IFRS VS U.S Gaap

User Generated

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Business Finance

acct430

Broward Community College

Description

Review the differences in the presentations of the 4 main financial statements (income statement, statement of owner’s equity, statement of cash flow, and balance sheet) between IFRS and US GAAP.

  • Choose 2 differences from each of the statements to share in your posts.
  • Discuss how the changes that you have chosen will impact the financial reporting of U.S. corporations.

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Explanation & Answer

Attached.

Running head: ACCOUNTING

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Accounting
Student’s name
Institution

ACCOUNTING

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Financial reporting practices usually vary from on country to the next. The Financial
Accounting Standards Board sets the financial reporting practices in the United States which
follows the Generally Accepted Accounting Principles (GAAP). GAAP involves a set of
generally accepted standards, principles and procedures that organizations are expected to follow
when making their financial reports. There is also the International Financial Reporting
Standards (IFRS) that are international standards that regulate how transactions should be
reported in financial statements. The International Financial Reporting Standards are aimed at
developing a common accounting language for easier business an accounting across borders. The
International Accounting Standards Board is responsible for regulating international financial
reporting.
GAAP and IFRS have some similarities and differences. In developing income
statements the IFRS does not prescribe a specific format to be followed but GAAP dictates the
steps to create one in a single step of multiple steps format. GAAP in the single step has all t...


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