Comparing IFRS to GAAP Business, financial markets and mergers crossing international borders has become the new norm because of the advances in technology. This has led to many people calling for one set of international accounting standards. I will compare the international standard known as IFRS to the U.S. standard known as GAAP. IFRS The International Financial Reporting Standards (IFRS) was developed by the International Accounting Standards Board (IASB). Currently, there
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Comparison between U.S. GAAP and International Financial Reporting Standards May 2013 © 2013 Grant Thornton LLP All rights reserved U.S. member firm of Grant Thornton International Ltd Comparison between U.S. GAAP and International Financial Reporting Standards 2 Contents 1. Introduction .................................................................................................................................................. 6 International standards and the IASB .........
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One Global GAAP: IFRS vs. US GAAP Acct 522 Current Topics in Financial Reporting Zhipeng Cao CIN: 300443421 Introduction The most influential accounting reporting criteria today is the International Financial Reporting Standards (IFRS) by and U.S Generally Accepted Accounting Principles (U.S. GAAP). These two different accounting standards have various emphases. In short, IFRS states principles and it leaves the decision-making in everyday questions for accountants, while US GAAP consists of
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Impact of LIFO Accounting When discussing IFRS vs. GAAP regarding inventory, LIFO Accounting is one of the most controversial topics. Although LIFO is hardly used globally, it is heavily used in the United States. A shift from LIFO would have a significant effect on US companies specifically because tax law requires any company that uses LIFO for tax purposes to also use it for book accounting according to Internal Revenue Code (IRC) §472(c). Since IFRS disallows LIFO Accounting, US companies will
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Daniel Laux October 26, 2011 Techniques from "What You Pawn I Will Redeem" In Sherman Alexander’s short story “What You Pawn I Will Redeem”, there are quite a few interesting writing techniques one could use as inspiration for a new story. One interesting technique used in this story is when the author splits the story into smaller paragraphs, and then titles each of said paragraphs with a time of the day (an example being 3 P.M.). I think this is a rather interesting technique to
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Reporting Standards and Canadian GAAP have a few similarities, but many differences. They both define the business combination as a transaction in which an acquirer obtains control over one or more businesses. Both sets of standards also define the date of acquisition as the date which control is transferred. However, that’s where the similarities end. The key differences between IFRS and Canadian GAAP arise when accounting for a business combination. First, under Canadian GAAP, when an acquirer purchases
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Differences between IFRS and U.S GAAP Duoyi Zhang (1) | Issue: |Measurement basis of agricultural crops, livestock, orchards, | | |forests. | |1.IFRS IAS 41, Para 10-33 |Fair value with value changes recognized in profit or loss. | |2.U.S GAAP
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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
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| IFRS | U.S. GAAP | Marketable Investment Security (STI)(The int. inc, realized G/L when sold, and div inc are reported in the I/S) | Same as GAAPExcept for the trading sec, it is called Held-for-trading sec.Quantitative (amount)/qualitative (managing) Disclosure: credit risk, liquidity risk, and market risk. | Held-to-maturity sec (debt sec with intent to be owned)B/S: Amortized cost (FV- unamort. Discount/+ua. premium)I/S: No effect (except sold or disposed)Trading sec (debt/eq sec.—derivatives/shares)
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IFRS vs GAAP: Concerns about LIFO General accepted accounting principles (GAAP) allows the use of LIFO (Last-in First-out) under ASC 330-10-30-9 to determine inventory costs. However, IFRS (International Financial Reporting Standards) does not allow the use. Many companies choose to use the LIFO method because it allows the higher value inventory to be included into the cost of sales. This results in a smaller profit margin that further results in less tax. IFRS doesn’t allow the use of LIFO for
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