
This led the Fifth Circuit to allow depreciation and ITC on the nonrecoverable cushion gas, but to require the recoverable cushion gas to be accounted for
Accordingly, these leases should be accounted for
as capital leases.
Deals of this size frequently are accounted for
as poolings and often are contingent on the acquirer receiving pooling accounting treatment.
Compound instruments--Should the fundamental components of some compound instruments be accounted for
and displayed separately in the balance sheet?
Utilities most frequently accounted for
nuclear decommissioning costs (the method approximately 57% of utilities used) by recording the costs as a part of depreciation expense with a corresponding entry to accumulated depreciation.
In an effort to standardize the accounting for all derivative instruments, the standard requires recognition on the balance sheet at fair value of previously unrecognized derivative instruments, such as interest rate swaps used to hedge historical-cost-based assets and liabilities accounted for
using accrual accounting, a step that many non-CPAs find inconsistent and illogical when compared to current practice.