International Financial Reporting Standards (IFRS) is the accounting method that’s used in many countries across the world. It has some key differences from the Generally Accepted Accounting Principles (GAAP) implemented in the United States. As an accounting professional or business owner, it’s vital to know the variations of these accounting methods, in order to successfully manage your company globally, as well as domestically.
A major difference between GAAP and IFRS is that GAAP is rule-based, whereas IFRS is principle-based.
With a principle based framework there is the potential for different interpretations of similar transactions, which could lead to extensive disclosures in the financial statements. Although, the standards setting board in a principle-based system can clarify areas that are unclear. This could lead to fewer exceptions than a rules-based system.Another difference between IFRS and GAAP is the methodology used to assess an accounting treatment. Under GAAP, the research is more focused on the literature whereas under IFRS, the review of the facts pattern is more thorough.
Expert Q&A Done Which standard (GAAP or IFRS) presents a more fairly financial statement?
Pick one please and defend your answer
Expert Q&A Done Which standard (GAAP or IFRS) presents a more fairly financial statement?
Which standard (GAAP or IFRS) presents a more fairly financial statement?
Which statement is NOT correct regarding International Financial Reporting Standards (IFRS)? a. IFRS is an accepted standard for public financial reporting in over 130 countries b. IFRS is an accepted standard for foreign companies filing with the U. S. Securities and Exchange Commission c. IFRS is an accepted standard for domestic companies filing with the U.S. Securities and Exchange Commission d. IFRS are principles-based while U.S. GAAP includes more detailed rules
What will be a good abstract paper about Financial Statement regarding GAAP and IFRS?
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...
16- US GAAP and the IFRS differ on their definition of financial assets in that only the IFRS defines it as: a) An equity instrument (of anther entity) b) A contractual right to receive cash c)There is no difference in the definition between US GAAP and the IFRS 17- Under IFRS, a lease is not an operating lease and is classified as capital lease when: a) 50% or more of its economic life transfers to the lessee b) Risks and...
With regard to reporting of contingent liabilities, U.S. GAAP and International Financial Reporting Standards (IFRS) differ in defining the term "probable". Which of the following is correct with regard to defining "probable"? Multiple Choice Under IFRS, "probable" means the chance of an event occurring is slight. Under U.S. GAAP, "probable" means the chance of an event occurring is slight but less than likely. Under IFRS, "probable" means an event is more likely than not to occur. Under U.S. GAAP, "probable"...
International accounting. I 1.Canadian securities regulations require use of _______. US GAAP Canadian GAAP IFRS US GAAP or Canadian GAAP None of the answers apply 2. In Mexico a company can use_______ for financial reporting. IFRS US GAAP NAFTA US GAAP or IFRS None of the answers apply. 3. The _____ underpins any accounting standards in the United States. SEC FASB AICPA PCAOB None of the answers apply. 4. Rules for filing annual financial statements that are submitted to the...
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...
1) IFRS standards: A. Are established by the Financial Accounting Standard Board (FASB) B. Are established by the International Accounting Standard Board (IASB) D. Are established by the Securities and Exchange Commission (SEC) C. Are enforced by the International Accounting Standard Board (IASB) 2) What are the main reasons why US GAAP and IFRS differ? D. Cultural differences have no effect on developing multiple different standards in the world including IFRS and US GAAP ...