IFRS is more than sounder conceptually than GAAP since it is based on more on principles unlike GAAP which is based on rules. Principle based accounting is conceptually sounder since it requires high level of professional judgment rather than rule based which requires discretion of those applying the rules. The application of GAAP can lead to distortions in financial statements and take away the economic substance from the transactions. Also, GAAP is voluminous and has numerous interpretations than IFRS which makes it more complex.
Discuss the major similarities and differences between U.S. GAAP and IFRS. Which of the differences do you find most interesting?If there is a convergence between U.S. GAAP and IFRS, would you choose the U.S. GAAP or IFRS method? Why?
Which overall type of accounting standard do you prefer; GAAP or IFRS, and why? (300 words minimum)
Why were efforts made to converge the GAAP and IFRS standards?
IFRS and US GAAP are different because: A. IFRS is more rules based and US GAAP is more principles based B. IFRS is more principles based and US GAAP is more rules based C. IFRS is more prescriptive and US GAAP is more descriptive D. IFRS is more objective and US GAAP is more subjective
Which of the following is a benefit of the convergence between US GAAP and IFRS? Group of answer choices B. All companies now have a choice between different sets of financial reporting standards C. The IASB and FASB use the exact same conceptual framework to generate accounting standards D. All companies will produce financial statements in English A. Increased comparability between financial statements produced in different countries As a result of the convergence efforts since 2007: Group of answer choices...
Which of the following is true with regard to pension accounting under GAAP and IFRS? Group of answer choices The accounting for defined-benefit pension plans is the same under GAAP and IFRS. Accounting for defined-benefit pensions is typically a less important issue in the U. S. than in other parts of the world. Prior service cost is recognized on the balance sheet under both GAAP and IFRS. Prior service cost is amortized into income over the expected service lives of...
Which of the following statements is incorrect concerning balance sheets prepared under IFRS and GAAP? A) The same elements are used in preparing balance sheets under both GAAP and IFRS. B) Under IFRS stockholders' equity is listed before liabilities, while under GAAP liabilities are listed before stockholders' equity. C) Under GAAP assets are usually listed in increasing order of liquidity, while under IFRS assets are usually listed in decreasing order of liquidity. D) Under GAAP current items are presented first,...
Which of the following is true with regard to pension accounting under U.S. GAAP and IFRS? Prior service cost is recognized on the balance sheet under both U.S. GAAP and IFRS. Accounting for defined-benefit pensions is typically a less important issue in the U. S. than in other parts of the world. The accounting for defined-benefit pension plans is the same under U.S. GAAP and IFRS. The accounting for defined contribution p
Which statement is true concerning U.S. GAAP versus IFRS reporting for business combinations? A. U. S. GAAP and IFRS both require capitalization of in-process R&D as an identifiable intangible asset. B. U.S. GAAP and IFRS both require all asset and liability valuation corrections to be reported in income. C. U.S. GAAP requires recognition of an earnout as part of initial acquisition cost, while IFRS requires an earnout to be recorded only when it is paid. D. U.S. GAAP expenses consulting...
Which standard (GAAP or IFRS) presents a more fairly financial statement?