How Do Firms Address Multiple Taxonomy Issues?
As a matter of course in international business, multinational firms produce reports according to different taxonomies for the same entity. However, the relation between US and IFRS taxonomies is nontrivial. There are some exact correspondences of accounts and some accounts which lack congruence. This issue is complicated by the need to have different industry taxonomies applicable to different reporting needs in different countries. The source of the differences is the different regulatory accounting approaches to economic events. This paper addresses these taxonomy issues, both generally and with a case example of a specific firm. Investors, companies, and regulators have the need to reconcile statements produced under alternative taxonomies. This problem is not restricted to this one issue. For example government authorities create XBRL taxonomies for banking purposes and then need to reconcile with generally used Generally Accepted Accounting Principles (GAAP) taxonomies from different jurisdictions.
KeywordsIntangible Asset Income Statement Generally Accepted Accounting Principle Financial Account Standard Board Line Item
Unable to display preview. Download preview PDF.
- Ernst & Young (2005): IFRS/US GAAP Comparison, Ernst & Young LLP, United Kingdom.Google Scholar
- FASB Press Release 7/6/06 (2006): US FASB and IASB Publish First Draft Chapters of Joint Conceptual Framework, Press Release.Google Scholar
- FASB Press Release 5/22/06 (2006): Representatives of the Financial Accounting Standards Board and the Accounting Standards Board of Japan Meet In Pursuit of Global Convergence, Press Release.Google Scholar
- FASB Press Release 2/27/06 (2006): FASB and IASB Reaffirm Commitment to Enhance Consistency, Comparability and Efficiency in Global Capital Markets, Press Release.Google Scholar
- FASB News Release 06/01/05 (2005): FASB Issues Accounting Standard That Improves the Reporting of Accounting Changes as Part of Convergence Effort with IASB Press Release.Google Scholar
- Hakimpour, F.; Geppert, A. (2005): Resolution of Semantic Heterogeneity in Database Schema Integration using formal Ontologies, Information and Technology Management, 6.Google Scholar
- Hoffman, C. (2006): Financial Reporting Using XBRL IFRS and US GAAP Edition, Lulu.Google Scholar
- Lee, M. L.; Wang Ling, T. (2003): A Methodology for Structural Conflict Resolution in the Integration of Entity-Relationship Schemas, Knowledge and Information Systems, 5Google Scholar
- Nicolle, C.; Yetongnon, K.; Simon, J.-C. (2003): XML Integration and Toolkit for B2B Applications, Journal of Database Management, 14(4).Google Scholar
- Radebaugh L.; Gray S.; Black E. (2005): International Accounting and Multinational Enterprises, 6, Wiley.Google Scholar
- Schmitt, I.; Saake, G. (2005): A Comprehensive Database Schema Integration Method based on the Theory of Formal Concepts, Acta Informatica, 41(7/8).Google Scholar