be compared and observed (IFRS vs. GAAP). Are IFRS balance sheets classifications the same as GAAP balance sheets, and which one is better? Are the IFRS balance sheets the same with one another, and what does IAS 1 require for a presentation format of balance sheets? It should also be determined if there should be one format for balance sheets required for all companies around the world or not. IFRS balance sheet classifications are not presented the same as US GAAP balance sheet classifications;
Words: 406 - Pages: 2
accounting to items that are material, i.e., significant to potential users of the financial statements. This concept allows the accountant to be practical in choosing the appropriate degree of precision in the accounts. Quality Attributes: Relevance vs. Reliability Relevance refers to the timeliness and usefulness of the information to its users. Reliability refers to the objectivity and verifiability of the information. Reliability is generally given precedence over relevance. Accrual
Words: 418 - Pages: 2
conceptual framework when developing new or revised International Financial Reporting Standards (IFRS) and interpretations or when amending existing IFRSs. It is used as a point of reference to help preparers of financial statements in applying IFRSs or when no specific guidance is given. The IASB’s Conceptual Framework is not an International Financial Reporting Standard and does not override any specific IFRS. However, the Conceptual Framework is used in development of future standards and the IASB is
Words: 3445 - Pages: 14
GAAP and IFRS Convergence Kenneth DeWitte Strayer University 1. Describe IFRS and GAAP and what convergence means. The International Financial Reporting Standards (IFRS) is the accounting framework used by the European Union, Japan, Canada, and other world economic leaders. The IFRS is based on the tenets of understandability, reliability, and comparability. It is based off the International Accounting Standards (IAS) and had the opportunity to be built from accounting ideas and principles
Words: 1121 - Pages: 5
Comparing IFRS to GAAP In financial reporting the U.S uses the generally accepted accounting principles, to record and report. The international financial reporting standards have been used in over 110 countries all over the world. The have similarities but are very different in structure as well, the GAAP is rules based and the IFRS is more principle based when it comes to financial reporting. I will cover some of these difference and similarities in this essay. In what ways does the format of
Words: 970 - Pages: 4
International Financial Reporting Standards vs. Generally Accepted Accounting Principals Over the last decade, the world has become increasingly connected. Businesses are embracing opportunities abroad and gathering investors from a progressively growing international market. Globalization has given rise to a number of questions regarding multicultural business practice. It has also created a need for universal financial reporting that is consistent and useful to all of its users, international
Words: 1106 - Pages: 5
Apple case questions: 1. Explain GAAP, non-GAAP numbers and their impact on financial statements GAAP vs. IFRS affects financial statements in many different areas and must be adjusted accordingly. Revenue Recognition, extraordinary items, receivables, inventory, long-lived assets, and debt and equity would all have to be altered when switching between the two. For example, LIFO inventory valuation is not permitted under IFRS. Because of this, a company would have to recalculate under the
Words: 279 - Pages: 2
Rules vs. Principles Based Accounting Standards in the United States Elsie M. Powell Liberty University Online ACCT 301-D01 December 7, 2014 Rules vs. Principles Based Accounting Standards The United States of America is under a great decisional debate, should the United States adopt a more principles-based accounting standard or stay with the more rules-based standard that is currently used. The two standards offer differing views on how a company should approach their accounting needs.
Words: 1970 - Pages: 8
Standards (IFRS) and the US Generally Accepted Accounting Principles (US GAAP). Convergence also seeks to establish understandability amongst users and enforceable by regulators (Erchinger, Melcher, 2007). The International Accounting Standards Board (IASB) and the Financial Accounting Standards Board (FASB) have been trying to implement a global acceptable standard for financial reporting since the end of 2002 onwards (Fogarty, 2011). However to this day in 2013 the convergence of both IFRS and US
Words: 1269 - Pages: 6
with the switch to IFRS Xiaochen Zhang Texas A&M University-Commerce Abstract Recently, there are an increasing number of companies switching from GAAP to IFRS. The subject of this article is mainly about how managers deal with the switch to IFRS. This paper discusses the background of changing standard, and why manager must switch the standard to IFRS. At last, it points out several methods that managers should take in order to switch to IFRS. Keywords: IFRS, GAAP, switch Introduction
Words: 1193 - Pages: 5
